Previous Day Highlights

FBM KLCI closed lower due to lack of fresh catalysts. The benchmark index lost 0.38% or 5.41 points to close at 1,41876. Losers were led by PPB, PETCHEM, and TENAGA. Market breadth was negative with 632 losers against 285 gainers. Total volume stood at 3.04bn shares valued at RM2.43bn.

Major regional indices trended lower. Nikkei225 and STI lost 0.31% and 0.27% to end at 31,759.88 and 3,208.86 respectively. Meanwhile HSI and SHCOMP were closed for public holidays.

Wall Street closed mixed despite U.S. legislators were able to come to a short-term agreement that staved off a government shutdown. The DJIA lost 0.01% to end at 33,433.35. S&P500 and Nasdaq added 0.67% and 0.51% to finish at 4,288.39 and 13,219.32 respectively.

News For The Day

MBSB completes RM1.01bn acquisition of MIDF

Malaysia Building Society (MBSB) has completed its acquisition of Malaysian Industrial Development Finance (MIDF) from PNB for RM1.01bn. MBSB emerged as a substantial shareholder with a 12.78% stake. Meanwhile, the EPF’s shareholding in MBSB was reduced from 65.78% to 57.45%.-The Edge Markets

Epicon bags RM131m subcontract work

Stage and express bus service operator Epicon (formerly known as Konsortium Transnasional) has bagged a contract worth RM130.9m from Ibrahim & Sons Engineering SB (ISESB) for the installation, testing and commissioning of pipelines, cables and jointing for TNB’s electrical and flood barrier-related infrastructure.-The Edge Markets

MRCB’s projects in Kwasa Damansara now open for preview

MRCB Land Sdn Bhd’s latest high-rise residential development, named Tujuh Residences in the ongoing 94-acre Kwasa Damansara City Centre (KDCC) project, is now open for preview. Tujuh Residences will be the developer’s first residential project to deploy its proprietary modular construction technology, MRCB Building System which will allow up to 80% of the building works to be undertaken off-site in a factory setting with a controlled inventory. The statement added that it would help reduce waste and the carbon emissions that are usually generated from construction.– The Edge Markets

Econpile bags RM101m job for SOHO project in KL

Piling and foundation specialist Econpile Holdings has bagged a contract worth RM101.3m to undertake sub-structure works of three blocks of small office home office (SOHO) here. The sub-structure works for three blocks of SOHO comprise two blocks of 50-storey SOHO and a block of 51-storey SOHO with podium and basement carpark floors.–The Edge Markets

Pestech’ secures RM21m smart meter contract from TNB

Pestech International’s unit Pestech SB (PSB) has received a RM21.2m contract from TNB for the supply and delivery of smart meters in line with TNB’s advanced metering infrastructure implementation. “It reaffirms the reliable track records built by the group in the smart metering and advanced meter infrastructure (AMI) business segment, allowing the group to tap on more prospects in the smart metering for other phases in TNB as well as in the region,” it said.– The Edge Markets

Our Thoughts

Despite avoiding a shutdown via a short-term agreement, Wall Street closed mixed as sentiment remains jittery against a high US 10-year yield backdrop. As a result, though the DJI Average declined by 74 points the Nasdaq added 88 points as the 10-year yield surged to 4.685%, the highest since 2007. The stockmarket in Hong Kong was closed yesterday for National Day celebration. On the home front, the FBM KLCI declined to end below the 1,420 level as market undertone remains cautious amid a mixed regional performance. Though this is deemed healthy as the local bourse digested the uptrend since July, we reckon a swift rebound is necessary to evade a prolong consolidation phase. Therefore, we anticipate some bargain hunting to emerge, especially for the utilities sector as yesterday’s selling may be a tad overdone. For today, we expect the index to hover between the 1,420-1430 range. Meanwhile, higher crude oil output in September saw easing crude prices with the Brent dipped to the US$90/barrel.

Source: Rakuten Research - 3 Oct 2023

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