Oil breaks US$100, Wall Street retreats and bond yields rise, inflation is becoming the market’s biggest risk again Global markets are starting Thursday in a more defensive position. Brent crude has broken above US$100 a barrel , U.S. Treasury yields are pushing higher, and Wall Street fell for a third straight session as investors reassess whether central banks may need to keep tightening rather than easing. For Malaysian investors, the key chain today is increasingly clear: Oil → inflation → interest rates → bond yields → USD/MYR → Bursa valuations. 30-second market snapshot Market / Asset Latest 🇺🇸 S&P 500 7,636.36, -0.48% 🇺🇸 Dow Jones 52,380.66, -0.77% 🇺🇸 Nasdaq 26,253.34, -0.64% 🇲🇾 FBM KLCI 1,714.34, virtually flat 💵 USD/MYR ~4.06 🇺🇸 U.S. 10Y Treasury ~4.84% 🇺🇸 U.S. 2Y Treasury ~4.42% 🥇 Gold ~US$4,396/oz 🛢️ Brent crude US$101.21/bbl 🛢️ WTI crude US$96.05/bbl ₿ Bitcoin ~US$79,300 🇯🇵 Nikkei ~64,760, -0.6% this morning Brent jumped about 3.4% Wednesda...
Shares of Homeritz Corp Bhd (KL) surged to their highest level in six weeks following the furniture manufacturer's better-than-expected third quarter results, despite analysts maintaining a cautious outlook.
Key Highlights:
Share Performance:
- Homeritz shares rose by 3.4%, or two sen, to 60.5 sen, the highest since June 18, 2024.
- Trading volume totaled 210,900 shares at 9:20 am.
- The company’s market capitalization stood at RM280.63 million at the last price.
Analyst Ratings:
- Public Investment Bank and Hong Leong Investment Bank (HLIB) maintained ‘hold’ calls on the stock due to limited upside potential.
- Public Investment Bank raised its earnings forecast by 6%, now expecting Homeritz to make RM33.1 million in core net profit, with a target price of 61 sen.
- HLIB’s target price for Homeritz is 62 sen, noting that the current valuation is “fair,” trading close to its five-year mean of eight times forward earnings.
Market Conditions:
- Analysts remain conservative about Homeritz’s near-term trajectory due to high interest rates and persistent inflationary pressure.
- An uptick in sales volume is expected during the upcoming year-end festival season.
Potential Rate Cuts:
- Shares of Homeritz have risen nearly 18% year-to-date as investors speculate on potential rate cuts by the Federal Reserve (Fed), which could spur demand for homes in the US, a major market for Homeritz’s exports.
- HLIB noted that a potential recovery in the US housing market, driven by Fed rate cuts in the second half of 2024, could lead to higher furniture demand and benefit local furniture makers.
Financial Health:
- Homeritz’s strong balance sheet, with net cash of RM189.1 million or 40.8 sen per share, supports its share price, accounting for nearly 70% of its market capitalization.
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