News For The Day

FBM KLCI closed lower, spearheaded by the banking sector amid the cautious US interest rate outlook. The benchmark index was down 0.39% or 5.77 pts to end at 1,457.60. Gainers were seen in utilities (+2.50%), construction (+0.60%), and health care (+0.55%); while losers were seen in energy (-0.68%), financial services (- 0.54%), and telecommunications (-0.17%). However, market breadth was positive with 490 gainers against 412 losers. Total volume stood at 3.45bn shares valued at RM1.98bn.

Major regional indices trended negatively in response to the China’s weak trade data. HSI declined 0.58%, to end at 17,568.46. SHCOMP dropped 0.16%, to close at 3,052.37. Nikkei 225 eased 0.33%, to finish at 32,166.48. STI slid 1.39%, to close at 3,129.72.

Wall Street closed mixed as Fed officials made no remarks on the monetary policy. The DJIA dropped 0.12%, to end at 34,112.27. Nasdaq rose 0.08%, to close at 13,650.41 while S&P500 rose 0.10%, to finish at 4,382.78.

Duopharma 3Q net profit nearly halves to RM8.97m

Duopharma Biotech’s 3QFY12/23 net profit fell by 45.13% YoY to RM8.97m from RM16.35m due to higher finance costs. The group’s quarterly revenue fell by 4.43% YoY to RM169.24m compared to RM177.07m, underpinned by a decrease in demand from the consumer healthcare sector and the prolonged impact of increased operational costs resulting from the upward adjustment in electricity tariff and elevated labour cost. -The Edge Market

Hup Seng’s 3Q net profit jumps threefold to RM13.02m

Hup Seng Industries’ 3QFY12/23 net profit jumped threefold to RM13.02m, from RM3.84m YoY. Quarterly revenue expanded by 34.19% YoY to RM94.19m, against RM70.19m, driven by higher contribution from its export markets, mainly from Thailand and Singapore. -The Edge Market

AME REIT delivers RM8.7m net income for 2Q

AME Real Estate Investment Trust (AME REIT) reported a 2QFY24 net income of RM8.72m for 2QFY3/24 on the back of a net property income of RM10.78m. It continued to maintain 100% occupancy rates across its industrial properties. The industrial REIT proposed an interim distribution of 1.8 sen per unit, payable on Dec 18 to unitholders at the close of business on Nov 24. -The Edge Market

OCK clinches RM48.73m ICT hardware contract

OCK Group via its wholly owned subsidiary OCK Setia Engineering SB has accepted a RM48.73m contract from the Ministry of Education to rent out eco-friendly information and communications technology (ICT) hardware to school computer laboratories in Sarawak. The contract is set to last for 65 months, with a commencement date of Oct 26 until March 25, 2029. This entails four months for setup, 60 months for laptop leasing, and a one-month return period. -The Edge Markets

Swift Haulage’s 3Q net profit more than doubles

Swift Haulage’s 3QFY12/23 net profit more than doubled to RM28.39m from RM11.72m YoY. EPS rose to 3.22 sen from 1.32 sen. The country’s largest haulage operator said its improved earnings were due to higher other income earned from gain from bargain purchase through the acquisition of a 17.5% stake in Global Vision Logistics SB (GVL). Revenue increased 5.52% to RM168.04m, from RM159.25m, contributed by all its business segments, mainly from container haulage and land transportation segments.-The Edge Markets

Our Thoughts

It was a mixed day on Wall Street as traders were mainly sidelined ahead of inflation data to be out next week. Meanwhile, there was a shift of funds from equities to bonds as the US 10-year yield continue to slide that ended at 4.492%. As such, the DJI Average lost 40 points while the Nasdaq added 11 points. In Hong Kong, the HSI lost another 101 points as fears of a deflation in China emerged as many are expecting both October’s consumer and producer prices to be announced today to decline. Back home, the FBM KLCI declined to below the 1,460 level weighed mainly by selling on the Banks which was rather surprising. Nonetheless, we remain positive on the Banks as the financial sector should maintain its dominance in supporting the overall corporate earnings growth for this year. Thus, we believe some bargain hunting may emerge for the Banks anytime soon hence expect the index to hover within the 1,455-1,465 range today. Meanwhile, Energy related stocks may face some headwinds from the recent sharp decline in crude oil price that saw the Brent crude retreated to below US$80/barrel.

Source: Rakuten Research - 9 Nov 2023

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