Previous Day Highlights

FBM KLCI closed lower due to the persistently lackluster market sentiment ahead of the long holiday. The benchmark index was down 0.49% or 7.09 pts to close at 1,445.18. Majority of sectors were negative with health care (-1.3%), consumer (-0.7%), and telecommunications (-0.5%) leading the losses, while gainers were seen in transportation (+0.2%). Market breadth was negative with 557 losers against 359 gainers. Total volume stood at 3.2bn shares valued at RM1.61bn.

Major regional indices trended higher taking the positive cue from Wall Street. HSI gained 1.30%, to end at 17,426.21. SHCOMP added 0.25%, to close at 3,046.53. Nikkei 225 was up 0.05%, to finish at 32,585.11. STI was closed for Diwali Holiday.

Wall Street closed mixed as investors await for the key inflation data and hope for halt in rate hikes. The DJIA added 0.16%, to end at 34,337.87. Nasdaq eased 0.22%, to close at 13,767.74. S&P500 eased 0.08%, to finish at 4,411.55.

News For The Day

Sime Darby exits healthcare business via RM5.7bn deal

Sime Darby and its Australian partner are selling Ramsay Sime Darby Health Care SB (RSDH) to Columbia Asia Healthcare SB for RM5.7bn cash. This marks Sime Darby's exit from the healthcare business. Sime Darby group said Columbia Asia's offer was one that the group "could not refuse". The disposal was part of the group's strategic commitment to focus on its core trading business of motors and industrial. -The Edge Market

LTAT tables offer for Boustead Plantations

Lembaga Tabung Angkatan Tentera (LTAT) has issued a notice on unconditional mandatory takeover offer for all the remaining shares in Boustead Plantations (BPlant) that are not already held by LTAT for a cash price of RM1.55. Upon the acquisition, LTAT holds 976.41m shares in BPlant, representing a 43.59% stake.-The Star

GuocoLand's 1Q net profit triples to RM4.8m

GuocoLand (M)'s 1QFY6/24 net profit surged threefold to RM4.79m from RM1.57m YoY, attributed to overall improvement in the property development and hospitality divisions. Quarterly revenue rose by 16.25% YoY to RM119.15m from RM102.49m, contributed by higher occupancy rates and average room rates as a result of increased tourist arrivals and enhanced domestic commercial and social activities. - The Edge Market

SLP Resources’ 3Q net profit down 46%

SLP Resources’ 3QFY23 net profit dropped 45.98% YoY to RM2.67m from RM4.94m, due to a change in product mix and higher production cost per unit following an increase in utility cost, as well as lower plant utilisation. Average selling price have been adjusted due to intense competition in the plastic packaging products industry. Quarterly revenue fell 11.79% YoY to RM41.66m from RM47.23m, mainly due to lower demand from Japan and regional markets. -The Edge Market

GUH Holdings JV to establish battery assembly plant

GUH Holdings announced that its wholly owned subsidiary GUH Capital SB had entered into a cooperation agreement with Shenzhen Xixin, resulting in the formation of a joint venture (JV) company named GUH Power SB. GUH Capital will hold a 75% stake in the JV firm, while the remaining 25% will be held by Shenzhen Xixin. GUH Holdings said both parties will jointly establish a battery assembly plant in Malaysia to provide high-quality lithium battery products and services to markets outside China. -The Edge Markets

Our Thoughts

Wall Street closed on a mixed note as traders are looking at October’s consumer price index (CPI) which is due later today. Meanwhile, overall sentiment was also affected by Moody’s latest cut in its rating outlook on the US attributed to the huge fiscal deficit and political bickering. Hence, despite the DJI Average adding 55 points, the Nasdaq lost 30 points with the US 10-year yield remaining flat at 4.642%. In Hong Kong, the HSI jumped 223 points on optimism over the easing political tension due to the impending Xi-Biden meeting. The local bourse was closed for Diwali celebration yesterday. For today, we believe the FBM KLCI will stay stuck within a narrow range of between 1,440-1,450 as investors are expected to remain sidelined. Nonetheless, we may see some accumulation on Plantation and Telco stocks today following a sudden sell-down last Friday.

Source: Rakuten Research - 14 Nov 2023

To sign up for an account : http://bit.ly/40BNqKI

[Youtube Tutorial] Account Opening & Enable Foreign Equity:http://bit.ly/3I5Jzxo