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Market Daily Report: Bursa Malaysia Gives Up Earlier Gains To End Mixed

KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec
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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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