Previous Day Highlights

FBM KLCI closed higher due to late buying activities after a choppy session. The benchmark index was up 0.06% or 0.92 pts to close at 1,448.04. Majority of sectors were positive with health care (+4.1%), industrial products & services (+0.4%), and construction (+0.3%) leading the gains; while losers were seen in energy (- 0.8%), and telecommunications (-0.4%). Market breadth was positive with 482 gainers against 373 losers. Total volume stood at 3.76bn shares valued at RM2.4bn.

Major regional indices trended mixed. HSI declined 0.89%, to end at 16,228.75. SHCOMP dropped 1.15%, to close at 2,968.76. Nikkei 225 was up 0.25%, to finish at 32,926.35. STI rose 0.06%, to close at 3,104.26.

Wall Street closed higher after the Federal Reserve signaled lower borrowing costs are coming in 2024. The DJIA added 1.40%, to end at 37,090.24. Nasdaq rose 1.38%, to close at 14,733.96. S&P500 rose 1.37%, to finish at 4,707.09.

News For The Day

Sapura Energy records net profit of RM30.89m in 3Q

Announcing its results for the third quarter of its 2024 financial year (FY24), Sapura Energy said the operating conditions for the engineering and construction (E&C) and operations and maintenance (O&M) segments have been challenging, and will remain so for the remainder of the year.- The Star

Eco World International's 4Q net loss narrows

Eco World International achieved RM1.18bn sales plus reserves of RM114m for a total of RM1.3bn in its 2023 financial year (FY23). According to the property developer, its biggest sales contributors were Embassy Gardens with RM617m in sales, followed by Wardian with RM215m, London City Island with RM107m and Yarra One with RM91m.-The Edge Markets

AWC gets shareholders’ nod for RM110m acquisitions

Engineering services provider AWC has obtained its shareholders' approval to buy the remaining 49% equity interest in Stream Group not already owned by AWC from Premium NXL (PNSB). Shareholders have also agreed to its acquisition of a 51% equity interest in Premium Patents from PNSB and Premium Deluxe (PDSB).-The Edge Markets

Al-`Aqar proposes to dispose of Jeta Gardens facility

Aqar Australia Pty Ltd, a wholly-owned subsidiary of Al-`Aqar Healthcare REIT (Al-‘Aqar) has entered into a land sale contract (LSC) with Principal Healthcare Finance Pty Ltd to dispose of lands and buildings of Jeta Gardens Aged Care Facility in Australia for approximately RM74.9m. -The Star

UMW’s auto sales up 8% in November 2023, rises 16% YTD

UMW Holdings’ automotive sales increased by 8% to 42,315 units in November, compared to 39,034 units a year earlier, as its associate company Perusahaan Otomobil Kedua (Perodua) continued to deliver its outstanding orders. Accordingly, the group’s year-to-date (YTD) sales performance rose 16% to 396,820 units from 341,390 units registered the prior year, according to UMW’s statement on Wednesday.-The Edge Markets

Our Thoughts

Wall Street rallied as the DJI Average closed at a record high above the 37,000-level following the Federal Reserve’s forecasts that it will cut interest rates 3 times in 2024 amid the slowing inflation trend. Meanwhile, the Nasdaq added 200 points as the US 10-year yield eased to 4.024% or around a 4-month low. Over in Hong Kong, the HSI retreated after losing 145 points to end at a YTD low following the lack of new measure to aid the troubled property sector during China’s policy meeting recently. Back home, the FBM KLCI ended flat as the accumulation of blue chips remains prevalent. Taking the positive cue from Wall Street, we believe the local bourse’s performance to improve and expect the index to hover within the 1,450-1,460 range today. We expect buying interests will focus on the Banks, Telcos and possibly Construction stocks. Meanwhile, crude oil prices rebounded attributed to lower inventory as the Brent crude closes above the US$74.50/barrel.

Source: Rakuten Research - 14 Dec 2023

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