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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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Sarawak Oil Palms Shares Surge After Surprising 2Q Results

Shares of Sarawak Oil Palms Bhd (SOP) rose to their highest level in a month on Friday following a strong second-quarter performance that exceeded market expectations. The stock climbed as much as 3.5%, reaching RM2.92, its highest since July 30, before trading at RM2.89 at 10 a.m., with a market capitalization of RM2.57 billion.

Key Takeaways:

  1. Strong 2Q Results Boost Investor Confidence: SOP's net profit for the second quarter of FY2024 more than doubled year-on-year to RM105.68 million, bringing the total net profit for the first half of the fiscal year to RM185.14 million. This performance was well above both RHB Investment Bank’s forecast and the consensus estimate, prompting RHB to maintain its 'buy' call and raise its earnings forecasts for SOP.

  2. Positive Outlook for the Second Half of 2024: With production ramping up and unit costs moderating, RHB Investment Bank expects stronger financial results for SOP in the second half of FY2024. Seasonal factors are also expected to drive higher output of palm fresh fruit bunches (FFB), which typically peak in October, boosting sales and profitability.

  3. CPO Price Increase and Refining Outlook: SOP has benefited from rising crude palm oil (CPO) prices, which reached a peak of RM4,336 earlier this year. Maybank Investment Bank expects SOP's refining outlook to remain resilient, with increased availability of CPO improving refining utilization and margins. However, Maybank IB anticipates a slower pace of FFB production growth in the second half due to a higher base of comparison.

Overall, the strong second-quarter results and positive outlook for the remainder of the year have bolstered investor confidence in SOP, leading to a notable increase in the company's share price.

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