Rakuten Trade Research Reports

Daily Market Report - 23 Mar 2023

Publish date: Thu, 23 Mar 2023, 05:48 PM
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Previous Day Highlights

FBM KLCI uptrend continued as global market sentiment turned positive ahead of FOMC meeting. The benchmark index added 0.39% or 5.49 points to close at 1,412.04. Gainers were led by NESTLE, MAYBANK and HLBANK. Market breadth was positive with 497 gainers against 377 losers while 408 counters were unchanged. Total volume stood at 3.12bn shares valued at RM1.89bn.

Key regional markets climbed higher as concern over the global financial system eased. Both Nikkei 225 and STI surged 1.93% and 1.48% to end at 27,466.61 and 3,220.98. Meanwhile, HSI and SHCOMP rose 1.73% and 0.31% to finish at 19,591.43 and 3,265.75 respectively.

Wall Street tumbled after the Federal Reserve raised interest rates by another 25bps. The DJIA retreated 1.63% to end at 32,030.11 whereas S&P 500 and Nasdaq dived 1.65% and 1.60% to finish at 3,936.97 and 11,669.96 respectively.

News For The Day

Shareholders approve Pavilion REIT's RM2.2bn Bukit Jalil Pavilion acquisition

Pavilion Real Estate Investment Trust (Pavilion REIT) says its proposed acquisition of Pavilion Bukit Jalil Mall (PBJ Mall) for RM2.2bn has been approved by its non-interested unitholders. Pavilion REIT said the acquisition, initially announced last Nov 22 would see MTrustee, as the trustee of Pavilion REIT, acquiring PBJ Mall and all related assets and rights from Regal Path SB (Regal Path), a wholly-owned subsidiary of Malton. "This acquisition is expected to increase the portfolio base of the company to RM8.3bn from RM6bn and provide future growth opportunities for the trust," it said. -The Edge Markets

Uzma clinches RM68m worth of contracts from Sabah Shell

Uzma has secured two contracts from Sabah Shell Petroleum Company Ltd to supply integrated production and integrity chemical and associated services to the Malikai Stage 1 and Gumusut Kakap projects, worth RM68.10m. Uzma's subsidiary Malaysian Energy Chemical & Services SB (Mecas) received the letters of award for the three-year contracts. - The Edge Markets

VS Industry's 2Q net profit fell 31.7% to RM30.36m

V.S. Industry's 2QFY7/23 net profit fell 31.7% YoY to RM30.36m from RM44.49m mainly due to forex losses and higher financing costs However, the company's 2QFY23 revenue rose 13.8% YoY to RM1.15bn compared to RM1.01bn. The higher revenue registered was primarily attributed to increase in sales orders from key customers. The group announced a second interim dividend of 0.3 sen, payable on April 28. -NST

Sunway sets dividend reinvestment issue price at RM1.38

Sunway has set its dividend reinvestment plan issue price at RM1.38 per share in regard to its single-tier second interim dividend announced on Feb 23. The entitlement date has been fixed for April 5, while the expected date for the allotment and issuance of the new shares, as well as payment of the cash dividend to shareholders, is May 5. Sunway announced a second interim dividend of 3.5 sen per share for FY22.-The Edge Markets

ACE-bound Cloudpoint signs underwriting agreement

Cloudpoint Technology, an information technology solutions provider, said it has signed an underwriting agreement with M&A Securities SB in preparation for its listing on Bursa Malaysia's ACE Market. -The Edge Markets

Our Thoughts

Wall Street ended lower despite the highly anticipated 25bps hike in interest rates by the Feds. Sentiment remains fragile as the Federal Reserve continue to battle inflation and that credit condition will become tighter prompting a sell-down on banking stocks. Therefore, the DJI Average tumbled by 530 points while the Nasdaq lost 190 points with the US 10-year yield closed lower at 3.45%. Over in Hong Kong, concerns over the banking crisis receded as the HSI jumped by 333 points further buoyed by Geely Automobile’s earnings that beat expectations. As for the local bourse, the FBM KLCI closed above the 1,410 level due to some late buying activities on the Banks. For today, it will be interesting to see how regional markets react to the slump on Wall Street overnight on the back of the much hyped 25bps increase. Though sentiment may turn cautious, we reckon buying activities to persist within the regional markets post the Feds decision. Therefore, we anticipate the index to trend within the 1,405-1,420 range today with interests returning to the Oil & Gas stocks underpinned by improving crude oil prices as the Brent crude edged closer to USD77/barrel.

Source: Rakuten Research - 23 Mar 2023

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