Previous Day Highlights

FBM KLCI staged a rebound after 2-days of continuous sell down, driven by the bargain hunting activities across the board. The benchmark index up 0.37% or 5.62 pts to close at 1,541.41. Majority of sectors were positive with property (+1.5%), construction (+1.3%), and technology (+1.0%), leading the gains; while losers were seen in health care (-0.6%), and REIT (-0.3%). Market breadth was positive with 631 gainers against 451 losers. Total volume stood at 4.02bn shares valued at RM2.94bn.

Major regional indices trended higher amid the positive sentiment spurred by confidence over Fed’s interest decision. HSI gained 1.93%, to end at 16,863.10. SHCOMP dropped 0.08%, to close at 3,077.11. Nikkei 225 up 2.03%, to finish at 40,815.66. STI rose 1.35%, to close at 3,220.37.

Wall Street continue to trend higher as investor cheered after Fed maintained its outlook for 2024 rate cuts. The DJIA added 0.68%, to end at 39,781.37. Nasdaq rose 0.20%, to close at 16,401.84. S&P500 rose 0.32%, to finish at 5,241.53.

News For The Day

SunCon bags RM747.8m data centre contract

Sunway Construction Group (SunCon) has been awarded a RM747.8m contract from a US-based multinational technology corporation for the construction and completion of a data centre located in Selangor. The works are scheduled to commence no later than the estimated start date of May 15, 2024 and expected to be completed by the 2QCY27. -The Star

EcoWorld kicks off FY24 with 22% jump in 1Q profit

Eco World Development Group’s (EcoWorld) 1QFY10/24 net profit rose 22.15% YoY to RM69.63m from RM57m, mainly due to higher interest income from the placement of excess funds by the group’s Malaysian operations. Earnings were also lifted by its 27%-owned JV, Eco World International. Its quarterly revenue grew 10.95% YoY to RM537.79m from RM484.73m on higher contributions from active phases and newly launched ones. -The Edge Markets

Astro closes FY24 with record low profit and dividend

Astro Malaysia Holdings’ 4QFY1/24 net profit drop 18.95% YoY to RM44.38m amid lower revenue, higher net financing costs and unfavourable unrealised foreign exchange losses. Quarterly revenue fell 13.63% YoY to RM819, primarily due to lower subscription revenue, advertising revenue, sales of programming rights and rental income, and the ceasing of its Go Shop operations. Its full FY24 net profit fell 85.76% to RM36.88m and the group paid 0.25 sen per share for FY24, its lowest since the group's listing in 2012. -The Edge Markets

MGB bags RM207m property development project in Sepang

MGB Bhd has secured a contract worth RM207.03m from Astana Modal SB, to undertake the development of two blocks of service apartments in Sepang, Selangor. The first phase of the project is set to be completed in 27 months, starting from June 1 this year. The second phase is scheduled to commence on Feb 2, 2025, and is expected to span 24 months. -The Edge Markets

PTT Synergy bags RM299m contract in Kelantan

PTT Synergy secured an RM299m contract to build the Palekbang-Kota Bharu bridge and connecting roads at Jajahan Tumpat and Jajahan Kota Bharu, Kelantan. PTT Synergy’s wholly owned unit Pembinaan Tetap Teguh SB accepted the letter of award for the job from Prima Wahyu SB. The works will start next Monday (March 25) and should be completed by Sept 15, 2026. - The Edge Markets

Our Thoughts

all Street finished higher after the Federal Reserve reiterated its forecast of three rate cuts for the year. Yesterday's movements followed a triumphant day on Wall Street, with the three major indexes hitting new closing highs. Notably, the S&P 500 surged above 5,200 for the first time. Concurrently, the Dow soared by 0.68%, settling just below the 40,000 mark. In Hong Kong, the HSI closed sharply higher with strong buying in tech stocks as Beijing announced fresh measures to support the economy. As for the local bourse, the FBM KLCI rebounded as bargain-hunting activities emerged following the earlier sell-off. We believe that buying in local stocks will continue following the news on the rate, which strongly lifted investor sentiment. As such, we anticipate the benchmark index to trend within the range of 1,540-1,550 for today.

Source: Rakuten Research - 22 Mar 2024

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