Previous Day Highlights

FBM KLCI closed higher due to positive regional market sentiment. The benchmark index up 0.07% or 1.10 pts to close at 1,589.78. Gainers were seen in construction (+2.33%), industrial products & services (+0.74%), and REIT (+0.59%); while losers were seen in utilities (-0.78%), energy (-0.72%), and health care (-0.58%). Market breadth was negative with 553 losers against 479 gainers. Total volume stood at 2.59bn shares valued at RM2.29bn.

Major regional indices trended mixed. HSI declined 1.89%, to end at 19,229.97. SHCOMP plunged 3.06%, to close at 3,267.19. Nikkei 225 up 0.68%, to finish at 38,283.85. STI rose 0.18%, to close at 3,746.02.

Wall Street closed higher as markets assessed the latest economic data. The DJIA added 0.97%, to end at all-time high at 44,296.51. Nasdaq rose 0.16%, to close at 19,003.65. S&P500 rose 0.35%, to finish at 5,969.34.

News For The Day

Allianz Malaysia's 3QFY24 profit dips 7.4%

Allianz Malaysia, 3QFY24 profit dips 7.4% YoY to RM183.2m despite higher revenue, as certain expenses jumped while it recorded a drop in dividend income and lower fair value gains from investments. The group will continue with its agency transformation journey to enlarge its distribution network to uplift productivity, and to seek ways to improve customer experience and operational efficiency by investing in digital capabilities. - The Edge Market

Bumi Armada’s 3QFY24 earnings up 19%

Bumi Armada’s net profit for 3QFY24 rose 19% YoY to RM211.3m as operating margins expanded with lower costs. The future firm vessel order book amounted to RM10.2bn at the end of September, with optional extensions worth up to RM9.5bn. Bumi Armada also reiterated that it may book non-cash impairments going forward with accounting adjustments. The company did not declare any dividend for the quarter. – New Straits Times

Bintulu Port’s 3QFY24 net profit down 13%

Bintulu Port Holdings’ 3QFY24 net profit dropped 13.68% YoY to RM28.1m, mainly due to a jump in operating costs due to an increase in expenditure incurred on service contracts, as well as for repair and maintenance. The company declared a third interim dividend of three sen per share, to be paid on Dec 26. The company expects the handling of exports for LNG cargo to continue to drive its main revenue. – The Edge Market

Solarvest secures RM142m solar EPCC contract

Solarvest Holdings’ wholly-owned subsidiary, Atlantic Blue, has secured a RM142m contract from SM01 for a design, EPCC contract. The EPCC involved the construction of a solar photovoltaic energy generating facility with a capacity of 29.99 MWac in Gurun, Kedah. SM01 has been established as a special purpose vehicle (SPV) solely to carry out the Project under the corporate green power programme (CGPP). - The Star

Sarawak Plantation’s 3QFY24 profit jumps 14.5%

Sarawak Plantation’s 3QFY24 profit rose 14.5% YoY to RM31.1m subject to a sustainable crude palm oil (CPO) price and barring any unforeseen circumstances. The anticipated tight supply of vegetable oils and rising demand for palm oil will contribute to a favourable price outlook. It has declared a second interim of 15 sen per share, to be paid on Dec 27. – The Star

Our Thoughts

Wall Street extended its winning streak to five sessions last Friday, with the Dow achieving a record close. Investor sentiment was buoyed by hopes for corporate tax cuts, tariff reductions, deregulation, and a more accommodative monetary policy under President Trump’s renewed administration. The S&P 500 gained 0.3% while the DJIA jumped by 1%, finishing above the 44,000 mark while the Nasdaq rose 0.2%. In Hong Kong, stocks closed lower due to heavy selling on tech stocks. On the local front, the FBM KLCI pared gains in late trading but still ended in positive territory. While buying interest remains lacklustre, the index's proximity to the oversold region could present opportunities to accumulate on dip. We reckon the benchmark index to remain in consolidation stage and expect it to trend within the range of 1,585-1,610 for today.

Source: Rakuten Research - 25 Nov 2024

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