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Market Daily Report: Bursa Malaysia Ends Higher In Line With Most Regional Markets

KUALA LUMPUR, Sept 20 (Bernama) -- Bursa Malaysia ended higher on Friday in line with most Asian markets, mirroring gains from Wall Street, where investors welcomed the US Federal Reserve's substantial interest rate cut. The FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 3.17 points, or 0.19 per cent, to 1,668.82 at the close from Thursday's close of 1,665.65. It opened 5.03 points higher at 1,670.68, trading between 1,668.48 and 1,674.04 throughout the session. In the broader market, gainers outpaced decliners 732 to 468, while 465 counters were unchanged, 850 untraded and 32 suspended. Turnover swelled to 4.19 billion units worth RM5.97 billion, from Thursday's 3.99 billion units worth RM4.08 billion. UOB Kay Hian Wealth Advisors head of investment research, Mohd Sedek Jantan, noted the FBM KLCI's gains were led by utilities, logistics, and banking stocks, reflecting improved market sentiment. Additiona
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McDonald's Global Sales Decline for First Time in Over Three Years

 

McDonald's reported a surprising drop in global sales on Monday, marking its first decline in 13 quarters. The decline is attributed to consumers seeking lower-priced menu options and avoiding higher-priced items like the Big Mac amid persistent inflation.

Key Takeaways:

  • Sales Decline: Global comparable sales fell 1% in the second quarter, against expectations of a 0.5% increase. This is McDonald's first global sales drop in more than three years. Overall revenue, however, rose by 1%.

  • Consumer Behavior: Inflation has led lower-income consumers to opt for more affordable food options at home. This shift has pressured fast-food chains to rely on value meals to attract customers.

  • US Performance: US comparable sales fell 0.7% for the quarter ended June 30, compared to a 10.3% increase a year ago. The $5 meal deal launched in June performed above expectations and is set to continue into August.

  • International Markets: Sales in international markets, which constitute nearly half of McDonald's revenue, dropped 1.1%, with notable weakness in France. The business segment where local partners operate restaurants saw a 1.3% decline in sales, driven by a slower recovery in China and impacts from the Middle East conflict.

  • Strategic Adjustments: McDonald's is committed to protecting profitability by being selective with price increases. The company maintained its 2024 forecast for an operating margin in the mid-to-high 40% range and its capital expenditure budget of up to $2.7 billion, focusing on new restaurants in the US and international markets.

  • Broader Market Context: The results align with recent comments from Coca-Cola's CEO about softness in away-from-home channels in North America, indicating fewer people dining out. McDonald's and other major brands like Starbucks have also been impacted by consumer boycotts linked to geopolitical conflicts.

  • Earnings Miss: McDonald's earned $2.97 per share on an adjusted basis in the second quarter, missing expectations of $3.07.

Despite the drop in sales, McDonald's shares rose 4% in early trading as the market reacted to the company's strategic adjustments and efforts to attract cost-conscious consumers.

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