Previous Day Highlights

The FBM KLCI extended its upward trajectory for the fourth consecutive day, with banking stocks leading the way. The benchmark index climbed 0.85% or 12.10 points to close at 1,436.79. Gainers were led by NESTLE, PETDAG and PCHEM. Market breadth was positive with 598 advancers against 357 decliners. Total volume stood at 3.72bn shares valued at RM2.31bn.

Key regional indices were mostly in positive territory as China promise to boost its ailing property market except Nikkei 225 that ended 0.06% lower to close at 32,682.51. HSI and SHCOMP soared 4.10% and 2.13% respectively, to end at 19,434.40 and 3,231.52. Meanwhile, STI added 0.64% to close at 3,286.16.

Wall Street continue to trend higher as big technology companies’ earnings beat estimation. The DJIA added 0.08% to close at 35,438.07. S&P 500 and Nasdaq rose 0.28% and 0.61% to end at 4,567.46 and 14,144.56 respectively.

News For The Day

CLMT’s 2Q NPI rises 52% on higher rental income

CapitaLand Malaysia Trust (CLMT) recorded a 2Q net property income (NPI) of RM56.8m, 51.8% YoY higher than RM37.4m, boosted by contribution from the newly acquired Queensbay Mall as well as higher rental income. Earnings per share rose to 1.11 sen for 2QFY12/23 from 1.07 sen previously. Quarterly revenue grew 53.3% YoY to RM104.8m from RM68.3m.-The Edge Markets

Globetronic 2Q net profit falls 37% on lower loadings

Globetronics Technology saw its 2QFY12/23 net profit fall 37% YoY to RM7.08m from RM11.19m owing to lower volume loadings and higher tax expenses. The group’s quarterly revenue dropped 34% YoY to RM31.51m in compared with RM47.85m. The group declared a single-tier dividend of one sen per share, totalling RM6.7m in respect of the current FY, payable July 20, 2023. -The Edge Markets

Sentral REIT acquires Menara CelcomDigi for RM450m

Sentral REIT has signed a conditional sale and purchase agreement with a unit of its major unitholder Malaysian Resources Corp (MRCB) to acquire the 27-storey office building known as Menara CelcomDigi in Petaling Jaya, Selangor for RM450m. Sentral REIT said the acquisition of the building from MRCB’s wholly-owned subsidiary Puncak Wangi SB will be satisfied with cash raised through a combination of equity and debt funding exercises. The equity funding exercise will entail a proposed placement of up to 123.72m shares. -The Edge Markets

Able Global sells land in Klang for RM34.68m

Able Global is disposing of six lots of freehold industrial land in Klang, Selangor, to Hond Tat Polymer Sdn Bhd for RM34.68m. AGB said the proposed disposal provides an opportunity to unlock and realise the value of the property. “The proposed disposal will not have any effect on the existing business operations of the company.”-The Star

InNature to enter beauty, retail business in Taiwan

The Body Shop retailer InNature is planning to enter the beauty and retail business in Taiwan. InNature said it signed a memorandum of understanding (MOU) with Taiwan-based Top Wisdom Investment Co Ltd for a potential acquisition of an equity interest of Mayfair House Co Ltd from Top Wisdom. Mayfair has been in the Taiwan beauty market for more than three decades, with a sizeable network of retail points of sale as well as having a robust presence in online retail channels- The Edge Markets

Our Thoughts

Wall Street maintained its uptrend as traders are digesting a plethora of earnings from corporate America while waiting for the decision from the Fed on interest rate today. The DJI Average inched 27 points higher while the Nasdaq closed 87 points higher with the US 10-year yield ended higher at 3.891%. In Hong Kong, stocks rallied as sentiment was boosted by optimism from Beijing on stronger stimulus for the housing market. The effect spillover to other sectors as the HSI surged by almost 770 points. On the domestic front, the FBM KLCI notched another positive day attributed to broad-based accumulation on blue chips. We believe this may continue as portfolio diversification by some foreign funds may have started recent decent run within the ASEAN region. In view of this, we expect the index to continue with its upward trajectory and hover within the 1,435-1,450 range today as Banks will be playing catch- up.

Source: Rakuten Research - 26 Jul 2023

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