Previous Day Highlights

The FBM KLCI continued to trend higher with buying interests across the board. The benchmark index gained 0.76% or 11.03 points to close at 1,462.03. Gainers were led by HLBANK, NESTLE and PETGAS. Market breadth was slightly positive with 430 gainers against 417 losers. Total volume stood at 3.17bn shares valued at RM2.19bn.

Major regional indices ended mixed as investors are cautious after Moody's credit rating downgrade on US banks. Nikkei 225 and SHCOMP fell 0.53% and 0.49% respectively, to end at 32,204.33 and 3,244.49 respectively. Meanwhile, HSI and STI gained 0.32% and 0.12% to close at 19,246.43 and 3,313.79 respectively.

Wall Street continue to remain in negative territory as investors eye for US key inflation data. The DJIA lost 0.54% to close at 35,123.36. S&P 500 and Nasdaq fell 0.70% and 1.17% to end at 4,467.71 and 13,722.02 respectively.

News For The Day

Maxis’ 2Q net profit climbs 2.5% to RM330m

Maxis' 2QFY23 net profit climbed 2.48% YoY to RM330m on higher service revenue, discontinued prosperity tax and prudent capex investments. Maxis saw its home connectivity business registering double-digit customer growth of 10.7% bringing total home connections to 706,000, fuelling a 9.6% revenue increase to RM229m. The group also declared a second interim dividend of four sen per share, payable on Sept 29.- The Edge Markets

Mr DIY’s 2Q earnings rise on higher revenue

Mr DIY Group’s 2QFY23 net profit increased 11.19% YoY to RM150.32m on the back of a higher revenue and gross profit margin. MrDIY declared a dividend of 0.8 sen per share totalling RM75.5m, versus RM56.6m for 2QFY2022, and is equivalent to a dividend payout of 50.2% of net earnings. On prospects, the group said it remains confident in its ability to continue delivering sustainable long-term growth.-The Edge Markets

Perdana Petroleum wins RM21.9m contract

Perdana Petroleum has received two work orders from Petronas Carigali SB for the provision of two units of anchor handling tug and supply (AHTS) vessels worth RM21.9m. Perdana Nautika shall provide two units of AHTS vessel with crew and equipment to perform a continuous 24-hour service to assist and service drilling rigs, offshore installations, derrick barges, towing and anchor jobs at the Sarawak region.- The Star

AME REIT aims for 100% lease renewal

AME REIT posted a net property income of RM10.7m for 1QFY3/24. The REIT is aiming for 100% renewal of its 12 leases expiring in FY3/24 to reinforce the industrial REIT’s future earnings. Of the 12 leases, AME REIT has successfully renewed leases with five existing tenants, obtained one replacement tenant, and confirmed lease renewals with six existing tenants, which will be finalised by end-FY2024. With this, AME REIT is on track for 100% occupancy rates across all industrial- and industrial-related properties.– The Edge Markets

Hup Seng’s 2Q net profit jumps twofold

Hup Seng Industries’ 2QFY23 net profit surged 187.13% to RM8.72m YoY. The group’s export markets also increased about 9% to RM1.4m mainly from Singapore and Indonesia. “The group envisages that the industry is poised to continue to grow and evolve to meet the changing demand of consumers and will strive to continue to maintain and improve product quality,” it said. - The Edge Markets

Our Thoughts

Wall Street ended on a weak note as traders wait for July’s CPI figure which will be out later today. Meanwhile, recent downgrade on the US banking sector continue to weigh down market sentiment as the DJI Average declined almost by 200 points while the Nasdaq lost 162 points as the US 10-year yield eased marginally to 4.016%. In Hong Kong, the HSI rebounded slightly as traders are betting that recent deflationary signs may prompt the Chinese government to be more aggressive with their stimulus policy to spur growth. Domestically, the FBM KLCI closed broadly higher as buying from foreign funds continued pushing the index to around a 5-month high. Recent impressive performance may be a definitive sign that foreign funds are gravitating back to ASEAN which have been trading at a discount over the past years. Judging from the buying pattern, we reckon the index may experience more upside hence expect the index to hover within the 1,460-1,470 range today. Meanwhile, the Brent crude price trended near the US$88/barrel due to huge decline in inventory.

Source: Rakuten Research - 10 Aug 2023

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