Previous Day Highlights

The FBM KLCI closed sharply higher on bargain hunting activities after mid-year fund rebalancing. The benchmark index surged 1.40% or 19.21 points to close at 1,395.89. Gainers were led by NESTLE, KLK and PETDAG. Market breadth was positive with 513 gainers against 342 losers. Total volume stood at 2.61bn shares valued at RM1.50bn.

Major regional markets closed broadly higher due to Wall Street’s solid overnight performance. Nikkei 225 soared 1.70% to close at 33,753.33, reaching a 33-year peak, while STI closed almost unchanged at 3,207.10. Meanwhile, HSI and SHCOMP rose 2.06% and 1.31% respectively, to end at 19,306.59 and 3,243.98.

Wall Street ended marginally higher as the shorten trading session remain lacklustre. The DJIA inched 0.03% higher to close at 34,418.47 while S&P500 and Nasdaq added 0.12% and 0.21% to end at 4,455.59 and 13,816.77 respectively.

News For The Day

MAHB records 9.9m passenger movements in May

Malaysia Airports Holdings’ total passenger movements rose 37.7% YoY to almost 10m in May 2023 from 7.2m. MAHB said the improvement was driven by strong traffic recovery from both Malaysia and Turkey operations and surpassing the December 2022 peak of 9.5m. Both the international and domestic sectors contributed to the overall May 2023 growth, recording the highest volume since March 2020 at 4.6m and 5.4m passenger movements respectively-The Star

Hextar Global's unit acquires PHG Ever Fresh for RM84m to

venture into durian wholesale biz Hextar Global’s unit is acquiring PHG Ever Fresh Group SB for a cash consideration of RM84m to venture into the durian wholesale business. Hextar Global said its 51%-owned subsidiary Hextar Fruits SB has entered into a share sale agreement with PHG Ever Fresh Group for the acquisition of 100% equity interest in three of its subsidiary companies as well as a 55% equity interest in PHG Ever Fresh Plantation SB. The three subsidiaries are PHG Ever Fresh Food (M) SB, PHG Ever Fresh Food (TK) SB and PHG Wholesale & Retails SB.-The Edge Markets

SunCon gets RM253m refurbishment contract

Sunway Construction SB (SunCon) has secured a RM253m contract from Sunway REIT Management SB for the refurbishment of the four-storey shopping complex and one- storey cultural/commercial centre known as Sunway Carnival Mall in Seberang Jaya, Penang. The project is over 24 months from the date of commencement on July 1, 2023, and is expected to be completed by June 30, 2025.-The Star

ITMAX gets RM40m hospital job

ITMAX System has secured a contract worth RM40m from Segamat Specialist Hospital SB for the design and provision of smart healthcare systems services for a hospital in Segamat, Johor. ITMAX said the job will also include mechanical and electrical engineering works, as well as smart systems. ITMAX said the duration of the contract will be from July 1, 2023 until Dec 31, 2024, adding that the maintenance period will be from Jan 1, 2025 to Dec 31, 2027.- The Star

LFE gets RM105m construction job

LFE Corp has secured a contract worth RM105m from PD Ara SB to complete main building works in Petaling Jaya, Selangor. LFE said the building works will comprise an 18-storey service apartment block (including landscaping facilities), as well as an 11-storey small office/ home office block. -The Star

Our Thoughts

Wall Street closed marginally higher on a shortened trading session ahead of the 4th of July holiday today. Gains were mostly attributed to enthusiasm on AI related stocks as the Nasdaq added 29 points while the DJI Average was up by 11 points despite the US 10-year yield closing higher at 3.858%. Hong Kong equities improved with the HSI jumped 390 points as sentiment improved over Janet Yellen’s imminent visit to China indicating the tension between China and US may be easing. Back home, the FBM KLCI added 19 points to almost the 1,400 mark buoyed by broad-based buying on heavyweights amid a stronger regional performance. Hopefully yesterday’s buying spree was spearheaded by foreign funds and if this is true, then we may see more funds flowing back into Asia as foreign funds begin to diversify. We anticipate the FBM KLCI to trend within the range of 1,395-1,405 range for today. We reckon Financials and Tech stocks may experience continuous buying support despite market undertone to stay cautious ahead of BNM’s meeting tomorrow.

Source: Rakuten Research - 4 Jul 2023

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