Previous Day Highlights

The FBM KLCI ended slightly higher on Friday due to buying support in selected index-linked counters. The benchmark index was up 0.06% or 0.92 points to close at 1,435.13. Gainers were led by PETGAS, MISC and GENTING. Market breadth was neutral with 425 losers against 415 gainers while 393 counters remain unchanged. Total volume stood at 3.22bn shares valued at RM1.78bn.

Key regional indices mostly closed on positive note following positive cues from Wall Street overnight. Nikkei 225 and STI jumped 1.20% and 0.25% to close at 28,493.47 and 3,302.66 respectively. Meanwhile, HSI and SHCOMP rose 0.46% and 0.60%, respectively, to end at 20,438.81 and 3,338.15.

Wall Street retreated following hawkish remarks from Federal Reserve official and weak retail sales data. The DJIA fell by 0.42% to end at 33,886.47 whereas S&P500 and Nasdaq declined 0.21% and 0.35% to close at 4,137.64 and 12,123.47 respectively.

News For The Day

LBS Bina's indirect unit enters MOU with Türkiye's Desan for

RM2bn shipyard in Melaka Property developer LBS Bina's indirect subsidiary Leaptec Engineering SB has entered into a memorandum of understanding with Türkiye-based Desan Deniz Ins San A S to explore the feasibility of developing a shipyard in Tanjung Bruas, Melaka. The proposed shipyard, to undertake ship building and ship repair works, is expected to be developed in three phases on 1,200 acres (485.62 hectares) of reclaimed land, with a value of over RM2bn. - The Edge Markets

SNS Network awarded for promoting digital education in

Malaysia SNS Network’s subsidiary SNS Network (M) SB has been awarded the Enterprise Business Strategic Partner (Education Segment) by Samsung Malaysia Electronics (SME) SB. The award acknowledged its commitment to advancing education through technology and collaborations with Samsung Malaysia on various projects. This recognition highlights the group's efforts and dedication to promoting digital education. - The Star

MBSB obtains approval for MIDF acquisition

MBSB has received approval for the proposed acquisition of MIDF from Permodalan Nasional Bhd. It received a notification from Bank Negara that the Minister of Finance has granted approval for the proposed acquisition. - The Star

TAFI Industries, Lambaian Delta mutually terminate

RM23.64m contract Tafi Industries’s wholly owned subsidiary T.A. Furniture & Projects SB has mutually terminated the contract awarded by Lambaian Delta SB. The contract was awarded last December was in relation for the construction of staff quarters for the Health Ministry in Labuan for a contract sum of RM23.64m. - The Star

PLS Plantations forms fresh cash crop JV with Landasan

Erajaya PLS Plantations said its binding term sheets with Landasan Erajaya SB was allowed to lapse after the two companies formed a direct joint-venture. PLS Plantations and Landasan Erajaya had formed PLS LESB SB, a direct 51:49 JV partnership to plant durian and cash crops, and undertake other plantation activities. - The Edge Markets

Our Thoughts

Wall Street closed lower on rate hikes jitters despite Citigroup, Wells Fargo and JP Morgan all reported better than expected results. As such, the DJI Average lost 143 points while the Nasdaq declined by 43 points as the US 10-year yield ended higher at above the 3.51% level. Over in Hong Kong, the HSI added 94 points due to buying support from Chinese mainland funds. Recent reported US CPI and PPI which were flat further fuelled overall confidence on the HKSE. On the home front, continuous accumulation of blue chips helped the FBM KLCI to remain above the 1,435 mark. We reckon buying interests to continue pouring into the blue chips thus expect the index to hover within the 1,435-1,445 range today. Though banking stocks may be the flavour for the day, we believe overall buying will be broad-based.

Source: Rakuten Research - 17 Apr 2023

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