Previous Day Highlights

FBM KLCI closed higher thanks to buying interests on commodity and utilities related stocks. The benchmark index gained 0.31% or 4.48 points to end at 1,450.57. Gainers were led by PETGAS, TENAGA and MAXIS. Market breadth was mixed with 446 gainers against 498 losers while 416 were unchanged. Total volume stood at 3.31bn shares valued at RM2.24bn.

Key regional indices ended lower. Nikkei225 gained 0.37% to close at 31,565.64 and 3,173.93 respectively. HSI, SHCOMP and STI fell 1.82% and 1.24% and 0.63% to finish at 17,623.29, 3,092.98 and 3,154.03 respectively.

Wall Street ended mixed whereby the DJIA lost 0.11% to finish at 34,463.69. Meanwhile S&P500 and Nasdaq climbed 0.69% and 1.56% to end at 4,399.77 and 13,497.59 respectively.

News For The Day

Kenanga IB wins at National Energy Awards

Kenanga Investment Bank has been named ‘winner’ in EnergyEfficient Building in Retrofitted Building, at the National Energy Awards (NEA). The award recognises initiatives that adopt sustainable energy practices in either new or retrofitted buildings. Group managing director Datuk Chay Wai Leong said: “We are proud to be part of the line-up of winners at this coveted event and to have the opportunity to represent the country for such a meaningful and crucial agenda.” - The Star

AMMB’s 1Q net profit slips 7.8% on higher provisions

AMMB Holdings' (AmBank) 1QFY3/24 net profit dropped 7.8% YoY to RM378.4m as net impairment charges rose due to higher provisions. “Net impairment charges were noticeably higher this quarter at RM190.4m, compared to RM63.9m in previous year, mainly due to higher provisions,”– The Edge Markets

Innoprise profit falls 65% on lower CPO,

Innoprise Plantations posted a 65.18% decline YoY in its 2QFY23 net profit RM10.8m mainly due to lower average selling prices of crude palm oil (CPO) and palm kernel (PK). Looking forward, Innoprise said fresh fruit bunch (FFB) production in the coming quarter, 3QFY2023, is expected to be in line with seasonal trend. “Given the current level of CPO and PK prices, the board is confident of achieving a reasonable profit in 3QFY2023”.- The Edge Markets

Gas Malaysia records 2Q net profit of RM97.8m

Gas Malaysia is expecting a satisfactory performance in 2023 as it continues to take prudent measures to maintain operational efficiency and seeks out new growth opportunities. The gas merchant posted a 2QFY23 net profit of RM97.8m, which was down from RM107.34m YoY. The board of directors declared a first interim dividend of 5.72 sen per share, amounting to RM73.44m, which will be paid on Oct 27, 2023.- The Star

Aneka Jaringan wins RM35m contract

Aneka Jaringan Holdings’ wholly-owned subsidiary, Aneka Jaringan SB has secured a RM35m contract from Sena Letrik (M) SB. In a filing with Bursa Malaysia, Aneka said the contract is for piling, earthworks and substructure works for a proposed 31-storey medical centre at Desa Sri Hartamas in Kuala Lumpur. Aneka expects the contract to contribute positively to its consolidated earnings and net assets for the FY8/24 and FY8/25, during the duration of the contract.- The Edge Markets

Our Thoughts

Wall Street closed on a mixed note with traders undergoing a self-denial phase as the Nasdaq jumped 207 points despite the US 10-year yield touching 4.342% which is more than a 15-year high. Tech shares historically struggle in high-rate environment making yesterday’s performance rather unusual. Meanwhile in Hong Kong, the HSI slumped to around the 17,600 level or a 9-month low as market participants were unconvinced by the latest measures unveiled by regulators to boost the ailing Chinese economy and equity market. Back home, the FBM KLCI closed higher on the back of solid buying support from foreign funds as the index edged past the 1,450 mark. We believe the local bourse is in a good performing phase currently underpinned by the shift in sentiment that has turned more optimistic. Judging by the immediate rebound of the benchmark index, we believe the index may trend higher thus expect it to hover between the 1,450-1,460 range today with focus possibly back to the financial and construction related stocks.

Source: Rakuten Research - 22 Aug 2023

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