Previous Day Highlights

The FBM KLCI ended marginally lower in line with the downbeat performance across the region. The benchmark index eased 0.09% or 1.28 points to close at 1,387.33. Losers were led by PETDAG, MAXIS and PMETAL. Market breadth was negative with 452 losers against 372 gainers while 426 counters remain unchanged. Total volume stood at 2.58bn shares valued at RM1.47bn.

Key regional markets were all in negative territory as investors turn cautious ahead of the Xi-Blinken talk. Nikkei 225 and STI fell 1.00% and 0.58% to close at 33,370.42 and 3,241.17. Meanwhile, HSI and SHCOMP slipped 0.64% and 0.54% respectively, to end at 19,912.89 and 3,255.81.

Wall Street was closed for Juneteenth National Independence Day.

News For The Day

Astro’s 1QFY24 net profit hit by forex loss

Astro Malaysia Holdings’ 1QFY1/24 net profit dropped 84% YoY to RM15.9m from RM100.02m, as earnings were impacted by a higher unrealised foreign exchange loss. Revenue decreased 7.38% YoY to RM891.13m from RM962.09m, mainly arising from the decrease in subscription revenue, advertising revenue and merchandise sales. Astro declared a first interim dividend of 0.25 sen per share, to be paid on July 18. -The Edge Markets

Mah Sing buys 500-acre Semenyih land from S P Setia for

RM392m cash Mah Sing Group announced that it has signed a sale and purchase agreement with Petaling Garden SB, a subsidiary of S P Setia, to acquire a 500-acre freehold land in Semenyih for RM392.04m. The land has an estimated gross development value (GDV) of RM3.3bn and will be planned as an integrated township to be named Glengowrie Estate, Mah Sing's largest township in the Klang Valley. -The Edge Markets

Scientex Packaging's 3Q earnings slip on lower revenue

Scientex Packaging (Ayer Keroh)’s 3QFY7/23 net profit fell by 1.64% YoY to RM10.1m against RM10.3m due to a decline in revenue and rising energy costs. Quarterly revenue fell 14.4% YoY to RM177.4m from RM207.4m, due to lower product demand from both the domestic and export markets. The group declared a single-tier interim dividend of 2.5 sen per share, payable on July 17.– The Edge Markets

MyNews narrowed 2Q losses on new outlets contribution

MyNews Holding narrowed its 2QFY10/23 net loss to RM6.28m from RM10.23m YoY, as revenue rose on contributions from new outlets. Quarterly revenue climbed 23.46% YoY to RM174.2m from RM141m, mainly due to the increase in the number of outlets and an improvement in overall in-store sales as business and social activities in the country normalised post-pandemic. -The Edge Markets

Reservoir Link secures RM18.1m worth of solar contracts

Reservoir Link Energy’s 51%-owned subsidiary, Founder Energy SB, has secured three solar contracts since May 2023, totaling RM18.1m. Under the first contract, Reservoir Link will supply and deliver fixed tilt solar mounting structures for a large- scale solar project. Meanwhile, the second contract involves the supply of labour and materials which include plants and machinery. In addition, the group has been appointed as a subcontractor for the engineering, procurement, construction and commissioning of a solar project. -The Star

Our Thoughts

Wall Street was closed on Monday but a look at the futures showed that US equities may open on a weak note later today thus regional markets ended mostly in the red. Over in Hong Kong, the HSI slipped 127 points to below the 20,000 mark again as traders are becoming impatient that China will only offer limited stimulus to the financial market. Back home, the FBM KLCI pared earlier losses to end marginally lower due to broad-based buying activities in the afternoon session following the PM announcement of a reform to revive the local stockmarket that includes a cut in stamp duty for equities trading in a bid to enhance market vibrancy. Though the adjusted stamp duty is still higher than previously, we reckon the latest rate and ceiling are good attempts to enhance market participation. Whether this will positively reflect in the local bourse remains to be seen but we believe overall sentiment should be boosted somewhat from the move thus expect the index to trend between the 1,385-1,395 today with some interests on the financial sector.

Source: Rakuten Research - 20 Jun 2023

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