Rakuten Trade Research Reports

Daily Market Report - 16 Feb 2024

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Publish date: Fri, 16 Feb 2024, 12:11 PM
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Previous Day Highlights

FBM KLCI closed marginally lower after a weak opening. The benchmark index was down 0.06% or 0.95 pts to close at 1,528.38. Gainers were seen in telecommunications (+1.0%), technology (+0.9%), and utilities (+0.6%); while losers were seen in construction (- 0.7%), REIT (-0.4%), and plantation (-0.3%). However, market breadth was positive with 557 gainers against 370 losers. Total volume stood at 3.68bn shares valued at RM2.28bn.

Major regional markets closed broadly higher, leveraged from the positive cue from Wall Street’s performance overnight. HSI gained 0.41%, to end at 15,944.63. Nikkei 225 soared 1.21%, to finish at 38,157.94. STI skyrocketed 1.20%, to close at 3,176.69 whereas SSE remain closed for Lunar New Year holidays.

Wall Street continues to close higher after lower-thanexpected retail sales data prompted the interest rate cuts bet. The DJIA added 0.91%, to end at 38,773.12. Nasdaq advanced 0.30%, to close at 15,906.17. S&P500 rose 0.58%, to finish at 5,029.73.

Our Thoughts

Wall Street closed on a positive note as all 3 major indices rebounded with the S&P 500 ended on a record high following a drop in January’s retail sales igniting hopes for rates adjustment amid an easing US economy. As such, the DJI Average jumped 349 points while the Nasdaq gained 47 points as the US 10-year yield ended marginally lower at 4.234%. Over in Hong Kong, the HSI added 65 points to almost the 16,000 mark as traders are betting that the Chinese authorities will intervene to shore up investors’ confidence. Back home, the FBM KLCI ended on a flat note attributed to late buying activities, showing that the local bourse is well supported at current levels. As we enter into earnings season, it is without doubt that the banking sector will continue to show decent performance for CY2023. Thus, we expect the index to hover within the 1,530-1,540 range today amid the improving participation from the retail segment as illustrated by the improving daily volume.

News For The Day

F&N leases land in Cambodia for dairy manufacturing facility

Fraser & Neave Holdings (F&N) entered into an agreement with Suvannaphum Investment Co Ltd to lease a 32,200 sq m parcel of industrial land in the Suvannaphum Special Economic Zone, Cambodia for 50 years for US$3.86m (RM18.5m) to set up a manufacturing facility for dairy products. The total cost for the setting up of the facility is estimated at US$37.5m (RM179.5m), including the cost of leasing the land, construction of building and purchase of machinery. The manufacturing facility is expected to commence operations in 1QCY26. -The Edge Market

Hume Cement unit to sell Penang property for RM39.8m

Hume Cement Industries’ (HCIB) wholly owned subsidiary Hume Concrete SB (HCCT) is disposing of a parcel of land in Prai Industrial Estate, Penang, together with the buildings and all fixtures, fittings and other things on it for RM39.8m cash. HCCT has entered into a conditional sale and purchase agreement with Skygate Technology (KL) SB. -The Star

Malaysia Smelting Corp 4Q net profit falls 64%

Malaysia Smelting Corp’s (MSC) 4QFY12/23 net profit fell nearly 64% YoY to RM9.37m from RM25.84m, dragged by foreign exchange losses as well as the absence of sale of refined tin from processed tin intermediates and by-products. Revenue, however, rose 3.5% YoY to RM404.63m from RM391.15m as tin prices rose. MSC proposed a final single-tier dividend of seven sen per share for the quarter, bringing the full-year payout to 14 sen per share. For the full year, MSC’s net profit dropped 13.5% YoY to RM85.05m from RM98.31m, while revenue slipped 4.5% YoY to RM1.44bn from RM1.5bn.-The Edge Markets

Uzma unit accepts PETRONAS Carigali term contract

Uzma's wholly-owned subsidiary Uzma Engineering SB has accepted an award of term contract from PETRONAS Carigali SB in respect of the portable water injection module (PWIM) for Sepat platform. The contract, which was effective on Jan 12, 2024, is a continuation from the previous award that had expired on Jan 11, 2024.-The Star

GFM acquires rest and service area project firm for RM23m

GFM Services is acquiring the entire stake in Era Gema Bina SB for RM23m to expand into the highway rest and service area (RSA) business. Era Gema has been awarded the rights by the Malaysian Highway Authority to undertake the proposed development of an RSA on a 1.74ha land located at Sungai Muda, Penang. The acquisition comes with plans for GFM to position as the facility manager of the premise upon completion by 2027. -The Edge Markets

Source: Rakuten Research - 16 Feb 2024

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