Previous Day Highlights

The FBM KLCI continued its downtrend for the fourth consecutive day and ended at its intraday low, dragged by late board-based selling pressure. The benchmark index lost 0.60% or 8.28 points to close at 1,377.67. Losers were led by KLK, IOICORP and MAXIS. Market breadth was negative with 435 losers against 304 gainers while 455 counters remain unchanged. Total volume stood at 1.97bn shares valued at RM1.41bn.

Major regional markets closed on a weak note, following the bearish tone from global equities overnight, with Nikkei 225 tumbled 1.71% to close at its one-month low of 32,388.42. HSI, SHCOMP, and STI fell by 0.90%, 0.28%, and 0.35% respectively, to end at 18,365.70, 3,196.61, and 3,139.47.

Wall Street ended in negative territory following solid job data, which indicated potential rate hike. The DJI slipped 0.55% to close at 33,734.88 while S&P500 and Nasdaq erased 0.29% and 0.13% to end at 4,398.95 and 13,660.72 respectively.

News For The Day

MyEG contract for immigration services extended

MyEG Services announced that the government has agreed to extend its concession as the provider of online services for the Immigration Department of Malaysia and has appointed it as the collection agent for government revenue. The e- government services provider said it received a notification letter from the Ministry of Finance. The terms of the extension will be finalised pursuant to further discussion with the government in due course and an agreement to formalise the extension will be signed at a later stage, MyEG said. -The Edge Markets

Econpile bags RM35m job from Vestland

Econpile Holdings has been awarded a contract worth RM35.09m to undertake the substructure works for a commercial development in Subang Jaya, Selangor. The construction outfit’s wholly owned unit Econpile (M) SB had received the letter of award from Vestland’s wholly owned unit Vestland Resources SB. The overall duration of the project shall be 15 months from July 15, 2023.-The Edge Markets

Samaiden secures 20-year PPA with Yakult Malaysia

Samaiden Group's wholly owned subsidiary, Samaiden Capital Management SB has secured a 20-year power purchase agreement (PPA) with Yakult Malaysia SB. Samaiden is set to supply Yakult with renewable energy generated from solar facilities located at two strategic locations, Seremban, with a capacity of 496.26 kilowatt peak (kWp), and Glenmarie, with a capacity of 212.22kWp.-The Star

Fajarbaru clinches RM150.9m construction job in Shah Alam

Fajarbaru Builder Group has secured a RM150.89m contract for the building and related infrastructure works of an 18- storey serviced apartment and retail complex in Shah Alam, Selangor. Its wholly owned Fajarbaru Builder SB has accepted the letter of award from Temasya Development Co SB. The contract period is 40 months, commencing on July 17, 2023, and shall be completed on Nov 16, 2026.-The Edge Markets

ACE bound DC Healthcare IPO oversubscribed 59 times

DC Healthcare Holdings, which is en route to a listing on the ACE Market of Bursa Malaysia, saw its initial public offering (IPO) oversubscribed by 59.46 times. The aesthetic services provider said a total of 17,614 applications for 3.01bn new shares with a value of RM752.9m were received from the Malaysian public. -The Star

Our Thoughts

Wall Street struggled and closed lower as fears resurfaced on rate more hikes by the Feds later this month following a spate of strong job data. As a result, the DJI Average tumbled 187 points while the Nasdaq lost 18 points as the US 10-year yield inched higher to 4.066%. Over in Hong Kong, the HSI ended the week in dreadful fashion as the index declined by 167 points after Goldman Sachs downgraded the Chinese banks. Tech stocks were not spared either following a sell-off by foreign funds. On the home front, the FBM KLCI uptrend was short-lived after foreign funds began to unload their holdings. The index dipped below the 1,380 threshold last Friday as sentiment turned drastically cautious. The sell- down was quite prominent on the Financial, Plantation and Telco stocks after a decent performance recently. We reckon market undertone to remain weak thus expect the index to hover within the 1,370-1,380 today. Again, we foresee some headwinds for the Tech counters in view of slower global demand and higher interest rate environment in the US.

Source: Rakuten Research - 10 Jul 2023

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