The FBM KLCI eked out marginal gains on Thursday as buying interest emerged in the final hour ahead of the GE15. As Malaysia faced with a hung Parliament scenario after none of the coalitions won enough seats to form a majority, key focus is now on the outcome of the negotiations among various parties in today’s afternoon. Market sentiment may remain tepid and trade negatively before the submission of PM candidate name to Istana Negara at 2pm.

Following an increase of number of distributors from 806 in FY21 to 960 in FY22, NOVA remained committed to increase the number to 1,200 by FY25. With the construction of Phase 2 of its new plant well underway, we believe the upcoming additional capacity will allow the group to meet rising demand for nutraceutical products from distribution network expansion.

In view of a sustained repayment trend, ELKDESA raised its hire purchase receivables by 10.9% YoY and 3.8% QoQ to RM521.1m to capture a stronger demand for used-car hire purchase financing amid normalising economy. Contributing factors driving the demand include the popularity of online trading platforms for used car, as well as the revision of minimum wages to RM1,500.

The FBM KLCI ended on a downbeat note amid weakness in selected banking and plantation heavyweights, as the market sentiment remained cautious ahead of the GE15. With the softer market performance on Wall Street, we reckon that the market tone may stay tepid at least for the near term, as the key focus is shifted towards the outcome of the GE15, where it is still uncertain which party is having a lead at this juncture.

The poultry industry witnessed continuous increase in demand for eggs in the domestic and overseas market amid economic recovery. However, the elevated feed price could continue to hit TEOSENG’s margin with egg being placed under price control scheme. Hence, we remained cautious on the industry’s outlook until both the price and feed costs normalise.

Duopharma Biotech Bhd (DPHARMA) started off since 1978 and is principally involved in the manufacturing, distributing, importing and exporting of pharmaceutical products and medicines. DPHARMA owns and operates 3 manufacturing plants in Klang, Bangi and Glenmarie, Selangor with a portfolio of more than 300 generic drugs.

The FBM KLCI ended lower, underperforming the regional bourses as jittery sentiment prevailed ahead of GE15 and the foreign investors have turned net seller for the session. We believe the optimism from Wall Street overnight, which sparked by a cooler-than-expected October Producer Price Index in the US that signalled a cooler inflation environment may spilled over to the global stock markets. Nevertheless, local investors may remain cautious towards the GE15.

The FBM KLCI surrendered gains and settled lower as investors took profit ahead of the GE15. Also, global investors should trade cautiously following the comments from the US Federal Reserve officials, reinforcing the view for further interest rate hikes to tame the inflation going forward. Back home, we believe the foreign buying may continue to support the local bourse, within the apolitical stocks as well as solid balance companies to weather through the inflationary environment.