Previous Day Highlights

The FBM KLCI ended to its day high, driven by enhanced market optimism across the region. The benchmark index gained 0.54% or 7.76 points to close at 1,435.89. Gainers were led by HLFG, PETDAG and PETGAS. Market breadth was positive with 535 gainers against 321 losers. Total volume stood at 3.06bn shares valued at RM1.84bn.

Key regional markets closed broadly higher on reports that Warren Buffett intends to raise stakes in Japanese stocks. Nikkei 225 soared 1.05% to close at 27,923.37. Meanwhile, STI and HSI jumped 0.10% and 0.76% to end at 3,297.83 and 20,485.24 respectively whereas SHCOMP shed 0.05% to end at 3,313.57.

Wall Street ended mixed ahead of CPI report that could potentially impact the Federal Reserve's decision on rate hike. The DJIA gained 0.29% to end at 33,684.79 while S&P500 ended flat at 4,108.94. Meanwhile, Nasdaq fell by 0.43% to close at 12,031.88.

News For The Day

Aeon Credit ends FY23 with record profit

Aeon Credit Service (M) ended FY23 with a record performance after its 4QFY2/23 net profit jumped more than four times to RM95.34m from RM23.38m. Revenue for the quarter also grew by 19.2% YoY to RM432.66m from RM362.97m, mainly attributable to stronger loan and financing growth. The group declared a financial dividend of 21 sen per share, bringing its total dividend payout for FY23 to 49.5 sen. - The Edge Markets

YTL Cement inks MOU with CREAM to support country’s

transition to sustainable construction YTL Cement signed a memorandum of understanding (MOU) with the Construction Research Institute of Malaysia (CREAM) to support the local industry’s transition to sustainable construction. YTL Cement will be supporting CIDB’s initiatives in developing the construction industry’s workforce, improving research and development efforts, and enhancing the understanding of sustainable construction practices among industry players. -The Edge Markets

Heng Huat acquires land for RM6.32m

Heng Huat Resources Group said its subsidiary HH Land and Development SB has acquired six parcels of land for a total consideration of RM6.32m cash. The group said the purchase consideration will be funded by internally generated funds. The acquisitions are in line with its intention to diversify into the property development business. -The Edge Markets

Bursa approves FSBM’s regularisation plan

Bursa Malaysia Securities has approved FSBM Holdings’ proposed regularisation plan, about 19 months after the Practice Note 17 (PN17) company first proposed its plan on Oct 15, 2021. The information technology service and systems provider said its regularisation plan comprises a proposed capital reduction exercise, proposed shares issuance, and proposed rights issue of shares with free warrants. -The Edge Markets

Bintai Kinden to work on an amicable solution following

MBSB’s lawsuit on loan default Bintai Kinden Corp said the group is working towards reaching an amicable solution after the company was sued by MBSB Bank for allegedly defaulting on a RM109m Islamic financing facility The facility was secured by Bintai Kinden's wholly-owned subsidiary, Optimal Property Management SB to finance the construction of an on-campus accommodation for Kolej Teknologi Islam Melaka.-The Edge Markets

Our Thoughts

Wall Street ended on a mixed note as sentiment remain inclined towards rate hike ahead of the release of inflationary data over the next 2 days. Hence despite the DJI Average gained 98 points, the Nasdaq declined by 52 points as the US 10-year yield continued to edge higher at above the 3.43% level. In Hong Kong, the HSI added 154 points as sentiment improved after China’s inflation data which saw contraction for March. Meanwhile, investors are betting that the Chinese authorities may introduce some stimulus to ramp up the cooling economic activities. Domestically, the FBM KLCI maintained its uptrend to close above the 1,435 mark attributed to broad-based buying on blue chips. Nonetheless, we reckon market sentiment to remain cautious ahead of the US inflationary data hence expect the index to hover within the 1,430-1,440 range today. We believe accumulation on Banking stocks to persist and anticipate hard tech related counters to face with some headwinds in view of the slowing global demand.

Source: Rakuten Research - 12 Apr 2023

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