Previous Day Highlights

FBM KLCI pared earlier losses to end marginally lower amid the cautious sentiment across the region. The benchmark index was down 0.07% or 1.09 pts to close at 1,604.26. Gainers were seen in construction (+2.46%), property (+1.63%), and transportation(+0.67%); while losers were seen in utilities (-1.42%), energy (-0.69%), and technology (- 0.34%). Market breadth was negative with 620 losers against 577 gainers while 473 were unchanged. Total volume stood at 5.33bn shares valued at RM3.99bn.

Major regional indices trended lower. HSI plummeted 1.34%, to end at 18,230.19. SHCOMP dropped 0.62%, to close at 3,091.68. Nikkei 225 plunged 1.30%, to finish at 38,054.13. STI closed nearly unchanged at 3,323.38.

Wall Street continued to slide, led by disappointing earnings forecast for tech stocks. The DJIA dropped 0.86%, to end at 38,111.48. Nasdaq dived 1.08%, to close at 16,737.08. S&P500 lost 0.60%, to finish at 5,235.48.

News For The Day

Press Metal’s 1Q profit jumps 45%, declares 1.75 sen dividend

Press Metal Aluminium reported its 1QFY12/24 net profit climbed 44.7% YoY to RM408.04m against RM281.97m, thanks to higher sales volume and a stronger US dollar. Quarterly revenue rose 17% YoY to RM3.62bn from RM3.07bn. The company declared a first interim dividend of 1.75 sen for the quarter. Prices of aluminium have rallied, the three-month aluminium futures have gained nearly 7% so far this year on the London Metal Exchange, thanks to robust demand and supply concerns. -The Edge Markets

Genting’s 4QFY24 net profit back to pre-pandemic level

Genting reported its 1QFY12/24 net profit surged several folds, mainly contributed by its leisure and hospitality segment in Malaysia and Singapore. The diversified conglomerate’s net profit made a big leap to RM588.87m from RM98.04m, while quarterly revenue jumped 27.6% YoY to RM7.43bn from RM5.82bn. -The Edge Markets

QL Resources closes FY2024 with 35% growth in 4Q profit

QL Resources’ 4QFY3/24 net profit surged almost 35% YoY to RM98.72m from RM73.32m, on the back of improved sales from most business segments, which helped offset flat sales for palm oil and clean energy. Quarterly revenue increased 13.7% YoY to RM1.68bn compared to RM1.47bn. The group has proposed a final dividend of 3.5 sen per share, amounting to RM85.2m for the quarter. -The Edge Markets

Datasonic posts record 4Q and full-year earnings

Datasonic Group reported its 4QFY12/24 a 70.02% YoY jump to RM38.6m against RM22.7m, driven by strong demand for passports, identity cards and financial card personalisation services. Quarterly revenue rose 10.34% YoY to RM115.74m from RM104.9m. Its full year FY24 net profit increased 20.8% to RM92.26m from RM76.37m, while full-year revenue grew 6.85% to RM368.3m from RM344.7m. Datasonic announced a fourth interim dividend of 1.3 sen per share. Additionally, the group has secured its first overseas project in a West African country this month. -The Edge Markets

RGB secures RM382.9m contract from the Philippines

RGB International’s wholly-owned subsidiary RGB (Macau) Limited has received a US$81.3m (RM382.9m) contract from Philippine Amusement and Gaming Corporation (PAGCOR) for the supply and delivery of slot machine equipment. The project involves supplying of 1,968 electronic gaming machines (EGMs) along with their related accessories, LED signage and displays. -The Star

Our Thoughts

Wall street extended its decline as sentiment remains affected by a weak guidance from Salesforce the prolonged no rate adjustment ahead of the crucial inflation data out later today. As such, the DJIA slumped 330 points while the Nasdaq dropped 183 points with the US 10-year yield falling to 4.55%. Over in Hong Kong, the HSI extended its losing streak amid the rising US Treasury yields and the waning outlook for China’s property sector. The index lost more than 500 points over the last 5 days after a brief rally since early-May. Back home, the FBM KLCI fell marginally to just below the 1,605 level as market undertone stayed cautious in line with the weak regional performance. It is crucial that the index does not dip below the psychological 1,600 mark thus we expect some buying support to emerge albeit in a muted manner in view of an extended weekend. Therefore, we expect the index to hover between the 1,600-1,610 range today.

Source: Rakuten Research - 31 May 2024

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