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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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EcoWorld Shares Hit Seven-Week High After Strong 3Q Results

 

Eco World Development Group Bhd (KL) saw its shares rise to their highest level in seven weeks on Friday, following the release of better-than-expected third-quarter results. The stock climbed three sen (1.7%) to RM1.77, its highest since August 1, 2024. As of 9:06 am, the stock traded at RM1.76, giving the company a market capitalization of RM5.19 billion, with a trading volume of 594,400 shares.

For the nine months ending July 31, 2024, EcoWorld's core net profit accounted for 82% of consensus full-year estimates. Additionally, the company has surpassed its own full-year sales target, leading analysts to increase their earnings forecasts.

UOB Kay Hian raised its net profit forecast by up to 12% for FY2024-FY2026, predicting that sales will reach RM3.8 billion by the financial year-end in October 2024. The research house also boosted its target price for EcoWorld to RM2.10, maintaining a 'buy' call, citing the company’s improving balance sheet, return on equity, and attractive dividend yields of 4%-5%.

EcoWorld shares have gained nearly 70% this year, reflecting strong performance in the broader property sector and positive developments related to data center and industrial properties.

Out of nine research houses, six maintain 'buy' calls on the stock, two recommend 'hold', and one advises 'sell'. The consensus 12-month target price stands at RM1.88, implying a potential 7% return from the last price, according to Bloomberg.

EcoWorld is expected to achieve RM289 million net income for FY2024, according to seven analysts on Bloomberg. CGS International also maintained its 'add' call, noting the company's robust earnings outlook, potential land bank monetization, and attractive dividend yields of 3.5%-3.7% for FY2024-FY2026.

The company has already hit its full-year sales target of RM3.5 billion within the first 10 months of FY2024 but has opted not to raise the target for the remainder of the year. EcoWorld’s cumulative net profit rose 18.32% to RM220.12 million, while revenue grew 17.17% to RM1.62 billion for the same nine-month period.

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