Previous Day Highlights

FBM KLCI closed lower on the back of sluggish PMI data. The benchmark index was down 0.47% or 6.81 pts to close at 1,435.33. Majority of the sectors were negative with industrial products & services (-1.4%), energy (-1.2%), and technology (-1.0%) leading the losses; while gainers were seen in utilities (+3.3%), and REIT (+0.1%). Market breadth was negative with 562 losers against 319 gainers. Total volume stood at 2.8bn shares valued at RM1.8bn.

Major regional indices trended mostly positively. SHCOMP increased 0.14% to close at 3,023.08. Nikkei 225 and STI rose 2.41% and 0.29% to finish at 31,601.65 and 3,076.77 respectively. Meanwhile, HSI declined 0.06%, to end at 17,101.78.

Wall Street closed higher after the U.S. Federal Reserve kept interest rates unchanged. The DJIA added 0.67%, to end at 33,274.58. Nasdaq and S&P500 were up 1.64% and 1.05%, to close at 13,061.47 and 4,237.86 respectively.

News For The Day

YTL Power becomes a major shareholder of Ranhill Utilities

Independent power producer YTL Power International has become a substantial shareholder of smaller rival Ranhill Utilities, after acquiring 243.33m shares, equivalent to an 18.87% stake, in Ranhill.-The Edge Markets

TNB looking at carbon capture and hydrogen solutions

Tenaga Nasional (TNB) is exploring carbon capture and storage (CCS) and hydrogen-based generation solutions to address the sustainable electricity consumption needs of the growing energy-guzzling data centre industry in Malaysia. TNB chief operating officer Datuk Megat Jalaluddin Megat Hassan said there are limitations to depending on solar energy as a sustainable energy source to power data centres, which require continuous uptime. -The Edge Markets

Heitech Padu secures RM30m IT contract from KPDN

Heitech Padu has accepted a RM29.7m contract for strengthening the IT technology system for the Ministry of Domestic Trade and Cost of Living (KPDN). In a filing with Bursa Malaysia on Wednesday, the group said the 36-month contract will commence from November 2023 till October 2026.-The Edge Markets

Carlsberg expects RM30m profit hit in FY24

Carlsberg Brewery Malaysia said the non-renewal of the Asahi Agreements is expected to reduce annual net profits by approximately RM30m for the financial year ending on Dec 31, 2024. In June 2023, Carleberg announced the non-renewal of its distribution agreement with Asahi Group Holdings Ltd. Both parties have mutually agreed not to renew the said agreement and the exclusive distribution of the Asahi brand or trademark in Malaysia will expire on Dec 31, 2023. -The Star

Capital A seeks US$1bn Nasdaq listing

Capital A is seeking to float its AirAsia brand royalty business and aircraft leasing unit in the US by injecting these operations into a Nasdaq-listed special purpose acquisition company (SPAC), aiming for an indicative valuation of US$1bn (RM4.77bn) for the listing.-The Edge Markets

HIL Industries to buy land in KL for RM47m

HIL Industries’ indirect wholly-owned subsidiary, Amverton Prop SB, has entered into a conditional sale and purchase agreement with A & M Modern Homes SB to acquire a 1.21- hectare piece of land in Kuala Lumpur for RM47m.-The Star

Our Thoughts

Wall Street staged a mini rally following the US Fed decision to pause rate hike during its latest FOMC meeting yesterday. Nonetheless, the Fed stressed that it will be open for assessment of the economic situation come the next FOMC in mid-December. As such, the DJI Average gained 221 points while the Nasdaq jumped by 210 points with the US 10-year yield easing to 4.734%. In Hong Kong, the HSI closed marginally lower from selling on BYD and some major tech companies namely Alibaba and JD.com as traders were mostly sidelined, waiting for the policy decision from the US Fed. At home, the FBM KLCI closed broadly lower attributed to selling activities during the late session. Nonetheless, we believe the local bourse to stage a rebound today taking cue from Wall Street and no rate hike thus expect the index to hover within the 1,440-1,450 range as bargain hunting should emerge on the Banks, Telco and Utilities ahead of the impending results season.

Source: Rakuten Research - 2 Nov 2023

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