Previous Day Highlights

FBM KLCI continue to trend lower amid a lacklustre trading session ahead of Hari Raya Aidilfitri long weekend. The benchmark index lost 0.21% or 2.96 points to close at 1,422.11. Losers were led by NESTLE, PETGAS and PPB. Market breadth was negative with 446 losers against 358 gainers while 404 counters remain unchanged. Total volume stood at 2.46bn shares valued at RM1.47bn.

Key regional markets closed mixed on Monday as sentiment remained fragile due to mixed investing environment globally. Nikkei 225 advanced 0.10% to close at 28,593.52 whereas STI closed flat at 3,324.55. Meanwhile, HSI and SHCOMP both tumbled 0.58% and 0.78% to end at 19,959.94 and 3,275.41 respectively.

Wall Street trended mixed ahead of upcoming corporate earnings wave. The DJIA added 0.20% to end at 33,875.40 whereas S&P500 close flat at 4,137.04. Meanwhile, Nasdaq shed 0.29% to end at 12,037.20.

News For The Day

Pavilion REIT's 1Q property income rises 11.5%

Pavilion Real Estate Investment Trust (REIT)’s 1QFY12/23 net property income rose 11.5% YoY to RM104.8m from RM93.99m, as it reported stronger revenue thanks to higher rental income due to increased occupancy, rent revenue, and advertising and marketing income at its retail malls. Revenue grew 16.23% YoY to RM156.41m from RM134.57m while net profit was 7.37% YoY higher at RM70.05m versus RM65.24m.- The Edge Markets

Aeon buys 8.7ha land in Kota Bharu for RM165m

Aeon Co (M) is acquiring a piece of land measuring 8.691 hectares in Kota Bharu, Kelantan for RM165m. Aeon is buying the land from Liziz Standaco SB using internally-generated funds. -The Edge Markets

AME REIT declares 1.82 sen distribution per unit for 4Q

AME REIT has declared its second income distribution per unit since listing, of 1.82 sen per unit, for 4QFY12/23. It was the second distribution whereby AME REIT distributed 100% of the quarter’s distributable income to its unitholders. AME REIT’s 4QFY23 distributable income was RM9.5m, its 4QFY23 net property income (NPI) of RM10.2m on revenue of RM10.8m. - The Edge Markets

Cypark gets RM109m private hospital contract

Cypark Resources announced that it had accepted a letter of award from Selgate Corp SB for the execution and completion of the remaining works for the proposed construction of a 10-storey private hospital, together with a six-storey parking lot in Rawang, Selangor. The contract sum for the job is RM108.84m, and it is targeted to be completed by Jan 29, 2024. - The Edge Markets

Advancecon bags RM86m PKNS contract

Advancecon Holdings has won a contract worth RM85.99m from Perbadanan Kemajuan Negeri Selangor (PKNS) to undertake infrastructure works for Sierra Alam (Phase 1) in Shah Alam, Selangor. Advancecon said the overall contract period would be 24 months from the date of site possession, or a date to be informed by PKNS. - The Star

Pestech bags RM34.86m contract from TNB

Pestech International has secured a contract worth RM34.86m from Tenaga Nasional to conduct asset replacement and refurbishment works at a substation in Cahaya Baru, Johor. The project shall be effective from April 19, 2023 and shall be completed within 900 days. -The Star

Our Thoughts

Wall Street closed on a mixed note as traders remained sidelined ahead of more corporate results from the heavyweights. Sentiment was also influenced by the upcoming 1Q GDP data report this Thursday as the DJI Average gained 66 points while the Nasdaq lost 35 points with the US 10-year yield easing to 3.496%. In Hong Kong, the HSI declined 116 points to below the 20,000 mark on concerns over corporate earnings coupled with the Feds stance on interest rate during the FOMC meeting next week. On the home front, the local bourse reopens today after a long break. Despite a mixed regional performance yesterday, we reckon the FBM KLCI to see sporadic bargain hunting activities today following the selling pressure since last Tuesday. Therefore, we expect the index to hover within the 1,420-1,430 range today with buying interests seen returning to the Energy and Plantation stocks today. Meanwhile, Brent crude price closed higher at above US$82.70/barrel demand-led recovery.

Source: Rakuten Research - 25 Apr 2023

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