Previous Day Highlights

FBM KLCI trended marginally lower for third consecutive day, as broad-based selling resumed amid cautious market sentiment. The benchmark index erased 0.33% or 4.66 points to close at 1,424.89. Losers were led by NESTLE, HLFG and PPB. Market breadth was negative with 450 decliners against 321 advancers while 430 counters remain unchanged. Total volume stood at 2.50bn shares valued at RM1.54bn.

Key regional indices closed mostly lower as investors concern about the global downturn. Nikkei 225 and STI fell by 1.22% and 0.55% to close at 27,472.63 and 3,300.48. Meanwhile, HSI was up 0.28% to end at 20,331.20 whereas SHCOMP close flat at 3,312.63.

Wall Street ended modestly higher after a choppy session while traders await Friday's jobs report. The DJIA closed flat at 33,485.29 whereas S&P500 and Nasdaq added 0.36% and 0.76% respectively to end at 4,105.02 and 12,087.96.

News For The Day

Dayang bags contract from PETRONAS Carigali

Dayang Enterprise Holdings' wholly owned subsidiary, DESB Marine Services SB has been awarded a contract for the provision of accommodation work boat (AWBOAT) from PETRONAS Carigali SB (PCSB). Dayang said the value of the contract is based on work orders issued by PCSB throughout the contract duration. The contract is effective from March 17, 2023. -The Edge Markets

ITMAX gets RM52.81m contract extension from DBKL

ITMAX System has secured a three-year extension for the installation and maintenance of networked street lighting systems in Kuala Lumpur from Kuala Lumpur City Hall (DBKL). The public space networked systems provider said it received a letter of a contract extension from DBKL valued at about RM52.81m. The contract extension is for a period of three years from Aug 1, 2023 to July 31, 2026.-The Star

Rhone Ma-Kulim JV appointed to develop Jemaluang Dairy Valley in Johor

Rhone Ma Holdings said that its joint venture (JV) with Kulim (Malaysia) had been appointed by the East Coast Economic Region Development Council to develop, operate, and manage the 275.34-hectare Jemaluang Dairy Valley in Mersing, Johor. The JV entity known as Jemaluang Dairy Valley SB (JDV) was formed with Rhone Ma’s 49%-owned subsidiary A2 Fresh SB (A2FSB). A2FSB owns 35% of JDV, followed by 35% by Kulim, part of the Johor Corp group. Another 30% stake is held in trust by Kulim for the Johor government. -The Edge Markets

MN Holdings unit secures RM13.3m contract

MN Holdings' wholly-owned subsidiary Mutu Nusantara SB has secured an underground utilities contract from Rentak Segar SB worth RM13.3m. MN Holdings said its unit has been appointed to be the subcontractor to supply and install high voltage underground cable works for two data centres in Johor. The contract is expected to be completed 319 days from the commencement date. - The Star

Citaglobal and Genetec form JV to manufacture BESS

Citaglobal and Genetec Technology have formed a joint venture (JV) company to manufacture battery energy storage systems (BESS) and explore opportunities for the business in Malaysia and the Asean region. Citaglobal said the 50:50 JV company, Citaglobal Genetec BESS SB, will develop, design and build integrated manufacturing facilities for BESS. -The Edge Markets

Our Thoughts

Wall Street ended a volatile trading session higher despite signs of a weakening labour market. The DJIA closed flat at 33,485 while tech-heavy Nasdaq rose over 90 points to end at 12,088. In Hong Kong, late buying saw the HSI rebound following major selldown over the region as geopolitical tension between US and China escalated. As for the local bourse, the FBM KLCI lost over 4 points to 1,424.89 in tandem with the negative regional performance. Nonetheless, we reckon the outlook of the local market to be positive supported by cheap valuations of the FBM KLCI and improving economic condition of the country. We believe bargain hunting will prevail and anticipate the benchmark index to trend within the range of 1,425-1,435 for today. Meanwhile, the brent crude oil remains high at USD81.34 per barrel, we expect accumulation on O&G stocks will continue.

Source: Rakuten Research - 7 Apr 2023

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