Previous Day Highlights

FBM KLCI closed on a positive note, buoyed by buying activities and improved regional markets’ performance. The benchmark index was up 1.26% or 17.91 pts to 1,435.17. Majority of sectors were positive with financial services (+1.4%), construction (+1.3%), and utilities (+1.3%), leading the gains; while losers were seen in health care (-0.5%), and REIT (-0.1%). Market breadth was positive with 585 gainers against 332 losers. Total volume stood at 3.39bn shares valued at RM2.02bn.

Major regional indices trended positive. HSI gained 0.84%, to close at 17,664.73. Nikkei 225 and STI rose 2.43% and 1.07% to close at 31,746.53 and 3,200.29 respectively. Meanwhile, SHCOMP dropped 0.70%, to close at 3,075.236.

Wall Street closed higher after dovish comments from U.S. Fed officials. Treasury yields eased as investors placed their bets into bonds amid the developments in the Middle East. The DJIA added 0.40%, to close at 33,739.31. Nasdaq and S&P500 rose 0.58% and 0.52%, to finish at 13,562.84 and 4,358.23 respectively.

News For The Day

Perak Transit gets MOF nod for investment tax allowance

Perak Transit has secured approval from the Ministry of Finance (MOF) for an investment tax allowance (ITA) on qualifying capital expenditure in relation to the development of an integrated public transportation terminal in Bidor, Perak.-The Edge Markets

PTT Synergy acquirest land in Penang for RM70.56m

PTT Synergy Group has entered into a sale and purchase agreement (SPA) to acquire two parcels of freehold development land for RM70.56m via indirect wholly owned subsidiary Projek Tetap Teguh SB (Projek TT) on Tuesday. In a filing with Bursa Malaysia, the group said the 7.28 hectares (18 acres) of land is located in Seberang Perai Selatan, Penang.- The Edge Markets

ITMAX clinches RM79.6m contract from Johor

ITMAX System has secured a RM79.6m contract from Pasir Gudang City Council, Johor, to design, install and maintain a smart command centre, a closed-circuit camera system with artificial intelligence (AI) features, as well as a smart traffic lights system within the district. In a statement, the company said its 65%-owned subsidiary Southmax SB has secured a letter of award (LOA) for the 15-year project.-The Edge Markets

AWC secures RM100m Islamic loan to fund 49% stake buy

AWC has secured Islamic banking facilities of up to RM100m from AmBank Islamic. The amount will be used to finance the acquisition of a 49% equity stake in automated waste collection system provider Stream Group SB.-The Edge Markets

Kerjaya Prospek bags RM226m job from Aspen

Kerjaya Prospek Group has bagged a RM226m contract from Aspen Vision City SB for the development of a 37-storey residential building in Batu Kawan, Penang. With the latest contract win, Kerjaya Prospek has managed to surpass its target of securing RM1.2bn worth of new contracts this year, by securing RM1.5bn of new jobs so far.-The Edge Markets

Our Thoughts

Wall Street ended broadly higher as traders returned as buyers spurred by the declining yield as funds find their way into bonds which are deemed as safe haven amid the ongoing Israel/Hamas conflict. As a result, the DJI Average gained 135 points while the Nasdaq added 79 points as the US 10-year yield eased to 4.657%. In Hong Kong, the HSI closed 147 points higher buoyed by inflows of funds from mainland China and latest comment that the Feds may potentially pause its rate adjustments in November after its recent aggressive tightening. Back home, the FBM KLCI took us by surprise as it flew past the 1,430 mark with ease underpinned by foreign buying support across the region. We expect buying on the Banks to persist coupled with the Telco sector after the strong profit taking activities for the past month. Therefore, we believe the index to possibly scale higher and hover within the 1,435-1,445 range today in view of improving sentiment.

Source: Rakuten Research - 11 Oct 2023

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