Previous Day Highlights

The FBM KLCI ended slightly higher, in tandem with the upbeat momentum across the region. The benchmark index added 0.10% or 1.44 points to close at 1,376.08. Gainers were led by PETGAS, HLFG and TENAGA. Market breadth was positive with 489 advancers against 341 decliners while 445 counters were unchanged. Total volume stood at 3.34bn shares valued at RM1.49bn.

Key regional markets closed on a positive note attributed to optimism about potential economic stimulus in China. Nikkei 225 soared 1.97% to close at 32,265.17 while STI closed flat at 3,186.97. Meanwhile, HSI and SHCOMP climbed 0.47% and 0.55% respectively, to end at 19,389.95 and 3,231.41.

Wall Street closed slightly higher ahead of upcoming CPI and FOMC meeting. The DJIA and S&P500 gained 0.13% and 0.11% to end at 33,876.78 and 4,298.86 while Nasdaq ended 0.16% higher to close at 13,259.14.

News For The Day

MBSB to acquire MIDF from PNB for RM1.01bn

Malaysia Building Society (MBSB) has entered into a conditional share purchase agreement with Permodalan Nasional (PNB) to acquire the entire share capital of Malaysian Industrial Development Finance (MIDF), comprising 480.35m shares currently held by PNB worth RM1.01bn. MBSB told that upon completion of the proposed acquisition, MIDF will become a wholly-owned subsidiary of MBSB, result in a well- capitalised financial services group.- The Star

Westports founding chairman's daughter joins board

Westports Holdings has appointed Shaline Gnanalingam as its non-independent and non-executive director, effective June 9. Shaline, 41, is the daughter of the group’s founder and executive chairman Tan Sri Gnanalingam Gunanath Lingam and the sister of managing director Datuk Ruben Emir Gnanalingam Abdullah. “Currently, she serves as the chief investment officer at Pembinaan Redzai SB, a major shareholder of the company since 2008.-The Edge Markets

Power Root co-invests RM2.66m with Thai-based Sappe

Power Root has signed a co-investment agreement with Thailand’s Sappe PCL to become the sole distributor of the Thai nata de coco drink, Mogu Mogu, in Malaysia. The initial investment is 20m baht (RM2.66m). The collaboration provides an opportunity for Sappe to extend its presence into Malaysia by leveraging its marketing and distribution strength in the local market. Power Root reported a net profit of RM59.35m for FY23, up 126.5% YoY from RM26.20m, as revenue grew 31% YoY to RM455.76m from RM347.91m.– The Edge Markets

Kimlun bags two construction contracts worth RM95.4m

Kimlun via its wholly-owned unit Kimlun SB has secured two construction contracts in Johor Bahru from Bandar Nusajaya Development SB worth a total of RM95.41m. The contracts are for the construction of one block of affordable apartments, 166 units of link houses, ancillary building and infrastructure and expected to be completed in the 2QCY25. -The Edge Markets

Radium to acquire 2 pieces of land in KL for RM71.8m

Radium Development’s wholly-owned subsidiary, Radium Global SB, has proposed to acquire two pieces of land in Kuala Lumpur from several vendors for RM71.79m. "The proposed acquisition represents an opportunity for Radium Development to accumulate strategic land for property development purposes,” the company said.– The Star

Our Thoughts

Wall Street continues to chart positive gains as traders are looking ahead of upcoming inflation data and the Federal Reserves latest policy announcement. Traders were also encouraged by the uptrend of small and mid cap stocks. As a result, the DJI Average jumped 43 points while the Nasdaq added 21 points despite the US 10-year yield inched higher at 3.743%. In Hong Kong, the HSI jumped 91 points to a 2-week high on expectations that policy makers will inject stimulus to shore up economic recovery following a tame inflation report. Back home, the FBM KLCI closed on a positive note underpinned by broad-based accumulation. Nonetheless, the benchmark index ended off the day’s high as sentiment stayed cautious. For today, we reckon the index to maintain its tight trading range of within 1,375-1,385 range with short term trading stance being rather apparent. Meanwhile, crude oil prices remained quite bearish in view of slowing global demand as the Brent crude declined to below USD75/barrel.

Source: Rakuten Research - 12 Jun 2023

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