Previous Day Highlights

FBM KLCI closed lower due to lack of buying interests amid a weak market sentiment. The benchmark index was down 0.01% or 0.13 pts to close at 1,448.02. Majority of sectors were negative with energy (-1.1%), financial services (-0.4%), and transportation (-0.4%) leading the losses; while gainers were seen in health care (+1.4%), and plantation (+0.9%). Market breadth was negative with 526 losers against 393 gainers. Total volume stood at 3.81bn shares valued at RM2.39bn.

Major regional indices trended mostly negatively. HSI declined 0.98% to end at 17,354.14. Nikkei 225 and STI eased 0.12% and 0.66% to finish at 33,408.39 and 3,065.94 respectively. Meanwhile, SHCOMP increased 0.23% to close at 3,038.55.

Wall Street closed higher as investors hope that the Federal Reserve is done raising benchmark interest rates. The DJIA added 0.24%, to end at 35,416.99. Nasdaq and S&P500 rose 0.29% and 0.10% to close at 14,281.76 and 4,554.90 respectively.

News For The Day

PetChem's 3Q earnings fall to RM424m amid low demand

Shrinking sales volumes and margins stemming from weak demand in the global manufacturing sector took a bite out of Petronas Chemicals Group's revenue in 3QFY23. The petrochemicals producer said its specialities segment, which contributed 22% to the group's revenue, saw continued destocking activities in the face of fierce competition, particularly in Europe. -The Star

Swift Haulage nears acquisition of Penang land

Swift Haulage, the country’s largest haulier, is acquiring three pieces of industrial land totalling 21,702 sq m in Butterworth, Penang from smaller transport and logistics peer Transocean Holdings for RM30.15m. Swift Haulage had on May 23 accepted the offer from Transocean involving the disposal of the proposed land. Swift Haulage said the group presently operates its northern region office operations on a neighbouring property located north of the targeted property. -The Edge Markets

Telcos, DNB yet to sign share subscription agreement on 5G

Mobile network operators (MNOs) and Digital Nasional Bhd (DNB) have yet to sign a share subscription agreement (SSA), Communications and Digital Minister Fahmi Fadzil said, as a few details related to the agreement still need to be ironed out. -The Edge Markets

IGB’s net profit up 21% to RM58m in 3Q

IGB maintains a prudent outlook regarding the obstacles facing the expansion of retail sales in 2023. IGB said these challenges have the potential to impact both the tenants' activities in shopping malls and the overall financial performance of this sector. -The Star

TH Plantations posts 22% higher net profit in 3QFY23

TH Plantations posted a net profit of RM17.55m for 3QFY23, up 22% from RM14.37m a year prior, on the back of higher operating profit, but partly moderated by lower other income. Earnings per share for the quarter rose to 1.5 sen from 1.13 sen.- The Edge Markets

Perodua eyes 20% EVs sales by 2030

Perusahaan Otomobil Kedua SB’s (Perodua) is eyeing electric and hybrid vehicles to account for up to 20% of new car sales by 2030. President and chief executive officer Datuk Seri Zainal Abidin Ahmad said this is possible "if all industry players can work together.”-The Edge Markets

Our Thoughts

Wall Street ended in positive territory following statement from a Federal Reserve official that current policy may be sufficient to slow economic growth and curb inflation hence paving hopes for the end of rate hikes. As a result, the DJI Average added 83 points while the Nasdaq gained 41 points as the US 10-year yield easing to 4.325%. In Hong Kong, the HSI slumped 171 points on growing concerns of corporate earnings growth going forward. There were also new concerns on Chinese Banks’ asset quality due to possibility of new lending measures to support the local property sector. Back home, the FBM KLCI ended flat attributed to late buying support amid another lackluster day. Nonetheless, we believe the local bourse to see some buying activities emerging today following positive cues from the US on potential softer interest rates, thus expect the index to hover within the 1,450-1,460 range.

Source: Rakuten Research - 29 Nov 2023

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