Previous Day Highlights

FBM KLCI maintained its lackluster performance as the index ended in negative territory amid a weak regional performance. The benchmark index lost 0.18% or 2.54 points to close at 1,432.36. Losers were led by PETDAG, HLBANK and TENAGA. Market breadth was negative with 527 decliners against 330 advancers. Total volume stood at 3.17bn shares valued at RM1.85bn.

Key regional markets closed on a mixed note as China reports economic rebound but warns of risks to recovery. Nikkei 225 gained 0.51% to close at 28,658.83 while STI dropped 0.29% to close 3,309.56. Meanwhile, HSI dipped 0.63% to end at 20,650.51 whereas SHCOMP added 0.23% to end at 3,393.33.

Wall Street trended mixed as investors started to digest earnings report while weighing the path of interest rates. The DJIA and Nasdaq shed 0.03% and 0.04% respectively to end at 33,976.63 and 12,153.41 whereas S&P500 advanced 0.09% to close at 4,154.87.

News For The Day

Axis REIT posts small rise in 1Q net property income

Axis Real Estate Investment Trust’s (Axis REIT) posted its 1QFY12/23 net property income (NPI) a marginal increase of 0.92% YoY to RM58.93m from RM58.39m, due mainly to rental from newly acquired properties and positive rental reversion in 2022. However, the property income was partly offset by lower occupancy rate as two properties are undergoing development and major enhancement, the REIT said. Axis REIT declared a first interim income distribution of 2.05 sen per unit, which will be paid on May 31. - The Star

Ancom Nylex's 3Q earnings 8% higher on lower tax

expenses, better segmental contributions Ancom Nylex’s 3QFY5/23 net profit increased 8.05% YoY to RM16.36m from RM15.14m, due to lower tax expenses and higher segmental contributions. Tax expenses dropped to RM5.88m from RM16.7m YoY. The group's agricultural chemicals segment contributed a higher earnings contribution of RM19.8m, compared with RM19m YoY, while the polymer segment brought in RM2.2m against RM1.2m YoY. - The Edge Markets

Stanley Thai’s daughter Cecile resigns from Supermax

board, cites disagreement over several matters Cecile Jaclyn Thai, the daughter of Supermax Corp's executive chairman and major shareholder Datuk Seri Stanley Thai, has resigned from her post as non-executive director of the group, following a disagreement with the board on several matters. Cecile, 35, had expressed her disagreement on several matters discussed at the board meetings. - The Edge Markets

Comintel secures RM230m contract from BDSB

Comintel Corp has won a contract worth RM229.80m from Builtamont Development SB (BDSB) to undertake main building works for a suite apartment project in Taman Desa Aman, Kuala Lumpur. Comintel said its wholly-owned subsidiary Binastra Builders SB (formerly known as Total Package Work SB) had accepted a letter of award from BDSB. The contract is for a duration of 34 months, commencing from May 1, 2023.- The Edge Markets

DPS buys land in Melaka for RM45.6m

DPS Resources is acquiring seven parcels of freehold land measuring approximately 253.306 acres in Alor Gajah, Melaka for RM45.6m. DPS Resources said its wholly-owned subsidiary, Summer Starhill SB, had acquired the parcels of land from Pakatan Simbol SB. - The Star

Our Thoughts

Wall Street closed mixed as traders began to digest earnings reported so far against the backdrop of the Feds possible rate hike during the next FOMC meeting in early May. As a result, the DJI Average lost 10 points while the Nasdaq was flat or a marginal 4 points lower as the US 10-year yield eased to below the 3.58% level. Over in Hong Kong, the HSI declined by 132 points on the back of mixed economic signals from China. Meanwhile, Anta Sports Products fell steeply after its key shareholder cut their stake at below market price that further added pressure on the index. Back home, the FBM KLCI ended 2 points lower following a lacklustre session as we head for a long break for Hari Raya celebrations. Although some accumulation from foreign funds can be seen, the amount was insignificant to have any major impact. Therefore, we reckon trading on the local bourse to remain dull hence expect the index to remain stuck in consolidation mode and hover within the 1,430-1,440 range today.

Source: Rakuten Research - 19 Apr 2023

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