Previous Day Highlights

FBM KLCI closed higher driven by late buying activities. The benchmark index was up 0.64% or 9.27 pts to close at 1,462.37. Majority of sectors were positive with property (+3.9%), health care (+3.4%), and utilities (+3.0%), leading the gains, while loser was seen in technology (-0.4%). Market breadth was positive with 715 gainers against 352 losers. Total volume stood at 5.64bn shares valued at RM3.12bn.

Major regional indices ended in negative territory, tracking the overnight losses from Wall Street. HSI declined 0.85%, to end at 16,646.41. SHCOMP increased 0.17%, to close at 2,967.25. STI slid 0.94%, to close at 3,199.44. Meanwhile, Nikkei 225 remained closure for New Year Holiday.

Wall Street closed lower as profit taking continue to persist. The DJIA dropped 0.76%, to end at 37,430.19. Nasdaq eased 1.18%, to close at 14,592.21. S&P500 slid 0.80%, to finish at 4,704.81.

News For The Day

Kerjaya Prospek secures RM171m contract in Penang

Kerjaya Prospek Group has bagged a contract worth RM170.94m from Persada Mentari SB, an indirect subsidiary of Eastern & Oriental, for the development of a 45-storey building on Andaman Island, Penang. The project entails the construction and execution of main building works for a 45- storey structure, including a 38-storey serviced apartment block comprising 380 units, a two-storey basement carpark, and a five-storey elevated carpark. The completion deadline is set at 35 months from Jan 18, 2024. -The Edge Markets

Proton records growth with 154,611 units sold

Proton sold 12,711 units in December to close the year with a total sales figure of 154,611 units, a 9.3% YoY increase over the 141,432 units sold in 2022. On the back of its strongest sales performance since 2012, Proton was the second most-sold car brand in 2023, a position it has maintained for five years running. According to Proton, it had a market share of 19.4% in 2023.-The Star

Aurelius buys industrial land for RM12m

Aurelius Technologies (ATB) is purchasing a vacant piece of industrial land within the Kulim High-Tech Park, Kedah, from Northern Technocity Sdn Bhd for RM12.15m. The electronics manufacturing services provider said the land, measuring approximately 270,034 sq ft, will facilitate the company’s future strategic expansion plans.-The Star

HSS Engineers bags RM4.94m consultancy job

HSS Engineers via its associate HSS Integrated SB (HSSI) has accepted a letter of award from Port Klang Cruise Terminal Sdn Bhd for the provision of project management consultancy services at the terminal. The contract, valued at RM4.94m, entailed consultancy services for the extension of the wharf and development of associated facilities. The job will commence on Jan 8, 2024, and is estimated to be completed 29 months later on July 9, 2026.-The Star

EP Manufacturing bags 8-year contract from China's GWM

EP Manufacturing (EPMB) announced that its subsidiary PEPS-JV (Melaka) SB (PJVM) has been appointed as the contract vehicle assembler for the Malaysian unit of China's Great Wall Motor Co Ltd (GWM), making it a key player in the assembly and production of selected GWM models in Malaysia for the next eight years. EPMB will initially focus on assembling and producing the Haval H6, a mid-size sports utility vehicle (SUV) model, and the Haval Jolion, a compact SUV model.-The Edge Markets

Our Thoughts

Wall Street ended broadly lower from profit taking activities as sentiment will now be dictated by the interpretations of the Federal Reserve stance on interest rates. As a result, the DJI Average lost 284 points while the Nasdaq declined by 174 points mainly due to the sell-down on Apple following a downgrade. Meanwhile, the US 10-year yield dipped slightly to 3.92%. Over in Hong Kong, the HSI maintained its downtrend over the slump on Wall Street and the expectations on interest rates. Pessimism over China’s economic recovery also fueled the selling on the HKSE. At home, the FBM KLCI finally reversed its decline to close above the 1,460 level as bargain hunters appeared during the afternoon session. For today, we reckon accumulation of stocks to persist and maintain that Banks should stay in the limelight. As such, we expect the index to hover within the 1,460-1,470 range today with the 1,465 mark as a major road bump. If this level is broken decisively, then the 1,500 mark is definitely within reach.

Source: Rakuten Research - 4 Jan 2024

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