Previous Day Highlights

FBM KLCI closed higher, however gains were capped amid the weak performance regionally. The benchmark index gained 0.09% or 1.25 points to close at 1,420.01. Gainers were led by NESTLE, PETGAS, and TENAGA. Market breadth was negative with 545 losers against 401 gainers. Total volume stood at 3.22bn shares valued at RM2.21bn.

Major regional indices trended lower. Nikkei225, HSI and STI lost 1.64%, 2.69% and 0.51% to end at 31,237.94, 17,331.22 and 3,192.35 respectively. Meanwhile SHCOMP is closed for the Golden Week holiday.

Wall Street closed sharply lower after an intensifying bond selloff. The DJIA slumped 1.29% to end at 33,002.38. S&P500 and Nasdaq dived 1.37% and 1.87% to finish at 4,229.45 and 13,059.47 respectively.

News For The Day

MAHB record over 11m passenger movement in August 2023

Malaysia Airports Holdings (MAHB) has continued to record more than 11m for the second consecutive month in August 2023 at its network of airports in Malaysia and Turkiye. The airport operator said Malaysia accounted for more than 66% or 7.4m of the total 11.2m passengers. August 2023 also saw the highest average total daily passenger movements for the year-to-date at 240,000 passengers.–The Star

NetX, Saudee unit to launch fast-food chain

NetX Holdings has entered into a partnership with Saudi Cold Storage SB, a unit of Saudee Group, in a venture into the fastfood consumer market in Malaysia. NetX said the business will be carried out by a joint venture company, in which it will own a 51% equity stake while the remaining 49% will be held by Saudi Cold Storage. It said the flagship outlet of the new fast-food chain with the brand name Saudi Burger is scheduled to open in December 2023 at Sungei Wang Plaza in Bukit Bintang, Kuala Lumpur.-The Star

Boustead Plantations, KLK securities trading halt

Bursa Malaysia Securities has approved Boustead Plantations’ request for suspension in the trading of the company’s shares. "Bursa Securities has approved the company’s request for suspension in the trading of the ordinary shares in Boustead with effect from 9 am to 5 pm on Oct 3, pending the release of a material announcement,” Boustead Plantations said in a filing with Bursa Malaysia.-The Star

SSF Home’s IPO oversubscribed by 8.25 times

Home-grown furniture and home-living product retailer SSF Home Group said the public offer of its shares under its RM50 million initial public offering (IPO) has been oversubscribed by 8.25 times. In a statement, SSF said it received a total of 5,348 applications for 370.0m shares from the Malaysian public, to which it offered 40m new shares ahead of its Oct 12 listing on the ACE Market.– The Edge Markets

Reservoir Link subsidiary proposes listing on Nasdaq

Reservour Link Energy's 51%-owned subsidiary Founder Group Ltd (FGL) is considering a listing on the US Nasdaq stock exchange. In a statement, the group said the engineering, procurement and construction unit specialises in solar system and other engineering works involving civil, structural, mechanical and electrical engineering nationwide. The proposed listing will offer enhance financial flexibility through a new fundraising platform to accelerate the expansion and growth trajectory of its solar renewable business.– The Star

Our Thoughts

Reality finally sets in on Wall Street as traders sold-down equities in view of the surging treasury yields as August job data came in stronger than expected. As such, the DJI Average tumbles by 431 points while the Nasdaq fell 248 points as the US 10-year yield touched the 4.795% level. Over in Hong Kong, the HSI shed 478 points as sentiment remains impacted by the US interest rate scenario coupled with the ongoing debt problems amongst the Chinese property developers. Back home, the FBM KLCI struggled to maintain its buying momentum despite the FBM KLCI closing just above the 1,420 mark. Domestic market undertone stayed cautious amid a mixed regional performance as knee-jerk reactions from the interest rate scenario in the US is expected to take central stage particularly heightening the volatility of regional currencies in the short term. Notwithstanding this, we expect Bank Negara to maintain the OPR at current level circa. 3%. Meanwhile, we anticipate trading to be lacklustre today and expect the index to hover between the 1,415-1,425 range.

Source: Rakuten Research - 4 Oct 2023

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