For now, MSC remains committed to gradually improving their daily mining output level. However, we remain cautious that the rising natural gas price may continue to impact bottomline margins. Hence, we expect net margins to stay around midsingle digit over the foreseeable future.

TSH Resources Bhd’s plantation operations spans over 42,000-ha in planted areas across Sabah as well as parts of Kalimantan and Sumatra, Indonesia. Besides, their 67.0%-owned subsidiary; Ekowood International Bhd is operating in 2.0m sqf manufacturing plant located at Gopeng, Perak with production capacity up to 27.0m sqf of engineering hardwood flooring (EHF) per annum.

The FBM KLCI consolidated further last Friday amidst bearish sentiment across the regional markets. However, we believe bargain hunting activities may emerge on the local bourse after a broad-based selldown ahead of the re-tabling of Budget 2023, but the global sentiment could weighed further by renewed concerns over expectations of larger interest rate hikes going forward. This week, investors may keep an eye on the US FOMC minutes, US GDP growth rate (second estimates), Eurozone’s inflation rate, Malaysia’s inflation rate, as well as the re-tabling of Budget 2023.

In line with the ELKDESA’s strategic direction to grow its hire purchase portfolio amidst economic recovery environment, the group increased its hire purchase receivables 19.4% YoY and 7.5% QoQ to RM560.3m. Liabilities wise, the group’s bank borrowings increased by 51.9% YoY to RM198.6m as a result of higher drawdown of block discounting facilities to support the increased hire purchase receivables.

The FBM KLCI slipped into the negative territory after midday break amidst quick profit-taking activities following a four-day rally. As investors parsed through the stronger-than-expected inflation report, global sentiment has again turned slightly weaker in the anticipation of a hawkish tone from the Fed moving forward. While bargain hunting activities may occur amid the reporting season, we believe cautious sentiment on the global front may capped the buying momentum on the local bourse.

The FBM KLCI outperformed the regional markets on the back of final-hour bargain hunting activities as well as the inflow from foreign investors. While Wall Street notched higher overnight, we believe the global sentiment could remain shaky in view of the strong retail data, which might indicate potential interest rate hikes by the US Fed going forward. However, closer to home, investors might be relatively positive prior to the earnings season and the re-tabling of Budget 2023.

Malayan Cement Bhd (MCEMENT) was incorporated since 1950 that engages in the manufacturing and sale of cement, ready-mixed concrete and other related building materials and is now positioned as one of the leading cement players in Malaysia. The group operates 5 plants located at Langkawi, Kanthan, Rawang, Padang Rengas and Bukit Sagu.

The FBM KLCI sustained its gains from the previous session prior to the release of the US consumer price index (CPI) data for January 2023. However, following a mixed performance on Wall Street due to a hotter-than-expected inflation, we believe the global sentiment will remain tepid at least for the near term while looking for fresh catalysts. Closer to home, investors may continue to focus on earnings reporting season as well as the re-tabling of Budget 2023.