Previous Day Highlights

The FBM KLCI continues with its upward trajectory to close at its intra-day high, as market sentiment turned positive across the region. The benchmark index gained 0.61% or 8.40 points to close at 1,391.46. Gainers were led by PETDAG, NESTLE and KLK. Market breadth was positive with 471 advancers against 368 decliners while 418 counters remain unchanged. Total volume stood at 2.83bn shares valued at RM1.86bn.

Key regional indices closed on a strong note taking the positive cue from Wall Street’s upbeat performance. Nikkei 225 and STI added 0.04% and 0.46% to close at 32,203.57 and 3,163.84. Meanwhile, HSI and SHCOMP continue to climb 0.97% and 0.55% respectively, to end at 18,659.83 and 3,221.37.

Wall Street ended higher as investors await more clues on the pace of inflation in US. The DJI climbed 0.93% to close at 34,261.42 while S&P500 and Nasdaq advanced 0.67% and 0.57% to end at 4,439.26 and 13,760.70.

News For The Day

Westports founder and executive chairman G. Gnanalingam

passes away at 78 Westports Holdings' founder and executive chairman Tan Sri Gnanalingam Gunanath Lingam has passed away at 78. Gnanalingam was appointed as director of the company on Jan 1, 2009 and as the executive chairman on Sept 1, 2013. He was also the executive chairman of Westports SB, a wholly- owned subsidiary of the company, a position he has held since 2000. Prior to that, he was the managing director of WMSB from 1995 to 1999.-The Star

Scientex proposes land purchase in Kulai for RM299.84m

Scientex's indirect subsidiary Scientex Lestari SB has entered into a conditional sales and purchase agreement with Seriemas Development SB for the proposed acquisition of six parcels of freehold land in Mukim Senai in Kulai, Johor, for RM299.84m. The group said it proposes to develop the tracts of land, measuring a combined 550.67 acres, into a mixed- property development comprising about 7,000 affordable houses. The proposed acquisition is expected to be completed in 1HCY24. -The Star

Velesto gets RM60.6m rig-drilling job from PTTEP

Velesto Energy's indirect wholly owned subsidiary Velesto Drilling SB has secured a contract for the provision of drilling rig services for PTTEP Sabah Oil Ltd and PTTEP Sarawak Oil Ltd worth some RM60.55m. The contract will involve the assignment of the group's Naga 3 for PTTEP's drilling programme, requiring it to drill two firm wells starting from February 2023. -The Edge Markets

Samaiden wins RM181m solar power plant contract

Samaiden Group, via its wholly-owned subsidiary Samaiden SB, has been awarded a contract valued at RM181.34m by Suria Infiniti to develop a solar power plant in Kuala Muda, Kedah. The project is a large-scale solar photovoltaic power plant with a capacity of 50 megawatts, which has been approved by the Energy Commission. The power plant will also be owned by Uzma’s indirect wholly owned subsidiary Uzma Kuala Muda SB. -The Star

ACE-bound DC Healthcare posts RM2.4m 1Q net profit

Aesthetic medical services provider DC Healthcare Holdings, which is slated to list on the ACE Market of Bursa Malaysia next Monday (July 17), has posted a net profit of RM2.4m for 1QFY12/23. Revenue stood at RM16.8m, with 88.8% of it coming from aesthetic services. -The Edge Markets

Our Thoughts

Wall Street maintained its uptrend despite the uncertainty over the interest rate outlook ahead of June’s CPI which is due later today further illustrates that there is ample liquidity within the financial system. As such, the DJI Average jumped 317 points while the Nasdaq gained 75 points as the US 10-year yield eased to below the 4.0% level at 3.978%. In Hong Kong, the HSI added 180 points after more aid was granted for property developers to improve their cashflows and complete their project coupled with short covering activities by hedge funds. Overall sentiment improved further as the crackdown on tech companies is expected to ease. On the local front, the FBM KLCI surged past the 1,390 mark due to late buying activities. Judging from the broadly improved regional markets’ performance, we suspect foreign funds to be net buyers recognising the region’s low valuations and stable monetary policy. Therefore, we reckon the benchmark index to maintain its uptrend and expect it to trend within the 1,385-1,395 range today. Meanwhile, decline on the supply side had pushed crude oil prices higher with the Brent crude testing the USD80/barrel.

Source: Rakuten Research - 12 Jul 2023

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