Previous Day Highlights

FBM KLCI closed lower as sentiment remain dull amid the uncertainty in economic outlook. The benchmark index was down 0.21% or 2.97 pts to close at 1,442.85. Majority of sectors were negative with energy (-1.7%), health care (-1.2%), and industrial products & services (- 0.8%) leading the losses; while gainers were seen in financial services (+0.1%), and construction (+0.1%). Market breadth was negative with 603 losers against 322 gainers. Total volume stood at 3.01bn shares valued at RM1.98bn.

Major regional indices trended lower influenced by the ongoing sluggish recovery in China following the unexpected declines in the country's import data. HSI declined 0.71%, to end at 16,345.89. SHCOMP dropped 0.09%, to close at 2,966.21. Nikkei 225 eased 1.76%, to finish at 32,858.31. STI slid 0.42%, to close at 3,074.26.

Wall Street ended higher. The DJIA gained 0.17%, to end at 36,117.38. S&P500 and Nasdaq added 0.80% and 1.37% to finish at 4,585.59 and 14,339.99 respectively.

News For The Day

Vizione gets RM490m turnkey contractor job

Vizione Holdings has accepted a letter of award (LoA) worth RM490m from Hardie Development SB as a turnkey contractor to design, build and deliver three apartment blocks in Sabah. Vizione said it will be responsible for the entire design, engineering, construction, management and delivery of all works under the project for the sole purpose of delivering the buildings at the end of the completion period. “The period for completion of the project shall be 36 months from the commencement date,” the company said. -The Star

Jentayu plans another placement to raise up to RM63m

Jentayu Sustainables is planning another placement to raise up to RM62.96m for the clean energy solutions provider to fund its pre-development expenditures, new projects and working capital. The second placement exercise came after the group issued 96.94m shares in July that saw it raise RM11.1m for its pre-development spending. -The Edge Markets

ACE-bound Critical Holdings' IPO oversubscribed by 88 times

Critical Holdings, which is set to make its ACE Market debut on Dec 18, announced that the public portion of its initial public offering (IPO) has been oversubscribed by 88.08 times. The mechanical, electrical and process utilities (MEP) engineering company said that it received 13,038 applications for 1.66bn shares, for the 18.59m new shares that were available for public subscription.-The Edge Markets

LFE Corp exec chairman raises shareholding

LFE Corp has seen a change in the ownership of an 8.87% stake in the construction and mechanical and electrical (M&E) services group held through Resolute Accomplishment SB. LFE executive chairman Chuah Chong Ewe acquired the stake, comprising 98.37m shares, while another filing showed that Audrey Chua Mei Ling had disposed of the same amount of LFE shares held through Resolute Accomplishment. -The Edge Markets

Chin Hin Group seeking to raise RM500m via perpetual MTN

Chin Hin Group has filed its establishment of a perpetual medium-term note (MTN), in a bid to raise up to RM500m, with the Securities Commission Malaysia. The group said proceeds raised from the issuance of the perpetual MTN shall be utilised for capital expenditures to finance acquisitions, refinance existing financing or borrowings or future financing, working capital, other general corporate purposes and defraying fees, as well as costs and expenses related to this programme. -The Edge Markets

Our Thoughts

Wall Street finished higher with strong buying on tech stocks following softer-than-expected job openings heightening expectations of lower interest rates in the coming year. The DJIA gained 63 points or 0.17% while Nasdaq surged 193 points or 1.37%. In Asia, major indices ended lower following lower than expected China’s export figures. Meanwhile Moody's issued downgrade warnings for Hong Kong, Macau, and large portions of China's state-owned companies and banks. As a result, the HSI dived 117 points of 0.71%. On the home front, the FBM KLCI fell to below its 1,445 support level. Nonetheless, the benchmark index is near oversold level, hence we reckon bargain hunting may occur. Despite this, investors are advised to stay vigilant due to the rising global volatility and uncertainties. We anticipate that the FBM KLCI to trend higher within the range of 1,440-1,450 for today.

Source: Rakuten Research - 8 Dec 2023

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