Previous Day Highlights

FBM KLCI continues with its uptrend buoyed by broad- based buying activities. The benchmark index was up 0.63% or 9.84 pts to close at 1,571.48. All sectors were positive with property (+1.8%), health care (+1.7%), and technology (+1.6%), leading the gains. Market breadth was positive with 777 gainers against 327 losers. Total volume stood at 4.25bn shares valued at RM3.03bn.

Major regional indices trended positive, building on Wall Street’s optimism in the previous session. HSI skyrocketed 2.21%, to end at 17,201.27. SHCOMP increased 0.76%, to close at 3,044.82. Nikkei 225 soared 2.42%, to finish at 38,460.08. STI rose 0.62%, to close at 3,293.13.

Wall Street closed mixed following a choppy session, as sentiment turned cautious ahead of key inflation data. The DJIA dropped 0.11%, to end at 38,460.92. Nasdaq rose 0.10%, to close at 15,712.75 whereas S&P500 closed flattish at 5,071.63.

News For The Day

United Plantations 1Q profit rises 18.5% YoY

United Plantations’ 1QFY12/24 net profit grew 18.54% YoY to RM132.87m, mainly due to a sharp drop in finance cost. Its revenue grew 3.64% YoY to RM476.75m from RM459.99m, due to an increase in revenue for the plantation and refinery segments, as a result of higher crude palm oil and palm kernel prices. Going forward, UP is watching the impact of weather conditions on total palm oil production for its Malaysian operations.-The Edge Markets

Chin Hin Group to develop two projects worth RM1.08bn

Chin Hin Group Property said it has signed two agreements to develop two separate residential projects in Kuala Lumpur worth RM1.08bn in combined gross development value (GDV). The project which involves the development of 2,434 units of serviced apartments in Segambut worth RM685.1m in GDV is expected to begin in July 2025, and will be completed in June 2030. Separately, it had also been appointed to develop 974 units of serviced apartments valued at RM395.51m in Dutamas. The project is expected to start in May 2025, running until April 2030.-The Edge Markets

Hibiscus Petroleum completes drilling at Bunga Aster-1 well

Hibiscus Petroleum said its wholly-owned subsidiary Hibiscus Oil & Gas Malaysia Limited has completed the drilling of the Bunga Aster-1 exploration well and is expecting its first oil production to begin in May. According to the group, the well has approximately 17.5 metres of oil-bearing sandstone with up to 46 metres of potential oil column. The unit will progress with a thorough evaluation and appraisal of the discovery to further define the size of the discovery. -The Edge Markets

AME REIT’s 4Q net property income jumps 12%

AME Real Estate Investment Trust (AME REIT) recorded an 11.9% YoY growth in 4QFY3/24 net property income to RM11.4m, driven by a 15.9% increase in rental income. AME REIT registered RM12.48m in rental income, compared with RM10.77m YoY. However, the REIT’s distributable income for the quarter only grew by 2.65% YoY to RM9.77m. The industrial properties REIT declared a 1.87 sen per unit distribution for the quarter. -The Edge Markets

Fajarbaru wins RM252m contract from WCT

Fajarbaru Builder Group has accepted a letter of award from WCT Holdings in respect of main building works for a two-phase residential development project in Johor Baru, Johor, worth RM252.26m. The contract will commence on May 6, 2024 and is scheduled to be completed on May 5, 2027. -The Star

Our Thoughts

Wall Street closed mixed as sentiment was affected by rising US treasury yields ahead of key US GDP and inflation data to be released today and tomorrow. As such, though the DJI Average added 43 points, the Nasdaq declined by 11 points as the US 10-year yield rose to 4.648%. Meanwhile, Wall Street may also be further impacted by the less than inspiring earnings released after market from both Meta and IBM that saw falling US stock futures. Over in Hong Kong, the HSI broke the 17,000 threshold to close on a 5-month high on optimism that corporate earnings will pick up coupled with upgrades from both Goldman Sachs and UBS. Back home, the FBM KLCI continued with its impressive uptrend to close at a YTD high underpin by broad-based accumulation on blue chips. Notwithstanding the choppy performance in US stocks, we reckon foreign funds may be forced to re-look at SEA markets which are better value propositions. As we enter into the 1Q earnings season, corporate Malaysia is forecast to churn out a decent 16% earnings growth for 2024. Hence, we expect the index to hover between the 1,565-1,580 range today.

Source: Rakuten Research - 25 Apr 2024

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