Previous Day Highlights

The FBM KLCI continued to trend higher, with buying mainly focused on plantation stocks. The benchmark index gained 0.49% or 6.83 points to close at 1,413.52 Gainers were led by NESTLE, PPB and SIMEPLT. Market breadth was mixed with 430 gainers against 487 losers while 415 were unchanged. Total volume stood at 3.29bn shares valued at RM2.0bn.

Key regional indices closed mixed yesterday. Nikkei 225 and SHCOMP lost 0.57% and 0.06% to end at 32,304.25 and 3,167.75 respectively. HSI and STI gained 0.78% and 0.12% to 19,075.26 and 3,278.30 respectively.

US stocks ended mixed on Friday, with the DJIA rising to notch its 10th straight day of advances, marking its longest rally in almost six years. The DJIA added 0.01% to close at 35,227.29. S&P500 advanced 0.03% to 4,536.34 while Nasdaq lost 0.22% to end at 14,032.81.

News For The Day

7-Eleven to dispose of Caring Pharmacy for RM637.5m

7-Eleven Malaysia Holdings (SEM) has received an offer from BIG Pharmacy Healthcare SB to acquire its entire 75% equity interest in Caring Pharmacy Group for RM637.5m. SEM said its wholly-owned subsidiary Convenience Shopping (Sabah) SB (CSSSB) received a binding term sheet from BIG Pharmacy for the proposed disposal. -The Star

Pharmaniaga plans second placement to raise up to RM50m

Pharmaniaga has proposed to undertake a second private placement of up to 144.12m new shares, representing 10% of its total issued shares, to the Armed Forces Fund Board (LTAT), subject to shareholders’ approval. The pharmaceutical group, which has booked negative net operating cash flow since 2020, said its largest shareholder LTAT confirmed that the subscription of the placement will be satisfied in cash at an issue price to be determined later.-The Edge Markets

Serba Dinamik reaches settlement over RM18.3m agreement

Serba Dinamik Holdings has reached a settlement with Almurisi Holding SB (AHSB) over a dispute related to the share sale agreement in 2017. In a filing with Bursa Malaysia on Friday (July 21), Serba Dinamik and AHSB had entered into a consent order at the Court of Appeal on June 16 for the withdrawal of all proceedings relating to the SSA, all with no order as to costs and with no liberty to file afresh.-The Edge Markets

KGW’s IPO oversubscribed by 50.45 times

Logistics service provider KGW Group’s initial public offering (IPO) was oversubscribed by 50.45 times. A total of 11,329 applications for 1.24bn issue shares with a value of RM260.81m were received from the Malaysian public, representing an overall oversubscription rate of 50.45 times. - The Star

TSH Resources proposes secondary listing on SGX

TSH Resources has proposed to undertake a secondary listing for all its existing shares, which are currently listed on the Main Market of Bursa Malaysia, on the Main Board of the Singapore Exchange (SGX). TSH said that the shareholder holding its shares listed on Bursa may transfer such shares to SGX and vice versa for trading on the respective stock exchanges, following the proposed secondary listing. It should be noted that the transfer is subject to the fulfilment of transfer conditions and criteria.-The Edge Markets

Our Thoughts

Wall Street continued with its mixed performance as traders are assessing the corporate results for the 2Q which were a mixed bag. Though the DJI Average maintained its positive trajectory adding a mere 3 points, the Nasdaq lost 30 points as the US 10-year yield eased slightly to 3.837%. Nonetheless, all eyes will be on the FOMC meeting next Tuesday and Wednesday. Meanwhile, Hong Kong equities brushed above the 19,000 level as sentiment became optimistic that stimulus for the private sector from Beijing will be very soon. Back home, the FBM KLCI rallied to above the 1,410 mark underpinned by broad-based buying. Plantation remained as investors favourite buoyed by the strong CPO price that topped above the RM4,000/tonne threshold. For today, we remain cautiously optimistic that accumulation on the blue chips to persist thus expect the index to hover within the 1,410-1,420 range with interest possibly centered on the Telco related stocks. Hopefully the re-emergence of foreign funds will instigate the return of retailers that have been less than desired thus far.

Source: Rakuten Research - 24 Jul 2023

To sign up for an account: http://bit.ly/40BNqKI

[Youtube Tutorial] Account Opening & Enable Foreign Equity: http://bit.ly/3I5Jzxo