Previous Day Highlights

The FBM KLCI closed lower as selling pressure persisted, aligning with the weak performance across the region. The benchmark index was down 0.31%, or 4.85 points, to close at 1,537.54. Gains were observed in transportation (+1.63%), construction (+0.61%), and energy (+0.54%), while losses were seen in healthcare (-0.40%), REIT (- 0.39%), and telecommunications (-0.34%). Market breadth was negative, with 587 losers against 476 gainers. Total volume stood at 3.76bn shares valued at RM2.56bn.

Major regional indices trended negative as market undertone turned cautious ahead of a slew of economic data. HSI declined 0.16%, to end at 16,473.64. SHCOMP dropped 0.71%, to close at 3,026.31. Nikkei 225 eased 1.16%, to finish at 40,414.12. STI slid 0.62%, to close at 3,198.10.

Wall Street closed lower before the holiday-shortened week kick off as investor look forward to inflation data. The DJIA dropped 0.41%, to end at 39,313.64. Nasdaq eased 0.27%, to close at 16,384.47. S&P500 eased 0.31%, to finish at 5,218.19.

News For The Day

UWC's 2Q earnings fall 75% amid semiconductor downturn

UWC's 2QFY7/24 net profit fell 75% YoY to RM4.81m from RM19.1m as the semiconductor market cyclical downturn weighed on revenue, coupled with higher expenditure for investment to cater for future growth. Quarterly revenue declined 33.5% YoY to RM61.13m. The group noted that the uncertainties had caused shifts in consumer behaviour that led to softening demand for electronic products and technological devices -The Edge Markets

Binastra posts record profit driven by construction segment

Binastra Corp posted a record-high net profit of RM15.38m for its 4QFY1/24, a jump of 176.32% YoY on the back of higher revenue driven by its construction segment. Revenue more than doubled to RM155.37m YoY. For the full year, the group's net profit surged to a record of RM40.77m from RM16.52m. Revenue rose 130.03% to RM425.2m from RM184.85m. -The Edge Markets

Sapura Energy says 'not out of the woods' despite annual net

loss narrowing to RM509m in FY24 Sapura Energy said that it is “not out of the woods” yet despite net loss narrowing to RM728.44m in 4QFY1/24 from RM3.26bn YoY. Quarterly revenue dropped 13.01% YoY to RM1.06bn due to lower revenue recognised from the engineering and construction, and drilling business segments. For the full year FY24, its net loss also narrowed to RM508.66m from RM3.16bn, while its annual revenue fell 6.45% to RM4.36bn from RM4.55bn. -The Edge Markets

MyNews expects ‘worst is over’

MyNews Holdings remains confident that "the worst is over" after posting its 1QFY10/24 earnings, the second consecutive profitable quarter on the back of higher sales. MyNews posted its 1QFY10/24 net profit of RM1.27m compared to a net loss of RM3.21m YoY. Quarterly revenue increased 6% YoY to RM195.52m from RM184.09m. The company aims to expand its 5 retail brands including myNEWS, CU, WHSmith, SUPERVALUE minimart and MARU Coffee at a faster rate. - The Edge Markets

TCS unit bags KL Kepong RM140.27m retail project

TCS Group Holdings’ wholly owned subsidiary, TCS Construction SB has secured a RM140.27m contract from KLK Retail Centre SB for main building works for a proposed commercial complex known as Bandar Seri Coalfields Retail Park in Bandar Seri Coalfields, Selangor. The overall contract period shall be nineteen months from the commencement date and the works completed on Oct 24, 2025.- The Star

Our Thoughts

Wall Street ended lower as traders took a breather following a strong rally recently. Notwithstanding this, sentiment is turning cautious as many deemed US equities overvalued attributed to the overextended rally. As such, the DJI Average lost 162 points while the Nasdaq closed 44 points lower with the US 10-year yield moderated to 4.249%. Meanwhile in Hong Kong, the HSI ended the day marginally lower amid concerns on corporate earnings and the volatile Chinese Yuan against the US$. On the home front, the FBM KLCI closed in negative territory amid a choppy session dragged by the weak regional performances as the US interest rates debate prolonged. Nonetheless, we noticed there remains some accumulation activities on the blue chips that propped the benchmark index above the day low. We believe the 1,530 will act as the immediate support at the moment thus expect the index to hover within the 1,535- 1,545 amid the lacklustre sentiment.

Source: Rakuten Research - 26 Mar 2024

To sign up for an account: http://bit.ly/40BNqKI

[Youtube Tutorial] Account Opening & Enable Foreign Equity: http://bit.ly/3I5Jzxo