Previous Day Highlights

FBM KLCI reversed earlier losses and closed in positive territory due to late buying. The benchmark index gained 0.01% or 0.09 points to close at 1,455.04. Gainers were led by NESTLE, PETGAS and PETDAG. However, market breadth was negative with 609 losers against 295 gainers. Total volume stood at 2.80bn shares valued at RM1.64bn.

Major regional indices trended mixed as market sentiment remained cautious on global inflationary woes. Nikkei225 and HSI lost 0.43% and 0.58% to close at 32,467.76 and 18,096.45 respectively. Meanwhile, SHCOMP and STI climbed 0.84% and 0.33% to end at 3,142.78 and 3,218.28.

Wall Street closed higher as investors looked ahead to Wednesday's inflation data. The DJIA gained 0.25% to end at 34,663.72. S&P500 and Nasdaq added 0.67% and 1.14% to close at 4,487.46 and 13,917.89 respectively.

News For The Day

12MP set to achieve annual GDP growth of 5.0-5.5%

Malaysia’s economy is on track to grow between 5.0 and 5.5% per annum for the remainder of the 12th Malaysia Plan (12MP), driven by domestic demand, particularly private sector expenditure. According to the Mid-Term Review of the 12th Malaysia Plan (12MP MTR) 2021-2025 report, tabled in Parliament today, the gross national income (GNI) per capita in current prices is projected to increase by 4.6% per annum to RM61,000 or US$14,250 in 2025.- The Star

Sunway Property’s Sunway Flora first tower 80% taken up

Sunway Property (the property arm of Sunway Bhd), has opened the second tower of Sunway Flora; a high-rise residential development in Bukit Jalil which went for sale on Sept 9. This is following the success of Sunway Flora’s first tower, which achieved a take-up of 80% since its launch on March 25. With a combined gross development value of RM723m on, the project comprises two apartments spread across a 5.37-acre freehold tract.– The Edge Markets

KLK inks agreement with Boustead and LTAT

Kuala Lumpur Kepong (KLK) has entered into a letter of agreement with Boustead Holdings (BHB) and the Armed Forces Fund Board (LTAT) to agree for the cut-off date for a strategic collaboration agreement (SCA) to be Sept 22 or such other date as may be agreed in writing between KLK, BHB and LTAT. KLK on Aug 24 announced a plan to acquire a 33% stake plus one share in Boustead Plantations (BPlant), buying the shares from the Armed Forces Fund Board (LTAT).– The Edge Markets

Telcos to sign agreement on equity stakes in DNB soon

All telecommunications companies (telcos) in the country will sign a share subscription agreement (SSA) on equity stakes in Digital Nasional Bhd (DNB) in the near future, said Communications and Digital Minister Fahmi Fadzil. He said the implementation of the 5G network could be accelerated, with the involvement of telcos in the SSA. –The Edge Markets

Eco World to build 1,372 properties in Batu Kawan

Eco World Development Group will build 1,372 properties with a GDV of RM800m in Batu Kawan in 2H23. Eco World (Northern Region) general manager Datuk Chan Soo How said the launch comes under the Eco Horizon development, of which 1,302 highrise units are in the Ceria D’Eco Horizon development and the remaining 70 semi-detached houses in the third phase of the Beldon Collection. The high-rises are each priced below RM499,000, while the semi-detached units are about RM1.5m.-

The Star

Our Thoughts

Wall Street closed higher as traders are betting that there may a shift in policy and that the Federal Reserves will pause with rate hike next week as we wait for the CPI and PPI figures which will to be out tomorrow and Thursday. As a result, the DJI Average gained 87 points while the Nasdaq added 156 points as the US 10-year yield edged higher to 4.294%. In Hong Kong, the HSI dipped to almost the 18,000 mark mainly attributed to the sharp decline in Alibaba following the resignation of its CEO Daniel Zhang from all positions in the e-commerce group. Back home, last minute buying helped push the FBM KLCI to close flat after a lacklustre day as sentiment remained cautious. For today, we reckon trading on the local bourse to stay muted and expect the index to hover between the 1,450-1,460 range. Meanwhile, higher predicted stockpile for palm oil saw the CPO prices weaken to a month low at around the RM3,700/tonne. On a positive note, the construction sector may see some action as news that the RM43bn Melaka Gateway will be revived following the approval of guidelines and regulations by both the federal and State government.

Source: Rakuten Research - 12 Sept 2023

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