Previous Day Highlights

FBM KLCI closed higher to end at its intra-day high following the RTS ceremony between Malaysia and Singapore. The benchmark index up 0.29% or 4.34 pts to close at 1,487.34. Gainers were seen in utilities (+2.57%), construction (+1.04%), and property (+0.52%); while losers were seen in health care (-0.65%), plantation (- 0.40%), and technology (-0.34%). Market breadth was mixed with 492 gainers against 486 losers while 445 counters remain unchanged. Total volume stood at 4.08bn shares valued at RM2.84bn.

Major regional indices trended mostly lower as investor digested US inflation data. HSI declined 0.35%, to end at 16,244.58. SHCOMP dropped 0.16%, to close at 2,881.98. Nikkei 225 up 1.50%, to finish at 35,577.11. STI slid 0.30%, to close at 3,191.72.

Wall Street closed mixed following some disappointing earnings and lower-than-expected US producer prices. The DJIA dropped 0.31%, to end at 37,592.98. Nasdaq rose 0.02%, to close at 14,972.76. S&P500 gained 0.08%, to finish at 4,783.83.

News For The Day

Ranhill secures three-year licence renewal from SPAN

Ranhill Utilities has announced the renewal of its licence by the National Water Services Commission (SPAN) to treat and supply water to consumers in Johor for the next three years. The group disclosed that its subsidiary, Ranhill SAJ SB, received a letter from SPAN on Jan 10, notifying it of the renewal for the sixth operation licence. The renewed licence, issued under the Water Services Industry Act 2006 (Act 655), is effective from Jan 1, 2024 to Dec 31, 2026. – The Edge Markets

MST Golf to open five more retail stores in Jakarta

MST Golf Group has confirmed the opening of five more retail stores in Jakarta alone by 2024, after opening its first outlet in the capital of Indonesia recently. The Indonesian store outlets will be managed by PT MST Golf Indonesia, a 51:49 joint venture (JV) between MST Golf and Indonesian-listed PT Sinar Eka Selaras Tbk, also known as Erajaya Active Lifestyle (Eral).-The Edge Markets

Careplus, Go Auto JV to construct RM600m factory

Careplus Group's joint venture with Go Auto Group SB will begin construction of a RM600m green technology facility dedicated to the manufacture and assembly of new energy vehicles (NEV), including electric vehicles (EV), in Chembong Industrial Area in Rembau, Negeri Sembilan. The parties said the joint venture named NexV Manufacturing SB targets to commence operations of the facility in 1Q25 with capacity of 30,000 vehicles a year. – The Star

Siab secures RM94m job to build food processing factory

Siab Holdings has secured a contract to build a food processing factory in Seremban, Negeri Sembilan, worth RM94.28m. Siab said the group’s wholly-owned Siab (M) SB had accepted a letter of award from by Mahsuri Food SB to build a four-storey factory block, one fermentation area, and one soy silage building unit with utility facilities. The construction, which will begin on Feb 14, is expected to be completed in 13 months. -The Edge Markets

Tuju Setia wins RM209m construction contract

Tuju Setia has secured a RM209m contract to undertake main contractor works for Alora Residences, USJ, Subang Jaya, Selangor. Tuju Setia said its wholly-owned subsidiary, Pembinaan Tuju Setia SB, received the letter of award (LOA) from USJ Citypoint SB, an indirect wholly-owned subsidiary of Avaland. The contract is for 33 months, with work tentatively scheduled to commence in the 2QCY24.-The Star

Our Thoughts

Wall Street closed mixed following a weaker than expected banks earnings amid a lower inflation reading. While the US producer price index fell in December, earnings from some prominent banks came in short hence the 118 points decline in the DJI Average. Meanwhile, higher expectations of a rate cut saw the US 10-year yield dip to 3.939%. In Hong Kong, the HSI continues to slide after China consumer price index fell for the 3rd straight month pivoting the worst start for Hong Kong equities since 2016. Back home, the FBM KLCI closed higher due to some bargain hunting activities after the index declined from the 1,500 level. We expect accumulation of stocks to persist after the intermittent correction the last few days and see the index to hover within the 1,485-1,495 with the 1,500 being the psychological resistance level.

Source: Rakuten Research - 15 Jan 2024

To sign up for an account: http://bit.ly/40BNqKI

[Youtube Tutorial] Account Opening & Enable Foreign Equity: http://bit.ly/3I5Jzxo