Previous Day Highlights

FBM KLCI closed higher thanks to late buying activities. The benchmark index was up 0.72% or 11.20 pts to close at 1,558.80. Gainers were seen in utilities (+1.76%), construction (+1.15%), and consumer (+0.53%); while losers were seen in transportation (-0.76%), energy (- 0.51%), and healthcare (-0.44%). Market breadth was mixed with 570 losers against 548 gainers while 410 were unchanged. Total volume stood at 3.88bn shares valued at RM3.09bn.

Major regional indices trended higher except STI which slid 0.44%, to close at 3,157.32. HSI gained 0.94%, to end at 16,790.80. SHCOMP increased 1.29%, to close at 3,015.48. Nikkei 225 closed flat at 39,239.52.

Wall Street closed mixed ahead of personal consumption expenditures price index (PCE) to shape the Fed’s interest rate cut. The DJIA dropped 0.25%, to end at 38,972.41. Nasdaq rose 0.37%, to close at 16,035.30. S&P500 rose 0.17%, to finish at 5,078.18.

News For The Day

Tenaga posts 28% fall in 4Q profit, declares 28 sen dividend

Tenaga Nasional's 4QFY23 net profit fell 27.83% YoY to RM583.9m from RM809.1m, on the back of lower imbalance cost pass-through (ICPT) under-recovery and lower forex gains. It declared a dividend of 28 sen per share, bringing FY23 dividends to 46 sen per share. Revenue rose 5.7% YoY to RM13.65bn from RM12.92bn. For FY23, Tenaga’s net profit fell 20.01% YoY to RM2.77bn from RM3.46bn. -The Edge Markets

Alliance Bank's 3Q net profit dips slightly to RM176.8m

Alliance Bank Malaysia's 3QFY23 net profit dipped 0.13% YoY to to RM176.86m from RM177.1m, dragged by higher operating expenses that partially offset the gains from higher net interest and other operating income. Revenue increased marginally by 2.69% YoY to RM509.92m from RM496.55m. -The Edge Markets

Mah Sing 4Q net profit climbs 38% YoY

Mah Sing Group said its 4QFY23 net profit climbed 38% YoY to RM64.74m compared to RM46.78m thanks largely to higher margin and lower net finance costs. 4QFY23 revenue rose marginally YoY to RM671.28m from RM670.87m. For the full year FY23, net profit rose nearly 20% to RM215.29m versus RM180.05m, thanks to higher property sales and progressive revenue recognition from ongoing construction progress. Unbilled sales totalled RM2.33bn.-The Edge Markets

Unisem's FY2023 net profit down 79% to RM80m

Unisem (M)'s FY23 net profit fell 79% to RM80.24m from RM385.36m, due mainly to lower sales volumes in line with softer market demand. Full year revenue dropped to RM1.44bn from RM1.78bn. Unisem declared a dividend of two sen per share to be paid on April 5. -The Edge Markets

Padini's 2Q net profit declines to RM53.10m

Padini Holdings' 2QFY6/24 net fell 27.4% YoY to RM53.10m from RM73.14m due to a drop in the gross profit margin. Revenue slipped 1.8% to RM500.11m from RM509.48m. Padini also declared a third interim dividend of 2.5 sen per share (single-tier) for FY24, payable on March 29, 2024. -The Star

P.A. Resources records highest ever quarterly revenue

P.A. Resources recorded its highest ever quarterly revenue of RM150.7m for the 2QFY6/24, an increase of 16.4% YoY. It reported its 2QFY24 net profit of RM11.4m, after reflecting income tax expense of RM4.3m. The board of directors declared another single tier interim dividend of 0.5 sen per share amounting to approximately RM7.5m in FY24 and payment will be made on March 25, 2024. -The Star

Our Thoughts

Wall Street closed mixed as overall sentiment remains directionless as traders are waiting for the latest inflation data to be released later this week. As such, the DJI Average lost 97 points while the Nasdaq added 59 points as the US 10-year yield edged higher at 4.303%. In Hong Kong, the HSI jumped 156 points after a weak opening as traders speculated that there will be more stimulus to prop up the property market following a decline in home prices for the 9th month. At the home front, the FBM KLCI surged to almost the 1,560 level supported by strong buying from foreign funds especially on the Utilities sector spearheaded by the YTL Group. Despite the benchmark index improving by more than 100 points YTD, we believe there is still upside potential as prevailing uptrend is merely a catch-up process after a multi-year of underperformance. For today, we expect the index to hover within the 1,555- 1,565 range.

Source: Rakuten Research - 28 Feb 2024

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