Previous Day Highlights

FBM KLCI closed higher due to accumulation by foreign funds. The benchmark index gained 1.53% or 25.25 pts to close at 1,678.80. Majority of sectors were positive with property (+3.5%), utilities (+3.1%), and technology (+2.2%), leading the gains; while losers were seen in plantation (0.4%), and health care (0.4%). Market breadth was positive with 771 gainers against 421 losers. Total volume stood at 3.96bn shares valued at RM6.26bn.

Major regional indices trended positively. HSI gained 1.14%, to end at 17,989.07. SHCOMP increased 0.68%, to close at 2,842.21. Nikkei 225 was up 0.74%, to finish at 38,647.75. STI rose 1.13%, to close at 3,442.93.

Wall Street closed higher due to favourable economic data. The DJIA added 0.55%, to end at 41,563.08. Nasdaq rose 1.13%, to close at 17,713.63. S&P500 rose 1.01%, to finish at 5,648.40.

News For The Day

CIMB Group’s 2QFY24 net profit rises 11%

CIMB Group’s 2QFY24 net profit rose 11% YoY to RM1.96bn due to higher net interest income and non-interest income. The group is confident of improved financial performance YoY in 2024. CIMB has also proposed a cash dividend of 27sen per share, comprising a special dividend of 7sen per share and an interim dividend of 20sen per share. - The Edge Markets

IGB's 2QFY24 profit falls 33%

IGB's 2QFY24 net profit falls 33% YoY to RM75.2m mainly due to reduced contribution from its property development and construction segments, alongside lower foreign exchange gains. No dividend was declared for the quarter under review. Looking ahead, IGB said it is cautiously optimistic about its results for FY24, as it noted rising cost of living and increased service tax rate posing challenges for its retail property segment. - The Edge Markets

Mah Sing's 2QFY24 net profit up 19%

Mah Sing's 2QFY24 net profit rose 19.3% YoY to RM60.2m driven by higher margins and lower net finance costs. No dividend was declared for the quarter under review. The group is on track for a strong FY24 performance, supported by RM2.43bn unbilled sales. Mah Sing added that the company is on track to meet its minimum sales target of RM2.5bn for FY24 and anticipates stronger sales in the rest of the year. - The Edge Markets

EA Technique's Q2FY24 earnings surge 11-fold

Oil and gas shipping outfit provider EA Technique (M)’s 2QFY24 net profit surged 11-fold YoY to RM94.6m primarily due to write back associated with the creditor scheme and one-off expenses from the PN17 regularisation plan. As of 1HFY24, the company's orderbook stood at RM136.4m with an additional RM281.2m for the extendable period. – New Straits Times

MN Holdings’ 4QFY6/24 net profit more than doubles

MN Holdings’ 4QFY6/24 net profit jumped 131.9% YoY to RM5m due to higher construction activities in its underground utilities engineering segment. The company also said its order book stands at RM611.2m as of Aug 30, 2024, which will support earnings for the next two to three financial years. In a separate statement, managing director Datuk Clement Toh said the company’s projects in data centres align well with the Malaysian market, which has seen the numbers of investments increasing. - The Edge Markets

Our Thoughts

Wall Street ends the week on a high as the DJIA hits a fresh new high. Sentiment was buoyed by the latest personal consumption expenditure (PCE) index that came in within expectations. Thus, while the DJIA gained 228 points, the Nasdaq jumped 197 points despite the US 10-year yield inched higher to 3.909%. In Hong Kong, the HSI closed higher to almost the 18,000 level or at a 7- week high as bargain hunting activities emerged on EV stocks after the recent sell-down coupled with positive signs from the US economy. On the home front, the FBM KLCI surged to almost the 1,680 mark, a level last seen in Jan 2019. We were indeed surprised by the strong rebound principally due to accumulation by foreign funds after a minor correction a day before. We believe the uptrend to continue and expect the index to hover within the 1,680-1,690 range today with the crucial 1,700 as the ultimate immediate target. Recent earnings released suggest that corporate Malaysia is in solid shape particularly the Banks and expect the blue chips to remain as the bastion for the local bourse. Next, we hope that daily volume traded will improve to the 6bn shares mark as the small caps are in need of additional injection of liquidity.

Source: Rakuten Research - 2 Sep 2024

To sign up for an account: http://bit.ly/40BNqKI

[Youtube Tutorial] Account Opening & Enable Foreign Equity: http://bit.ly/3I5Jzxo