Previous Day Highlights

FBM KLCI pared its earlier losses to close almost flat mainly due to absence of buying catalyst as uncertainty arise from global markets. The benchmark eased 0.06 points to close at 1,429.55. Losers were led by HLBANK, MISC and GENM. Market breadth was mixed with 396 gainers against 366 losers while 383 were remain unchanged. Total volume stood at 2.33bn shares valued at RM1.42bn.

Key regional markets closed on a mixed note as due to uncertain sentiment caused by escalating tensions between China and the US. Nikkei 225 tumbled 1.68% to close at 27,813.26 while STI increased 0.23% to end at 3,318.87. Meanwhile, SHCOMP and HSI were closed for Qingming Festival holiday.

Wall Street closed mostly lower as concerns about a weaker economy were raised following the release of job data. The DJIA added 0.24% to end at 33,482.72 whereas S&P500 and Nasdaq declined 0.25% and 1.07% respectively to end at 4,090.38 and 11,996.86.

News For The Day

Infomina bags six-year contract from SSM

Infomina has been appointed by the Companies Commission of Malaysia (SSM) to provide a platform for the public to search, extract and purchase data on companies and businesses registered with SSM. Infomina said the appointment is for six years, from March 31, 2023. Infomina said it would charge a service fee, which will be based on the actual consumption of the platform. -The Edge Markets

Deleum wins slickline contract from ExxonMobil

Deleum has secured a contract from ExxonMobil Exploration and Production Malaysia Inc for the provision of slickline equipment and services. The oil & gas specialist said its wholly owned subsidiary, Deleum Oilfield Services SB received the letter of award dated March 14 from ExxonMobil. The contract is for a period of four years, commencing on March 15, 2023. - The Star

Pestech bags RM6.61m EPCC contract from Australian firm

Pestech International has bagged an engineering, procurement, construction and commissioning (EPCC) contract worth up to A$2.23m(approximately RM6.61m). The company said its wholly-owned subsidiary, Pestech SB (PSB) had received the countersigned formal instrument of agreement from Australia-based DT Global Asia Pacific Pty Ltd for the EPCC contract. It said that the contract is part of the Economic and Social Infrastructure Programme (ESIP) for PPL Arawa, and its practical completion is slated for Jan 10, 2024. -The Edge Markets

Tek Seng buys land near Penang factories for RM34m

PVC products manufacturer Tek Seng Holdings is acquiring three parcels of freehold vacant land near its factories in Seberang Perai, Penang for RM33.96m. The purchases, it said, are in line with its strategy of acquiring land bank at locations near to its existing factories for investment or future expansion -The Edge Markets

Signature International to buy 45% stake in Zig Zag Builders for RM13.1m

Signature International has entered into a conditional share sale agreement (SSA) with Foo Khai Shin to buy a 45% stake in Zig Zag Builders (M) SB for RM13.1m. Signature, a kitchen cabinet maker, said the purchase of to 450,000 shares in Zig Zag will be funded with internal funds. Signature added the stake purchase is in line with its objective of acquiring strategic stakes in companies with potential for future growth. -The Star

Our Thoughts

Wall Street closed on a mixed note as traders ditched growth stocks in view of a slowing US economy as indicated by the slackening job market that saw the Nasdaq declined by 129 points with the US 10-year yield dropping to below the 3.10% level. On the flipside, the DJI Average gained 80 points buoyed by the uptrend of healthcare stocks. Hong Kong was closed for a public holiday. As for the local bourse, the FBM KLCI ended flat from some last minute buying on the Banking and Plantations counters. Although overall sentiment remains cautious, we noticed the index to be rather well supported at current levels thus anticipated it to hover around the 1,425-1,435 range today as accumulation on Energy and Telco counters are expected to prevail.

Source: Rakuten Research - 6 Apr 2023

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