The FBM KLCI edged lower as investors remained cautious awaiting the Fed Chairman Jerome Powell’s comment prior to the congressional testimony; foreign funds continued its outflow for another session, with cumulative 5-day net selling standing at -RM343.2m. Investors’ risk off mode prior to the congressional testimony in the US, coupled with the Bank Negara Malaysia’s interest rate decision may drag the local bourse into a range bound trading environment.

Malaysia Marine and Heavy Engineering Bhd (MHB) is regarded as an energy industry and marine solutions provider for a wide range of heavy engineering facilities and vessels, backed by 40 years of track record. MHB also own and operate a regional Centre of Excellence, which is a learning centre that produces technically expert workers for the industry.

The FBM KLCI settled lower on Friday as profit taking activities re-surfaced, bucking the positive performances across regional markets. Global risk appetite improved, but still awaiting comments from the US Fed officials which will provide clues for the future rate hike directions during congressional testimony. Nevertheless, the market has priced in the solid ISM manufacturing data, which should contribute to at least a positive short term trading environment. Meanwhile, investors may keep an eye on Bank Negara Malaysia’s interest rate decision this week.

The FBM KLCI shook off early losses and rebounded from the 1,450 immediate support level, as bargain hunting activities kicked in. Given the Wall Street accelerated into the green territory overnight as one of the Federal Reserve official’s remarks were more dovish on interest rate direction, we believe the relief rally could spill over to the local bourse. Nevertheless, we believe the upside of the market may be limited until the conclusion of the FOMC meeting this month.

The FBM KLCI kicked off March 2023 with losses given the lack-of-fresh-catalyst environment. Regional markets, however, traded in a positive bias tone after stronger-than-expected manufacturing data from China suggesting that the reopening since January is boding well for the economic recovery; while Wall Street stocks headed south as inflation data from Germany indicate that the global interest rate hikes may continue to stay elevated. Despite the global uncertainties, we believe the local bourse may be due for a rebound.

FY22 core net profit climbed 20.0% YoY, mainly attributed from (i) the increase in revenue arising from higher number of surgeries conducted amid economy reopening, (ii) effective marketing effort from ongoing promotions via online platforms, and (iii) better control over operating costs by leveraging on the experience gained from multiple lockdowns since March 2020.

We note that the construction of new jetty at Sapangar Bay Oil Terminal was completed and its timely to cater for the higher demand for liquid bulk cargo. The move has improved efficiency as it will now accommodate 2 additional berths designed with capacity of 60,000 deadweight tonnage (DWT) to handle 2 vessels at the same time. Elsewhere, the expansion of the Sapangar Bay Container Port (SBCP) is on track and is expected to be completed in 1Q25.

As at FY22, OCK owns and manages over 5,300 telco sites across Vietnam, Myanmar, and Malaysia that will provide recurring income stream over the long term. We expect the group to register more than 5,500 telco sites in FY23f. As of end-FY22, tenancy ratio across each geographical segment remains stable with Malaysia (1.2x), Myanmar (1.4x) and Vietnam at (1.3x) that will generate long term sustainable income.