Previous Day Highlights

FBM KLCI closed lower but off its day’s low as profittaking activities emerged after the recent rally. The benchmark index was down 0.09% or 1.30 pts to 1,463.37. Gainers were seen in healthcare (+2.17%), transportation (+0.41%), and REIT(+0.37%); while losers were seen in property (-1.07%), construction (-0.73%), and energy (- 0.64%). Market breadth was negative with 517 losers against 385 gainers. Total volume stood at 3.27bn shares valued at RM2.17bn.

Major regional indices trended negatively due to China sluggish export growth. HSI declined 1.65%, to end at 17,670.16. SHCOMP dropped 0.04%, to close at 3,057.27. Nikkei 225 eased 1.34%, to finish at 32,271.82. STI slid 0.21%, to close at 3,173.81.

Wall Street closed higher driven by investor expectations of the Fed's rate hike cycle is coming to an end. The DJIA added 0.17%, to end at 34,152.60. Nasdaq rose 0.90%, to close at 13,639.86. S&P500 climbed 0.28%, to finish at 4,378.38.

News For The Day

F&N posts highest profit in 13 years

Fraser & Neave Holdings’ (F&N) FY9/23’s net profit rose 40.11% YoY to RM536.9m from RM383.21m, fuelled by festive sales and out-of-home consumption, as well as contributions from snack and candy maker Cocoaland Holdings. Revenue climbed 11.88% YoY to a record high of RM5bn versus RM4.47bn. This is the group's highest full-year net profit since FY2010. F&N has recommended a dividend of 50 sen per share, comprising a final dividend of 33 sen and special dividend of 17 sen. -The Edge Markets

Hartalega returns to the black in 2Q with RM27.7m

Hartalega posted a net profit of RM27.7m, which was on a par with net profit of RM28.34m YoY. For 1QFY3/24, it posted a net loss of RM52.47m. Revenue declined to RM452.09m from RM584.56m YoY due to lower sales volume and ASPs. The decommissioning of the Bestari Jaya facility and consolidation of operations is expected to generate improved operational and cost efficiencies once completed by the 1QFY24.-The Star

Voultier the new white knight for EA Technique

Voultier SB is set to become the largest shareholder of the financially troubled EA Technique (M) (EATech) on the proposed plan to subscribe to 676.39m shares or a 51% stake in the company through a share issuance exercise. VSB is largely owned by businessman Datuk Wira Mubarak Hussain Akhtar Husni with a 70% stake and the remaining 30% is held by Kinery Advancement managing director Datuk Lai Keng Onn. VSB is also seeking an exemption from the obligation to undertake a mandatory general offer for the remaining shares in EATech.-The Edge Markets

Icon Offshore secures contract from SEA Hibiscus

Icon Offshore's wholly-owned subsidiary Icon Offshore Group SB has been awarded a letter of award from SEA SB for the provision of one 60 tonne anchor handling tug supply vessel for the 2023/24 drilling campaign. The provision of service commenced on Oct 24, 2023.-The Star

Crescendo unit to dispose of land for RM117.02m

Crescendo Corp has announced that its wholly-owned subsidiary Panoramic Industrial Development SB (PID) has entered into two conditional sales and purchase agreements to dispose of seven parcels of land to STT GDC Malaysia 2 SB for a combined value of RM117.02m. The seven parcels of land, measuring a combined 90,596.5 sqm.-The Star

Our Thoughts

Wall Street again ended higher as traders continue to bet that the Federal Reserve will end their interest rate hike cycle despite sentiment remains in cautious mode. Hence, while the DJI Average closed slightly higher by 57 points, the Nasdaq jumped by 121 points as the US 10-year yield slid to 3.569%. In Hong Kong, the HSI declined by 296 points as China’s exports sank lower than expected in October reigniting fears of the country’s economic recovery. As for the local bourse, the FBMKLCI dipped marginally amid a broadly weaker regional market performance after Monday’s strong show. Nonetheless, we noticed there were some bargain hunting activities at around the 1,460 level yesterday thus this may act as the immediate psychological support thus we expect the index to hover between the 1,460-1,470 range today. Meanwhile, crude oil prices declined with the Brent crude ended at US$81.50/barrel on worries of China’s state of economy.

Source: Rakuten Research - 8 Nov 2023

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