Previous Day Highlights

The FBM KLCI ended on a positive note, reflecting the overall better sentiment within the region. The benchmark index gained 0.72% or 10.38 points to end at 1,454.44. Gainers were led by PETDAG, NESTLE and PCHEM. Market breadth was positive with 535 gainers against 504 losers while 389 counters were unchanged. Total volume stood at 4.02bn shares valued at RM2.85bn.

Major regional markets ended higher as worries about China's economic slowdown diminished. Nikkei225 and STI gained 0.18% and 0.29% to close at 32,226.97 and 3,223.09 respectively. HSI and SHCOMP surged 1.95% and 1.20% to finish at 18,484.03 and 3,135.89 respectively.

Wall Street rose for the third straight trading day as the US bond yields fell from decades-high levels following weak economic data. The DJIA gained 0.85% to finish at 34,852.67. Meanwhile S&P500 and Nasdaq surged 1.45% and 1.74% to finish at 4,497.63 and 13,943.76 respectively.

News For The Day

Capital A posts RM1.1bn net profit in 2Q

Capital A reported a net profit of RM1.12bn compared with a net loss of RM931.2m YoY on the back of stronger revenue. “Our target is to reinstate a total of 200 planes back into operations by year-end," Capital A said in its financial statements uploaded to the Bursa Malaysia. Moving forward into the second half of 2023, the group said it remains steadfast in leveraging the synergy of its businesses for continued growth and value. -The Star

KPJ Healthcare confident of maintaining momentum ahead

KPJ’s 1HFY23 net profit rose to RM98.84m from RM49.2m YoY while revenue grew to RM1.63bm from RM1.34bn. KPJ Healthcare declared an interim dividend of 0.8 sen per share, with a total aggregate payment of RM34.9m, to be disbursed to the shareholders on Oct 3. Officer in Charge Norhaizam Mohammad said: “The strategies implemented at the group and our network of hospitals since the beginning of 2023 have continued to yield favourable outcomes as we capitalised on the resurgence in the healthcare sector”. - The Star

QL Resources posts stronger 1Q profit

Agro-food producer QL Resources’ 1QFY3/24 net profit rose 12.6% to RM92.8m thanks to higher contributions from almost all segments except for its FamilyMart convenience store chain business. Despite the challenges posed by a high interest rate environment and a weak global economic outlook, QL Resources said its management remains cautiously positive about its business performance in the upcoming quarters.. The Edge Markets

Inari 4Q profit falls 23% on weaker revenue

Inari Amertron’s 4QFY6/23 net profit declined 23% YoY to RM66.3m as an industry slowdown continued to weigh on revenue, coupled with higher energy costs. The group declared its fourth interim dividend of 2sen, with an entitlement date of Sept 15 and a payment date of Oct 6. Inari aims to improve energy and operational efficiencies to grow revenue consistent with or better than industry forecasts in FY2024.- The Edge Markets

PPB's 2Q net profit falls to two-year low

PPB Group’s 2QFY23 net profit dropped 70.75% YoY to RM202.8m dragged by lower contribution from its 18.8%-owned Singapore-listed Wilmar International Ltd. PPB said the contribution from Wilmar plunged 77% to RM139m, compared with RM598m in previous year. The group declared an interim dividend of 12 sen per share, payable on Sept 22.– The Edge Markets

Our Thoughts

Wall Street closed broadly higher as sentiment was boosted by the latest decline in consumer sentiment and job opening in July illustrating that the US economy may be cooling down. As a result, the DJI Average gained 293 points while the Nasdaq jumped by 239 points as the US 10-year yield eased to 4.12%. In Hong Kong, the HSI maintained its upward trajectory as investors’ confidence continued to be elevated by China’s recent cut in transaction costs coupled with improved earnings amongst the Hang Seng Index constituents. Back home, the FBM KLCI surged past the 1,450 mark underpinned by solid buying support from foreign funds across the board. Though we believe the same can be expected today, we reckon buying may be muted somewhat as the local bourse will be closed in celebration of Hari Merdeka tomorrow. Therefore, we expect the index to hover between the 1,450-1,460 range with interests to focus on the telcos in view that the equity holdings in Digital Nasional Bhd (DNB) will be finalized today.

Source: Rakuten Research - 30 Aug 2023

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