Previous Day Highlights

The FBM KLCI ended flat amid cautious sentiment due to lack of fresh catalysts. The benchmark index gained 0.04% or 0.60 points to close at 1,445.81. Gainers were led by HLFG, PPB and KLK. However, market breadth was negative with 482 losers against 330 gainers. Total volume stood at 3.13bn shares valued at RM1.34bn.

Major regional indices ended on a mixed note as investors kept their focus on key economic data from US and China. Nikkei 225 and STI rose 0.19% and 0.53% respectively, to end at 32,254.56 and 3,309.87. Meanwhile, SHCOMP fell by 0.59% to close at 3,268.83 whereas HSI closed almost unchanged at 19,537.92.

Wall Street ended higher as investors kicked off the week with more corporate earnings and key inflation readings. The DJIA gained 1.16% to close at 35,473.13. S&P 500 and Nasdaq added 0.90% and 0.61% to end at 4,518.44 and 13,994.40 respectively.

News For The Day

Yinson Production secures US$230m financing

Yinson Production has secured US$230m (RM1.04bn) in term loan facility, structured and arranged by Global Infrastructure Partners (GIP), in relation to the floating, production, storage, and offloading (FPSO) Maria Quitéria. The project was secured in February 2022. "The construction of the FPSO is nearing 70% completion as of June 2023, which is in line with the project schedule. The FPSO is on track to achieve first oil in the second half of 2024,” the companies said.-The Star

Global semicon sales fell 17.3% YoY to US$124.5bn in 2Q2023

Global sales of semiconductors fell 17.3% YoY to US$124.5bn (RM567.1bn) during 2Q2023, according to US-based Semiconductor Industry Association (SIA). SIA said that regionally, month-to-month sales increased in the Americas (4.2%), China (3.2%), Japan (0.9%), and Europe (0.1%), but fell slightly in Asia Pacific/All Other (-0.5%).- The Edge Markets

LGMS penetrates Cambodian banking cybersecurity market

LGMS has penetrated the Cambodian banking market by helping ABA Bank to secure the international Payment Card Industry Data Security Standard (PCI DSS) certification. ABA Bank, a subsidiary of the National Bank of Canada, is Cambodia’s largest commercial bank.– The Edge Markets

Sunway Property records RM1bn bookings

Sunway Property, a property division of Sunway Bhd, announced that it had received RM1bn in bookings from its Signature Series 2023 campaign on Monday (Aug 7). This campaign was also held last year, and received RM800m bookings. This year's campaign features 17 projects spread across the Klang Valley, Johor, Ipoh and Penang. In a press statement, Sunway Property chief brand and marketing officer Gerard Yuen stated that the reason behind the success of the campaign is the homebuyers' support for Sunway Design and Development Architecture (SDDA) design philosophy. - The Edge Markets

Capital market flow to remain stable

The capital market flow and investors sentiment are expected to remain stable as the country heads towards the six state elections this Saturday (Aug 12). Securities Commission Malaysia (SC) chairman Datuk Seri Dr Awang Adek Hussin said the domestic capital market registered positive net inflow in the last few weeks, which indicates that a post-election selloff is unlikely in the future.- The Edge Markets

Our Thoughts

Wall Street rebounded after a week of fluctuations as sentiment was boosted by strong set of corporate earnings hence yesterday’s bargain hunting activities. The DJI Average jumped by 407 points while the Nasdaq added 85 points as the US 10-year yield inched higher at 4.097%. In Hong Kong, the HSI ended flat amid a choppy session as traders turned into cautious mode reassessing the impact on China’s stimulus measures to reignite the ailing economy. On the home front, the FBM KLCI closed flat despite some profit takings on selected blue chips. Market undertone remained strong as we noticed persistent accumulation on blue chips. As we enter into corporate earnings season for the 2Q, we reckon focus may be shifted to the Banks, Telcos and Utilities as consensus are expecting these to chart decent earnings growth this year. Thus, we anticipate the index to trend within the 1,445-1,455 range today.

Source: Rakuten Research - 8 Aug 2023

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