Previous Day Highlights

The FBM KLCI pared earlier gains to end marginally lower mainly due to last minute sell-down in financials. The benchmark index eased 0.07% or 1.01 points to close at 1,389.88. Losers were led by SIMEPLT, GENTING, and MAYBANK. Market breadth was negative with 557 losers against 296 gainers. Total volume stood at 2.56bn shares valued at RM1.41bn.

Major regional markets closed on a weak note taking the negative cue from global market overnight. Nikkei 225 and STI slipped 0.25% and 0.06% to close at 32,698.81 and 3,189.68 respectively. Meanwhile, HSI and SHCOMP continue to shrink 0.51% and 1.48% to end at 18,794.13 and 3,150.62.

Wall Street ended in negative territory as investors digested Russia tensions and rate hike worries. The DJIA and S&P500 weaken 0.04% and 0.45% to end at 33,714.71 and 4,328.82. Nasdaq dived 1.16% to close at 13,335.78.

News For The Day

IJM Construction wins RM653.6m contract

IJM Corp, via its wholly-owned subsidiary IJM Construction SB, has been awarded a RM653.6m contract for the design, execution and construction of phase one of the Shah Alam International Logistics Hub. The project commissioned by Global Vision Logistics, will establish the country's first green- certified logistics hub, one of the largest in Asean. Construction is scheduled to commence in the 3QCY23, with an estimated completion timeline of 26 months. -The Star

Rapid Synergy to sell property in Ipoh for RM25m

Rapid Synergy said it is disposing of a property in Ipoh for RM25m to fund its working capital and repay bank borrowings. The property, which is located at Giant Hypermarket Bercham, has a net book value of RM23.09m, said the precision tools maker and property investor, adding that it expects to incur a gain of about RM2.3m from the disposal. -The Edge Markets

VSTECS inks deal to distribute Qualcomm's laptops and

tablets in Malaysia VSTECS, through its wholly owned subsidiary VSTECS ASTAR SB, has signed an agreement with Qualcomm Technologies Inc to distribute Qualcomm's "Windows on Snapdragon" laptops and tablets in Malaysia. The ICT services provider said it will leverage its network of 4,600 channel partners across the country to provide vast accessibility and drive the successful distribution and marketing of the products. -The Edge Markets

Sapura Energy returns to black in 1Q with RM146m profit

Sapura Energy’s 1QFY1/23 net profit surged 58.9% YoY to RM146m from RM91.93m on the back of lower depreciation, higher share of profit from associates and foreign exchange gains arising from the appreciation of the US dollar against the ringgit. It swung into the black from a net loss of RM3.3bn QoQ. Quarterly revenue rose 7.41% YoY to RM951.73m from RM886m due to higher rig utilisation days from the drilling segment and increased project activities for the operation and maintenance segment. -The Edge Markets

Fitters Diversified bags RM21.5m fire protection services job

Fitters Diversified's wholly-owned unit Fitters Engineering Services SB has accepted a letter of award (LOA) from Syarikat Pembenaan Yeoh Tiong Lay SB for the construction of fire protection services at Klang, Selangor worth RM21.5m. The work entails construction, supply, installation, completion, testing, commissioning and handing over of fire protection services and is slated for completion by May 13, 2024.-NST

Our Thoughts

Wall Street ended lower as traders were side-lined ahead of some economic data to be out later today amid some profit taking activities as well. As such, the DJI Average declined by 13 points while the Nasdaq lost 156 points with the US 10-year yield closed slightly lower at 3.723%. Over in Hong Kong, the HSI continued with its downtrend as sentiment remained affected by the lack of stimulus from Beijing after more weak economic data from China. The HSI had slumped by almost 1,200 points over the past 5 days. Back home, the FBM KLCI was marginally lower following some late selling activities on the financials in line with the weak regional performance. We reckon the trading pattern to be similar today in the absence of any positive signs thus anticipate the index to hover within the 1,385-1,395 range. We expect more follow through selling on Tech stocks after yesterday’s selling as sentiment on the sector turned cautious following a series of rate hikes in Europe.

Source: Rakuten Research - 27 Jun 2023

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