Previous Day Highlights

The FBM KLCI closed higher in tandem with the regional markets’ performance. The benchmark index gained 0.09% or 1.28 points to close at 1,416.88. Gainers were led by PETDAG, HLFG, and CDB. Market breadth was mixed with 449 gainers against 407 losers while 449 were unchanged. Total volume stood at 2.86bn shares valued at RM2.09bn.

Major regional indices trended higher. HSI and STI gained 1.58%, and 0.61% to end at 17,485.98 and 3,174.39 respectively. Nikkei225 dropped 0.26% to close at 30,994.67. SHCOMP remains closed for the Golden Week holiday.

Wall Street closed broadly higher. The DJIA gained 0.87% to end at 33,407.58. S&P500 and Nasdaq rose 1.18% and 1.60% to finish at 4,308.50 and 13,431.34 respectively.

News For The Day

ACE Market-bound Minox's IPO oversubscribed by 143.76 times

Minox International Group has garnered a robust response for its initial public offering (IPO), which has been oversubscribed by 143.76 times ahead of its listing on the ACE Market of Bursa Malaysia Securities. Minox managing director Cheong Chee Son said the strong demand from investors reinforced the company’s commitment to deliver value to its shareholders.– The Star

KAB in green energy tie-up with Alliance Bank

Kinergy Advancement (KAB) has inked a memorandum of understanding (MoU) with Alliance Bank Malaysia (ABMB) to offer its expertise and resources in sustainable energy technologies and manage carbon emissions. The contract comes on the heels of a recent collaboration between KAB, ABMB and Mah Sing Group in regards to the participation of KAB as an early adopter on the Bursa Malaysia Centralised Sustainability Intelligence platform.–The Star

No impairment worry expected for Top Glove

Top Glove’s 4QFY8/23 revenue fell 51.9% YoY to RM475.9m and a net loss of RM463.1m. FY23 revenue dropped 59% YoY to RM2.26bn and a net loss of RM928.6m. Management noted The probability of ASPs going up in the next three months is almost more than 90%, following increasing raw material prices, especially nitrile latex. Moving forward, Top Glove maintains a positive outlook on the glove industry as demand is foreseen to gradually increase.-The Star

UMW sells 26% stake in industrial equipment unit to Toyota Industries for RM260m

UMW Holdings is disposing of a 26% stake in an industrial equipment (IE) arm to Toyota Industries Corp (TICO) for RM260m, as part of an agreement to collaborate in the IE business in Malaysia, Singapore, Vietnam and China. The disposal of the UTMH stake to TICO is expected to result in a gain on disposal of around RM85.5m.-The Edge Markets

Putrajaya to update on 5G upgrade fee 'within weeks'

The government will provide an update “within the next few weeks” on whether the additional charge by major mobile network operators (MNOs) for the public to upgrade existing subscription plans to 5G can be waived. Communications and Digital Minister Fahmi Fadzil said the ministry is engaging with the Malaysian Communications and Multimedia Commission (MCMC) and MNOs on this matter. Major MNO brands in Malaysia like Maxis, Digi and Celcom have required customers to pay up to RM20, depending on their subscription plan, to access the 5G network.– The Edge Markets

Our Thoughts

Wall Street rebounded following strong job data amid a slower than expected rise in overall wages. For September, the US economy added 336,000 jobs beating expectations of 170,000 thus maintaining unemployment rate at 3.8%. As such, the DJI Average added 288 points while the Nasdaq jumped by 211 points with the US 10-year edging higher at 4.795%. However, the situation remains unclear if the Feds will adjust interest rates as consensus reckons, they will maintain status quo (no change). In Hong Kong, the HSI gained 272 points as traders turned positive on China’s strengthening economic recovery coupled with speculations of more easing of measures for the property market. Back home, though the FBM KLCI ended in positive territory, trading remained in cautious mode. Nonetheless, we believe recent statements by PM Datuk Seri Anwar that more foreign investments into the country may be announced soon could spur buying interests and prop up the local bourse. Hence, we believe the index will hover between the 1,415- 1,425 range today.

Source: Rakuten Research - 9 Oct 2023

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