Previous Day Highlights

FBM KLCI closed higher attributed to continuing buying support from Tuesday, possibly positioning themselves strategically for Budget 2024. The benchmark index up 0.09% or 1.32pts to close at 1,436.49. Gainers were seen in property (+0.49%), technology (+0.48%), and financial services (+0.44%); while losers were seen in telecommunications (-0.60%), plantation (-0.36%), and industrial products & services (-0.36%). Market breadth was positive with 464 gainers against 399 losers. Total volume stood at 3.01bn shares valued at RM2.18bn.

Major regional indices trended positively. HSI gained 1.29%, to close at 17,893.10. SHCOMP and Nikkei 225 increased 0.12% and 0.60% to finish at 3,078.96 and 31,936.51 respectively. Meanwhile, STI slid 0.26%, to close at 3,190.62.

Wall Street closed higher as bond yields fall as investors digested the Fed minutes. The DJIA added 0.19%, to finish at 33,804.88. Nasdaq and S&P500 rose 0.71% and 0.43% to close at 13,659.68 and 4,376.94 respectively.

News For The Day

APB plans to acquire Menara Serba Dinamik for RM38m

APB Resources plans to acquire the 16-storey Menara Serba Dinamik in Shah Alam, Selangor, along with the leasehold land where it sits for RM38m, subject to the High Court’s approval. The process equipment maker said it received a letter from the liquidator of Serba Dinamik Group yesterday informing that it had received the forms of summons copy relating to the liquidator’s application for directions on the sale of the 3,025-sq metre land together with the office building erected thereon. -The Star

Nextgreen Global enters JV for biodiesel trading

Nextgreen Global's wholly-owned subsidiary Nextgreen Resources SB has entered into a joint venture with P Teguh Services SB via a special purpose vehicle for the purpose of trading in biodiesel products. The JV will engage in the business of trading, supply and export of biodiesel, edible cooking oil and related products including equipment and facilities, construction of depot and other related businesses as mutually agreed upon by the parties. -The Star

Hektar REIT proposes 20% private placement

Hektar Real Estate Investment Trust (REIT) has proposed to undertake a private placement of up to 20% of the total number of issued units of the company to third-party investors to be identified later. The indicative issue price of the placement units is assumed to be 53 sen each. Based on the indicative issue price, the proposed private placement is expected to raise gross proceeds of up to RM53.64m.-The Edge Markets

Westports, OCBC Bank sign agreement with Bursa Malaysia

Westports Holdings and OCBC Bank (Malaysia) have joined the list as the latest adopters of the Centralised Sustainability Intelligence (CSI) platform, through the signing of a Memorandum of Collaboration (MOC) with Bursa Malaysia.- The Edge Markets

Tropicana seeks to strike out Sunway’s claim

Tropicana Corp is seeking to strike out the claim filed by RHB Trustees, Sunway REIT Management SB and Sunway Education Group SB over its alleged breach of agreement and double-dealing over the sale of shares and a stake in St Joseph International School.-The Edge Markets

Our Thoughts

Wall Street closed positively amidst on a cautious mode as traders are waiting for the consumer inflation data later today. Meanwhile, many are betting that the Federal Reserves may pause its rate hike this November but prolonging prevailing elevated rate environment indefinitely. Therefore, while the DJI Average gained 65 points, the Nasdaq added 97 points as the US 10-year yield eased to 4.558%. Over in Hong Kong, the HSI jumped by 228 points on optimism of a stronger Chinese economic recovery and that the US may stop hiking rates going forward. On the home front, the FBM KLCI managed to close slightly higher but failed to surpass the 1,440 mark as trading remained rather lacklustre despite a more robust regional performance. Though we reckon the inflow of foreign funds to persists, the benchmark index needs to see a solid uptrend to beyond the 1,450 level soonest possible to maintain its upward trajectory since mid-July. For today, we believe the underperforming Telco sector may experience some bargain hunting activities and expect the index to hover within the 1,435-1,445 range.

Source: Rakuten Research - 12 Oct 2023

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