Previous Day Highlights

FBM KLCI closed higher hitting an intraday high after taking signals from key regional markets. The benchmark index was up 0.57% or 8.22 pts to close at 1,456.26. All sectors were positive with health care (+3.5%), energy (+1.9%), and utilities (+1.0%) leading the gains. Market breadth was positive with 566 gainers against 353 losers. Total volume stood at 4.25bn shares valued at RM2.78bn.

Major regional indices trended mixed. HSI gained 1.07%, to end at 16,402.19. SHCOMP dropped 0.33%, to close at 2,958.99. Nikkei 225 eased 0.73%, to finish at 32,686.25. STI rose 0.60%, to close at 3,122.95.

Wall Street closed higher following the U.S. Federal Reserve's dovish statement on interest rates. The DJIA added 0.43%, to end at 37,248.35. Nasdaq rose 0.19%, to close at 14,761.56. S&P500 rose 0.26%, to finish at 4,719.55.

News For The Day

Scientex posts 1Q net profit of RM137.84m

Scientex is expecting a sustainable performance in its packaging division for the coming year, while projecting resilient demand for its property division. In 1Q FY24, Scientex registered a net profit of RM137.84m, up from RM107.18m, which brought its earnings per share higher to 8.89 sen from 6.91 sen previously.-The Star

Pestech JV bags Entinggan power substation project

Pestech International said its 60%-owned joint venture has secured an electrical substation construction project in Entinggan, Kuching, Sarawak from Syarikat SESCO for RM109.98m. This is the fourth civil and engineering works project announced this year by Pestech, and its first after IJM Corp’s entrance as a 44.83% shareholder in Pestech for RM124m or 15.5 sen per share in October. -The Edge Markets

EcoWorld's 4Q net profit rises as sales hit RM3.61bn

Eco World Development Group (EcoWorld) reported that its net profit for the fourth quarter ended Oct 31, 2023 (4QFY2023) nearly doubled to RM3.29m from RM1.77m a year ago on the back of higher revenue and gross profit. Earnings per share rose to 11 sen from six sen in the previous year's corresponding quarter, according to the group's bourse filing on Thursday.-The Edge Markets

AirAsia leases four planes previously operated by MyAirline

Low-cost carrier AirAsia has leased four Airbus A320-200 aircraft previously operated by MYAirline SB. AirAsia Aviation Group Ltd group chief executive officer (CEO) Bo Lingam said AirAsia had previously leased three of the aircraft before the COVID-19 pandemic from lessor AirCastle Ltd. They were subsequently returned to the lessor and MYAirline leased the aircraft from the lessor.-The Edge Markets

Crest Builder gets RM314.5m serviced apartment project

Crest Builder Holdings has accepted a letter of award from UEM Sunrise worth RM314.5m for the construction of 1,334 units of serviced apartments in two 53-storey blocks, in Cheras, Kuala Lumpur. Crest Builder said the project will also consist of a level of sub-basement car park, elevated podium car parks, commercial retail and office spaces and a level of recreation facilities.-The Edge Markets

Our Thoughts

It was another positive day on Wall Street as the US 10- year yield tumbled to below the 4% level at 3.921% for the first time since August buoyed by the recent dovish statement from the Federal Reserve on interest rates. As a result, the DJI Average added 158 points with the Nasdaq closing 28 points higher. In Hong Kong, the HSI jumped 173 points as it joined the regional uptrend taking cue from the Fed’s easing rate stance hence giving the business community a sigh of relief. Back home, the FBM KLCI rebounded to surge past the 1,450 mark underpinned by broad-based buying. We believe buying activities to persist and expect the index to hover within the 1,455-1,465 range today, taking advantage of the attractive valuation of the domestic market. Meanwhile, crude oil prices edged higher with the Brent closing above US$76/barrel as demand is seen to improve due to the US economy staying upbeat.

Source: Rakuten Research - 15 Dec 2023

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