Previous Day Highlights

FBM KLCI closed lower to end at its intraday low as investors awaited more clues from US CPI data. The benchmark index down 0.26% or 3.86 pts to close at 1,483.00. Gainers were seen in energy (+1.46%), plantation (+0.89%), and technology (+0.60%); while losers were seen in property (-0.92%), industrial products & services (-0.81%), and utilities (-0.74%). Market breadth was negative with 568 losers against 406 gainers. Total volume stood at 4.64bn shares valued at RM3bn.

Major regional indices closed at positive territory leveraged from Wall Street overnight performance. HSI gained 1.27%, to end at 16,302.04. SHCOMP increased 0.31%, to close at 2,886.65. Nikkei 225 up 1.77%, to finish at 35,049.86. STI rose 0.67%, to close at 3,201.41.

Wall Street ended mostly flat following hotter-than- expected inflation dulls rate cut hopes. The DJIA added 0.04%, to end at 37,711.02. Nasdaq closed flat at 14,970.18 while S&P500 declined 0.07%, to finish at 4,780.24.

News For The Day

Hume Cement to dispose of land in Prai for RM39.8m

Hume Cement Industries (HCIB) has accepted an offer to dispose of a parcel of land together with the buildings thereon in Prai Industrial Estate, Pulau Pinang for RM39.8m. HCIB said its wholly-owned subsidiary Hume Concrete SB (HCCT) accepted an offer from Skygate Technology (KL) SB for the proposed disposal. “HCIB Group expects to realise an estimated net gain on disposal of approximately RM32m,” HCIB said. -The Star

Atlan's 3Q profit rises 9.48% to RM6.47m

Autoparts maker and duty-free goods trader Atlan Holdings' 3QFY2/24 net profit rose 9.48% YoY to RM6.47m from RM5.91m on the back of higher revenue from the automotive segment. Quarterly revenue grew by 19.12% YoY to RM117.19m compared with RM98.38m. The group declared a second interim dividend of four sen, payable on Feb 22. – The Edge Markets

Fajarbaru's RMAF redevelopment contract revised higher

The value of Fajarbaru Builder Group’s contract for the planning phase of the redevelopment of military facilities at the Royal Malaysian Air Force base in Butterworth, Penang has been revised to a higher sum of RM16.26m from RM7.36m previously. The revision was to provide for "the 50% schematic design report to be a planning phase milestone", and to defer the date for the delivery phase approval. Parties to the contract have agreed to the revision and entered into a deed of amendment on Dec 22, 2023 to amend the contract. The contract was awarded by the Australian Department of Defence in July last year, which hired an unincorporated joint venture between Fajarbaru’s unit and Avionics Pty Ltd, which is wholly owned by Avionics Holdings Pty Ltd. Avionics Holdings is 60%-owned by the Nick Brumley Family Trust with the other 40% stake held by the S&R Webb Family Trust.-The Edge Markets

Borneo Oil ends gold mining ops in Pahang land

Sabah-based gold miner Borneo Oil has ended its gold-mining venture with Syarikat Ratna Pura SB (SRP) and Ricco Mining SB in Mukim Keratong, Rompin, Pahang, as part of its plans to downsize its mining operations in the state. Borneo Oil said it has entered into a deed of cancellation and novation with Lum Har Chi @ Lum Kong Fatt, Lum Kong Sun and Zainab Mohd Taib (vendors) to acquire a 90% stake in SRP for RM1.8m cash. SRP is the concession owner of a mining area measuring 194.22ha in Rompin, with a validity period of five years expiring on March 16, 2025. -The Edge Markets

Our Thoughts

Wall Street closed flattish as December’s inflation came in higher than expected, raising new questions about the Federal Reserve's path on interest rates. The DJIA gained 13.3 points or 0.04%, while Nasdaq was almost unchanged. In Asia, key indices finished mostly higher with strong gains in Japan driven by expectations that the BOJ will maintain its dovish policy in the near-term. Over to HK, stocks rebounded due to bargain hunting and recovery in the tech stocks. As a result, the HSI added 205 points or 1.3% to finish above the 16,000 level. On the home front, the FBM KLCI continues to see some profit takings following the recent rally. Nonetheless, we view it as a healthy sign as it allows the market to digest recent uptrend. We expect buying on local stocks to persist, given the strong support from foreign funds and improving market sentiment. As such, we anticipate that the FBM KLCI will trend within the range of 1,480- 1,490 for today.

Source: Rakuten Research - 12 Jan 2024

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