Previous Day Highlights

FBM KLCI closed higher propelled by ongoing buying activities for the fourth consecutive day. The benchmark index was up 0.54% or 8.09 pts to close at 1,495.70. Gainers were seen in utilities (+2.99%), construction (+2.71%), and property (+1.94%); while losers were seen in transportation (-0.83%), health care (-0.71%), and technology (-0.22%). Market breadth was positive with 628 gainers against 470 losers. Total volume stood at 6.96bn shares valued at RM4.21bn.

Major regional indices trended mixed investors kept an eye on China's key inflation data. HSI declined 1.88%, to end at 16,224.45. SHCOMP dropped 1.42%, to close at 2,887.54. STI rose 0.09%, to close at 3,187.02. Meanwhile, Nikkei 225 was closed for Coming of Age Day.

Wall Street closed higher, led by the mega-cap tech stocks. The DJIA added 0.58%, to end at 37,683.01. Nasdaq rose 2.20%, to close at 14,843.77. S&P500 gained 1.41%, to finish at 4,763.54.

News For The Day

LTAT in discussions with Sarawak govt for stake in Affin

Affin Bank said its major shareholder, Lembaga Tabung Angkatan Tentera (LTAT) has confirmed a news report that the armed forces fund is in discussions with the Sarawak State Financial Secretary for the "possible transaction of additional shares” in the bank. "Upon enquiry with LTAT, the major shareholder of the company, LTAT has informed that they are in discussions with the Sarawak State Financial Secretary for the possible transaction -The Star

Kerjaya Prospek bags two contracts worth RM95.1m

Kerjaya Prospek Group has secured two contracts totalling RM95.1m from two indirect subsidiaries of Eastern & Oriental (E&O) for construction projects in Penang. Kerjaya Prospek said that its wholly-owned unit, Permatang Bakti SB, had received a letter of award from Tanjung Pinang Development SB. The contract, valued at RM69.23m, involves undertaking superstructure works for phase two of the Gurney Marine Bridge, part of the proposed Seri Tanjung Pinang Development (STP2). Construction is scheduled to commence on Jan 22, with completion expected within 24 months.-The Edge Markets

Boost Bank, AEON Bank get nod as digital banks

Two more digital banks have received regulatory approval to begin commercial operations, namely Axiata Group and RHB Bank-linked Boost Bank, as well as AEON Bank linked to AEON Credit Service (M). Boost Bank, the 40:60 digital bank venture by RHB and Boost Holdings SB, has received the Ministry of Finance's (MOF) agreement for the issuance of a physical digital bank licence, which takes effect from Jan 15. Separately, AEON Credit also said it had received the nod from BNM and the MOF to run AEON Bank (M) Bhd, formerly known as ACS Digital Bhd, to commence what would be Malaysia’s first Islamic digital bank.-The Edge Markets

Straits Energy gets RM40.73m contract for PPUKM

Straits Energy Resources has secured a contract worth RM40.7m from Puncabahan SB for the construction of additional space and upgrading of the emergency medical department for Hospital Canselor Tuanku Muhriz, Pusat Perubatan Universiti Kebangsaan Malaysia (PPUKM). Straits Energy said its 70%-owned subsidiary, Straits CommNet Solutions SB accepted the letter of award (LoA) from Puncabahan. Straits said the project is slated to begin on Jan 8, 2024 until Sept 23, 2026.-The Star

Our Thoughts

Wall Street rebounded as bargain hunting activities emerged after a tough week. Technology stocks led the gainers with the Nasdaq adding 320 points while the DJI Average was 217 points higher as the US 10- year yield eased marginally to 4.027%. Over in Hong Kong, the HSI maintained its worst start to a new year losing a further 311 points as outlook for China remains bleak. Back home, the FBM KLCI continued with its impressive start for 2024 as foreign funds continue mopping up local equities. Though the 1,500 level may act as the immediate psychological resistance, we believe this to be breached anytime soon in view of recent improving daily trading volume. Thus, we anticipate the index to hover within the 1,490-1,500 range today. Meanwhile, crude oil prices declined following the price cut by Saudi Arabia amid weakening demand. As such, the Brent crude dipped to around US$76/barrel.

Source: Rakuten Research - 9 Jan 2024

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