Previous Day Highlights

The FBM KLCI closed flattish as a result of last-minute buying after a bumpy session. The benchmark index gained a mere 0.02% or 0.23 points to close at 1,434.90. Losers were led by HLFG, KLK and PETGAS. Market breadth was negative with 486 losers against 370 gainers while 408 were remain unchanged. Total volume stood at 3.25bn shares valued at RM1.89bn.

Key regional indices closed broadly higher as China central bank promises to provide further policy support to the economy. Nikkei 225 and STI advanced 0.07% and 0.50% to close at 28,514.78 and 3,319.26 respectively. Meanwhile, HSI and SHCOMP soared 1.68% and 1.42%, respectively, to end at 20,782.45 and 3,385.61.

Wall Street finished modestly higher as investors awaited more big-tech and bank earnings. The DJIA was up 0.30% to end at 33,987.18 whereas S&P500 and Nasdaq increased 0.33% and 0.28% to close at 4,151.32 and 12,157.72 respectively.

News For The Day

CTOS posts 33% rise in 1Q net profit

CTOS Digital’s 1QFY12/23 net profit rose 32.9% YoY to RM16.58m from RM12.48m, on the back of a strong performance by its business segments but offset by a slightly lower share of profits of associates and higher finance costs. Quarterly revenue increased 39.6% YoY to RM59.6m from RM42.7m, contributed by the strong growth in all three segments, namely key accounts, commercial and direct-to- consumer. The group declared a first interim dividend of 0.43 sen per share, totalling RM10m.- The Edge Markets

Salcon wins RM65m EPCC job

Salcon has secured an engineering, procurement, construction and commissioning (EPCC) job for a 10.44 megawatt small hydro power plant at the Sungai Selangor Dam in Kuala Kubu Bharu, Selangor worth RM65m. Salcon said its wholly-owned subsidiary, Salcon Engineering, has accepted a letter of award for the EPCC contract from AIS Small Hydro SB. “The contract is scheduled for completion by May 3, 2025,” it said. - The Star

MN Holdings secures EPCC contract worth RM20.2m

Underground utilities and substation engineering specialist MN Holdings has secured a RM20.2m contract to undertake the engineering, procurement, construction and commissioning (EPCC) of a natural gas distribution system in Tanjung Malim, Perak. MN Holdings said its wholly-owned subsidiary Mutu Nusantara SB had accepted a letter of award (LoA) from Rentak Segar SB, appointing it to be the sub- contractor for the project. The project will commence in April 2023 and is slated for completion by February 2025. - The Star

Seni Jaya gets 5 + 5 years external advertising contract

Seni Jaya Corporation’s wholly-owned subsidiary, Seni Jaya SB has accepted a letter of acceptance (LOA) from Prasarana Integrated Development SB. “Seni Jaya will perform sales, marketing, and business support for external advertising on the LRT Ampang Line covering from Ampang and Sentul to Putra Heights in Subang,” it said. The license period is for five years from July 2023 with a 5-year extension option. - The Star

ACE Market-bound Autocount posts RM3.7m in 1Q net profit

Autocount Dotcom, which is slated to list on the ACE Market of Bursa Malaysia on May 9, posted its 1QFY12/23 net profit of RM3.66m. The financial management software developer reported revenue of RM10.42m during the quarter under review. - The Edge Markets

Our Thoughts

Wall Street closed in positive territory after a volatile session as the banks continued to report strong quarterly earnings but was curbed by the uptrend of long term yield. The DJI Average gained 101 points while the Nasdaq added 34 points as the US 10-year yield edged higher to above the 3.60 level. Closer to home, Hong Kong equities climbed on strengthening China’s economy in the 1st quarter as both manufacturing and retail segments expanded. The HSI added 344 points or to an 8-week high buoyed by gains in major tech companies and EV makers. On the home front, the FBM KLCI again pared early losses to end flat as subtle buying support continued within the local bourse primarily on Banking and Utilities related companies. We reckon such accumulation on the blue chips to persist across the board thus expect the index to hover within the 1,430- 1,440 range today. Meanwhile, crude palm oil price declined to a 2-week low at the RM3,600 mark due to possible weak exports hence Plantation stocks may be under some pressure today.

Source: Rakuten Research - 18 Apr 2023

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