Innoprise Plantations Bhd (INNO) is principally involved in cultivation of oil palm, processing of Fresh Fruits Bunches (FFB) to produce crude palm oil (CPO) and palm kernel (PK). INNO is currently undertaking the development on 22,763-ha of land across 6 estates of which approximately 12,500-ha are suitable for oil palm planting and 1 palm oil mill in Sabah.

The FBM KLCI marked a third session of decline amid mixed regional sentiment as traders took profit prior to the public holiday; financial stocks lagged within the broader market. However, we expect the bargain hunting activities to emerge on the local bourse amid declining Covid-19 confirmed cases, coupled with the rebound on Wall Street overnight. Meanwhile, the acceptance of the highway deal by GAMUDA may trigger some buying interest within the construction and building material segments.

We believe that Econpile will be able to leverage onto the acceleration of mega infrastructure projects towards 2H22. At the same time, property developers that held back their launches over the past 2 years may also turn slightly more aggressive over the foreseeable future. Already, we note that the property market demonstrated green shoots of recovery in 2021 after recording 300,497 (+1.5% YoY) property transactions worth RM144.87bn (+21.7% YoY).

RCE Capital Bhd (RCECAP) history traces back to 1953 and has evolved throughout the years and is now involve in the provision of financing services to members who are mainly government employees, payroll collections and financing services to small medium enterprises primarily involved in trading, construction and manufacturing.

The FBM KLCI ended the week on a negative note in a subdued market environment, in line with the regional downtrend move. While external risks remained in place, the border reopening should continue to bode well for the local economy especially the aviation and consumer sectors. Meanwhile, investors should monitor China’s key economic data which will be released today and Malaysia’s inflation rate later this week to gauge the BNM’s interest rate directions moving forward.

The FBM KLCI slipped into the negative territory on the back of final hour sell down in the absence of fresh catalysts. Given the foreign funds offloaded some of the equities earlier this week, we expect the local bourse to trade in a negative biased tone for today. Furthermore, the negative performance on Wall Street overnight could expedite the profit taking activities on the local front.

The FBM KLCI ended flat on the back of mixed sentiment across regional markets. Sentiment however, turned positive in the US despite the accelerated inflation as investors focused on the upcoming earnings season. On the local bourse, we believe the elevated crude oil and CPO prices will continue to bode well for the energy and plantation counters, while the increasing demand for traveling following the reopening of travel borders will support the economic recovery going forward.

OSK Holdings Bhd (OSK) operations history dated back since 1963 as a smallscale local stockbroking company and has now evolved into a well diversified mini-conglomerate with 5 major business segments. Stable loan portfolio expansion and gradual property development launches will continue to anchor growth. We initiate coverage on OSK with a BUY call and fair value of RM1.41, based on sum-of-parts model by valuing its capital financing and property business with 0.8x of BV, while the construction, industries and hospitality segment are pegged at 9.0x PE to FY23f earnings contribution.