Previous Day Highlights

FBM KLCI closed lower as sentiment remains weak The benchmark index was down 0.19% or 2.70 pts to close at 1,439.20. Majority of sectors were in negative territory with telecommunications (-1.3%), energy (-1.3%), and technology (- 1.1%) leading the losses, while the only gainer was seen in plantation (+0.1%). Market breadth was negative with 624 losers against 238 gainers. Total volume stood at 2.81bn shares valued at RM1.52bn.

Major regional indices trended mostly highere. HSI gained 0.04%, to end at 17,406.36. SHCOMP and STI increased 0.12% and 0.08% to close at 3,021.55 and 3,064.29 respectively. Meanwhile, Nikkei 225 eased 0.95%, to finish at 30,696.96.

Wall Street closed higher boosted by megacap growth stocks ahead of a busy week of earnings and interest rate decisions from major central banks, including the Federal Reserve. The DJIA added 1.58%, to end at 32,928.97. Nasdaq and S&P500 rose 1.16% and 1.20% to close at 12,789.48 and 4,166.83 respectively.

News For The Day

Gamuda to form JV to develop hydroelectric power plant

Gamuda will establish a JV company to develop a 187.5 MW hydroelectric power plant in Tenom, Sabah through a private finance initiative with the total project cost estimated to be around RM4bn, including interest during construction. According to Gamuda, the project will be delivered via the JV company’s wholly-owned unit Upper Padas Power SB (project developer), and is estimated to have a construction period of five years and an initial operating period of 40 years.-The Edge Markets

BAT Malaysia’s 3Q net profit down 21% to RM59.5m YoY

British American Tobacco (Malaysia)’s 3QFY12 net profit declined 20.89% YoY to RM59.5m as investment in tobacco heating and vapour products more than offset price adjustments. The group declared a third interim dividend of 19 sen per share, amounting to RM54.2m, payable on Nov 28. -The Edge Markets

EPMB launches RM30m manufacturing facility in Tg. Malim

EP Manufacturing (EPMB) has launched its RM30mil hi-tech car seat manufacturing facility in Tanjung Malim, which is set to play a critical role in the rollout of upcoming Perusahaan Otomobil Nasional SB (Proton) vehicles.-The Edge Markets

Mitrajaya clinches RM84.5m contract in KL

Mitrajaya Holdings’s unit, Pembinaan Mitrajaya SB accepted a RM84.5m contract for the construction of 31-storey block development in Mukim Batu, Kuala Lumpur. The unit clinched the twoyear contract from GDP X Properties SB and the project is expected to be completed by December 2025, it said in a local bourse filing on Monday. -The Edge Markets

DNeX unit bags job from Petronas

Dagang NeXchange’s (DNeX) 90%-owned subsidiary Ping Petroleum SB has secured a contract from Petroliam Nasional (Petronas) in relation to the production of petroleum and abandonment of petroleum facilities. In a bourse filing on Monday, DNeX said the decommissioning work will cover petroleum facilities located in the Abu Cluster ― about 250km off the east coast of Peninsular Malaysia.-The Edge Markets

I-Bhd collaborates with CelcomDigi for 5G infrastructure

I-Bhd has collaborated with CelcomDigi for the deployment of the telecommunications company's fibre infrastructure together with access to 5G and technology in the developer's i-City development in Shah Alam, the developer announced in a press release on Monday.- The Edge Markets

Our Thoughts

Wall Street staged a strong rally as traders are betting that the Federal Reserves may be done with interest rate hikes for the rest of 2023 after hitting a “low” on Monday. Therefore, all eyes will be on the FOMC meeting today and tomorrow. Whether this is a relief rally remains to be seen as the DJI Average surged 511 points while the Nasdaq added 146 points with the US 10- year yield remaining elevated at 4.888%. In Hong Kong, the HSI barely stayed above water as sentiment was fragile due to weak earnings from major banks attributed to high impairment charges related to the weak Chinese property market. Back home, the FBM KLCI ended slightly lower to close below the 1,440 mark as investors continue to be sidelined amid weaknesses across the various sectors. Nonetheless, we reckon regional market may take cue from Wall Street today which will spillover to the local bourse. In view of this, we expect the index to hover within the 1,440-1,450 range and expect some bargain hunting activities for the Contractors and Telcos today.

Source: Rakuten Research - 31 Oct 2023

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