Previous Day Highlights

The FBM KLCI closed lower, ending at its day-low as late selling pressure emerged. The benchmark index was down 0.07% or 1.13 pts to close at 1,618.27. Gainers were seen in utilities (+1.63%), construction (+1.21%), and transportation(+0.70%); while losers were seen in health care (-1.35%), plantation (-0.61%), and telecommunications (-0.45%). Market breadth was negative with 682 losers against 529 gainers. Total volume stood at 5.64bn shares valued at RM3.92bn.

Major regional indices trended positively on the optimism of China’s industrial profits improvement in April. HSI surged 1.17%, to end at 18,827.35. SHCOMP escalated 1.14%, to close at 3,124.04. Nikkei 225 up 0.66%, to finish at 38,900.02. STI advanced 0.06%, to close at 3,318.45. Meanwhile,

Wall Street was closed for Memorial Day Holiday.

News For The Day

Dutch Lady's 1Q net profit more than triples

Dutch Lady Milk Industries reported its 1QFY12/24 net profit more than tripled YoY to was RM26.66m compared with RM8.52m on the back of higher revenue and lower dairy raw material costs. Quarterly revenue rose 2.39% YoY to RM362.77m from RM354.31m, primarily driven by carry-over effect of price increases and specific price increase on one of the product ranges in 1QFY24.-The Edge Markets

Guan Chong posts record-high 1Q net profit of RM92m

Guan Chong reported its 1QFY12/24 net profit jumped almost four-fold YoY to RM92.04m from RM23.76m, thanks to higher selling price for cocoa butter and increased sales volume for cocoa solids. Quarterly revenue grew by nearly 70% YoY to RM1.87bn from RM1.1bn. It intends to increase its annual cocoa ingredient capacity to 360,000MT by FY24. -The Edge Markets

Japan's NTT Data buys 58.73% of GHL Systems for RM724m

Japanese IT and consulting company NTT Data Corp has bought a 58.73% stake in payment services firm GHL Systems for RM724.08m. The acquisition price of RM1.08 per share represents a 6.9% premium to GHL's last traded price of RM1.01 on Monday. Under Malaysian laws, NTT Data will be required to make a general offer to acquire all the remaining shares it does not already own. -The Edge Markets

CCK enters into binding term sheet with Creador

CCK Consolidated Holdings has signed an agreement with Astrantia SB, a special purpose vehicle company of Creador SB, where in Astrantia will make a RM170.3m investment to acquire a 40% stake in CCK's subsidiary, PT Adilmart. This investment will facilitate the expansion of Adilmart, which specialises in the production of frozen foods, including sausages and other processed meat products. -The Star

Powerwell secures RM57.61m orders from global tech giants

Powerwell Holdings’ wholly owned subsidiary, Powerwell International SB has secured purchase orders RM57.61m from a renowned multinational technology corporation. Powerwell said the purchase orders are expected to be fulfilled within one year from the date of the purchase orders.-The Star

Inta Bina bags construction contract worth RM199m

Inta Bina Group has bagged a construction contract worth RM198.73m to develop a residential apartment project in Ara Damansara, Petaling Jaya, awarded by Sime Darby Property (Ara Damansara) SB. The construction period would be 34 months from the commencement date, June 10. -The Edge Markets

Our Thoughts

Wall Street was closed for Memorial Day yesterday but a peek at the futures showed that all 3 major indices are trending positively at the moment. Anyhow, all eyes will be on the US personal consumption expenditure data to be reported this Friday. Over in Hong Kong, the HSI reversed its losses last Friday by adding 218 points as sentiment improved over China’s industrial companies profits in April that jumped 4% from a month earlier suggesting China’s policies are taking effect. At home, the FBM KLCI ended marginally lower after hovering in positive territory for most of the session following some last-minute selling on the Banks. For today, we expect accumulation of stocks to emerge, namely the Banks, as most have reported decent earnings for 1Q24 so far. As such, we believe the index to hover between the 1,620- 1,630 range today.

Source: Rakuten Research - 28 May 2024

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