Previous Day Highlights

FBM KLCI closed lower as profit taking activities emerged following the recent rally. The benchmark index was down 0.80% or 11.97 pts to close at 1,486.86. Majority of the sectors were negative with health care (- 1.6%), financial services (-1.1%), and telecommunications (-1.0%) leading the losses; while gainers were seen in energy (+0.7%), and consumer (+0.1%). Market breadth was negative with 588 losers against 359 gainers. Total volume stood at 4.97bn shares valued at RM2.84bn.

Major regional indices were broadly lower as market sentiment turned cautious prior to the release of US inflation data. HSI declined 0.57%, to end at 16,097.28. SHCOMP dropped 0.54%, to close at 2,877.70. Nikkei 225 up 2.01%, to finish at 34,441.72. STI slid 0.56%, to close at 3,179.96.

Wall Street closed higher following the rally of megacap tech counters ahead of US CPI data and the big bank results season. The DJIA added 0.45%, to end at 37,695.73. Nasdaq rose 0.75%, to close at 14,969.65. S&P500 gained 0.57%, to finish at 4,783.45.

News For The Day

Genting Malaysia to inject US$100m into Empire Resorts

Genting Malaysia announced that it will inject another US$100m (RM464.15m), through an indirect wholly owned unit, into Empire Resorts Inc, in which it has already put in about US$624.4m to date. The latest capital injection will involve Genting Malaysia subscribing to 1,000 of Empire’s Series M preferred stocks, with a maturity date of Dec 31, 2038, are convertible after end-2030 into 100m common Empire stocks at US$1 apiece.-The Edge Markets

Leong Hup and MFM appeal against MyCC's fines

Leong Hup Feedmill Malaysia SB (LFM) and Dindings Poultry Development Centre SB (DPDC) have filed appeals against the Malaysia Competition Commission's (MyCC) decision to fine the two companies over alleged chicken feed cartel practice. MyCC had imposed a penalty of RM157.47m on LFM, and another RM70.02m on DPDC. Leong Hup International announced that it had applied for a stay of the MyCC decision pending an appeal. -The Edge Markets

Chin Hin Group buys Penang land for RM40m

Chin Hin Group Property (CHGP) is acquiring a plot of freehold land measuring approximately 1.218 acres within Penang Times Square from Ivory Gleneary SB for RM40m. CHGP said the proposed acquisition is in line with the overall strategy of the group to source for new landbank and expand its property development segment. -The Star

Nestcon clinches RM108m job from Exsim Avenue

Nestcon through its wholly-owned unit Nestcon Builders SB has clinched RM108m worth of construction works from property developer Exsim Avenue SB for a mixed commercial development project. Contract works are to be completed within 39 months, commencing on Jan 15, and scheduled for completion by April 14, 2027. -The Edge Markets

LSTEEL accepts compensation of over RM42m for Klang land

Leader Steel Holdings’ (LSTEEL) wholly owned subsidiary Ferronet Asia SB has accepted a notice of award and offer for compensation (Form H) from the Klang Land Office invoking a compulsory acquisition under the Land Acquisition Act 1960 (Act 486) to acquire 28,903 sq m of land in Mukim Kapar, Klang for RM42.56m cash. LSH said the compulsory disposal resulted from the receipt of Form H to take possession of the affected land under Section 18 of Act 486. LSH said the compensation consideration of RM42.56m included compensation for severance damages and loss of income. -The Edge Markets

Our Thoughts

Wall Street closed broadly higher amid a muted trading session as traders are waiting for fresh inflation data later today. The DJI Average gained 171 points while the Nasdaq jumped 112 points higher with the US 10-yaer yield edging higher at 4.03%. In Hong Kong, the HSI continues to slide attributed to the lack of catalysts. Nonetheless, the decline in China’s 10- year bond yield has prompted expectations that a cut in interest rates could be in the offing. Back home, the FBM KLCI solid uptrend fizzled out as profit taking activities emerged in line with the regional weaknesses, Nonetheless, we deem such a correction is healthy as a foundation for a more sustainable uptrend for the index. Therefore, we expect the emergence of bargain hunters today and expect the index to hover within the 1,485-1,495 range supported by interests on the Banks.

FBM KLCI closed lower as profit taking activities emerged following the recent rally. The benchmark index was down 0.80% or 11.97 pts to close at 1,486.86. Majority of the sectors were negative with health care (- 1.6%), financial services (-1.1%), and telecommunications (-1.0%) leading the losses; while gainers were seen in energy (+0.7%), and consumer (+0.1%). Market breadth was negative with 588 losers against 359 gainers. Total volume stood at 4.97bn shares valued at RM2.84bn.

Major regional indices were broadly lower as market sentiment turned cautious prior to the release of US inflation data. HSI declined 0.57%, to end at 16,097.28. SHCOMP dropped 0.54%, to close at 2,877.70. Nikkei 225 up 2.01%, to finish at 34,441.72. STI slid 0.56%, to close at 3,179.96.

Wall Street closed higher following the rally of mega- cap tech counters ahead of US CPI data and the big bank results season. The DJIA added 0.45%, to end at 37,695.73. Nasdaq rose 0.75%, to close at 14,969.65. S&P500 gained 0.57%, to finish at 4,783.45.

Source: Rakuten Research - 11 Jan 2024

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