Moving forward, we expect demand for plastic packaging to remain robust amid reopening of global economies. Nevertheless, the industry may still face the challenges arising from global economic uncertainties, ongoing conflict between Russia and Ukraine that strains the supply chain, as well as the fluctuating commodities prices. Uncertainties remain with hurricane season right around the corner.

Moving forward, we expect the maintenance segment to anchor the overall performance, backed by multiple long term federal and state road concession agreements will provide earnings visibility till 2029. Nevertheless, the construction segment is also gathering pace, which bodes well for the group overall bottom line as the aforementioned segment was bleeding for the past 2 financial years.

Moving forward, KGB’s outstanding order book at approximately RM1.60bn represents an orderbook-to-cover ratio of 3.1x against FY21 revenue of RM514.6m will provide strong earnings visibility over the next 2 years. Meanwhile, tenderbook remains relatively healthy at around RM2.00bn, supported mainly from on-going wafer fabrication plants expansions of semiconductor players.

The FBM KLCI retreated amid worries over China’s economic slowdown, which led to an unexpected lending rate cut. While the market may trade in a positive-biased mode and looking forward to a brighter outlook in the ongoing earnings season, China’s economic slowdown may indicate risk and a spike in recession fears.

Computer Forms (M) Bhd (CFM) engages in the printing and distributing of computer forms, stock forms and specialised forms. Several products services offered by CFM include preprinted business forms, personalised cheque books, special printed cheques, land titles, vouchers and other commercial security items and data print services.

The FBM KLCI eked out marginal gains amidst the positive-biased regional market. Also, Wall Street ended positively with the easing inflation expectations, coupled with the stronger-than expected consumer sentiment should see buying interest spilling over to our stock markets. Given the key index is staying above the 1,500 level, the local bourse may see more upward movement driven by optimism ahead of the upcoming reporting season, in view of the better-than expected Malaysia GDP data.

The FBM KLCI climbed above the psychological 1,500 level amid positive regional market sentiment as investors cheered that the inflation is cooling off in the US for June. Whilst the market has stabilised along 1,500, we believe the profit taking activities may pick up with the mixed trading tone on Wall Street overnight, following a drop in PPI data. Hence, broader market may take a breather for the short term; especially the technology sector.

The FBM KLCI slipped as investors dumped selected glove, technology, and banking stocks prior to the released of the US CPI data. With the CPI numbers came in below the consensus figure, we believe the positive sentiment from Wall Street may spillover to the local front, especially within the technology sector. Investors should expect a lower scale of interest rate hikes moving forward from the Feds. Hence, it provides a decent window of opportunity to at least trade until the next CPI which will be in 13th September.