Previous Day Highlights

FBM KLCI closed lower on Wednesday due to selling in telco stocks. The benchmark index down 0.51% or 7.82 pts to close at 1,530.60. Gainers were seen in energy (+0.51%), construction (+0.27%), and property (+0.13%); while losers were seen in plantation (-0.63%), health care (-0.62%), and telecommunications (-0.59%). Market breadth was negative with 645 losers against 422 gainers. Total volume stood at 3.75bn shares valued at RM3.1bn.

Major regional indices trended mixed. HSI gained 0.91%, to end at 16,541.42. SHCOMP increased 0.59%, to close at 3,010.66. Nikkei 225 eased 1.46%, to finish at 40,168.07. STI slid 0.85%, to close at 3,224.01.

Wall Street closed mixed. The DJIA added 0.12%, to end at 39,807.37. Nasdaq eased 0.12%, to close at 16,379.46. S&P500 rose 0.11%, to finish at 5,254.35.

News For The Day

Gamuda 2Q net profit rises 7% YoY

Gamuda’s 2QFY7/24 net profit rose 7.3% YoY to RM208.8m on the back of higher revenue from its overseas projects. “Overseas projects stepped up to fill the gap left by the decline in domestic revenue and earnings as the MRT Sungai Buloh- Serdang-Putrajaya line project was completed last year,” Gamuda said. "Moving forward, the resilience of the group is underpinned by a large construction order book of RM24bn and unbilled property sales of RM6.7bn,” it added. - The Edge Markets

VS Industry posts weaker net profit of RM16m in 2Q

VS Industry registered a 2QF7/Y24 net profit of RM16m which was slightly over half the net profit of RM30.36m YoY. The company expects to see an improved performance over the remaining quarters of the year as it makes progress in ongoing discussions with prospective customers. VS Industry declared a second interim dividend of 0.3sen per share to be paid on April 30, 2024. -The Star

PT Resources' 3Q profit jumps seven folds

Frozen seafood supplier PT Resources Holdings reported a 3QFY4/24 net profit of RM14.6m, over seven times the RM2m YoY, as revenue increased amid higher domestic and overseas demand. The company declared a second interim dividend of 0.65sen per share, to be paid on May 17. - The Edge Markets

Topmix aims to raise RM25.6m from IPO

Topmix aims to raise RM25.6m from its upcoming IPO as it heads towards a listing on the ACE Market of Bursa Malaysia on April 23, 2024. The total surface decorative products company said it has earmarked RM11.3m of the total proceeds for working capital, with another RM6m allocated towards business expansion, marketing and sales. Topmix also plans to allocate RM5.3m towards expanding into the assembly of melamine faced chipboard (MFC) products. -The Star

Eduspec bags RM30m 5G hardware testing job

duspec Holdings has secured a RM30m contract from electronic manufacturing services (EMS) provider EG Industries to provide testing services for EG Industries’ 5G optical modules and other related components. The independent testing services is to provide under the contract include testing and validating EG Industries’ wholly-owned subsidiary SMT Technologies SB’s 5G optical printed circuit board assembly and other related components and products. - The Edge Markets

Our Thoughts

Wall Street finished mixed with profit takings on tech stocks. As such, the Nasdaq closed 0.12% points lower. Nonetheless, optimism over the economy and interest rate cuts is still high, hence, they two key major indices ended positively with the DJIA gaining 0.12% while S&P500 added 0.11%. Meanwhile in Hong Kong, stocks ended higher as China’s President Xi Jinping promises more policy support to improve the business environment in a meeting with an American delegation of corporate executives. The HSI gained 0.91% to end at 16,541.42. On the domestic front, the FBM KLCI closed lower after on Wednesday after a lacklustre session as investors are reluctant to take long position in view of the increasing market risks. We believe bargain hunting activities will occur as the benchmark index is hitting its 1,530 support level and we expect it to trend within the 1,530-1,540 range for today.

Source: Rakuten Research - 29 Mar 2024

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