Previous Day Highlights

FBM KLCI closed higher ahead of Bank Negara’s OPR decision. The benchmark index was up 0.33% or 4.92 pts to 1,496.11. Gainers were seen in transportation (+0.67%), financial services (+0.48%), and energy(+0.45%); while losers were seen in health care (-0.70%), utilities (-0.63%), and construction (-0.57%). Market breadth was positive with 511 gainers against 470 losers. Total volume stood at 5.16bn shares valued at RM3.33bn.

Major regional indices trended mixed after report on more China stimulus whereas Bank of Japan kept monetary policy unchanged. HSI gained 2.63%, to end at 15,353.98. SHCOMP increased 0.53%, to close at 2,770.98. Nikkei 225 eased 0.08%, to finish at 36,517.57. STI slid 0.44%, to close at 3,135.25.

Wall Street closed mixed as investors digested a mixed bag of quarterly results. The DJIA dropped 0.25%, to end at 37,905.45. Nasdaq rose 0.43%, to close at 15,425.94. S&P500 gained 0.29%, to finish at 4,864.60.

News For The Day

AirAsia X achieves 80% passenger load factor for FY23

AirAsia X Bhd’s passenger load factor continued to climb to 80% for FY12/23, versus 78%, even as seat capacity jumped 6.6 times YoY to 3.55m. It carried over 2.82m passengers in the year, 6.8 times more than the 417,195 it carried in FY22. AAX Malaysia's total fleet comprised 18 A330s as of end-December 2023, with 16 aircraft activated and operational. It served a total of 22 destinations, eight of which were launched in the last 12 months.- The Edge Markets

Mah Sing to expand plastic maufacturing in Indonesia

Mah Sing Group’s wholly-owned subsidiary, Mah Sing Plastics Industries SB, is setting up a joint venture with PT Gaya Sukses Mandiri Kaseindo (PT Gaya) to expand its manufacturing and trading of plastic pallets, containers and related material handling and storage products in Indonesia. “A joint venture company with MSPI holding a 70% shareholding and PT Gaya holding the remaining 30% will be set up, marking a significant milestone for both parties.-The Star

Sentral REIT's 4Q NPI up 30%, declares 0.68 sen DPU

Sentral Real Estate Investment Trust's (Sentral REIT) 4QFY12/23 net property income (NPI) rose 30.21% YoY to RM36.26m from RM27.85m, on the back of higher revenue. Gross revenue increased 28.24% YoY to RM46.66m from RM36.39m, mainly due to higher revenue generated from Platinum Sentral, Menara Shell and newly acquired Menara CelcomDigi. The improvement in gross revenue was also due to the impact of revenue straight-lining over the lease term under requirements of MFRS 16 Leases. -The Edge Markets

Agmo sets up JV to provide AI-powered solutions

Agmo Holdings has teamed up with two individuals to provide end-to-end machine learning and artificial intelligence- powered (AI) solutions. Agmo said its wholly-owned unit Agmo Capital SB and the individuals, Wong Zhi Heng and Ong Yong Seng, will undertake the collaboration through a joint-venture (JV) company, Dah Reply SB. Agmo Capital will hold a 35% equity interest in Dah Reply, with Wong and Ong controlling stakes of 40% and 25% respectively.-The Edge Markets

Ni Hsin inks deal with MYUS to promote EBIXON motorcycles

Ni Hsin Group's wholly owned subsidiary Ni Hsin EV Mobility SB on signed a master dealer agreement with MYUS Autotech SB, to promote and market EBIXON motorcycles in Perlis and Langkawi. MYUS, as a master dealer, will be promoting both the sale and rental of EBIXON motorcycles.– The Edge Markets

Our Thoughts

Wall Street closed mixed as profit-taking activities emerged following a mixed bag of corporate earnings. Some traders preferred to remained sideline as recent rally was not broad based thus not sustainable. As such, the DJI Average lost 96 points while the Nasdaq added 66 points as the US 10-year yield inched higher at 4.132%. In Hong Kong, equities rebounded with the HSI ending the day almost 400 points higher. Overall sentiment improved after China’s Premier Li Qiang calls for more forceful stimulus by mobilizing 2 trillion Yuan (US$278 bn) to stabilize the Hong Kong market. Back home, the FBM KLCI managed to add another 5 points to edge closer to the 1,500 mark as accumulation of stocks remained in a controlled manner. We still see the 1,500 mark as a formidable resistance and needs to be broken decisively to maintain the index upward trajectory. Thus, for today, we expect the index to hover within the 1,490- 1,500 range. Meanwhile, a rebound amongst the stocks in the small caps saga had certainly ease some blood pressure for now.

Source: Rakuten Research - 24 Jan 2024

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