Previous Day Highlights

FBM KLCI closed marginally higher by 0.18% or 2.86 pts to 1,609.52. Majority of sectors were negative with construction (-1.78%), healthcare (-1.06%), and utilities (- 0.85%), leading the losers; while the only gainers were led by financials (+0.23%), REIT (+0.19%) and plantation (0.17%). Market breadth was negative with 705 losers against 334 gainers. Total volume stood at 3.42bn shares valued at RM2.5bn.

Major regional indices trended higher. SHCOMP increased 0.34%, to close at 2,867.95. Nikkei 225 jumped 3.45%, to finish at 36,232.52. STI added 0.72%, to close at 3,258.57. HSI gained 0.36% to finish at 17,174.06.

Wall Street finished higher fuelled by cooler-than- expected inflation data and awaited an update on July consumer price index (CPI) due Wednesday. The DJIA added 1.04%, to end at 39,765.64. Nasdaq surged 2.43%, to close at 17,187.61. S&P500 gained 1.68% to finish at 5,434.43.

News For The Day

Mr DIY's 2Q net profit rises 3%, pays higher interim dividend

Mr DIY Group’s 2QFY24 net profit rose 3.3% YoY to RM155.2m driven by stronger revenue. The company 1HFY24 profit grew 7.9% YoY to RM300.1m. Mr DIY declared a second interim dividend of 1.2 sen per share. The company also highlighted that it has made a strategic investment in the KKV retail chain to open new outlets across the country. -The Edge Markets

Uzma bids to boost non-O&G revenue

Uzma will be launching its “multi-million US dollar” earth observation satellite, UzmaSAT-1, in a bid to diversify its non-oil & gas (O&G) revenue base, said Uzma group CEO Datuk Kamarul Redzuan Muhamed. UzmaSAT-1, expected to launch in October, is developed in partnership with Nasdaq-listed Satellogic Inc. Its function is to provide satellite imagery capabilities and geospatial services across Southeast Asia. Uzma will be the first commercial player to operate the observation satellite in Malaysia. -The Edge Markets

Minetech secures RM37m sewage upgrade project

Minetech Resources has secured a sewage system upgrading project in Terengganu, valued at RM36.8m. This is the group's third contract win since July. The previous two contracts worth a total of RM20.1m comprise of the upgrading and construction of an external road and drainage system in Mukim Batu, Kuala Lumpur and road and drainage works at Banting Industrial City in Kuala Langat, Selangor.- The Edge Markets

Seng Fong sees five-fold rise in 4Q net profit on higher sales

Seng Fong Holdings 4QFY6/24 its net profit jumped by more than five folds YoY to RM16.5m driven by higher sales volume coupled with reduced diesel costs following the operation of both biomass systems. The group declared a fourth interim dividend of 1.5 sen per share, payable on Sept 20, bringing the total dividend for FY2024 to 5.50 sen per share. -The Edge Markets

Signature International disposes of lands in Negeri Sembilan

Signature International is proposing to dispose of two pieces of vacant freehold industrial lands in Tempat Bandar Baru Enstek, Negeri Sembilan to Loi Foon Kion for RM25.7m. The lands are vacant and not used for any of the group’s business operations and are non-core assets of the group. -The Star

Our Thoughts

Wall Street surged as sentiment was buoyed by a decent PPI (producer price index) data which could imply of a tame CPI figure that is to be released later today and that a lower CPI will certainly indicate rate cuts by the Federal Reserve in September. As such, the DJIA rose by 409 points while the Nasdaq gained 407 points as the US 10-year yield declined to 3.847%. Over in Hong Kong, the HSI managed to stay above water on hopes for a US rate cut and more easing policies from PBOC after China’s new loans hit a 15- year low in July. On the home front, the FBM KLCI closed on a positive note as buying activities were rather strong. Nonetheless, daily volume traded dropped to around the 3bn shares level depicting that retail participation remained side-lined. For today, we expect trading activities to improve taking cue from the uptrend on Wall Street thus anticipate the index to hover within the 1,610- 1,620 range today.

Source: Rakuten Research - 14 Aug 2024

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