Market Review

Malaysia: The FBM KLCI $FBMKLCI 200I.MY$ (-0.15%) ended lower as the index was dragged by selling pressure in the Banking and Telco heavyweights on the FBM KLCI rebalancing day. Also, investors could be staying cautious as the regional markets ended in the red, tracking the NASDAQ's weaker performance.

Global markets: Wall Street ended mixed as the sentiment was dragged by NVIDIA and economic data like Flash PMI came in better-than-expected which could suggest delayed rate hike by the Fed. Meanwhile, traders are looking forward to the PCE index this Friday. Both the European and Asian stock markets ended lower.

The FBM KLCI index ended lower dipping to the 1,590 level. The technical readings on the key index were negative with the MACD Histogram forming another negative bar, while the RSI dropped below 50. The resistance is envisaged around 1,605-1,610 and the support is set at 1,570-1,575.

Company Brief

GDB Holdings Bhd $GDB 0198.MY$ has secured a contract worth RM865.66m from an associate company of Permodalan Nasional Bhd (PNB) to build a logistics hub in Seksyen 15, Shah Alam. The project, awarded to its wholly owned subsidiary Grand Dynamic Builders Sdn Bhd by Strategic Sonata Sdn Bhd, will start in June 2024 and be completed by December 2026. (The Edge)

IJM Corp Bhd $IJM 3336.MY$ , through its wholly owned unit IJM Construction Sdn Bhd, has clinched two contracts totaling RM962.3m. The first contract, worth RM584.3m, involves constructing Plot A of a logistics hub in Section 15, Shah Alam. The second contract, valued at RM378m, is for Phase 1 of a semiconductor manufacturing facility in Penang. (The Edge)

Ann Joo Resources Bhd $ANNJOO 6556.MY$ and its consortium partner have secured a RM297.90m contract from Tenaga Nasional Bhd (TNB) for the electrification of East Coast Rail Link (ECRL) feeder stations. The project, awarded to its unit Ann Joo Metal Sdn Bhd and PT Lumintu Insan Mandiri, is expected to be completed by May 31, 2026. (The Edge)

Infomina Bhd (INFOM) $INFOM 0265.MY$ has obtained an order worth US$11.39m (RM53.6m) from a bank in Thailand for IT support services. The contract, awarded to its subsidiary Infomina (Thailand) Co Ltd, will commence on June 1, 2024, and last until December 21, 2029. (The Edge)

Scientex Bhd $SCIENTX 4731.MY$ reported an 18.9% rise in net profit to RM130.5m for the third quarter ended April 30, 2024, with revenue growing 11% to RM1.1b. The company declared a six sen per share dividend, payable on July 19. For the first nine months of FY2024, net profit surged 26.6% to RM409.4m, and revenue increased 10% to RM3.3b. (The Edge)

Unisem (M) Bhd (UNISEM) is purchasing 38 plots of land in Gopeng, Perak, for RM30.14m to expand its semiconductor packaging and test facilities. The plots are located behind its existing facility. (The Edge)

MyNews Holdings Bhd $MYNEWS 5275.MY$ posted a net profit of RM1.73m for the second quarter ended April 30, 2024, reversing a net loss of RM6.28m from the previous year. The profit was driven by higher share of profit from its joint venture company and improved profit margin. Revenue increased by 10.66% to RM192.77m. For the first six months of FY2024, net profit was RM3m against a net loss of RM9.49m, with revenue rising 8.37% to RM388.29m. (The Edge)

Marine & General Bhd $M&G 5078.MY$ reported a 41.5% decline in net profit to RM19.46m for the fourth quarter ended April 30, 2024, due to higher vessel repairs and lower net reversal of vessel impairment. Quarterly revenue rose by 9.05% to RM83.06m. For FY2024, net profit slightly increased by 0.61% to RM48.38m, and revenue grew by 13.22% to RM347.92m. (The Edge)

US Stock Updates

Nvidia (NVDA) declined 3.2% after initially rising in the session. Despite the drop, the chipmaker briefly surpassed Microsoft to become the most valuable public company. Nvidia's shares have surged over 160% this year due to the ongoing AI boom, despite signs of reduced consumer spending.

Samsara (IOT) is anticipated to become the next high-quality growth stock in the AI sector, according to Bank of America. The firm gave the stock a buy rating with a price target of $37, suggesting a 25% upside from Tuesday’s close. Analyst Matt Bullock highlighted that new offerings from Samsara could significantly enhance the company's long-term growth.

.