Previous Day Highlights

FBM KLCI closed marginally lower amid regional slumps. The benchmark index down 0.11% or 1.62 pts to close at 1,441.04. Majority of sectors were negative with industrial products & services (-1.4%), transportation (- 0.9%), and construction (-0.8%) leading the losses; while gainers were seen in energy (+0.7%), and financial services (+0.3%). Market breadth was negative with 558 losers against 315 gainers. Total volume stood at 3.51bn shares valued at RM1.9bn.

Major regional indices trended negative. HSI and SHCOMP declined 0.72% and 0.74% to end at 17,172.13 and 2,983.06 respectively. Nikkei 225 and STI eased 0.54% and 0.74% to finish at 31,259.36 and 3,076.69 respectively.

Wall Street closed lower on Friday as investors worried about more interest rate hikes and the Israel-Hamas conflict spreading. The DJIA dropped 0.86%, to end at 33,127.28. Nasdaq eased 1.53% and 1.26% to close at 12,983.81 and 4,224.16 respectively.

News For The Day

CIMB Thai earnings affected by higher expenses

CIMB Thai Bank PCL, a 94.83%-owned unit of CIMB Group Holdings, posted a 9MFY23 net profit of THB1.08bn (RM141.01m) a decline of 38.2% YoY due to operating expenses growth exceeding operating income growth, coupled with a 26.5% increase in expected credit loss (ECL). Net interest margin over earning assets stood at 2.6% in 9M23, compared with 2.7% in 9M22, arising from higher cost of funds. -The Star

EPMB plans EV facility in Melaka

EP Manufacturing (EPMB) has proposed to set up an automotive manufacturing facility in Melaka that will serve as a hub for energy-efficient vehicles (EEVs) and electric vehicles (EVs) in Malaysia. -The Star

Glostrext buys office space in Singapore for RM2.6m

ACE Market-listed Glostrextis buying a 1,735-sq-ft office space in Singapore for S$750,000 (RM2.61m). Glostrext said its indirect wholly-owned subsidiary Glostrext Technology (S) Pte Ltd has accepted the option to purchase a property known as 30 Kaki Bukit Road 3, #02-01 Empire Technocentre, Singapore, which was granted by Singapore-based Uninec Construction Pte Ltd on Oct 13 this year.The purchase consideration will be funded via internal funds. -The Edge Markets

UEM Sunrise takes back seat in Medini's commercial zone

UEM Sunrise is disposing of a 6% stake in Nusajaya Lifestyle SB (NLSB), the developer and operator of the Mall of Medini, Iskandar Malaysia, to Iskandar Investment’s (IIB) unit Iskandar Harta Holdings SB (IHH), for RM8.92m.-The Edge Markets

MyEG completing immigration services system upgrade

MyEG Services said it expects to complete the system enhancement for its immigration-related services within one month. The enhancement is aimed at integrating the group's existing system with a new system from the Immigration Department, with the total cost expected to be less than RM5m.-The Edge Markets

Inflation at more than two-year low

Malaysia’s headline inflation hit more than two-year low after the consumer price index (CPI) unexpectedly decelerated further in September 2023. Data from the Statistics Department showed CPI growth in September eased to 1.9% YoY from 2% YoY in August.-The Edge Star

Our Thoughts

Wall Street closed last Friday with losses as the US 10- year Treasury yield hit 5%, which heightened concerns about the condition of the world's largest economy. The DJIA lost 287 points (-0.9%) while Nasdaq slumped 202 points (-1.5%). Meanwhile Fed Chair Jerome Powell pointed out that inflation levels are still elevated, and the possibility of further interest rate increases remain. In Hong Kong, the HSI dropped 124 points (-0.7%) as lingering worries about China's property sector largely outweighed data indicating stronger economic growth. As for the local bourse, the FBM KLCI ended a tad lower due to the absence of catalysts amid the negative performance across the region. We believe that market sentiment will continue to remain cautious and we reckon the increasing external volatility to be a major setback although we do not discount the possibility of bargain hunting activities. As such, we expect the benchmark index to trend sideways within the range of 1,435-1,445 for today.

Source: Rakuten Research - 23 Oct 2023

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