Previous Day Highlights

FBM KLCI pared earlier losses as bargain hunting activities emerged when it hit its day low at 1,430.15. The benchmark index slipped 0.17% or 2.47 pts to close at 1,435.65. Sectors that ended positively were construction (+1.4%), technology (+1.0%), and utilities (+0.9%) while losers were seen in plantation (-0.2%), and consumer (-0.1%). Market breadth was positive with 511 gainers against 348 losers. Total volume stood at 2.94bn shares valued at RM1.94bn. Major regional indices trended mostly higher. SHCOMP increased 0.78%, to close at 2,962.24. Nikkei 225 and STI rose 0.20% and 1.00% to finish at 31,062.35 and 3,083.88 respectively. HSI declined 1.05%, to end at 16,991.53. Wall Street closed higher as a spate of solid corporate earnings and upbeat forecasts stoked investor risk appetite and sparked a broad uptrend. The DJIA added 0.62%, to end at 33,141.39. Nasdaq and S&P500 rose 0.93% and 0.73% to close at 13,139.87 and 4,247.69 respectively.

News For The Day

LPI Capital 3Q net profit climbs 23% to RM97m

LPI Capital’s 3QFY23 net profit climbed YoY 22.96% to RM97.37m partly due to the absence of the one-off Prosperity Tax that was imposed last year. As a result, earnings per share surged to 24.45 sen from 19.87 sen.-The Edge Markets

Wasco secures RM161m jobs from Schneider Electric France

Wasco's indirect wholly-owned Singaporean subsidiary WS Engineering & Fabrication Pte Ltd has bagged a US$33.89m (RM161.86m) contract from Schneider Electric France for the supply of pre-fabricated buildings for a project in Africa.-The Star

TDM buys private maternity hospital in Klang for RM15m

Plantation and healthcare outfit TDM is acquiring an entire stake in Hospital Bersalin Razif SB for RM15m, cash. TDM said its wholly owned Kumpulan Medic Iman SB (KMI) has inked a share sale agreement with the joint-owners of the private maternity hospital — Datuk Dr Mohd Razif Abdul Aziz and Datin Dr Norana Yacob — for the proposed acquisition.-The Edge Markets

Privasia clinches RM42m contract from Education Ministry

Privasia Technology has clinched a RM42.09m contract to provide information and communications technology (ICT) equipment rental services in school computer labs in Perlis, Kedah and Penang. -The Edge Markets

Plytec aims to raise RM37.1m from ACE Market IPO

PLYTEC Holding Bhd (PLYTEC), enroute for a listing on the ACE Market of Bursa Malaysia Securities, aims to raise RM37.1m from its initial public offering (IPO).-The Star

Globetronics records weaker 3Q net profit of RM9.53m

Globetronics Technology’s 3QFY23 declined 25.4% YoY to RM9.5m. The manufacturer of semiconductor-based products said contributing factors to the weaker performance include softer revenue forecasts from customers, the full-year tax impact of its expired pioneer status in one of the subsidiaries, the full impact of increased minimum wages and an increase in utilities costs.-The Edge Markets

Our Thoughts

Wall Street closed firmer spurred on by a spate of strong corporate earnings and that the US 10-year yield eased to 4.819% after surpassing 5% a couple of days ago. As a result, the DJI Average added 205 points while the Nasdaq jumped by 121 points. Over in Hong Kong, the HSI declined by 181 points to below the 17,000 mark which is a YTD low despite some buying by the Chinese sovereign fund as sentiment remains very much impacted by China’s anemic economic growth coupled with the weakening Yuan against the US$. Back home, the FBM KLCI pared earlier losses but remained in negative territory as the market undertone has turned cautious despite an improving regional performance. Nonetheless, we expect a swift rebound for the index to avoid a prolonged consolidation. Therefore, we anticipate the index to trend within the 1,435-1,445 range today as broad-base accumulation may emerge. Meanwhile, the easing of crude oil prices should also lend some welcome reprieve attributed to additional supplies from Venezuela as the Brent crude dipped to US$88/barrel from US$93/barrel last week.

Source: Rakuten Research - 25 Oct 2023

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