Previous Day Highlights

The FBM KLCI ended a tad lower due to lack of buying interests on big cap stocks. The benchmark index lost 0.02% or 0.35 points to end at 1,444.06. Losers were led by KLK, PETDAG and NESTLE. However, market breadth was positive with 580 gainers against 478 losers while 379 counters were unchanged. Total volume stood at 4.46bn shares valued at RM2.85bn.

Major regional markets ended higher supported to China’s stimulus plans to support the economy. Nikkei225 and STI surged 1.73% and 0.93% to close at 32,169.99 and 3,219.58 respectively. HSI and SHCOMP gained 0.97% and 1.13% to finish at 18,130.74 and 3,098.64 respectively.

Wall Street ended higher for the second consecutive day. The DJIA gained 0.62% to finish at 34,559.98. Meanwhile S&P500 and Nasdaq added 0.63% and 0.84% to finish at 4,433.31 and 13,705.13 respectively.

News For The Day

IOI Properties annual profit doubles to RM1.39bn

IOI Properties Group closed its FY6/23, with net profit doubling to RM1.39bn from RM686.7m in FY6/22, thanks to a 26% increase in operating profit in its property investment portfolio and a fair value gain that contributed RM716.8m, while revenue was largely unchanged at RM2.6bn. It announced an interim dividend payout of five sen per share. IOI Properties said its property development segment achieved sales with contracts exchanged of RM1.96 billion, of which 85% was from local projects, while the remaining 15% was from overseas projects in China and Singapore. -The Edge Markets

Mah Sing net profit rose to RM100.53m in 1H23

Mah Sing Group registered property sales of RM1.2bn in the 1HFY23, which puts it on track to hitting a minimum target of RM2.2bil in sales for the year. The company a net profit of RM50.5m, up from RM43.04m YoY. This brought 1HFY23 net profit to RM100.53m. Mah Sing group managing director Tan Sri Leong Hoy Kum said the group's impressive sales momentum was mainly driven by the strong take-up rates of our M Series developments as reflected in the 1HFY23 result. - The Star

UEM Sunrise to exit South Africa with sale of Roc-Union stake

UEM Sunrise will be exiting the South African market with the proposed disposal by its indirect wholly owned subsidiary UEM Sunrise South Africa Proprietary Ltd of an 80.4% stake in RocUnion Proprietary Ltd and claims of total shareholder advances worth 118.4m rand (RM29.5m). The Edge Markets

Malaysia records total trade of RM216.4bn in July

Malaysia’s total trade in July 2023 amounted to RM216.4bn, compared with RM222.1bn in June, with exports standing at RM116.8bn and imports at RM99.7bn. The Department of Statistics Malaysia (DOSM) said Penang remained the top exporter with RM39.6bn, or a 33.9% share of the country’s total exports. - The Edge Markets

Sime Darby Property raises FY23 sales target to RM2.7bn

Sime Darby Property has revised higher its sales target to RM2.7bn from RM2.3bn previously as it grows confident the strong momentum in 1H23 will continue over the course of the year. Sime Darby Property managing director Datuk Azmir Merican said the group is well-positioned to capitalise on the resilient market demand, which also presents it with an opportunity to maximise its property development growth over the coming years.– The Star

Our Thoughts

Wall Street kicked off the week with gains, rising for a second consecutive session and recouping some losses from the summer stock-market slide despite the strong bond yields with the DJIA added 213 points charging ahead the 35,000 level. In Hong Kong, the stock market experienced an upward trend following Beijing's move to reduce the stamp duty on onshore equity transactions by 50% and to loosen margin requirements. These policy adjustments were implemented to restore trust and optimism among investors. It's worth mentioning that China Evergrande's stock value plummeted after it concluded a 17-month trading suspension. On the domestic front, shares in Bursa Malaysia ended higher with buying interests mainly on property and construction stocks. Nonetheless, the FBM KLCI closed marginally lower due to lack of buying interests as investors have shifted their focus to smaller stocks. We expect bargain hunting will emerge given the improving global market sentiment and expect the benchmark index to trend within the range of 1,440-1,450 for today.

Source: Rakuten Research - 29 Aug 2023

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