Previous Day Highlights

FBM KLCI closed higher as bargain-hunting activities emerged. The benchmark index was up 0.09% or 1.30 pts to end at 1,441.90. Majority of the sectors were positive with transportation (+0.6%), industrial products & services (+0.5%), and energy (+0.5%), leading the gainers; while losers were the technology (-0.7%), and property (-0.2%) sectors. Market breadth was neutral with 430 losers against 426 gainers. Total volume stood at 2.72bn shares valued at RM1.70bn.

Major regional indices trended mostly positively. HSI and SHCOMP gained 2.08% and 0.99% to end at 17,398.73 and 3,017.78 respectively. Nikkei 225 was up 1.27%, to finish at 30,991.69. Meanwhile, STI slid 0.31%, to close at 3,061.85.

Wall Street closed lower on Friday as investors digest a hectic week of mixed earnings. The DJIA and S&P500 dropped 1.12% and 0.48% to end at 32,417.59 and 4,117.37 respectively. Meanwhile, Nasdaq rose 0.38%, to close at 12,643.01.

News For The Day

Malakoff to buy 49% stake in solid waste management firm

Malakoff Corp has proposed to acquire a 49% stake in a solid waste management company, E-Idaman SB, for RM133.20m cash. Malakoff said E-Idaman's wholly-owned subsidiary, Environment Idaman SB, provides waste collection and disposal services for municipal waste under a 22-year concession granted by the federal government for the provision of solid waste collection and public cleansing management services for Kedah and Perlis.-The Edge Markets

Meta Bright diversifies into building materials

Meta Bright Group has proposed to diversify into the building materials trade through the acquisition of a 70% stake in a ready-mixed concrete manufacturing business in Sabah for RM28.04m. The purchase of the stake in Expogaya SB (Expo) will be settled via a cash consideration of RM5m and the issuance of 98m new shares in Meta Bright at 23.4 sen each, said Meta in a bourse filing. -The Edge Markets

YNH’s auditor issues qualified opinion in relation to JV

YNH Property’s external auditor has issued a qualified opinion on the group’s financial statements for the 18-month period ended June 30, 2023, in relation to its joint venture (JV) and turnkey contracts for property development work.-The Edge Markets

Cengild Medical reports data breach in unit’s IT system

Cengild Medical said the information technology (IT) system used by its wholly-owned subsidiary Cengild SB was affected by a data breach that may have leaked patient data. The healthcare service provider told Bursa Malaysia on Friday that a police report was filed, and a formal report was made to the relevant authorities.-The Edge Markets

Axis REIT declares 2.15 sen income distribution

Axis Real Estate Investment Trust's (Axis REIT) net property income (NPI) for 3QFY23 increased marginally by 0.67% to RM61.9m compared with RM61.49m, on the back of higher property income. -The Edge Markets

Our Thoughts

Wall Street continued with its decline as traders largely ignored the recent spate of corporate earnings in a bid to navigate out from prevailing confluence of headwind. As a result, the DJI Average lost 367 points while the Nasdaq managed to stay above water adding 47 points supported mainly by Amazon while the US 10-year yield remains stubbornly high at 4.845%. Over in Hong Kong, the HSI jumped 354 points as more companies are supporting share buy-back plans which lifted confidence following the unveiling of the 1 trillion Yuan issuance of special government bonds. On the home front, the FBM KLCI ended slightly higher amid a lacklustre session last Friday. Sentiment remains cautious in view of the heightened volatility on Wall Street and the global currencies versus the US$. Therefore, we believe trading activities on the local bourse may remain muted as we head towards 3Q2023 results season. For today, we expect the index to trend between the 1,435-1,445 range. Meanwhile, crude oil prices rebounded with the Brent crude closing above the US$90/barrel level again on prevailing tension in the Middle east.

Source: Rakuten Research - 30 Oct 2023

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