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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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Starbucks Efficiency Gains Bolster Profit Amid US and China Sales Slump

Starbucks' operational improvements helped the coffee giant meet Wall Street expectations for quarterly profit, even as global sales declined due to persistent weakness in consumer spending in its key markets, the US and China.

Key Highlights:

  • Quarterly Profit: Profit of 93 cents per share met LSEG estimates.
  • Operational Efficiency: Starbucks rolled out the Siren System plan, updating equipment to increase service pace, deployed across US-operated stores. The company aims to have the system in less than 10% of global stores by year-end.
  • Operating Margin: Fell by 70 basis points in the third quarter, a sequentially smaller drop.
  • New Store Openings: Opened 526 new stores in the quarter.

Market Reaction:

  • Starbucks' shares, down 22% this year, rose 5% in extended trading after executives reaffirmed annual forecasts.

Consumer Strategies:

  • In response to cost-conscious consumers, Starbucks introduced discounts and promotions, including a coffee or tea paired with a butter croissant for US$5 in June and 50% off deals on Fridays in May.

Challenges in Key Markets:

  • China: Same-store sales tumbled 14%, following an 11% drop in the second quarter, amid weak consumer spending and competition from local chains like Luckin' Coffee.
  • International Sales: Missed expectations, reflecting trends seen by McDonald's and Domino's, with weakness in the Middle East, South Asia, and parts of Europe due to boycotts related to the war in Gaza.

CEO Statement:

  • "We are focused on what we can control in a consumer environment that can be best described as complex," said CEO Laxman Narasimhan.

Investor Relations:

  • Starbucks confirmed on a post-earnings call that Elliott Investment Management is a shareholder and that discussions with the activist investor have been "constructive."

Outlook:

  • Starbucks reaffirmed its global and US comparable sales forecast in the range of a low single-digit decline to flat, with annual profit projected to range from flat to low-single digits.
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