Previous Day Highlights

FBM KLCI closed higher driven by the late buying activities. The benchmark index up 0.27% or 4.33 pts to close at 1,580.30. Gainers were seen in REIT (+0.56%), consumer (+0.55%), and industrial products & services (+0.47%); while losers were seen in energy (-1.20%), telecommunications (-0.85%), and technology (-0.60%). Market breadth was negative with 620 losers against 530 gainers. Total volume stood at 3.81bn shares valued at RM3.06bn.

Major regional indices trended mostly higher except Nikkei 225 which eased 0.10%, to finish at 38,236.07. HSI soared 2.50%, to end at 18,207.13. STI climbed 0.13%, to close at 3,296.89. Meanwhile, SHCOMP remained closure for Labour Day.

Wall Street rallied amid the Fed's dovish signal, while investors awaited job reports. The DJIA advanced 0.85% to end at 38,225.66, while the Nasdaq jumped 1.51% to close at 15,840.96. The S&P500 rose 0.91% to finish at 5,064.20.

News For The Day

Microsoft to invest USD2.2bn in Malaysia on cloud, AI

Microsoft Corp said it would invest USD2.2bn (RM10.5bn) over the next four years in cloud and artificial intelligence (AI) infrastructure in Malaysia. The investment also marks the single largest investment by Microsoft in its 32-year history in Malaysia. “Our investments in digital infrastructure and skilling will help Malaysian businesses, communities and developers apply the latest technology to drive inclusive economic growth and innovation across the country,” Microsoft CEO Nadella said in keynote address at the event. -The Edge Markets

Westports' 1Q net profit up 11% on higher container revenue

Westports Holdings noted that its 1QFY24 net profit rose 11.4% YoY to RM204.51m compared to RM183.59m thanks to higher container revenue, coupled with higher finance income and share of results of a joint venture. Revenue rose 5.9% YoY to RM543.15m from RM512.92m on the back of an increase in container revenue. Westports saw container volume rise by 5% to 2.67m 20-foot equivalent units (TEUs), while it handled bulk cargoes amounting to 2.76m tonnes. -The Edge Markets

UOA REIT’s 1Q earnings drop 12.7%

UOA REIT highlighted that its 1QFY24 net rental income fell 12.7% YoY to RM18.48m from RM21.17m due to lower occupancy rates and higher property operating expenses. Its total income fell 12.3% YoY to RM18.66m from RM21.29m. Net profit fell 20.2% YoY to RM11.67m from RM14.61m. Quarterly revenue dropped 8.2% YoY to RM26.4m, from RM28.77m. On outlook, the trust said the office rental market remains challenging amidst the escalating cost of business and influx of new offices. -The Edge Markets

Epicon uplifted from PN17 status

Epicon has regularised its financial condition and no longer triggers any of the criteria under Paragraph 2.1 of PN17 of the Main Market Listing Requirements of Bursa Securities. “Bursa Malaysia Securities has decided to approve the company's application for an upliftment from being classified as a PN17 company,” Epicon said, it will be uplifted from being classified as a PN17 company effective from 9am, tomorrow. -The Star

Pasukhas gets data centre job worth RM56.98m

Pasukhas Group has received a letter of acceptance from a multinational technology corporation headquartered in US, for the construction and completion of a data centre located in Selangor for RM56.98m. The LOA marks a significant milestone towards the company’s strategic business expansion and is expected to strengthen its revenue and financial conditions upon completion of the project. -The Star

Our Thoughts

Wall Street closed higher as US Fed Chair Jerome Powell played down the likelihood of an interest-rate hike, bringing relief to investors. Furthermore, the US central bank revealed its strategy to slow down the pace of its balance sheet drawdown starting on June 1, aiming to prevent any excessive strain on financial markets. As a result, the Dow finished 0.85% higher, ending above the 38,800 mark, while the tech-heavy Nasdaq jumped 1.51%, closing in on the strong resistance level of 16,000. In Asia, key indices finished mixed due to profit-taking in some bourses, while in Hong Kong, stocks finished sharply higher with strong buying in EV and real estate sectors. Consequently, the Hang Seng Index jumped 2.5% to finish at 18,000 points. On the domestic front, the FBM KLCI closed higher as investors seized the opportunity to bottom fish following the sell-off on Tuesday. We believe the outlook for local equities remains positive, thanks to the continuous inflow of foreign funds into the region. Hence, we anticipate the FBM KLCI to trend within the range of 1,580-1,590 for today.

Source: Rakuten Research - 3 May 2024

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