Previous Day Highlights

FBM KLCI extended Tuesday's gains to end at an intraday high yesterday. The benchmark index was up 0.17% or 2.41 pts to close at 1,446.54. Gainers were seen in plantation (+0.57%), industrial products & services (+0.50%), and consumer (+0.46%); while losers were the property (-1.87%), construction (-0.87%), and utilities (- 0.84%). Market breadth was negative with 616 losers against 265 gainers. Total volume stood at 3.41bn shares valued at RM2.72bn.

Major regional indices trended negatively. HSI declined 0.23%, to end at 17,732.52. SHCOMP and STI dropped 0.80% and 1.11% to close at 3,058.71 and 3,136.62 respectively. Meanwhile, Nikkei 225 ended up 0.01%, to close at 32,042.25.

Wall Street closed lower as Treasury yields rose again and investors assessed the latest batch of quarterly corporate results and forecasts. The DJIA dropped 0.98%, to close at 33,665.09. Nasdaq and S&P50 eased 1.62% and 1.34% to close at 13,314.30 and 4,314.59 respectively.

News For The Day

SunCon's unit bags RM192.88m contract in Johor

Sunway Construction Group’s (SunCon) wholly-owned subsidiary, Sunway Construction SB (SCSB), has accepted the letter of initial appointment (LOIA) from K2 Strategic Infrastructure Malaysia SB to commence and complete the proposed development of Data Centre in Johor worth RM192.88m.-The Star

AWC inks MOU with USM on smart, green campus initiative

AWC and Universiti Sains Malaysia (USM) have entered into a memorandum of understanding (MoU) to explore opportunities in a smart and green campus with focus on emobility and related services and solutions. The group said both parties are exploring the possibility of focusing on the provision of electric bikes and related services and solutions within the scope of the concept.-The Edge Markets

DNeX accept RM18.08m contract from Port Klang Authority

Dagang NeXchange's (DNeX) subsidiary, Dagang Net Technologies SB has accepted RM18.08m contract for Malaysia Maritime Single Window Phase 1 (MMSW) project from the Port Klang Authority. In a Bursa Malaysia filing on Wednesday, the group said the project is expected to commence in October this year for a period of three years and six months.-The Edge Markets

Meta Bright secures offer for mosque solar project

Meta Bright Group has secured four conditional letters of offer for a solar programme involving mosques in Kuantan, Pahang, according to its Bursa Malaysia filing on Wednesday.-The Edge Markets

EP Manufacturing collaboration with Great Wall Motor

EP Manufacturing's wholly-owned subsidiary Peps-JV (Melaka) SB has entered into a memorandum of understanding with Great Wall Motor Sales Malaysia SB to cooperate in the production and assembly of the latter's products in Malaysia. "The MoU will allow the Parties to leverage on each other’s strengths and expertise for collaborative development of GWM’s brand RHD Internal Combustion Engine Vehicle (ICE) and Electric Vehicles (EVs) to meet the market needs in Malaysia. -The Star

Our Thoughts

Wall Street closed broadly lower amidst a surging US 10- year yield at 4.911% or another 16-year high as traders ignored reported earnings where the majority came in above expectations. As a result, the DJI Average lost 332 points while the Nasdaq declined by 219 points. Hence, we expect there is no escaping of heightening volatility until the FOMC meeting next month. Over in Hong Kong, the HSI dipped 41 points despite a strong opening as ongoing property crisis in China coupled with the Israeli-Hamas conflict remain as the overriding concerns. Back home, the FBM KLCI ended positively above the 1,445 level due to late buying activities. For today, we reckon accumulation of stocks to persists but muted. Therefore, we anticipate the index to hover within a tight range of between 1,440- 1,450 today. Meanwhile, we are grateful by Bursa’s latest notification that the SST will remain exempted on brokerages for share trading as this should encourage improving market velocity going forward. Lastly, crude oil prices jumped higher on declining inventory with the Brent crude closed at US$91.50/barrel.

Source: Rakuten Research - 19 Oct 2023

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