Previous Day Highlights

28 November 2024 FBM KLCI ended on a positive note, driven by robust buying interest in utility stocks. The benchmark index was up 0.07% or 1.10 pts to close at 1,604.25. Gainers were seen in utilities (+1.79%), property (+0.63%), and consumer (+0.36%); while losers were seen in plantation (-0.68%), industrial products & services (-0.37%), and transportation (-0.36%). Market breadth was positive with 590 gainers against 480 losers. Total volume stood at 3.19bn shares valued at RM2.99bn.

Major regional indices trended mixed. HSI gained 2.32%, to end at 19,603.13. SHCOMP increased 1.53%, to close at 3,309.78. Nikkei 225 eased 0.80%, to finish at 38,134.97. STI slid 0.12%, to close at 3,708.09.

Wall Street closed lower as traders evaluated economic data ahead of Thanksgiving Day. The DJIA dropped 0.31%, to end at 44,722.06. Nasdaq eased 0.60%, to close at 19,060.48. S&P500 eased 0.38%, to finish at 5,998.74.

News For The Day

Inari's 1QFY6/25 earnings drop to lowest in 9 years

Inari Amertron’s 1QFY6/25 net profit drop 71.6% YoY to RM24.1m dragged by a foreign exchange (forex) loss of RM53.3m, following a steep drop in the US dollar against the ringgit. The group declared a first interim dividend of 1sen per share and expects to report a significant forex recovery in the coming quarter’s results following the rebound in the US dollar against the ringgit. - The Edge Market

IJM Corp’s 2QFY3/25 net profit drop 21%

IJM Corp’s 2QFY3/25 net profit fell 20.8% YoY to RM74.2m due to higher unrealised foreign exchange (forex) losses. Despite the decline in quarterly and first-half earnings, IJM is confident of registering a stronger performance in FY25. This is because of the enlarged construction order book that the group has secured so far as well as with the acquisition of a 50% stake in JRL Group, in addition to a positive outlook for its property development and infrastructure divisions. - The Edge Market

Genting Plantations posts marginally higher 3QFY24 profit

Genting Plantations’ 3QFY24 net profit rose 3.15% YoY to RM83m amid higher other income due to the impact of foreign currency fluctuations on the group’s US dollar denominated cash reserves and borrowings. The group expects palm oil prices for the immediate term to be supported by concerns over tightening global palm oil supply. This is due to the anticipated strong festive-driven demand in the 1QCY25 and the expected increase in Indonesia’s biodiesel blending mandate from B35 to B40. - The Edge Market

Binastra clinches RM68m sewage treatment contract

Binastra bagged a contract of RM68m for the redevelopment of a sewage treatment plant in Taman Bukit Cheras, Kuala Lumpur. The group is expected to bolster its financial performance from FY1/25 to FY1/28, providing a substantial boost to shareholder value over 4 years. With this latest contract, Binastra has secured RM2.8bn worth of new contracts for FY1/25, boosting its total outstanding order book to RM3.5bn. - The Edge Market

Spritzer's 3QFY24 profit increases marginally

Spritzer’s 3QFY24 net profit reported a marginal increase of 0.9% YoY to RM17.12m on the back of higher demand for its bottled water products. Spritzer expects consumer spending to rise in the 4QFY24 on a favourable economic outlook and the implementation of salary adjustment for civil servants in December. - The Edge Market

Our Thoughts

Wall Street ended lower as traders were mostly sidelined ahead of Thanksgiving Day today. Meanwhile, the latest personal consumption expenditure index in October came in within expectations but sentiment remains cautious in view of Trump’s imminent tariffs. In Hong Kong, the HSI . closed broadly firmer as traders are bracing for more stimulus from China following the weak industrial earnings in October from large Chinese companies. As a result, the index jumped by more than 400 points to almost the 20,000 mark. On the home front, the FBM KLCI maintained its climb to end marginally higher after a promising opening as late profit taking activities again curtailed any meaningful gains from the blue chips. Amidst the ongoing consolidation, we expect the index to hover within the 1,600-1,610 range today.

Source: Rakuten Research - 28 Nov 2024

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