Previous Day Highlights

FBM KLCI ended marginally higher due to late buying activities. The benchmark index gained 0.14% or 2.02 points to close at 1,450.23. Gainers were led by HLFG, TENAGA and KLK. Market breadth was positive with 503 gainers against 403 losers. Total volume stood at 3.13bn shares valued at RM2.08bn.

Major regional indices trended mostly higher. HSI, SHCOMP and STI gained 2.28%, 1.55% and 0.06% to close at 18,057.45, 3,132.43 and 3,204.82 respectively. Nikkei225 dipped 0.52% to end at 32,402.41.

Wall Street closed lower due to growing expectations that interest rates might stay at elevated levels for a longer period than initially expected. The DJIA lost 0.31% to end at 33,963.84. S&P500 and Nasdaq erased 0.23% and 0.09% to finish at 4,320.06 and 13,211.81 respectively. News For The Day

ITMAX bags second Johor contract in a week

ITMAX System’s 65%-owned subsidiary, Southmax SB (SSB) has secured a RM111.2m contract with Iskandar Puteri City Council to provide a closed circuit camera system with artificial intelligence (AI) features and smart traffic light system in the city. ITMAX will be responsible for designing, installing and maintaining a Smart Command Centre, a closed circuit camera system with AI features as well as smart traffic light system for a period of 15 years on a service subscription basis.-The Star

Petronas, Mitsui, MISC to jointly develop LCO2 carriers for CCS projects in Malaysia

Petronas’ wholly-owned subsidiary Petronas CCS Ventures SB has signed a term sheet with Mitsui OSK Lines Ltd (MOL) and MISC to invest in developing and monetising liquefied carbon dioxide (LCO2) carriers for carbon capture and storage (CCS) projects in Malaysia. The parties have agreed in principle on the key commercial terms to allow progress to the next stage.-The Edge Markets

MNRB announces final dividend of 4.45 sen for FY2023

MNRB Holdings announced a single-tier final dividend of 4.45 sen for FY3/23. It noted in a statement on Friday that the dividend amount rose significantly by 78%, versus the previous financial year, underpinned by a commendable performance across its reinsurance and takaful subsidiaries.– The Edge Markets

Malaysia's inflation rate unchanged at 2% in August 2023

Malaysia’s inflation remained unchanged at 2% in August 2023, similar to the growth rate recorded in July 2023, said the Department of Statistics Malaysia (DoSM). DoSM said the inflation rate recorded in August was mainly due to the slower growth in restaurants and hotels, which fell to 4.7% from 5% in July 2023; food and non-alcoholic beverages (4.1% against 4.4% in July 2023), as well as miscellaneous goods and services which moderated to 2.4% from 2.6% in the previous month.–The Star

Chin Hin triggers MGO after raising stake in Ajiya

Chin Hin Group has proposed to acquire 2.11%, or 6.2m shares in in Ajiya for RM9.51m cash or RM1.53 per share. Upon completion of the proposed acquisition, the aggregate shareholdings of Chin Hin and its persons acting in concert (PACs) in Ajiya will increase to 34.1% from 32%. Accordingly, Chin Hin will be obliged to extend a conditional mandatory general offer (MGO) for all the remaining Ajiya shares not already owned at a cash offer price of RM1.53 per Ajiya share. However, Chin Hin intends to maintain the listing status of Ajiya on Bursa subsequent to the proposed Ajiya offer.– The Star

Our Thoughts

Wall Street continued with its downtrend weighed by comments from the Federal Reserves that high interest rate environment may be prolonged indefinitely, crushing any hopes that the Feds will lower interest rates towards year end. As such, the DJI Average lost 106 points while the Nasdaq declined by 12 points with the US 10-year yield easing slightly to 4.438%. In Hong Kong, the HSI rebounded by more than 400 points on bargain hunting activities as Goldman Sachs sees a stronger economic recovery for China over the next few months. Back home, the FBM KLCI managed to close above the 1,450 level supported by late buying activities. Though daily volume traded has not improved, we are heartened that accumulation of blue chips remains strong. For today, we expect the index to hover between the 1,445-1,455 range. Meanwhile, the noise within the Construction sector is getting louder and we believe that any impending announcements of projects will catapult the sector to higher levels.

Source: Rakuten Research - 25 Sept 2023

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