Previous Day Highlights

FBM KLCI closed lower as overall sentiment remain fragile following the release of US Federal Reserve's minutes. The benchmark index was down 0.51% or 7.51 pts to close at 1,455.89. Gainers were seen in health care (+1.18%), technology (+0.33%), and transportation (+0.12%); while losers were seen in industrial products & services (-1.12%), telecommunications (-0.98%), and construction (-0.82%). Market breadth was negative with 530 losers against 374 gainers. Total volume stood at 2.97bn shares valued at RM2.04bn.

Major regional indices trended mixed. HSI closed flat at at 17,734.60. SHCOMP dropped 0.79%, to close at 3,043.61. Nikkei 225 up 0.29%, to finish at 33,451.83. STI rose 0.60%, to close at 3,114.92.

Wall Street closed higher as markets head into Thanksgiving on Thursday. The DJIA added 0.53%, to end at 35,273.03. Nasdaq and S&P500 rose 0.41% and 0.46% to close at 14,265.86 and 4,556.62 respectively.

News For The Day

Maybank’s 3Q net profit rises 12% to RM2.36bn

Malayan Banking’s (Maybank) 3QFY12/23 net profit rose 12.29% YoY to RM2.36bn on higher operating income and lower allowance for impairment losses on loans. Quarterly revenue grew 22.95% YoY to RM16.01bn from RM13.02bn. Maybank’s net operating income fell 5.2% YoY to RM6.75bn from RM7.12bn, due to lower net fund-based income as net interest margin compressed due to persistent funding competition.-The Edge Markets

AMMB posts best quarter since 4QFY15, declares 6sen div

AMMB Holdings' 2QFY3/24 net profit rose 10.06% YoY to RM469.78m from RM426.84m as write-back of provisions and lower loan impairments more than offset the weaker operating profit in the quarter. The banking group has declared a dividend of six sen per share, unchanged from the same period last year.-The Edge Market

Inari's 1Q profit drops 20% YoY

Inari Amerton’s 1QFY6/24 net profit fell 20% YoY to RM84.98m from RM106.25m, after a marginal increase in revenue was offset by less favourable exchange rates and higher costs. The higher costs were attributable to an increase in electricity rates and losses arising from glitches in electricity supply experienced during the quarter. Quarterly revenue rose 2% YoY to RM383.93m from RM377m on higher contribution from its radio frequency (RF) business. The group declared a first interim dividend of 2.2 sen per share, payable on Jan 5, 2024.– The Edge Markets

SkyWorld posts RM19m quarterly profit

SkyWorld Development has declared its first interim dividend of RM12.5m or 1.25 sen per share for the 2QFY24, after posting a net profit of RM19.1 m. The property outfit said it had unbilled sales of RM713.6m as at end-September, and reiterated plans to launch new projects in Kuala Lumpur in the current financial year with a total estimated gross development value exceeding RM1bn.-The Edge Market

MST Golf declares 0.5c div as it posts 3Q profit of RM1.6m

MST Golf Group posted its 3QFY12/23 net profit of RM1.63m, a 59.41% YoY decline from RM4.01m as one-off costs of RM4.4m related to its Main Market listing on July 20 were fully expensed. On a normalised basis, the net profit would have risen to RM6m, representing a 50% increase from 2QFY23. Revenue increased 8.44% QoQ to RM82.34m from RM75.94m, thanks to the retail segment which contributed RM70.07m.- The Edge Market

Our Thoughts

Wall Street closed higher after the 10 year treasury yield briefly fell 4.369% on early session and the easing oil price. The DJIA rose 185 points (+0.53%) while Nasdaq advanced 66 points (+0.46%). In Hong Kong, the HSI finished flat ended the day without much change, reflecting the negative sentiment on Wall Street due to the Federal Reserve's November meeting minutes, which indicated a likelihood of maintaining higher interest rates for an extended duration. On the domestic front the FBM KLCI ended lower with selling mainly on commodity related stocks. We expect accumulation to persist given the attractive valuations of the local equities accompanied by the improved sentiment following the rally on Wall Street overnight. As such, we expect the benchmark index to trend higher within the range of 1,455-1,465 for today. Meanwhile Brent crude oil slipped 0.38% to US$81.65 per barrel.

Source: Rakuten Research - 23 Nov 2023

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