Previous Day Highlights

The FBM KLCI pared earlier losses and ended on a strong note, driven by selected buying in heavyweights in response to the recent sell-off. The benchmark index gained 0.39% or 5.39 points to close at 1,383.06. Gainers were led by KLK, NESTLE and PETDAG. Market breadth was neutral with 405 advancers against 377 decliners while 454 remain unchanged. Total volume stood at 2.24bn shares valued at RM1.51bn.

Key regional indices ended mostly higher on the hope of easing economic sanction between the US and China, expect Nikkei 225 fell by 0.61% to close at 32,189.73. HSI, SHCOMP, and STI fell by 0.62%, 0.22%, and 0.31% respectively, to end at 18,479.72, 3,203.70, and 3,149.32.

Wall Street rebounded as investors looked ahead to a key inflation report. The DJI climbed 0.62% to close at 33,944.40 while S&P500 and Nasdaq advanced 0.24% and 0.18% to end at 4,409.53 and 13,685.48 respectively.

News For The Day

AEON Credit's 1Q profit down 39%

Aeon Credit Service (M) 1QFY2/24 net profit fell 39.07% YoY to RM99.36m from RM163.07m, despite higher revenue, mainly because of higher impairment losses on financing receivables. Quarterly revenue jumped 15.9% YoY to RM452.67m from RM390.57m, due to stronger loan and financing growth. -The Edge Markets

Unitrade to sell industrial land in Glenmarie for RM19m

Unitrade Industries has proposed to sell a piece of freehold industrial land in Bandar Glenmarie, Shah Alam for RM19.4m. The 4,794 square metres land, which comes together with a single-storey detached factory annexed with a three-storey office building, is being sold to Conway Terminals Manufacturer SB. The original cost of the land’s investment was RM3.83m, with a net book value of RM2.38m as of March 31, 2022.-The Edge Markets

MPay to provide open toll payment system for two highways

ManagePay Systems (MPay) wholly owned unit has been appointed as an open payment system provider at selected toll lanes for the Ampang-Kuala Lumpur Elevated Highway (AKLEH) and Guthrie Corridor Expressway (GCE). ManagePay Services SB's appointment was made by Turnpike Synergy SB, a subsidiary of highway concessionaire Projek Lintasan Kota Holdings SB, which is in turn owned by Permodalan Nasional. The system shall be completed within a period of 12 weeks and the subsequent leasing period of 24 months with an option to extend the leasing period for a subsequent 36 months by Turnpike. -The Edge Markets

Censof secures RM13.4m from SSM

Censof Holdings’ wholly owned subsidiary, Century Software (Malaysia) SB has secured a RM13.4l contract from the Companies Commission of Malaysia (SSM). Censof said the contract from SSM was for the development, supply, implementation, warranty, support, maintenance, and licenses of a financial management system. The contract is for six years from July 19, 2023, to July 18, 2029. -The Star

Fajarbaru wins RM7.4m contract

Fajarbaru Builder Group’s unit won a RM7.36m contract from Australian Department of Defence in the planning phase of military facilities redevelopment at the Royal Malaysian Air Force Base in Butterworth, Penang. The redevelopment is meant for facilities both leased by the Australian Department of Defence, as well as those belonging to the Malaysian government. -The Edge Markets

Our Thoughts

Wall Street recovered from recent downtrend as traders are looking towards the Consumer Price Index on Wednesday and the Producer Price Index on Thursday coupled with the start of the earnings season. The DJI Average jumped 210 points while the Nasdaq edged 25 points higher as the US 10-year yield ended lower at 4.0%. Meanwhile, Hong Kong equities closed higher with the HSI adding 114 points as traders are expecting China’s regulatory clampdown on the tech companies may be coming to an end. Nonetheless, overall sentiment remained cautious on concerns of China’s worsening deflation outlook. Back home, the FBM KLCI managed to close above the 1,380 level attributed to broad-based buying despite the index remains in consolidation mode. For today, we anticipate the index to trend within the 1,375-1,385 range with the Telco sector to experience some bargain hunting activities following persistent decline last week.

Source: Rakuten Research - 11 Jul 2023

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