Previous Day Highlights

The FBM KLCI ended in negative territory due to the emergence of profit-taking activities following its recent upward trend. The benchmark index eased 0.08% or 1.15 points to close at 1,434.74. Losers were led by HLBANK, PPB and PETGAS. Market breadth was negative with 469 decliners against 359 advancers. Total volume stood at 2.80bn shares valued at RM1.79bn.

Key regional indices closed mixed, taking cue from Wall Street performance overnight. Nikkei 225 climbed 0.57% to close at 28,082.70 while STI dropped 0.36% to close at 3,286.12. Meanwhile, HSI was down 0.86% to end at 20,309.86 whereas SHCOMP was up 0.41% to end at 3,327.18.

Wall Street ended lower on Fed minutes citing bank stress and recession fears. The DJIA lost 0.11% to end at 33,646.50 while S&P500 and Nasdaq fell by 0.41% and 0.85% to close at 4,091.95 and 11,929.34 respectively.

News For The Day

MyEG wins tender to set up workers village in Penang

MyEg Services (MyEG) has won a tender from Penang Development Corporation to set up a workers village at the Batu Kawan Industrial Park 3 in Seberang Perai. The group said its sub-subsidiary MyEG Lodging SB will lease an 8.39- acre land for RM20.39m over a duration of 30 years, to build and operate the workers village and related facilities at its own cost. "The completed workers village is estimated to accommodate 7,500 foreign workers and will comply with Jabatan Tenaga Kerja Semenanjung Malaysia guidelines as well as certified with GreenRE," said MyEG. - The Edge Markets

Zhulian posts 71% drop in 1Q net profit

Zhulian Corp's 1QFY11/23 net profit dropped 71.4% YoY to RM6.85m from RM23.94m due to absence of land disposal recorded in 1QFY22. Its 1QFY23 revenue slipped 5.84% YoY to RM32.55m from RM34.57m due to weak consumer sentiment, coupled with rising inflationary pressures. Despite the lower earnings, Zhulian declared a first interim dividend of three sen per share, to be paid on June 7. -The Edge Markets

Country Heights founder Lee Kim Yew declared a bankrupt

Country Heights Holdings founder Tan Sri Lee Kim Yew has been declared a bankrupt by the Shah Alam High Court. According to Malaysia Department of Insolvency's website, e- insolvensi, the tycoon received the bankruptcy notice issued by the Shah Alam High Court. Lee reportedly told the NST that he had not filed for bankruptcy. "This particular party declared me a bankrupt over a RM3m suit. I will provide more details about this matter." He said. -The Edge Markets

Tomypak unit receives full insurance compensation of RM205m after fire outbreak

Tomypak Holdings has received an offer for full insurance compensation payment of RM205m for material damage resulting from a fire outbreak at its manufacturing plant in Senai, Johor in December 2021. Its wholly-owned subsidiary Tomypak Flexible Packaging SB accepted the insurance compensation from lead insurer Berjaya Sompo Insurance. - The Edge Markets

Glomac to acquire 49% stake in Glomac Bina for RM16.25m

Glomac is acquiring from its group executive chairman Tan Sri Mohamed Mansor Fateh Din and major shareholder Mohd Yasin Loh Abdullah 1.37m shares in Glomac Bina SB, representing the remaining 49% stake it does not own, for RM16.25m. The purchase consideration is expected to be satisfied entirely from internally generated funds. -The Star

From concerns over inflation to now recession, Wall

Street seems to be in between a difficult position at the moment as US equities pared earlier gains to close on a weak note. Despite March CPI came in lower than expected at 5%, the DJI Average lost 38 points while the Nasdaq declined by 102 points with the US 10-year yield eased marginally to 3.40%. Over in Hong Kong, equities suffered from the HK$205bn sell-off in Tencent and BYD while regulatory scrutiny on ChatGPT like services further fuelled the selling on major tech companies that saw the HSI slipped by 175 points. Back home, the FBM KLCI pared earlier losses to close marginally lower following some late buying activities as overall sentiment remains cautious. We reckon accumulation on stocks to continue as many anticipate the Feds to be less aggressive with their rate hike after March CPI figure hence expect the index to trend within the 1,430-1,440 range today. Meanwhile, a decline in crude oil inventory helped push the Brent crude price higher to almost US$88/barrel thus may see some interests on the Oil & Gas counters today. 

Our Thoughts

From concerns over inflation to now recession, Wall Street seems to be in between a difficult position at the moment as US equities pared earlier gains to close on a weak note. Despite March CPI came in lower than expected at 5%, the DJI Average lost 38 points while the Nasdaq declined by 102 points with the US 10-year yield eased marginally to 3.40%. Over in Hong Kong, equities suffered from the HK$205bn sell-off in Tencent and BYD while regulatory scrutiny on ChatGPT like services further fuelled the selling on major tech companies that saw the HSI slipped by 175 points. Back home, the FBM KLCI pared earlier losses to close marginally lower following some late buying activities as overall sentiment remains cautious. We reckon accumulation on stocks to continue as many anticipate the Feds to be less aggressive with their rate hike after March CPI figure hence expect the index to trend within the 1,430-1,440 range today. Meanwhile, a decline in crude oil inventory helped push the Brent crude price higher to almost US$88/barrel thus may see some interests on the Oil & Gas counters today.

Source: Rakuten Research - 13 Apr 2023

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