Previous Day Highlights

FBM KLCI closed flat amidst a subdued trading day due to lack of fresh catalyst ahead of the Chinese New Year long weekend. The benchmark index ended up 0.01% or 0.13 pts to close at 1,513.11. Gainers were seen in utilities (+1.30%), technology (+0.16%), and REIT (+0.10%); while losers were seen in telecommunications (-1.05%), property (-0.91%), and health care (-0.71%). Market breadth was negative with 552 losers against 385 gainers. Total volume stood at 3.04bn shares valued at RM2.08bn.

Major regional indices trended mixed amid the uncertainty on interest-rate cut outlook. HSI declined 0.34%, to end at 16,081.89. SHCOMP increased 1.44%, to close at 2,829.70. Nikkei 225 eased 0.11%, to finish at 36,119.92. STI rose 0.97%, to close at 3,156.15.

Wall Street closed higher after a robust corporate earnings report. The DJIA added 0.40%, to end at 38,677.36. Nasdaq rose 0.95%, to close at 15,756.64. S&P500 rose 0.82%, to finish at 4,995.06.

Our Thoughts

Wall Street rallied underpin by robust corporate earnings and guidance especially from the tech mega caps illustrating healthy consumer spending amid a resilient US economy. As such, the DJI Average added 156 points while the Nasdaq gained 148 points. On the flipside, the Federal Reserve may not adjust interest rates lower anytime soon with the US 10-year yield inching higher at 4.115%. In Hong Kong, the HSI retreated slightly amid some profit taking activities following a sharp spike up the day before. Nonetheless, traders are confident that market sentiment to stay strong attributed to strong corporate earnings. Back home, the FBM KLCI ended flat as overall sentiment remains cautious. We noticed daily volume traded has shrunk to previous levels averaging around 3bn shares depicting the lack of trading interests especially from the retailers. However, as buying from foreign funds continues, this hopefully may cascade down to the smaller cap stocks. For today, we expect the benchmark index to hover within the 1,510-1,520 range.

News For The Day

Carlsberg posts net profit of RM333m in FY23

Carlsberg saw its FY23 topline dip by 6.3% YoY to RM2.26bn. Clini attributed the lower revenue to weak consumer sentiment. Despite this, the group’s bottom line improved by 5.1% YoY to RM333.2m. This improvement was due to the absence of the prosperity tax for its Malaysian operations and a one-off recognition of deferred tax income relating to the reinvestment allowance for the new bottling line. Carlsberg has declared a final dividend of 31 sen per share, subject to the shareholders’ approval, this will bring the total declared dividend for FY23 to 93 sen per share, translating to a payout ratio of 85%. -The Star

DBKL awards KL street lighting job for ITMAX by RM47.2m

Kuala Lumpur City Hall (DBKL) has expanded the scope of ITMAX System’s contract to install and maintain the networked street lighting systems in Kuala Lumpur by RM47.2m. ITMAX said DBKL has awarded the company a variation order (VO) for the job to include the replacement of broken light-emitting diode (LED) street lights with an expired warranty in the city. “ITMAX, under this VO, is required to upgrade the LED street lights including replacing the defective and out-of-warranty LED street lights,” ITMAX said.-The Edge Markets

YTL REIT acquires hotel in Ipoh for RM55m

YTL Real Estate Investment Trust (YTL REIT) is acquiring Syuen Hotel in Ipoh, Perak from Syuen Hotel Bhd for RM55m. YTL REIT said the 13-storey standalone hotel building has 290 rooms and ceased operations in May 2020. It was categorised as a 4-star hotel. -The Star

MNRB Holdings posts 47% jump in 3Q net profit

MNRB Holdings’ 3QFY3/24 net profit surged 47.36% YoY to RM84.61m, from RM57.42m driven by higher revenue from its insurance and takaful segment. Quarterly revenue rose 22.05% YoY to RM980.87m from RM803.69m, mainly from higher investment income and favourable fair value movement of investments. -The Edge Markets

Econpile gets RM30m substructure job

Econpile Holdings has received a letter of award from Chingsan Development SB for substructure works for an office building in Shah Alam, Selangor, for RM30m. Econpile said the job will entail undertaking the construction and completion of site clearing, earthworks, substructure and structure works for a five-storey basement car park, including the floor slab of lower ground 2 at the building. The project shall be completed within 16 months from Feb 24, 2024. -The Star

Source: Rakuten Research - 8 Feb 2024

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