Friday 29 Mar 2024
By
main news image

KUALA LUMPUR (Aug 21): Kenanga Investment Bank Bhd’s net profit dropped 28.49% year-on-year to RM3.12 million in the second quarter ended June 30, 2018 (2QFY18) from RM4.36 million, it said in a filing with Bursa Malaysia today.

Quarterly revenue dipped 4.14% yoy to RM167.12 million from RM174.34 million.

Earnings per share came in at 0.43 sen in the quarter versus 0.6 sen last year.

For the first half ended June 30, 2018 (1HFY18), net profit surged 196.75% to RM18.56 million from RM6.25 million a year ago due to bad debt recovery from a court case settlement, higher net interest income and investment banking fees income generated and lower overhead expenses and share of losses from associates. These were partially negated by lower trading and investment income and lower net brokerage fees and higher share of loss from joint venture.

Kenanga said in the upcoming quarters, trading and investment sentiment may remain lacklustre with investors generally side-lined or defensive while waiting for the release of the new Malaysian Government's 100-day progress report, its first Budget and signs of improvement in global market conditions.

However, the FBMKLCI has now traced out a "Double-Bottom" technical pattern.

“When this is coupled with solid corporate earnings, 5% to 6% economic growth forecasts and a relatively stable interest rate environment, we are confident domestic capital markets should have bottomed out,” it said.

As such, Kenanga believes that the stock market and investment activity will be more positive towards the second half of the year.

“Barring unforeseen circumstances, we expect the group to outperform last year's results,” it added.

At closing, Kenanga shares remained flat at 76.5 sen for a market capitalisation of RM542.89 million.

      Print
      Text Size
      Share