Previous Day Highlights

FBM KLCI closed lower in tandem with the regional selloff. The benchmark index was down 0.27% or 3.88 pts to close at 1,442.66. Majority of the sectors were down with industrial products & services (-0.9%), construction (- 0.8%), and technology (-0.6%) leading the losses; while gainers were seen in transportation (+0.8%), and plantation (+0.1%). Market breadth was negative with 509 losers against 337 gainers. Total volume stood at 3.07bn shares valued at RM2.02bn.

Major regional indices trended negative. HSI and SHCOMP declined 2.46% and 1.74% to end at 17,295.89. and 3,005.39 respectively. Nikkei 225 and STI eased 1.91% and 1.16% to finish at 31,430.62 and 3,100.37 respectively.

Wall Street closed lower as Treasury yields surged. The DJIA dropped 0.75% to end at 33,414.18. Nasdaq and S&P500 eased 0.96% and 0.85% to close at 13,186.18 and 4,277.99 respectively.

News For The Day

Maybank to acquire 20% of MAMG from PNB for RM70.39m

Malayank has proposed to acquire 8.34m shares in Maybank Asset Management Group (MAMG), representing 20% of the total issued share capital of MAMG, from PNB for RM70.39m in cash. PNB was granted a put option to require Maybank to acquire all of the MAMG shares held by PNB at an exercise price that is equivalent to the fair market value of the MAMG shares held by PNB.-The Star

Reneuco inks MOU for rooftop solar PV installation

Reneuco has signed a memorandum of understanding (MOU) with the Petaling Jaya City Council (MBPJ) for rooftop solar photovoltaic installation at Pusat Inovasi MBPJ in Taman Sains Selangor.-The Edge Markets

TNB partners Siemens Energy to decarbonise power plants

TNB is collaborating with Siemens Energy to speed up the decarbonisation of its thermal power plants, utilising green hydrogen produced from renewable energy (RE) resources. “Partnering with Siemens Energy aligns seamlessly with TNB's energy transition aspiration, propelling us towards our goal of achieving net zero emissions by 2050,” said TNB president and chief executive officer Datuk Seri Baharin Din.-The Edge Markets

Minho unit to acquire Jeram land for RM18.41m

Minho's wholly-owned subsidiary Syarikat Minho Kilning SB has entered into a sales and purchase agreement with Kheng Joo Realty SB and Kin Seng Properties SB to acquire a tract of freehold land measuring 7.8433ha in Jeram, in Kuala Selangor, Selangor, for RM18.41m cash. The company said its unit will construct factories and covered warehouses as part of its long-term plans to relocate some of its operations and existing tenants from its current location at Jalan Sungai Puloh, off 6th Miles, Jalan Kapar, to the land.-The Star

Celcomdigi defend additional charges for 5G upgrade

Celcomdigi’s top level executives have maintained their stance that the current additional charges for subscribers to upgrade to 5G services provides the most flexibility, instead of reducing their prices in accordance with lower cost from the new generation network provided by Digital Nasional (DNB).- The Edge Markets

Our Thoughts

Wall Street continues to slide over the Federal Reserve’s stance on interest rates. Comments from chairman Jerome Powell yesterday indicated that more hikes are likely amidst the strong US economy. As such, the DJI Average lost 251 points while the Nasdaq declined by 128 points as the US 10-year yield edged higher at 4.99%. In Hong Kong, the HSI dipped by 437 points on concerns over the deepening property crisis on the imminent debt default by Country Gardens Holdings coupled with the latest US tech trade curbs on China. On the home front, the FBM KLCI ended slightly lower to just above the 1,440 threshold despite a regional bloodbath. We expect global currency turmoil to take center stage over the short term on the heightening US yield hence the higher market volatility. Therefore, we believe the index may be under some pressure today and hover within the 1,435-1,445 range. Meanwhile, crude oil prices continue to escalate with the Brent crude now trending at above US$93/barrel due to lower inventory and conflict in the middle east.

Source: Rakuten Research - 20 Oct 2023

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