Previous Day Highlights

The FBM KLCI closed on a strong note underpinned by broad-based accumulation, in tandem with regional uptrend. The benchmark index surged 1.14% or 15.86 points to close at 1,412.09. Gainers were led by NESTLE, HLFG and PPB. Market breadth was positive with 650 gainers against 289 losers. Total volume stood at 4.00bn shares valued at RM2.67bn.

Major regional markets upward trajectory continued amid the positive market undertone except Nikkei 225 which eased 0.09% to close at 32,391.26. Meanwhile, HSI and STI jumped 0.33% and 0.31% respectively, to close at 19,413.78 and 3,248.63. SHCOMP ended almost unchanged at 3,237.70.

Wall Street trended mixed despite the solid earnings from major lenders that kicked off the earnings season. The DJI rose 0.33% to close at 34,509.03 while S&P500 and Nasdaq lost 0.10% and 0.18% to end at 4,505.42 and 14,113.70 respectively.

News For The Day

Maxis finally set to sign 5G access agreement with DNB

Maxis has decided to execute the 5G access agreement with Digital Nasional (DNB). Maxis’ wholly-owned unit Maxis Broadband SB "intends to execute the access agreement for Maxis to gain access to the 5G products and services provided on a wholesale basis by DNB". The group will seek its shareholders' approval for the execution of the agreement at an extraordinary general meeting to be convened in 3QFY23.- The Edge Markets

Aeon Credit undertakes digital Islamic banking

AEON Credit Service (M) has entered into a shareholders' agreement with Aeon Financial Service Co Ltd to undertake digital Islamic banking business. The financial services company said this will be done via ACS Digital (ACSD) which is preparing to be licensed as a digital Islamic bank under Islamic Financial Services Act 2013 (IFSA). Aeon Credit will subscribe to 175m ordinary shares in ACSD at RM1.00 per share. On completion, ACSD will become an associate company, the statement said.-The Star

Ancom Nylex posts record FY23 net profit of RM75.12m

Ancom Nylex notched a record FY5/23 net profit of RM75.12m, up 10.2% YoY from RM68.18m, owing to higher revenue and lower tax expenses. Meanwhile, a one sen dividend per share was declared for this year, marking the return of dividends since 2015. The group’s full financial year revenue increased to RM2.04bn compared to RM2.01bn YoY.- The Edge Markets

Puncak Niaga gets RM47m water treatment plant job

Puncak Niaga Holdings has won a RM47.21m sub-contract to build a water treatment plant and upgrade a water distribution system in Gua Musang, Kelantan. The treated water supplier said its wholly-owned subsidiary, Puncak Niaga Construction SB, was awarded the job by Pembinaan Era Dinamik SB. The scope of work includes the construction of a raw water intake station, sedimentation tank, filtration plant, treated water pumping station and administration building. The construction work is set to complete by May 28, 2024.-The Edge Markets

Reservoir Link secures contract from Hibiscus

Reservoir Link Energy has received a three-year contract from Hibiscus Oil & Gas Malaysia Ltd for the provision of slickline perforation and specialised services. The contract was awarded to Reservoir Link via its wholly owned subsidiary, Reservoir Link SB, effective July 3, 2023. The contract value was not disclosed.-The Star

Our Thoughts

Wall Street closed mixed as the earnings season kicked off strongly with some of the biggest banks leading the way. As a result, the DJI Average added 114 points while the Nasdaq declined by 25 points as the US 10-year yield jumped to 3.83%. Meanwhile, Hong Kong stocks maintain their upward trajectory with the HSI closing 63 points higher as optimism on Tech stocks improves now that policymakers are looking at the private sector as a vital component to revive China’s economy. Back home, the FBM KLCI surged past the 1,400 mark with ease underpinned by broad-based buying by both the local institutions and foreign funds. Assuming such accumulation is sustained, we expect the index to trend within the 1,410-1,420 range today with interest focusing on the Telco sector as it is still underperforming the broader market. Meanwhile, concerns over global demand saw crude oil prices weaken despite the curb on the supply side. Therefore, the Brent crude dipped to below the USD80/barrel after hitting a high of USD82 last week.

Source: Rakuten Research - 17 Jul 2023

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