Previous Day Highlights

FBM KLCI closed flat amidst the sell-off on small mid cap due to the global volatility. The benchmark index up 0.24% or 3.60 pts to close at 1,516.58. Gainers were seen in consumer (+0.70%), financial services (+0.37%), and REIT(+0.29%); while losers were seen in energy (-1.58%), utilities (-1.51%), and property (-1.09%). Market breadth was negative with 690 losers against 311 gainers. Total volume stood at 3.66bn shares valued at RM3bn.

Major regional indices trended largely higher. HSI declined 0.21%, to end at 15,533.56. SHCOMP dropped 1.46%, to close at 2,730.15. Nikkei 225 up 0.41%, to finish at 36,158.02. STI rose 1.17%, to close at 3,179.77.

Wall Street closed higher driven by the upbeat momentum thanks to the robust jobs data and earning beats from big tech earnings. The DJIA added 0.35%, to end at 38,654.42. Nasdaq rose 1.74%, to close at 15,628.95. S&P500 gained 1.07%, to finish at 4,958.61.

News For The Day

Westports ends 2023 positively on record container volume

Westports Holdings’ 4QFY12/23 net profit fell 12.3% YoY to RM206.08m from RM235.04m, due to a reduction in share of results of a joint venture. Quarterly revenue rose 6.3% YoY to RM554.06m from RM521.14m on the back of higher container revenue. Westports announced a second interim dividend of 8.72 sen per share for FY23, bringing total dividends to 16.91 sen. The group’s FY23 net profit increased 11.4% YoY to RM779.43m from RM699.58m. The group also recorded its highest-ever revenue of RM2.15bn, a 4% YoY increase. -The Edge Markets

TMC Life’s 2Q net profit more than doubles

TMC Life Sciences Bhd, which made the news recently over the suspension of its group chief executive officer, reported a sharp rise in YoY quarterly earnings amid a recovery of its fertility business. The group said the 164.55% YoY jump in its net profit to RM14.52m 2QFY6/24 from RM5.49m, due to an increase in capacity at Thomson Hospital Kota Damansara and higher interest income. Revenue increased 27.87% YoY to RM93.78m from RM73.34m. -The Edge Markets

T7 Global marks foray into Thailand with RM400m contract

T7 Global marked its foray into Thailand waters with a RM400m contract for its latest mobile offshore production unit (Mopu) named TSeven Shirley, which will be leased to Valeura Energy Inc, operator of the Nong Yao oil field, in support of its Nong Yao C development. The Mopu will begin its charter in 2024 for the next five years. -The Edge Markets

TRC Synergy bags RM358m contract

TRC Synergy has secured a RM358m contract from Impeccable Vintage Properties SB, a wholly-owned subsidiary of Khazanah Nasional. The construction and property development group said its wholly owned subsidiary, Trans Resources Corporation SB accepted a letter of award from Impeccable Vintage. The contract is for the proposed refurbishment of the main building and infrastructure works at Subang Engineering Complex A, Sultan Abdul Aziz Shah Airport.-The Star

KJTS wins RM16.7m contract in Thailand

KJTS Group has bagged a RM16.77m contract from Thailand's Central World Hotel Co Ltd to undertake retrofitting works as well as provide O&M services and supply of chilled water at Centara Grand Hotel at Central World in Bangkok for 15 years. The retrofitting works are expected to commence on Feb 1, 2024 and to be completed on Nov 30, 2024. The O&M services and chilled water supply will commence on Dec 1, 2024 and be completed on Nov 30, 2039.-The Edge Markets

Our Thoughts

Wall Street finished higher on strong tech earnings while January jobs report came in much better than expected. The Dow rose 135 points (0.35%) while the Nasdaq surged 267 points (1.7%). In Asia, key indices closed higher following positive cue from global equities overnight. However, HK stocks in HK remained under pressure due massive selling on real estate stocks. As a result, the HSI fell 33 points (0.2%). As for the local bourse, the FBM KLCI closed below its dayhigh due to late selling. Nonetheless the benchmark index was able to finish on a positive note. We reckon the market undertone is still cautious due to the increasing global volatility, however, the valuation of the FBM KLCI remains attractive, trading at CY24 forward PER of 14.5x against its 5-year average of 17x. Thus, we anticipate the benchmark index to trend within the range of 1,510-1,520 for today.

Source: Rakuten Research - 5 Feb 2024

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