Previous Day Highlights

FBM KLCI closed lower as selling persisted particularly on the Banks. The benchmark index down 0.61% or 8.98 pts to close at 1,455.58. Gainers were seen in plantation (+0.48%), health care (+0.47%), and property (+0.39%); while losers were seen in financial services (-1.12%), utilities (-0.69%), and REIT (-0.50%). Market breadth was negative with 435 losers against 390 gainers. Total volume stood at 3.06bn shares valued at RM2.09bn.

Major regional indices trended mixed. HSI gained 0.04%, to end at 16,621.13. SHCOMP increased 0.57%, to close at 2,918.72. Nikkei 225 eased 1.59%, to finish at 33,140.47. STI rose 0.14%, to close at 3,112.50.

Wall Street closed higher as economic data fueled optimism that the Federal Reserve would ease monetary policy and revived investor risk appetite. The DJIA added 0.87%, to end at 37,404.35. Nasdaq rose 1.26%, to close at 14,963.87. S&P500 gained 1.03%, to finish at 4,746.75.

News For The Day

AEON Credit delivers flattish earnings growth in 3Q

AEON Credit Service (M)’s 3QFY2/24 net profit rose 2.3% YoY despite a 16.4% YoY increase in revenue, due to higher impairment losses, coupled with an increase in interest expenses. Net profit rose to RM85.55m from RM83.63m, while revenue climbed to RM486.51m from RM417.84m, amid stronger loan and financing growth. -The Edge Markets

PT Resources' net profit doubles to RM18.7m in 2Q

PT Resources Holding posted its 2QFY4/24 net profit of RM18.7m, double the RM8.34m YoY, despite lower revenue, thanks to the group having secured supplies at competitive prices through bulk purchasing. While quarterly revenue decreased by 10.9% YoY to RM111.7m from RM125.4m, dragged by a decline in overseas sales, the group's gross profit rose by RM6.3m or 45.1% YoY to RM20.1m from RM13.8m. The group did not declare any dividend for the current quarter under review. -The Edge Markets

Epicon partners PNSB to develop affordable housing

Epicon (formerly known as Konsortium Transnasional) is establishing a consortium with a unit of Permodalan Negeri Selangor (PNSB) to develop an affordable housing project in Rawang, Selangor. The housing project, Rumah Idaman MBI, will have 2,251 housing units, said Epicon, who also expressed intensions to explore future collaborations of such nature.- The Star

Foundpac acquires industrial land for RM41.88m

Foundpac Group is acquiring a piece of leasehold industrial land in Bayan Lepas, Penang from Bluemetal SB for RM41.88m. Foundpac said the proposed acquisition was undertaken to consolidate its production operations located in Penang (namely the factories located in Batu Maung, Bayan Lepas and Prai) to a single premise. The Group presently has its current production operations located in six factories. -The Star

MCE Holdings' 1Q profit jumps 39% on increased demand

MCE Holdings, whose share price has risen by 42% this month, saw its 1QFY7/24 net profit jump 39.4% YoY to a record high of RM4.88m from RM3.49m, as revenue rose 8.48% YoY to RM41.27m from RM38.56m, primarily driven by higher sales in the automotive parts segment, on sustained demand for products by local carmakers. The group did not declare any dividends for the quarter under review. -The Edge Markets

Our Thoughts

Wall Street staged a technical rebound as all three major indices closed broadly higher following the decline a day before. The DJI Average added 322 points whilst the Nasdaq jumped by 182 points despite the US 10-year yield closing higher at 3.892%. Meanwhile in Hong Kong, the HSI ended flat as sentiment remains cautious led by declines amongst the tech-related stocks ahead of the long Christmas break next week. Back home, the FBM KLCI reversed its uptrend to end at 1,455 having failed to break the 1,465 level after several attempts. Nonetheless, we believe some bargain hunting activities to emerge today thus expect the index to hover within the 1,455-1,465 range with interest on the banking and utilities stocks.

Source: Rakuten Research - 22 Dec 2023

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