Previous Day Highlights

The FBM KLCI closed in positive territory after 3 days of profit taking activities. The benchmark index gained 0.23% or 3.36 points to close at 1,445.21 with gainers led by HKBANK, PMETAL and HLFG. Market breadth was positive with 456 gainers against 333 losers. Total volume stood at 2.68bn shares valued at RM1.42bn.

Key regional markets closed broadly higher. The Nikkei 225 gained 0.10% to close at 32,192.75. HSI and SHCM added 0.61% and 0.23% to end at 19,539.46 and3,288.08 respectively while the STI lost 0.35% to finish at 3,292.39.

Wall Street ended lower despite report of slower U.S. labour market growth. The DJIA lost 0.43% to close at 35,065.62. S&P 500 and Nasdaq erased 0.53% and 0.36% to end at 4,478.03 and 13,909.24 respectively.

News For The Day

TNB to collaborate with Electricite Du Laos

Tenaga Nasional Bhd (TNB) has presented a letter of intent to Laos’ Electricite Du Laos (EDL) to collaborate in facilitating cross-border renewable energy (RE) trade and human capital development. This is part of TNB’s ongoing drive to strengthen the Asean Power Grid (APG) interconnectivity and to reinforce TNB Power Generation SB’s (TNB Genco) presence as the power generation arm in Asean countries.-The Edge Markets

Magna Prima to sell land in PJ at RM4m loss

Property developer Magna Prima is selling its entire equity interest in loss-making 33 Sentral Park SB, which owns two pieces of residential land fronting Jalan Gasing in Petaling Jaya, Selangor, to Glomics Holding SB (GHSB) for RM65m. Magna Prima said the proposed disposal is expected to result in a loss on disposal of RM3.73m for the group for FY23.- The Edge Markets

Fitters Diversified terminates land disposal

Fitters Diversified has terminated its initial 18.97-hectare land disposal to Aikbee Development (Kepong) SB for RM36m, owing to the buyer’s failure of payment. In a filing with the local bourse on Friday (Aug 4), Fitters said that the disposal between its indirect wholly-owned subsidiary Rasa Anggun Development SB and Aikbee had been terminated due to Aikbee’s failure to pay the balance purchase price on or before the extended completion date.– The Edge Markets

PIE Industrial's 2Q net profit up 51% YoY

PIE Industrial’s FY6/23 net profit rise 51.1% YoY to RM12.1m from mainly due to a gain from foreign exchange transactions, reversal of impairment of trade receivables, and lower provision for slow moving inventories. Revenue, however, fell 3.3% to RM286.5m from RM296.3m on lower demand for raw wire and cable products, but partly offset with higher revenue from electronics manufacturing services (EMS) and wire harness products. - The Edge Markets

EA Technique bags two contracts from MISC worth RM12m

EA Technique (M) has clinched two contracts for the supply and operating of marine vessels worth RM12.6m. In a bourse filing on Friday (Aug 4), the group said it has been awarded two contracts from Sungai Udang Port SB (SUPSB), a wholly- owned subsidiary of MISC Maritime Services SB via a letter of award dated July 27, 2023.- The Edge Markets

Our Thoughts

Wall Street declined as traders maintained their profit taking mode following a strong US corporate earnings report coupled with slower job data for July. The DJI Average lost 150 points while the Nasdaq slipped 50 points despite the US 10-year yield easing to 4.042%. Over in Hong Kong, the HSI added 118 points but ended off the day’s high as sentiment remained positive that China’s central bank has pledged to assist the private sector in addition to Goldman Sachs remark that the Hong Kong market may have the legs to rally until year-end. Meanwhile, the FBM KLCI also displayed resilience as it closed higher notwithstanding the intra-day profit taking activities. So far, performance of the local bourse has been impressive as we wait for overall volume to spike which illustrate a more rounded market performance. For today, we expect the index to hover within the 1,440- 1,455 range as a broad base accumulation of blue chips is set to persist. Meanwhile, Brent crude price topped US$86/barrel over a soft landing scenario in the US economy.

Source: Rakuten Research - 7 Aug 2023

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