Weekly Market Pulse 26 Mar 2024
US Stock Market Review 18 – 22 Mar 2024
DJI +2%, SP500 +2.3%, NASDAQ +2.9%, another historical high level.
Markets cheered this week's Federal Reserve decision to leave interested unchanged and maintain expectations for three cuts this year despite a recent spate of hot inflation reports.
Event to watch: 25 Mar new home sales, 28 Mar Q4 GDP & initial jobless claims, 29 Mar Good Friday (Holiday)
MY Stock Market Review 18 – 22 Mar 2024
KLCI -0.67%, stay flat as weakening currency strength and export suppressed positive market sentiment.
Properties sector outperformed other sectors with more than 5% gains last week, led by SUNWAY, SIMEPROP, SPSETIA, and UEMS, probably related to Johor real estate development.
Event to watch: 25 Mar inflation rate， 28 Mar Nuzul Al'Quran
Stock of the week
Guan Chong Berhad GCB 5102 $GCB(5102.MY$
Will GCB sustains its current strong bullish momentum?
Price Trend
Price rebounded from bottom near RM1.50, which is also the lowest level since pandemic and hits its highest since July 2023, marked a more than 40% monthly gains, traded at around 27x P/E based on latest earnings.
Company Profile
Principally involved in the manufacturing of cocoa-derived food ingredients, namely cocoa mass, cocoa butter, cocoa cake and cocoa powder
One of the largest cocoa grinders in the world
Shariah Compliant
Key revenue derived from Singapore
DJI +2%, SP500 +2.3%, NASDAQ +2.9%, another historical high level.
Markets cheered this week's Federal Reserve decision to leave interested unchanged and maintain expectations for three cuts this year despite a recent spate of hot inflation reports.
Event to watch: 25 Mar new home sales, 28 Mar Q4 GDP & initial jobless claims, 29 Mar Good Friday (Holiday)
MY Stock Market Review 18 – 22 Mar 2024
KLCI -0.67%, stay flat as weakening currency strength and export suppressed positive market sentiment.
Properties sector outperformed other sectors with more than 5% gains last week, led by SUNWAY, SIMEPROP, SPSETIA, and UEMS, probably related to Johor real estate development.
Event to watch: 25 Mar inflation rate， 28 Mar Nuzul Al'Quran
Stock of the week
Guan Chong Berhad GCB 5102 $GCB(5102.MY$
Will GCB sustains its current strong bullish momentum?
Price Trend
Price rebounded from bottom near RM1.50, which is also the lowest level since pandemic and hits its highest since July 2023, marked a more than 40% monthly gains, traded at around 27x P/E based on latest earnings.
Company Profile
Principally involved in the manufacturing of cocoa-derived food ingredients, namely cocoa mass, cocoa butter, cocoa cake and cocoa powder
One of the largest cocoa grinders in the world
Shariah Compliant
Key revenue derived from Singapore
Latest Earnings
Achieved record high revenue of RM5.3 billion for the financial year ended 31 Dec 2023, mainly due to sky high cocoa bean prices. However, net profit for FY23 decreased 31.4% as affected by increased finance costs from higher borrowings, lower grinding margins, and increased tax expenses.
Recent Development
As cocoa bean prices had been hitting multiple historical highs since 2023 due to supply shortages, the company had been struggling to look for the beans worldwide, even to buy supplies with huge premium prices, resulted in lower earnings based on their latest financial report.
Despite that, share prices continue to spike and do take note that higher cocoa bean prices do not necessarily equal to higher profit. The tight cocoa bean supplies situation may limit price upside.
Factors to Watch
Opportunities
1. Sustainable demand despite the ever-rising selling prices
2. Well contribution from grinding operation in Ivory Coast
3. Normalizing cocoa bean prices
4. Normalizing cocoa bean supplies
5. Additional forex gains
Risk
1. Suppressed grinding margin
2. Pay premium to get supplies
3. Shortage of cocoa bean supplies due to weather and disease
4. Cocoa bean prices continue to go higher
5. Reducing demand for cocoa as cost go higher
Disclaimer
This content is for reference only and does not constitute any investment advice, past performance is not indicative of future performance. Returns will vary, and all investments carry risks, including loss of principal. Please make your own investment decisions.
Achieved record high revenue of RM5.3 billion for the financial year ended 31 Dec 2023, mainly due to sky high cocoa bean prices. However, net profit for FY23 decreased 31.4% as affected by increased finance costs from higher borrowings, lower grinding margins, and increased tax expenses.
Recent Development
As cocoa bean prices had been hitting multiple historical highs since 2023 due to supply shortages, the company had been struggling to look for the beans worldwide, even to buy supplies with huge premium prices, resulted in lower earnings based on their latest financial report.
Despite that, share prices continue to spike and do take note that higher cocoa bean prices do not necessarily equal to higher profit. The tight cocoa bean supplies situation may limit price upside.
Factors to Watch
Opportunities
1. Sustainable demand despite the ever-rising selling prices
2. Well contribution from grinding operation in Ivory Coast
3. Normalizing cocoa bean prices
4. Normalizing cocoa bean supplies
5. Additional forex gains
Risk
1. Suppressed grinding margin
2. Pay premium to get supplies
3. Shortage of cocoa bean supplies due to weather and disease
4. Cocoa bean prices continue to go higher
5. Reducing demand for cocoa as cost go higher
Disclaimer
This content is for reference only and does not constitute any investment advice, past performance is not indicative of future performance. Returns will vary, and all investments carry risks, including loss of principal. Please make your own investment decisions.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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