Previous Day Highlights

FBM KLCI continues its upbeat momentum and closed at its intra-day high amidst ongoing buying activities across the board. The benchmark index up 0.70% or 10.35 pts to close at 1,487.61. Gainers were seen in utilities (+2.99%), construction (+2.71%), and property (+1.94%); while losers were seen in transportation (- 0.83%), healthcare (-0.71%), and technology (-0.22%). Market breadth was positive with 745 gainers against 351 losers. Total volume stood at 6.62bn shares valued at RM3.74bn.

Major regional indices trended mixed, dampened by persistent concerns over China economic recovery. HSI declined 0.66%, to end at 16,535.33. SHCOMP dropped 0.85%, to close at 2,929.18. Nikkei 225 up 0.27%, to finish at 33,377.42. STI rose 0.32%, to close at 3,184.30.

Wall Street closed marginally higher despite US service sector slowdown in December. The DJIA added 0.07%, to end at 37,466.11. Nasdaq rose 0.09%, to close at 14,524.07. S&P500 gained 0.18%, to finish at 4,697.24.

News For The Day

Scientex nixes Johor land purchase from SPSetia at RM548m

Scientex’s second attempt to buy prime land in Johor Baru from SP Setia, this time for RM548m, has fallen through again. However, the deal fell through in March 2023, after it failed to obtain a waiver of the Bumiputera equity condition imposed by the Economic Planning Unit (EPU). In July 2023, both parties revisited the deal, with a new price tag of RM547.65m. On Friday, Scientex and S P Setia said that the deal to purchase the freehold 960-acre land in Tebrau was terminated due to non-fulfilment of the conditions precedent within the extended completion period. -The Edge Markets

Dayang secures contract extension from Mubadala Energy

Dayang Enterprise Holdings’ wholly-owned subsidiary company, Dayang Enterprise SB has received a contract extension for the Provision of Pan Malaysia Maintenance, Construction and Modification (PM-MCM) from Abu Dhabibased firm, Mubadala Energy. The contract extension duration is approximately 1 year 5 months and 15 days commencing from July 17, 2023 until Dec 31, 2024.-The Star

Ta Win plans JV for cable wire production with Chinese firm

Ta Win Holdings has proposed to team up with China-based energy cable manufacturing company Ningbo Kibor Wire & Cable Co Ltd to manufacture solar cables, tinned coated wires and other cable wire products. The collaboration will take the form of a joint venture (JV) company named Cyprium Kibor Tech SB, with Cyprium Capital SB and Ningbo Kibor holding a 50% stake each with total investment is set to reach up to RM15m. -The Edge Markets

Eversendai sells lands in Sungai Buloh for RM63m

Eversendai Corp has proposed to dispose off two parcels of freehold land in Sungai Buloh for RM63m. Its wholly owned subsidiary, ECB Properties SB entered into a sale and purchase agreement with Pelangi Tulus SB for the proposed sale. “The proposed disposal is to enable the company to monetise the underutilised assets whereby the proceeds will be utilised towards payment of bank borrowing,” it said. -The Star

Global Oriental acquires 45% stake in Edisijuta Parking

Global Oriental has entered into a conditional share sale and purchase agreement (SPA) to acquire 450,000 ordinary shares in Edisijuta Parking SB (EPSB) for RM22.5m. The SPA was signed between GOB and Edisijuta SB and Cahaya Impian SB (the sellers) to acquire an equity interest in EPSB not already owned by the group, where the initial acquisition of 55% equity interest in EPSB was completed on Dec 6, 2023.-The Star

Our Thoughts

Wall Street finished broadly higher last Friday due to bargain hunting following the recent sell-off. The DJIA gained 26 points or 0.07%, while Nasdaq added 14 points or 0.1%. In Asia, key indices ended mixed, however selling of tech stocks continues in HK while at the same time, sluggish real estate market exerted pressure on property stocks. As a result, the HSI dipped by 111 points or 0.66%. On the home front, the FBM KLCI continues to trend higher with strong buying on energy and banking stocks. We expect buying on local stocks to persist, given the strong support from foreign funds and improved market sentiment, although we do not discount the possibility of profittaking activities. We anticipate that the FBM KLCI will trend within the range of 1,485-1,495 for today.

Source: Rakuten Research - 8 Jan 2024

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