Previous Day Highlights

FBM KLCI continues to trend higher as bargain hunting on grossly oversold blue chips persisted amid upbeat performance across the region. The benchmark index gained 0.80% or 11.26 points to close at 1,420.35. Gainers were led by NESTLE, PPB and PETDAG. Market breadth was positive with 574 gainers against 331 losers while 400 counters remain unchanged. Total volume stood at 3.42bn shares valued at RM1.74bn.

Key regional markets closed mostly on positive note except SHCOMP which slipped slightly by 0.16% to close at 3,240.06. Meanwhile Nikkei 225 and STI jumped 1.33% and 0.22% to end at 27,883.78 and 3,262.54 respectively whereas HSI soared 2.06% to end at 20,192.40.

Wall Street staged a relief rebound lifted by heavyweight on tech sector and further signs of easing worries within the banking sector. The DJIA and S&P500 climbed 1.00% and 1.42% to end at 32,717.60 and 4,027.81 respectively. Meanwhile, Nasdaq soared 1.79% to close at 11,926.24.

News For The Day

Kim Loong posts record high revenue and profit for FY23

Kim Loong Resources, which posted a record high profit and revenue for FY23 on higher crude palm oil prices, expects CPO prices to stay above RM4,000 per tonne in FY24. The group's FY23 net profit rose 19.02% YoY to an all-time high of RM162.56m from RM136.58m, as revenue increased 12.08% YoY to a record RM1.91bn from RM1.7bn. The group declared a final dividend of five sen per share, payable on Aug 29. This brings the total dividend payout for FY23 to 15 sen compared with 14 sen paid in FY22.-The Edge Markets

MKH to list subsidiary on Main Market

Property developer MKH plans to list its oil palm plantation arm MKH Oil Palm (East Kalimantan) (MKHOP) on the Main Market of Bursa Malaysia by the 4QCY23. MKH proposes to undertake an initial public offering (IPO) of 24.5% of MKHOP’s enlarged share capital, after completing a slew of pre-listing corporate exercises. The group said prior to the IPO, MKHOP is to undertake a one-to-six share split which would result in the unit’s share base expanding from 110.47m shares to 662.81m shares, with a maintained issued share capital of 110.47m. -The Edge Markets

Coraza plans placement to raise RM69.5m

ACE Market-listed Coraza Integrated Technology has planned a private placement of up to 20% of its share base to raise an estimated RM69.54m, mainly to fund the purchase of new machinery. The placement will comprise of the issuance of up to 85.85m shares to independent third parties to be identified, at an issue price to be determined.-The Edge Markets

Classic Scenic announces interim dividend of 5.5 sen

Classic Scenic Bhd announced an interim single-tier dividend of 5.5 sen per share for the FY23, to be paid on April 28. Its exdate is April 12 and its entitlement date is April 13. Classic Scenic — a wooden picture frame moulding and timber products manufacturer — has not paid dividends for the last two years, with the last interim dividend of three sen paid in its FY20. -The Edge Markets

BDB acquires companies for RM13m

Bina Darulaman (BDB) has proposed to acquire Gemi Puncak SB and Gemi Puncak Quarry SB for RM13m. BDB said its subsidiary BDB Infra SB signed a share sale agreement with Gemi Puncak and Gemi Puncak Quarry. The agreement involves the purchase of shares at a purchase price of RM13m.-The Star

Our Thoughts

Wall Street rebounded as concerns over the banking sector eased coupled with expectations that the Federal Reserve may halt its rate hike in May. As such, both the DJI Average and S&P 500 gained 323 points and 56 points respectively while the Nasdaq jumped by 210 points as the US 10-year yield remains at 3.57%. Hong Kong equities saw a steep increase with the HSI added more than 400 points to surge pass the 20,000 level as worries of a banking crisis abates. The reorganization of the Alibaba Group further fueled optimism that propped up Chinese tech stocks. As for the local bourse, it was another good day as the FBM KLCI continued to be supported by ongoing accumulation of Banking and Telco stocks that saw the index touching 1,420 mark. In line with the improving sentiment, we reckon the ongoing uptrend to remain intact and expect the index to hover within the 1,420-1,435 range today with buying interests returning to Planation counters as the CPO closed on a week’s high at above RM3,700/tonne.

Source: Rakuten Research - 30 Mar 2023

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