Previous Day Highlights

FBM KLCI closed lower in tandem with the weaker regional bourses. The benchmark index was down 0.36% or 5.18 pts to close at 1,438.96. Majority of sectors were down with property (-1.3%), construction (-1.0%), and utilities (-0.7%) leading the losses; while gainers were seen in energy (+0.6%), and industrial products & services (+0.5%). Market breadth was negative with 597 losers against 284 gainers. Total volume stood at 3.09bn shares valued at RM1.92bn.

Major regional indices trended negatively. HSI and SHCOMP declined 0.97% and 0.46% to close at 17,640.36 and 3,073.81 respectively. Meanwhile, Nikkei 225 and STI eased 2.03% and 0.77% to end at 31,659.03 and 161.27 respectively.

Wall Street closed higher as investors were optimistic about the start of earnings season. The DJIA added 0.93%, to close at 33,984.55. Nasdaq and S&P500 rose 1.20% and 1.06% to finish at 13,567.98 and 4,373.62 respectively.

News For The Day

Yinson unit to pilot new offshore carbon capture

An offshore production business unit of Yinson Holdings, together with its client Azule Energy, is going to pilot an offshore carbon capture and storage plant on the FPSO Agogo in Angola, which is a significant milestone for the company to realise its zero-emission FPSO concept that aims to reduce carbon footprint and pave the way for the decarbonisation of the offshore production industry.-The Edge Markets

DXN inks third MOU in less than a month

Health and wellness direct selling company DXN Holdings on Monday entered into a memorandum of understanding (MOU) with a unit of European Wellness Biomedical Group to explore collaboration opportunities in establishing wellness centres together. DXN said the MOU was signed with a British Virgin Islands unit called European Wellness Centers INC (EW), which is based in Hong Kong, and deemed to be the Asia-Pacific arm of European Wellness Biomedical Group.-The Edge Markets

AME REIT concludes RM69m acquisition exercise

AME REIT has fully concluded its maiden post-listing acquisition exercise of three industrial properties in Iskandar Malaysia, Johor worth RM69.25m This comes after the completed acquisition of the third industrial property of Plot 16 at i-Park @ Indahpura in Iskandar Malaysia from its sponsor, AME Elite Consortium, for RM26.5m.-The Edge Markets

PMB Tech sells land in Klang for RM36.6m

PMB Technology is disposing of a 56,656 sq m leasehold land in Klang for RM36.59m. The proposed disposal will enable the group to unlock capital resources from being tied up in longterm assets, and realise the property at a fair market value, while enhancing the group’s liquidity and strengthening its financial position.-The Edge Markets

Straits Energy to transform Labuan Port into a smart port

Straits Energy Resources’ indirect subsidiary, Straits CommNet Solutions SB (SCS) has signed a memorandum of understanding (MOU) with Megah Port Management SB (MPM), a 51% owned indirect subsidiary of Straits to transform the Labuan Port into a smart port.-The Star

Our Thoughts

Wall Street closed broadly higher as traders await for corporate earnings reports whilst ignoring the higher treasury yields. As such, the DJI Average added 314 points while the Nasdaq gained 161 points as the US 10-year yield edged higher at 4.7%. Nonetheless, many are bracing for heightened volatility on Wall Street amid higher inflation and yields given the ongoing conflict in the Middle east. Over in Hong Kong, the HSI lost 173 points as the US intends to tighten its sanctions on China via more curbs on technology exports coupled with expectations that China’s economy may have slowed during the last quarter. Back home, the FBMKLCI lost 5 points to end below 1,440 possibly due to post-budget hangover amid a weak regional performance. Trading activities were muted as market participants treated Budget 2024 as a non event. For today, some bargain hunting activities may emerge especially on the Construction stocks after yesterday’s sell-down. For today, we reckon sentiment to stay cautious and expect the index to hover within the 1,435-1,445 range today.

Source: Rakuten Research - 17 Oct 2023

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