Previous Day Highlights

FBM KLCI closed lower due to profit taking activities following the recent rally. The benchmark index was down 1.29% or 21.69 pts to close at 1,653.55. Majority of sectors were negative with construction (-4.6%), technology (-2.3%), and financial services (-1.8%) leading the losses; while gainers were seen in REIT (+0.2%), and plantation (+0.1%). Market breadth was negative with 851 losers against 316 gainers. Total volume stood at 3.68bn shares valued at RM3.95bn.

Major regional indices trended mixed. HSI gained 0.53%, to end at 17,786.32. SHCOMP dropped 0.50%, to close at 2,823.11. Nikkei 225 eased 0.02%, to finish at 38,362.53. STI rose 0.40%, to close at 3,404.47.

Wall Street closed mixed due to strong growth data while Nvidia slipped. The DJIA added 0.59%, to end at 41,335.05. Nasdaq eased 0.23%, to close at 17,516.43. S&P500 eased to finish at 5,591.96.

News For The Day

TNB's 2QFY24 profit jumps to RM1.45bn

TNB’s 2QFY24 net profit jumped more than 4-fold YoY to RM1.45bn as it recorded higher electricity sales, a favourable foreign exchange translation, and lower net finance costs. TNB proposed an interim single-tier dividend of 25sen per share, with payment dates to be announced in due course. The group also reaffirmed its commitment to playing an integral role in supporting the National Energy Transition Roadmap. - The Edge Markets

Hong Leong Bank's 4QFY6/24 net profit rises nearly 20%

Hong Leong Bank's 4QFY6/24 net profit rose nearly 20% YoY due to higher operating income and provisions writeback. A final dividend of 43sen per share was also declared for the current quarter payable on a date to be determined later. Customer deposits increased 4.1% to RM220.4bn, with current accounts and saving accounts (CASA) delivering growth of 10.0% as of June 30. - The Edge Markets

Press Metal's 2QFY24 net profit surges 65%

Press Metal's 2QFY24 net profit surged 65% YoY to RM505.8m thanks mainly to higher price sold and stronger US dollar that boosted export receipts. Apart from macroeconomic uncertainties, rising alumina prices from temporary supply interruptions are lifting costs. However, Press Metal remain optimistic about aluminium's long-term prospects as economic conditions improve. The company has also declared an interim dividend of 1.75sen per share, amounting to total payout of RM144.2m, payable on Sept 30. - The Edge Markets

Alliance Bank's 1QFY3/25 net profit jumps over 17%

Alliance Bank's 1QFY3/25 net profit rose 17.3% YoY to RM176.7m. The positive performance was led by the bank’s small and medium enterprise (SME) (17.1% YoY), commercial (17.5% YoY), corporate (9.7% YoY) and consumer (14.0% YoY) banking growth. It did not declare any dividends. - The Edge Markets

Petron Malaysia's 2QFY24 net profit drops 67%

Petron Malaysia's 2QFY24 net profit drops 67% YoY as cost increases and lower volume offset higher prices. Looking ahead, Petron said that oil price volatility is expected to continue for the rest of the year with escalating tensions in the Middle East, the US interest rate cuts, easing global inflation and softening demand that raises the prospect of a supply glut. Petron did not declare any dividends for the quarter. - The Edge Markets

Our Thoughts

It was an interesting day on Wall Street as only the DJIA managed to close on a positive note and fresh record high despite all 3 major indices starting yesterday’s session impressively. Thus, though the DJIA added 244 points, the Nasdaq ended the day 40 points lower with the US 10-year yield edging higher at 3.863%. Over in Hong Kong, the HSI closed positively after a jittery start as sentiment improved after Meituan delivered a better than expected results. However, overall confidence on Hong Kong shares remains fragile on anticipation of more downbeat corporate earnings ahead. Back home, the FBM KLCI finally cracked to almost the 1,650 mark as sellers emerged following a week of persistent stock accumulation. We see this intermittent correction as healthy, allowing the market to digest recent buying activities. For today, we expect the index to hover within the 1,650-1,660 range as earnings from corporate Malaysia seems decent so far especially from the big caps which may prompt an upward revision in the overall earnings growth for CY2024.

Source: Rakuten Research - 30 Aug 2024

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