Previous Day Highlights

FBM KLCI closed higher after three consecutive days of downtrend. The benchmark index was up 0.44% or 6.48 pts to close at 1,463.40. Gainers were seen in industrial products & services (+1.41%), technology (+0.76%), and health care (+0.59%); while losers were seen in utilities (-0.69%), transportation (-0.21%), and consumer (- 0.17%). Market breadth was positive with 500 gainers against 411 losers. Total volume stood at 3.66bn shares valued at RM2.11bn.

Major regional indices trended negatively as property outlook remained fragile, despite the Chinese government's supportive measures. HSI declined 0.25%, to end at 17,733.89 whereas SHCOMP close flat at 3,067.93. Nikkei 225 eased 0.10%, to finish at 33,354.14. STI slid 0.49%, to close at 3,096.34.

Wall Street closed lower following Fed officials agreed to take a cautious approach in rate hike campaign. The DJIA dropped 0.18%, to end at 35,088.29. Nasdaq eased 0.59%, to close at 14,199.98. S&P500 eased 0.20%, to finish at 4,538.19.

News For The Day

Sunway Construction's 3Q profit jumps 54%

Sunway Construction Group’s 3QFY23 net profit rose 54.14% YoY to RM35.01m from RM22.72m, supported by higher topline contributions from all segments. Quarterly revenue climbed 43.53% YoY to RM673.51m from RM469.25m. The group's 3Q construction revenue rise 40.9% YoY to RM590.5m, fuelled by enhanced contributions from sustainable energy projects and higher revenue recognition as newer projects progress. They had secured RM2.23bn of new orders in 9MFY23. – The Edge Markets

ITMAX posts 33% jump in quarterly profit

ITMAX System announced its 3QFY12/23 net profit of RM16.31m, up 32.59% YoY from RM12.3m. Revenue rose 26.92% YoY to RM39.06m from RM30.78m, largely due to the near doubling of topline at its supply, installation and maintenance services business to RM15.34m from RM8.14m. Its largest revenue contributor is still the video surveillance and analytics segment, which contributed RM22.42m to group revenue. -The Edge Market

AirAsia X's PN17 status to be uplifted on Wednesday

AirAsia X (AAX) said its Practice Note 17 status will be uplifted on Wednesday after Bursa Securities allowed its appeal on the matter. This comes after AAX reported its 3QFY23 net profit of RM5.56m, down 77.83% YoY compared with RM25.09m due to higher aircraft fuel expenses and maintenance and overhaul costs. -The Edge Market

Teo Seng 3Q earnings jump to RM43.8m

Teo Seng Capital’s 3QFY23 profit surged by more than 84 times YoY to RM43.83m from RM516,000, boosted by higher average selling price and sales quantity of eggs. It is the highest quarterly profit recorded since 2008. The egg producer said subsidies from the government, which cushioned the impact of high feed costs, also contributed to the surge in quarterly earnings. Quarterly revenue rose 20.1% YoY to RM199.99m from RM166.68m.-The Edge Market

Comfort Gloves narrows 3Q net loss on improved margins

Improved margins that led to lower costs of both natural rubber and synthetic latex has helped narrow Comfort Gloves’s net loss for 3QFY23 to RM7.9m, from RM17.8m YoY, attributed to continuously improve business operational efficiency to stay competitive, as well as a reversal of written down on inventory amounting to RM13.1m. 3Q Revenue for fell 43% YoY to RM72.45m from RM126.79m, on lower sales quantity.– The Edge Markets

Our Thoughts

Wall Street fell on Tuesday as traders began to assess the Federal Reserve minutes which did not mention any rate cut. Instead, it indicated that the policy would remain restrictive amid concerns inflation may return. As such, the DJI Average lost 63 points while the Nasdaq declined by 85 points with the US 10-year yield sliding to 4.398%. In Hong Kong, the HSI closed on a weak note reversing earlier gains as Chinese investors turned to profit taking mode despite the Chinese Yuan strengthened to a 4-month high. The HSI managed to trend above the 18,000 mark in the earlier session before selling emerged to pressure the index lower. Back home, the FBM KLCI rebounded and managed to hover above the 1,460 level throughout the day from bargain hunting on stocks that were trashed down previously namely the Telcos and Energy sectors. For today, we reckon sentiment to stay cautious thus expect the index to trend between the 1,460-1,465 range today.

Source: Rakuten Research - 22 Nov 2023

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