Previous Day Highlights

FBM KLCI closed higher, in tandem with the positive performance across the region. The benchmark index was up 0.33% or 5.06 pts to 1,538.61. Sectors wise, property (+0.7%), and plantation (+0.6%) registered moderate gains while losers were seen in utilities (-0.9%), and construction (-0.7%). Market breadth was mixed with 417 gainers against 554 losers while 459 were unchanged. Total volume stood at 3.48bn shares valued at RM2.07bn.

Major regional indices finished broadly higher buoyed by inflow of foreign funds. SHCOMP and STI rose 1.56% and 0.12%, to close at 2,910.54 and 3,225.91 respectively. Meanwhile Nikkei225 and HSI fell 0.04% and 1.13% to end at 28,470.38 and 16,155.61.

Wall Street was closed for President's Day.

Our Thoughts

Wall Street was closed for Washington Birthday yesterday and a look at the futures showed that all 3 major indices remained rather flat. Over in Hong Kong, the HSI lost 184 points and halted its Dragon year rally as the Chinese authority kept interest rates unchanged. At the home front, the FBM KLCI continued with its uptrend to close almost the 1,540 mark attributed to some late buying activities. We expect foreign funds to maintain the accumulation of local equities, taking advantage of the low valuations of both stocks and currencies within the SEA region. Though a correction is anticipated anytime soon, we suspect it’s only for a short period hence expect the index to hover within the 1,535-1,545 range today with interests possibly on the Construction and Utilities stocks.

News For The Day

Public Bank buys Vietnam-based capital market firm

Public Bank (PBB) is acquiring the entire charter capital of RHB Securities Vietnam Co Ltd from RHB Bank for RM72.55m. PBB said the proposed acquisition is also expected to further strengthen the bank’s presence and its subsidiaries in Vietnam, as well as provide synergy to its Indo-China operations. -The Star

MGB’s 4Q net profit more than triples

Construction firm MGB’s 4QFY23 net profit more than tripled YoY to RM12.5m, thanks to higher progressive billings and cost control. Moving forward, MGB said it will stay vigilant with costs and focus on being faster to market. The company also expects its construction order book of about RM1.14bn and unbilled sales of RM650m from ongoing property projects to contribute to next year’s earnings. -The Edge Markets

Hextar Global 4Q profit up fivefold

Hextar Global’s 4QFY23 net profit jumped fivefold YoY to RM23.4m underpinned by the stellar performance of the newly diversified fruits segment and improved results from the agriculture and specialty chemicals segments. The group declared a first interim dividend of one sen per share, payable on April 5, 2024. -The Edge Markets

Bursa fines and reprimands CN Asia

Bursa Malaysia has publicly reprimanded CN Asia Corp Bhd (CNASIA) and seven of its directors for breach of the Bursa Malaysia Securities Main Market Listing Requirements. In addition, the seven directors of CNASIA were imposed total fines of RM225,000. -The Star

P.A. Resources buys factory land for RM21m

P.A. Resources is proposing to acquire two parcels of industrial land in Pekan Batang Berjuntai, Selangor from Niken Steel (M) SB for RM21m. The company said will build a new factory on the land, which will double its production capacity, in phases, from 3,200 tons a month to approximately 7,000 tons. -The Star

Zantat inks underwriting deal for ACE Market listing

Zantat Holdings has inked an underwriting agreement with M&A Securities SB for its listing on the ACE Market of Bursa Malaysia Securities. the calcium carbonate producer said the initial public offering (IPO) involves a public issue of 56.0m new shares, representing 20% of the enlarged share capital of Zantat and an offer for sale of 16.8m existing shares by way of private placement to selected investors. Zantat is one of the biggest producers of high-grade calcium carbonate products in the region with 39 years of operating history in Malaysia. -The Star

Source: Rakuten Research - 20 Feb 2024

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