Previous Day Highlights

The FBM KLCI ended in negative territory attributed to profit taking activities following the rally the day before. The benchmark index lost 0.44% or 6.16 points to close at 1,380.61 with losers led by PETDAG, PPB and PCHEM. Market breadth was neutral with 466 losers against 435 gainers while 421 counters were unchanged. Total volume stood at 3.08bn shares valued at RM1.97bn.

Key regional indices mostly closed on a positive note as investors hope for US rate hike pause, except STI which declined 0.21% to end at 3,189.40. Nikkei 225 soared 1.80% to close at 33,018.65. Meanwhile, HSI and SHCOMP rose 0.60% and 0.15% to end at 19,521.42 and 3,233.67 respectively.

Wall Street trended higher after the inflation data came in within expectation. The DJIA climbed 0.43% to end at 34,212.12 while S&P500 and Nasdaq surged 0.69% and 0.83% to close at 4,369.01 and 13,573.32.

News For The Day

TM inks 10-year concession extension for MyGov*Net

Telekom Malaysia’s (TM) wholly owned unit GITN SB inked a 10- year concession extension for MyGov*Net with the government. This follows the telecommunications provider’s announcement in January of the acceptance of a letter of implementation from the government for the extension of the MyGov*Net concession for 10 years, from 2023 to 2032. The value of MyGov*Net 2.0, is capped at RM4.9bn. The scope of work is to provide a secured integrated telecommunication network for the government that connects more than 10,000 government premises in Malaysia and Malaysian embassies overseas. - The Edge Markets

Datasonic bags RM38m passport supply contract extension

Datasonic Group has received a letter from the Home Ministry to supply more passport chips, with a contract value of up to RM37.62m. Datasonic said its wholly owned subsidiary Datasonic Technologies SB had received and accepted the letter from the ministry in relation to the amendment to a previous contract entered into in November 2021 for the supply of 12.5m Malaysian passport chips from Dec 1, 2021 to Nov 30, 2023. -The Edge Markets

Mah Sing buys land to develop RM480m GDV project in Johor

Mah Sing Group is buying two plots of land measuring 75.75 acres in Johor Bahru for RM76.09m to develop a residential project with a gross development value (GDV) of RM480m. The acquisition will further solidify the group’s footprint in Johor and strengthen its competitive positioning in the affordable housing segment.-The Edge Markets

L&P Global seeks transfer to Main Market

L&P Global is seeking a transfer to the Main Market of Bursa Malaysia, six months after debuting on the ACE Market. The company said it had fulfilled all the requirements for the proposed transfer. The company recorded an audited consolidated profit after tax of approximately RM14.74m for FY22, combined/consolidated PAT of RM38.92m for FY20 to FY22. – The Edge Markets

BIG Industries to dispose of Johor land for RM4.5m

BIG Industries is disposing of a parcel of industrial land in Plentong, Johor to SJ Holdings SB for RM4.5m. BIG Industries had originally operated its industrial gas branch at the said location and said that it is looking to sell the land with the branch continually incurring financial losses, which led the management to cease operations and thereafter dispose of the property. -The Star

Our Thoughts

Wall Street uptrend continues as both the S&P 500 and Nasdaq closed to a 13-month high after the inflation data which came in within expectation thus giving hopes that the Fed may pause their rate hike later today. While the DJI Average added 146 points, the Nasdaq added 111 points as the US 10-year yield inched higher at 3.827%. In Hong Kong, the HSI gained 117 points or to a 3-week high after China’s central bank injected some liquidity into the financial system stoking expectations that borrowing costs may be lowered this month. On the domestic front, the FBM KLCI retreated as profit taking set in to close just above the 1,380 level. However, we reckon the index to improve taking the positive cue from Wall Street and expect it to hover within the 1,380-1,390 range today. We believe buying interests may persist on Tech stocks but caution that profit taking activities may emerge following a sharp spike-up since end-May.

Source: Rakuten Research - 14 Jun 2023

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