Previous Day Highlights

FBM KLCI dipped to below the 1,400 level amid the global banking sector woes. The benchmark index lost 0.22% or 3.10 points to close at 1,396.60 with losers led by PETDAG, TENAGA and KLK. Market breadth was negative with 576 decliners against 279 advancers. Total volume stood at 3.37bn shares valued at RM1.72bn.

Key regional markets trended mixed as traders remain cautious about the stability of Deutsche Bank. Nikkei 225 and STI added 0.33% and 0.82% to end at 27,476.87 and 3,239.03. Meanwhile, HSI and SHCOMP dropped 1.75% and 0.44% to finish at 19,567.69 and 3,251.40 respectively.

Wall Street closed mostly higher as worries over the banking sector continued to ease. The DJIA and S&P500 gained 0.60% and 0.16% to end at 32,432.08 and 3,977.53 whereas Nasdaq declined 0.47% to close at 11,768.84.

News For The Day

Gamuda and Castleforge to acquire Wessex Winchester Propco for RM1.39bn

Gamuda, in partnership with Castleforge Partners Ltd via Venta Belgarum II Ltd Partnership (VB II), signed a sale and purchase agreement to acquire 100% equity interest in Wessex Winchester Propco Ltd (Prop Co), owner of Winchester House, for a total cash consideration of £257m (RM1.39bn) from Wessex Winchester Ltd Partnership. VB II is a 75:25 development partnership where Gamuda holds the higher stake. Post acquisition, Gamuda said it plans to refurbish and upgrade the property into a best-in-class, toprated environmentally sustainable ESG office. -The Star

Astro posts 4Q net profit of RM54.7m

Astro Malaysia Holdings posted its 4QFY1/23 net profit of RM54.75m, maintained a cautious outlook and will monitor business conditions, whilst prudently managing costs. Astro’s 4QFY1/23 revenue stood at RM990.67m against RM1.03bn YoY. It posted its FY23 net profit of RM259.04m, down 44% YoY from RM460.9m while revenue dipped 9% to RM3.8bn against RM4.17bn YoY. Astro said in this quarter its legal entity recognised a non-cash impairment of RM763m in respect of its historical cost of investments in subsidiaries. -The Star

Infomina bags RM23.9m job from Philippine National Bank

Infomina has received a purchase order (PO) worth US$5.4m (about RM23.9m) from the Philippine National Bank (PNB). The PO is valid for three years from March 1 2023 to Feb 28 2026. Under the PO, Infomina will provide technology application and infrastructure operations, as well as maintenance and support services to PNB. The PO would expand Infomina's orderbook that stood at about RM550m, the group said. -NST

SNS Network logs RM16.8m 4Q profit

SNS Network Technology posted its 4QFY1/23 net profit of RM16.77m on a quarterly revenue of RM509.86m. The company declared a second interim dividend of 0.25 sen per share, with an ex-date of May 10, and payable on May 26. The company attributed the increase in revenue to the higher sales of ICT products, saying that it secured more orders from the commercial channel. -The Edge Markets

Samaiden gets Bursa approval for main market transfer

Samaiden Group has secured approval from Bursa Malaysia for the transfer of its stock's listing from the ACE Market to the Main Market of Bursa Malaysia. The renewable energy (RE) specialist said Bursa Securities had, vide its letter dated March 27 approved the transfer. -The Star

Our Thoughts

Wall Street closed higher on an extended relief rally as concerns over the banks seems to have receded as the US authorities continued with its bailout of banks. As a result, the DJI Average jumped by 194 points while the S&P 500 gained 6 points. However, the Nasdaq declined by 55 points as higher interest rates will dampen growth of tech companies with the US 10-year yield edged higher to 3.54%. In Hong Kong, equities slumped as the HSI was down by almost 350 points as corporate earnings from major companies came in lower than expected. Meanwhile, confidence remains fragile in view of the recent banking crisis as concerns on Deutsche Bank emerged. Back home, the FBM KLCI closed below the 1,400 mark especially from the sell down on Plantation and Telco stocks. Nonetheless, we reckon bargain hunting to emerge anytime soon despite overall sentiment remains cautious thus anticipate the index to trend between the 1,400-1,410 range today. We expect interest returning to Oil & Gas stocks supported by higher crude oil prices that rebounded due to easing worries on the banks with the Brent crude price ended above the USD78/barrel.

Source: Rakuten Research - 28 Mar 2023

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