Previous Day Highlights

The FBM KLCI extended its upward trajectory, driven by continuous broad-based buying interests. The benchmark index was up 0.32% or 4.82 pts to close at 1,491.19. Majority of the sectors were positive with utilities (+2.1%), construction (+1.9%), and property (+1.6%), leading the gains; while loser was seen in plantation (-0.2%). Market breadth was positive with 664 gainers against 375 losers. Total volume stood at 4.8bn shares valued at RM3.12bn.

Major regional indices trended broadly lower amid the persistent fears of deflation, expect Nikkei 225 that was up 1.62%, to finish at 36,546.95. HSI declined 2.27%, to end at 14,961.18. SHCOMP dropped 2.68%, to close at 2,756.34. STI slid 0.10%, to close at 3,149.12.

Wall Street closed higher as tech stocks added to recent gains and investors awaited upcoming corporate reports for clues on this year's profit outlook. The DJIA added 0.36%, to end at 38,001.81. Nasdaq rose 0.32%, to close at 15,360.29. S&P500 gained 0.22%, to finish at 4,850.43.

News For The Day

UOA REIT’s 4Q net rental income drops 12%

UOA Real Estate Investment Trust’s (UOA REIT) 4QFY12/23 net rental income fell 11.77% YoY to RM18.76m from RM21.26m, dragged down by lower gross rental and higher property operating expenses. The operating expenses increased due to higher electricity costs and routine lift maintenance that occurs every few years. Quarterly revenue decreased 3.52% YoY to RM27.3m, from RM28.30m. The REIT declared an income distribution per unit (DPU) of 3.86 sen and it will be paid on Feb 29.-The Edge Markets

Ajiya posts RM13m loss in 4QFY24

Ajiya slipped into a net loss of RM13.02m in 4QFY11/23, compared to a net profit of RM9.48m YoY. The significant earnings contraction was primarily due to investment loss of RM9.57m, and impairment of RM2.88m for stock, RM3.1mfor retrenchment benefits, among others. Quarterly revenue, however, increased by 20.9% YoY to RM89.64m from RM74.17m, primarily due to an improvement in demand for the group’s products. The Edge Markets

Samaiden gets RM100m solar power plant job

Samaiden Group’s wholly-owned subsidiary, Samaiden SB and its consortium member JS Solar SB, have won a contract worth RM100m from NUR Renewables SB to develop a solar power plant at Kulim Hi-Tech Park (KHTP), Kedah. The project involves the development of a ground-mounted 50 megawatts (MWac) solar power plant to supply green energy to all customers located at KHTP. The works are expected to be finished by March 31, 2025.-The Star

Avaland launches Casa Embun Phase 2 in Cybersouth

Avaland launched the second phase of its Casa Embun project at its 417-acre Cybersouth township development in Dengkil, Selangor, on Jan 13. The recent launch follows the success of Casa Embun Phase 1, which has achieved a take-up rate of more than 85% since it was launched in January 2022. With a gross development value of RM202m, Casa Embun Phase 2 comprises 505 units of serviced apartments with selling prices start from RM250,000.– The Edge Markets

TAS Offshore bags shipbuilding contracts worth RM22.6m

TAS Offshore (TAS) via its wholly-owned subsidiary has secured shipbuilding contracts for three units of tugboats with a total value of RM22.6m. The contracts were signed with an existing customer from Indonesia. It said these vessels are expected to be delivered in the 3QCY25. -The Edge Markets

Our Thoughts

Wall Street continued with its uptrend as traders largely ignored if the US economy will be able to engineer a soft landing amid a mixed bag of economic indicators. Nonetheless, as all 3 major indices are hovering at their respective all time highs and it will be interesting to see if prevailing fundamentals are able to sustain the rally. Meanwhile, the US 10-year yield ended slightly lower at 4.107%. Over in Hong Kong, the HSI lost further ground as it closed below the 15,000 mark as the sell-down on property stocks gained traction after the PBOC left the loan prime rate unchanged. On the home front, the FBM KLCI ended yesterday’s session firmer following a slow start attributed to some bargain hunting activities. We are hopeful that the index can break the 1,500 level decisively soon in order to maintain the upward trajectory. For today, we believe the index will hover within the 1,490-1,500 range taking the positive cue from Wall Street.

Source: Rakuten Research - 23 Jan 2024

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