Previous Day Highlights

FBM KLCI closed higher due to improving sentiment. The benchmark index was up 0.36% or 5.17 pts to end at 1,444.13. Majority of the sectors were positive with plantation (+0.9%), technology (+0.5%), and health care (+0.5%), leading the gains; while losers were seen in telecommunications (-0.3%), and REIT (-0.1%). Market breadth was negative with 504 losers against 439 gainers. Total volume stood at 2.68bn shares valued at RM1.92bn.

Major regional indices trended positively. HSI and SHCOMP gained 0.75% and 0.32% to finish at 17,773.34 and 3,083.50 respectively. Nikkei 225 and STI rose 1.20% and 0.25% to close at 32,040.29 and 3,171.83 respectively.

Wall Street closed mixed as Treasury yields rose and shares of chipmakers fell after the Biden administration said it planned to halt shipments of advanced artificial intelligence chips to China. The DJIA added 0.04%, to close at 33,997.66. Nasdaq and S&P500 eased 0.25% and 0.01% to end at 13,533.75 and 4,373.21 respectively.

News For The Day

Straits Energy subsidiary wins RM71.6m JKR project

Straits Energy Resources’ indirect subsidiary, Straits CommNet Solutions SB (SCS) has secured a RM71.56m contract Teras Khidmat Niaga SB, to carry out works as part of a project for Jabatan Kerja Raya Malaysia (JKR). Under this contract, SCS will supply resources, equipment, transport, machinery and tools to carry out specified works for completing a project at University Malaysia Perlis.-The Star

PDC terminates JV with UMECH

The Penang Development Corporation’s (PDC) board of directors (BOD) have decided to terminate its joint venture (JV) agreement with UMECH Land SB (UMECH) following the change in the company's equity structure. PDC said the change in the equity structure of UMECH, to the extent that there was a change in the party controlling and leading the implementation of projects without notifying and obtaining PDC's official approval is an issue that is taken seriously and cannot be accepted by its BOD.-The Star

Minox pass on increased cost amid service tax hike

Minox International Group, fresh from its listing on the ACE Market, will pass on the increased cost to its customers, following the government's announcement to raise the service tax from 6% to 8%.-The Edge Markets

Sunway yet to receive termination letter from PDC

Sunway said its 70%-owned subsidiary Umech Land SB has not received a formal letter of termination of the joint development agreement from the Penang Development Corp (PDC).-The Edge Markets

Perak State Dev Corp inks deal with China-based TusStar

Perak State Development Corp (PKNPk) has inked a memorandum of understanding (MOU) with China’s Shanghai TusStar Business Incubator Co Ltd (TusStar) to collaboratively work towards establishing Perak as an ideal destination of choice for innovative entrepreneurs with strong growth potential. PKNPk said TusStar brings a wealth of experience and a proven track record in supporting startups and fostering a thriving entrepreneurial ecosystem.-The Edge Markets

Our Thoughts

Wall Street remained stuck within a tight range as traders were mostly sidelined following the release of retail sales data which came in hotter than expected as inflationary worries re-emerged. The DJI Average inched 13 points higher while the Nasdaq was down by 34 points with the US 10-year yield edging higher at 4.836%. In Hong Kong, the HSI rebounded 133 points after the US and Chinese official are stepping up efforts to halt the IsraelHamas war from spreading to other regions. Meanwhile, speculation of buying support from Chinese state funds further fuelled the buying optimism. Back home, the FBM KLCI closed higher attributed to broad-based buying activities after suffering from a post-budget hangover yesterday. Though we expect stock accumulation to continue, overall sentiment is seen to be cautious as we expect it will be another mixed day for regional markets. Therefore, we anticipate the index to hover within the 1,440-1,450 range today.

Source: Rakuten Research - 18 Oct 2023

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