Previous Day Highlights

FBM KLCI closed higher driven by strong buying activities during the final hour of trading session. The benchmark index was up 0.60% or 9.11 pts to close at 1,515.39. Gainers were seen in plantation (+1.35%), financial services (+0.69%), and energy (+0.57%); while losers were seen in health care (-0.75%), construction (- 0.56%), and utilities (-0.51%). Market breadth was mixed with 513 gainers against 499 losers while 471 remain unchanged. Total volume stood at 4.32bn shares valued at RM2.98bn.

Major regional indices trended mixed amid cautious market undertone following a liquidation order on China property developer Evergrande. HSI gained 0.78%, to end at 16,077.24. SHCOMP dropped 0.92%, to close at 2,883.36. Nikkei 225 up 0.77%, to finish at 36,026.94. STI slid 0.61%, to close at 3,140.31.

Wall Street closed higher as market participants looked ahead to this week's economic data and the Federal Reserve's monetary policy meeting. The DJIA added 0.59%, to end at 38,333.45. Nasdaq rose 1.12%, to close at 15,628.04. S&P500 gained 0.76%, to finish at 4,927.93.

Our Thoughts

Wall Street closed broadly firmer ahead of some megacap tech earnings and economic data to be released soon. Meanwhile, many are also expecting the FOMC to maintain interest rates when they meet later today. As such, the DJI Average gained 224 points while the Nasdaq jumped by 173 points with the US 10-yeat yield eased slightly to 4.076%. Over in Hong Kong, the HSI continued with its rebound to close above the 16,000 level but off the day’s high following the court sending China’s Evergrande into liquidation. Back home, the FBM KLCI maintained its upward trajectory underpin by a more consistent inflow of foreign funds of late. Now that the benchmark index has broken the 1,500 mark rather decisively, we believe there are more legs for the index to go with the 1,600 as the next strong resistance. Thus, we expect the index to hover within the 1,515-1,525 range today amid a more conducive environment whereby regional central banks are maintaining their respective interest rates so far.

News For The Day

YTLPOWR to build S$800m hydrogen-ready power plant

YTL Power Seraya Pte Ltd, a wholly owned subsidiary of YTL Power International, won the right to build, own and operate a hydrogen-ready combined cycle gas turbine (CCGT) unit with a capacity of at least 600 Megawatts (MW) in Singapore. This follows a request for proposal (RFP) called by the Energy Market Authority (EMA) of Singapore in July 2023.The power plant is estimated to cost S$800m (approximately RM2.82bn) and is targeted to be completed by Dec 31, 2027.-The Edge Markets

LCTitan FY23 net loss widens YoY; 4Q loss narrows to RM186m

Lotte Chemical Titan Holding (LCTitan) booked its seventh consecutive quarter in the red in 4QFY12/23, which saw losses narrow amid lower feedstock costs and forex gains. Quarterly net loss came in at RM186.48m from RM333.64m YoY. The lower losses came despite a 10.26% YoY decline in quarterly revenue to RM1.86bn, from RM2.07bn, which LCTitan attributed to lower sales volume amid slower economic activities in the region. LCTitan’s FY23 results saw its full-year net loss widen YoY to RM780.29m from RM731.06m, with a 23.68% YoY drop in fullyear revenue to RM7.65bn from RM10.19bn due to decline in margin spreads. -The Edge Markets

VSTECS partners SpaceX to distribute Starlink in Malaysia

VSTEC’s wholly owned subsidiary, VSTECS Astar SB, has collaborated with SpaceX to be Starlink authorised distributor in Malaysia to offer high-speed Internet nationwide. The group has appointed Harvey Norman as the first official retailer and is actively building a network of retailers to maximise seamless deployment across the country.-The Star

Varia secures RM94.86m flood mitigation contract

Varia has secured a contract worth RM98.86m to undertake the Klang River Flood Mitigation Project in Seksyen 25 Shah Alam. Varia said its wholly-owned subsidiary, Mewah Kota SB secured a letter of award from Kator Construction SB for the project. The project is set to commence on Feb 1 with a completion timeline extending to Dec 31, 2029.-The Star

Econframe’s 1Q net profit jumps 88.6% on higher revenue

Econframe’s 1QFY8/24 net profit jumped 88.6% YoY to RM4.4m from RM2.33m, on the back of higher revenue. Quarterly revenue rose 61% YoY to RM27.19m from RM16.87m, underpinned by higher revenue from the manufacturing segment, mainly due to contribution from its recently acquired 65%-owned subsidiary Lee & Yong Aluminium SB, a specialist in the fabrication and installation of aluminium glazing, glass products, and facade works.– The Edge Markets

Source: Rakuten Research - 30 Jan 2024

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