Previous Day Highlights

FBM KLCI closed lower in tandem with the negative performance across the regional markets. The benchmark index down 0.20% or 2.92 pts to close at 1,438.12. Majority of sectors were negative with energy (- 1.5%), telecommunications (-1.5%), and industrial products & services (-1.2%) leading the losses, while only gainers were seen in financial services (+0.1%). Market breadth was negative with 743 losers against 195 gainers. Total volume stood at 3.38bn shares valued at RM2bn.

Major regional indices trended negative. SHCOMP dropped 1.47%, to close at 2,939.29. Nikkei 225 and STI eased 0.83% and 0.76% to finish at 30,999.55 and 3,053.36 respectively. Meanwhile, Hong Kong market closed for Chung Yeung festival.

Wall Street closed mixed as benchmark U.S. Treasury yields backed down from 5%. The DJIA and S&P500 dropped 0.58% and 0.17% to end at 32,936.42 and 4,217.03 respectively. Meanwhile, Nasdaq rose 0.27%, to close at 13,018.33.

News For The Day

Perak garners over RM22.3bn investments

Perak has garnered over RM22.3bn in realised investments as at end-June this year, from a total of 283 manufacturing projects, creating more than 22,000 jobs, said Malaysian Investment Development Authority (Mida) chief executive officer Datuk Arham Abdul Rahman.-The Edge Markets

Yinson, Selangor state IT corporation ink partnership

Yinson Holdings has inked a strategic partnership agreement with Selangor Information Technology and Digital Economy Corporation (Sidec) to implement and expand sustainable initiatives in Selangor. Yinson and Sidec said the collaboration will begin with the promotion of electric bikes and battery-swapping solutions offered through Yinson’s green technologies business unit, Yinson GreenTech (YGT)-The Edge Markets

DNeX partners Chinese IT company

Dagang Nexchange (DNeX) is tying up with Zhongheguoji Construction Group Co Ltd (CSI) to source for state-of-the-art technology and solutions from China. DNeX said it is establishing a joint venture with CSI for the establishment of a joint venture enterprise (JVE) to also expand its geographical footprint into the Middle East and North Africa (Mena) region-The Star

Dayang’s maintenance contract for Petronas Carigali

Dayang Enterprise Holdings said the scope of its contract to provide Petronas Carigali SB offshore maintenance, construction and modification (MCM) services has been expanded to cover the Sarawak Gas Area. The duration for the scope expansion is from June 22, 2023 until Dec 31, 2023, said Dayang in a stock exchange filing on Monday.-The Edge Markets

Revenue Group obtains online moneylending licence

Revenue Group said its unit has received approval from the Local Government Development Ministry (KPKT) for an online moneylending licence. With this newly acquired licence, wholly-owned Revenue Harvest SB is poised to provide innovative elending services customised to meet the evolving needs of Malaysian businesses, the group said in a bourse filing.-The Edge Markets

MGB inks tripartite MOU with Saudi firms

MGB, a construction and property development arm of LBS Bina Group, has signed a tripartite memorandum of understanding (MOU) with Saudi Arabia-based parties to explore cooperation and investment opportunities in Almadina Almonawara (Madinah).-The Edge Markets

Our Thoughts

Wall Street ended with a mixed performance as the 10- year US Treasury yield fell to 4.836%. However, the ongoing bond sell-off and concerns about an escalation in hostilities in the Middle East are exerting downward pressure on the market, resulting in a 191-point (-0.58%) drop in the DJIA. In contrast, the Nasdaq rose by 35 points (+0.27%) due to buying on selective buying in heavyweight stocks, particularly Apple and Arm. Back to Asia, Hong Kong was closed for a public holiday. As for the local bourse, the FBM KLCI dipped by nearly 3 points to close below 1,440 due to weak sentiment across the region. Overall market sentiment remains pessimistic as investors continue to fret about the global economic condition and geopolitical tensions. Hence, we expect the benchmark index to maintain its sideways pattern and trend within the 1,435-1,445 range for today. We expect investors to accumulate blue chips such as Banks and telcos stocks for better defensive strategy.

Source: Rakuten Research - 24 Oct 2023

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