The FBM KLCI closed flat as the investors stayed cautious taking cue from the negative Wall Street performance. Moreover, we expect traders to remain on the sidelines ahead of the US CPI data next week, coupled with the FOMC meeting. Defensive stocks with solid track record in their earnings should be favourable under this challenging environment.

We welcome the move as we believe that the extension of new concession period will likely be more favourable with a better lease term and tariff structure against current concession agreement. A structural step up in port tariffs would be on the cards, as we reckon a revision of port tariffs that was unchanged for the past 35 years is long overdue to keep up with the rising operational cost over the years. This will also generate additional CAPEX to improve port facilities to cement their position as the Emerging Port/Terminal of the Year 2021 and Port/Terminal of the Year - South East Asia 2021.

The FBM KLCI declined further as investors deployed a “sell on news” strategy following the formation of new cabinet. With the sentiment turning negative on Wall Street, we expect more profit taking activities to emerge on the local front; especially the technology sector. Nevertheless, we believe the downside risk could be limited with investors eyeing for the 10 new Covid-19 easing measures to be announced by China on Wednesday. Back home, the market will be awaiting announcement from the Ministry of Agriculture and Food Security regarding the new mechanism to control egg prices.

Regarded as the largest manufacturer of rolled aluminium products in Malaysia and a leading supplier in the Asia Pacific region with a strong global presence with business activities in property development and construction.

The market sentiment was mixed on the global front as worries over inflation reignited following the release of US labour market report that showed strong data on wages. Meanwhile, the easing of Covid-19 restrictions in China may indicate a shift towards economic reopening. On the local front, the formation of the new Malaysia cabinet may improve investors’ confidence on political stability.

Founded in 1968 and has 58 retail outlets (as at end-October 2022); all located in major shopping malls in Malaysia.

As the market has turned cautious in the US stock markets, we expect Bursa exchange to reciprocate and trading momentum may decline throughout the session. Nevertheless, we opine that the downside risk could be limited with the uplifting of Covid-19 restrictions in selected region in China.

YoY, the decline in core net profit was due primarily to the weakening of both GBP and EURO which has affected the group’s bottom line. GBP/MYR contracted from 5.65 to 5.17 while EURO/MYR dropped from 4.85 to 4.55 YoY. Besides, the significant decline in GBP/USD and EURO/USD of more than 15.0% for the past one year has put additional pressure on ASIAFLE’s margin as majority of its export proceeds are denominated in GBP and EURO while imports are mainly denominated in USD.