Previous Day Highlights

FBM KLCI closed lower as sentiment remains cautious ahead of more inflation data due next week. The benchmark index was down 0.37% or 5.33 pts to close at 1,452.27. Gainers were seen in utilities (+1.45%), telecommunications (+0.15%), and health care (+0.01%); while losers were seen in property (-0.76%), plantation (- 0.47%), and technology (-0.43%). Market breadth was negative with 470 losers against 439 gainers. Total volume stood at 3.32bn shares valued at RM1.94bn.

Regional markets trended mostly higher despite weaker China’s consumer prices in October. HSI declined 0.33%, to end at 17,511.29. SHCOMP closed almost unchanged with a mere gain of 0.03%, to close at 3,053.28. Nikkei 225 up 1.49%, to finish at 32,646.46. STI rose 0.18%, to close at 3,135.32.

Wall Street closed lower after Fed official warned of the potential for further tightening to combat inflation in the US. The DJIA dropped 0.65%, to end at 33,891.94. Nasdaq eased 0.94%, to close at 13,521.45. S&P500 eased 0.81%, to finish at 4,347.35.

News For The Day

Westports' 3Q net profit up 30%

Westports Holdings saw its 3QFY12/23 net profit increase by 29.66% YoY to RM195m from RM150.39m on higher revenue during the quarter coupled with lower administrative and tax expenses as well as finance costs. Revenue for the quarter gained 4.18% YoY to RM542.31m from RM520.54m due to an increase in container revenue. However, it noted a notable increase in electricity cost as the national utility company implemented the current Imbalance Cost Pass-Through (ICPT). -The Edge Market

Mi Tech 3Q earnings dragged down by one-off WHT tax

Mi Technovation saw its 3QFY12/23 net profit decline by 30.09% YoY to RM14.16m against RM20.25m, dragged down by a RM3.58m one-off withholding tax paid in relation to the dividend received from its Taiwanese subsidiary, and lower foreign exchange gain. Revenue, however, increased 9.8% YoY to RM98.45m from RM89.66m, mainly driven by its semiconductor equipment business unit and semiconductor material business unit. -The Edge Market

Southern Steel narrows losses in 1Q

Southern Steel's 1QFY6/23 net loss narrowed by 38.5% YoY to RM39.59m from RM64.44m, thanks to higher sales volume and improved margin. Revenue rose 4.8% YoY to RM601.81m from RM574.03m. Southern Steel said the industry outlook remains challenging as current global market conditions weigh on demand.-The Edge Market

Vestland secures RM240m contract for building works

Vestland has secured a RM240m contract to undertake the main building works, mechanical and electrical and external works for two blocks of council homes in Taman Desa, Kuala Lumpur. The construction company secured the award from Ambang Besar SB. According to the group, the completion of the construction work will be 30 months from the site possession. -The Edge Markets

Karyon Industries buys Johor industrial land for RM7.6m

Karyon Industries (KIB) is proposing to acquire a piece of freehold industrial land measuring 3,842 sq metres in Johor Baru from Premetal Stamping Ind SB for RM7.6m. The chemical industry firm said the proposed acquisition represents an opportunity to acquire further space within the vicinity of its existing factories, to increase its existing storage capacity as well as to set-up additional and/ or new manufacturing lines in the near future.-The Star

Our Thoughts

Wall Street closed lower as sentiment was affected by the latest comments from Jerome Powell that more may be required to attain the Fed targeted inflation level. Though many are confident that recent economic data are showing signs of slowing down, it was the volatility within the Treasury yields that spooked traders. As such, the DJI Average lost 220 points while the Nasdaq declined by 129 points as the 10-year yield ended higher at 4.632%. Over in Hong Kong, the HSI declined by 57 points as the latest weak data on consumer and producer prices last month ignited concerns on the state of domestic demand thus more stimulus may be needed from the Chinese authorities to spur demand. Back home, the FBM KLCI fell for the 3rd consecutive day due to the lack of catalysts amid a mixed regional performance. The expected bargain hunting activities did not materialize but we remain adamant that this will emerge anytime soon. A check on the corporate results out so far indicates that all is well thus we expect the index to trend within the 1,450- 1,460 range today.

Source: Rakuten Research - 10 Nov 2023

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