Previous Day Highlights

FBM KLCI closed higher amid the positive shift in sentiment. The benchmark index was up 0.45% or 6.54 pts to close at 1,451.72. Gainers were seen in telecommunications (+1.39%), utilities (+1.29%), and industrial products & services (+0.49%); while losers were seen in health care (-0.69%), energy (-0.22%), and construction (-0.16%). Market breadth was positive with 489 gainers against 481 losers while 402 counters were unchanged. Total volume stood at 3.08bn shares valued at RM1.77bn.

Major regional indices trended mixed ahead of Xi-Biden meeting. HSI declined 0.17%, to end at 17,396.86. SHCOMP increased 0.31%, to close at 3,056.07. Nikkei 225 up 0.34%, to finish at 32,695.93. STI slid 0.07%, to close at 3,104.66.

Wall Street closed higher driven by lower-than-expected inflation data. The DJIA added 1.43%, to end at 34,827.70. Nasdaq rose 2.37%, to close at 14,094.38. S&P500 rose 1.91%, to finish at 4,495.70.

News For The Day

Dialog 1Q net profit rises to RM132.17m

Dialog Group's 1QFY6/24 net profit rose to RM132.17m from RM125.79m YoY mainly contributed by international operations and higher share of results from joint-ventures (JVs) and associates. Revenue increased by 9.7% YoY to RM780.45m from RM711.69m underpinned by higher sales of specialist products and services in various countries, and increased activities at the Jubail Supply Base. -The Star

NationGate's 3Q profit & revenue fall over 40%

NationGate Holdings’ 3QFY12/23 net profit dropped by 42.5% YoY to RM17.28m from RM30.05m amid slower demand for the group’s EMS, especially from networking and telecommunication customers. Revenue fell by 45.7% YoY to RM165.58m from RM305.17m. NationGate declared an interim dividend of 0.25 sen per share, with the entitlement and payment dates to be announced. -The Edge Market

Ranhill Utilities’ 3Q net profit up 10%

Ranhill Utilities posted a 10% YoY rise in 3QFY12/23 net profit to RM10.22m from RM9.32m, on higher earnings in all three of its business segments, namely environment, engineering services and energy. Quarterly revenue surged 40.42% YoY to RM609.39m from RM433.99m, attributed to higher recognition of water revenue contributed by its water supply subsidiary Ranhill SAJ SB, arising from a non-domestic tariff hike, as well as increased revenue from its engineering unit Ranhill Worley SB. -The Edge Market

TMC Life Sciences’ 1QFY24 net profit more than doubles

TMC Life Sciences’ 1QFY6/24 net profit soared by 143.10% YoY to RM15.14m from RM6.23m, in line with revenue growth attributed to the increase in capacity of Thomson Hospital Kota Damansara (THKD) and the recovery of its fertility business. EPS expanded to 0.87 sen from 0.36 sen. Quarterly revenue surged by 28.6% YoY to RM92.44m from RM71.87m, underpinned by higher contribution from its fertility business. -The Edge Market

Teo Seng sells Singapore factory for RM29.41m

Teo Seng Capital, via its unit BH Fresh Food Pte Ltd, is disposing of a leasehold, two-storey JTC detached factory in Singapore for RM29.41m. Teo Seng said the export of eggs by Teo Seng to the Singapore market via its subsidiaries has been affected due to regulatory limitation. It added that the majority of eggs exported to Singapore are directly delivered to wholesalers in Singapore, which rendered the under-utilisation of the property. -The Star

Our Thoughts

Wall Street rallied as traders cheered October’s consumer price index (CPI) which came in lower than expected. Core CPI that excludes food and energy prices actually rose the slowest in 2 years suggesting the Feds will end its interest rate hike campaign for good. Therefore, the DJI Average jumped 490 points while the Nasdaq added 327 points as the US 10-year yield eased to 4.453%. Over in Hong Kong, the HSI closed marginally lower as investors were mainly side-lined ahead of US inflation report. The index dipped 29 points to just below the 17,400 mark. On the local front, the FBM KLCI rebounded attributed to bargain hunting activities following last week’s erratic trading pattern. In line with the optimism from the US, we expect the index to maintain its positive momentum thus anticipate the index to trend within the 1,455-1,465 range today. Meanwhile, Plantation stocks could see some buying interests today as crude palm oil (CPO) price improved to above the RM3,900/tonne level due to higher imports from India.

Source: Rakuten Research - 15 Nov 2023

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