Previous Day Highlights

FBM KLCI ended marginally lower as profit taking activities persisted following recent uptrend. The benchmark index lost a mere 0.26% or 3.78 points to close at 1,429.61. Losers were led by HLFG, KLK and MISC. Market breadth was neutral with 439 decliners against 417 advancers while 402 counters were unchanged. Total volume stood at 2.63bn shares valued at RM1.73bn.

Key regional indices ended mostly on positive, except HSI which fell by 0.66% to finish at 20,274.59, mainly due to the escalating tensions between China and US. Meanwhile, Nikkei 225, STI and SHCOMP advanced 0.35%, 0.92% and 0.49%, respectively, to end at 28,287.42, 3,311.12 and 3,312.56.

Wall Street ended lower as weak economic data fuels recession worries. The DJIA and S&P500 decreased 0.59% and 0.58% respectively to end at 33,402.38 and 4,100.60. Meanwhile, Nasdaq declined 0.52% close at 12,126.33.

News For The Day

SunCon receives additional RM606.6m worth of works for South Quay Square project

Sunway Construction Group (SunCon) has signed a second supplemental agreement for additional works amounting to RM606.64m in regards to the South Quay Square project. With the additional contract, the revised sum for the project is now at RM1.36bn. The contract is issued by Sunway South Quay SB (SSQ) to SunCon’s subsidiary Sunway Construction SB. SSQ is an indirect subsidiary of Sunway, which in turn is a major shareholder of SunCon. -The Edge Markets

Coastal Contracts wins contracts for sales of two vessels for RM287.3m

Coastal Contracts’ wholly-owned subsidiaries have secured contracts for the sale of two units offshore support vessels for an aggregate value of approximately RM287.3m. The company said the revenue stream from the latest contracts is expected to contribute significantly to the earnings of the group for the FY6/23. -The Star

Mah Sing collaborates with CECC to provide one-stop service for Chinese investors

Mah Sing Group has entered into a collaboration with China Electronic Chamber of Commerce (CECC) to provide a one- stop service for Chinese investors to set up manufacturing facilities in Malaysia. The collaboration was made during Mah Sing’s participation in the Malaysia-China Business Forum 2023. Mah Sing will support CECC members, from sourcing for land to setting up production facilities up to export of goods for international markets. -The Edge Markets

Southern Cable orderbook swells to RM609m with TNB’s contract addendum

Cable and wire manufacturer Southern Cable Group's orders in hand have grown to RM609.3m from RM578.4m as at Dec 31, 2022 after it received a contract addendum from Tenaga Nasional (TNB). With the addendum, the group’s amended contract with TNB to supply underground cables and conductors increased to RM332.1m, from RM293.8m originally. -The Edge Markets

Reach Energy slips into PN17

Reach Energy has been admitted into the Practice Note (PN) 17 company by Bursa Malaysia Securities. Bursa Malaysia said Reach has triggered the criteria pursuant to Paragraph 2.1(e) of PN17 of the Main Market Listing Requirements of Bursa Securities. Its shareholders’ equity fell below 50% of its share capital as at FY22 -The Star

Our Thoughts

Wall Street closed lower as inflationary fears re- emerged amid the rising crude oil prices while the February job openings report showed that the US labour market is cooling down. As a result, the DJI Average lost almost 200 points whereas the Nasdaq declined by 63 points despite the US 10-year yield eased to below the 3.34% level. Meanwhile, Hong Kong equities fell on concerns over the surge in crude oil prices and inflation as the HSI closed 135 points lower. Trading on the Hong Kong market was light yesterday ahead of a public holiday today. On the home front, the FBM KLCI trended within a narrow range before ending the session lower amid a mixed regional performance. For today, we expect trading on the local bourse to remain tepid with the index to hover within the 1,425-1,435 range. Plantation stocks may be back in favour today as the crude palm oil had rebounded to almost RM4,000/tonne or a 2-week high.

Source: Rakuten Research - 5 Apr 2023

To sign up for an account: http://bit.ly/40BNqKI

[Youtube Tutorial] Account Opening & Enable Foreign Equity: http://bit.ly/3I5Jzxo