Previous Day Highlights

The FBM KLCI notched another splendid performance, reaching its 4-month high amid the strong market sentiment. The benchmark index escalated 0.87% or 12.50 points to close at 1,449.29. Gainers were led by HLBANK, PCHEM and PETGAS. Market breadth was neutral with 488 advancers against 450 decliners while 444 remain unchanged. Total volume stood at 4.25bn shares valued at RM2.46bn.

Key regional markets ended mostly lower ahead of US rate hike decision except STI which ended 0.57% higher to close at 3,304.96. HSI and SHCOMP fell by 0.36% and 0.26%, to end at 19,365.14 and 3,223.03. Meanwhile, Nikkei 225 eased 0.04% to close at 32,668.34.

Wall Street trended mixed following the widely expected quarter percentage rate hike by the Fed. The DJIA rose 0.23% to close at 35,520.12 whereas S&P 500 closed almost flat at 4,566.75. Nasdaq eased 0.12% to end at 14,127.28.

News For The Day

IGB REIT's 2Q net property income drops 2.76%

IGB Real Estate Investment Trust’s (REIT) net property income (NPI) for 2QFY12/23 fell 2.76% YoY to RM102.79m from RM105.72m, due to higher utility expenses and higher reversal for impairment of trade receivables in the same period last year. Net profit dropped 3% YoY to RM80.97m from RM83.47m. Revenue increased 5.82% YoY to RM141.54m from RM133.76m on the back of higher rental income in the current quarter. The REIT declared an income distribution per unit of 2.37 sen, payable on Aug 29. -The Edge Markets

Axis REIT net property income slips in 2Q

Axis Real Estate Investment Trust’s (Axis REIT) 2QFY12/23 net property income (NPI) fell 7.58% YoY to RM58.43m from RM63.23m, due to lower property income, higher expenses and lower gains on financial liabilities. Revenue for the quarter fell 5.6% YoY to RM68.45m from RM72.52m due to related to the shortfall in contribution from Axis Steel Centre @ SiLC. Axis REIT declared a second interim income distribution of 2.05 sen per unit, which will be paid on Aug 30. -The Edge Markets

Tanco’s unit bags RM82.76m infrastructure works job

Tanco Holdings’ wholly-owned subsidiary, Tanco Builders SB, has secured a RM82.76m contract from Win Global SB for a Rumah Selangorku development project involving main building and infrastructure works. TBSB is expected to complete the works within 32 months once the commencement contract date is decided. -The Star

Pharmaniaga teams up with China-based Group

Pharmaniaga’s unit, Pharmaniaga LifeScience SB, has signed a memorandum of understanding (MOU) with CSPC Pharmaceutical Group Ltd (CSPC) subsidiary, CSPC Ouyi Pharmaceutical Co Ltd to enhance the production of CSPC’s biopharmaceutical portfolio. The partnership agreement is premised on the research, development, manufacturing and commercialisation of innovative pharmaceutical and biopharmaceutical products, as well as focusing on CSPC’s advanced mRNA vaccines. -The Edge Markets

Sasbadi's 3Q profit more than doubles on higher revenue

Sasbadi Holdings' 3QFY8/23 net profit more than doubled to RM4.61m, on higher revenue mainly driven by its print publishing division. Revenue for the quarter rose 51.78% YoY to RM29.4m from RM19.37m, due to strong sales of its academic publications for the new school academic year, which began in March this year, and contracts secured from the Ministry of Education (MOE). -The Edge Markets

It was another mixed day on Wall Street as traders

digested the 25bpd rate hike coupled with strong earnings from big caps particularly Alphabet and Boeing. However, sentiment remains cautious as the Fed highlighted that possible more rate hike will be highly data dependent. As such, the DJI Average gained 82 points while the Nasdaq lost 17 points as the US 10-year yield eased marginally to 3.873%. In Hong Kong, the HSI declined 69 points ahead of the Fed rate hike but is set for a rebound today in view of potential stimulus in the pipeline from Beijing. Meanwhile, the local bourse maintained its uptrend as the FBM KLCI climbed to almost a 4-month high underpin by continuous buying from foreign funds. Though the market may be due for a minor correction to digest the 70-point rally since early July, we reckon the index to be on a solid stance to chart further highs. For today, we may see some intermittent correction thus expect the index to hover within the 1,445-1,455 range. Meanwhile, the Planters may benefit from the strong CPO price which remains above the RM4,000/tonne or its highest since early March this year.

Source: Rakuten Research - 27 Jul 2023

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

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