Previous Day Highlights

The FBM KLCI closed lower due to selling activities. The benchmark index ended 0.87% or 13.42 pts lower to close at 1,538.02. Majority of sectors were negative with construction (-2.7%), energy (-1.6%), and property (-1.3%) leading the losses; while gainers were seen in plantation (+0.4%), and health care (+0.2%). Market breadth was negative with 679 losers against 396 gainers. Total volume stood at 4.82bn shares valued at RM3.09bn.

Major regional indices closed mostly higher despite the China’s weak factory activities. HSI gained 0.47%, to end at 16,589.44. SHCOMP increased 0.39%, to close at 3,027.02. Nikkei 225 was up 1.90%, to finish at 39,910.82. STI slid 0.19%, to close at 3,135.76.

Wall Street closed higher bolstered by sustained AI frenzy. The DJIA added 0.23%, to end at 39,087.38. Nasdaq rose 1.14%, to close at 16,274.94. S&P500 rose 0.80%, to finish at 5,137.08.

News For The Day

Hibiscus to write off RM27m due to unviable well

Hibiscus Petroleum plans to write off RM27m in capital cost estimates for its South Furious Merah exploration well after an initial assessment found that the hydrocarbon volumes seen in the well may not achieve commercially viable economic thresholds. The South Furious Merah exploration well is part of Hibiscus Petroleum’s drilling programme by its indirect wholly- owned subsidiary, SEA Hibiscus SB, to drill three exploration wells, to evaluate prospective Near Field exploration locations within the boundaries of the 2011 North Sabah Enhanced Oil Recovery Production Sharing Contract.-The Star

Sapura Energy's Mexican unit declared bankrupt

Sapura Energy said a Mexican unit of the group has been declared bankrupt, after it had failed to restructure its debts with creditors within the stipulated time frame given by a court in that country. Sapura Energy Mexicana Sociedad Anónima Promotora de Inversión de Capital Variable (SEM), is a wholly owned subsidiary of Sapura Offshore SB and SapuraMex Pte Ltd. SEM is challenging the court's decision and is preparing an appeal against the bankruptcy declaration. -The Edge Market

Pekat Group sells vacant industrial plot for RM21m cash

Pekat Group is selling an industrial freehold land, measuring 12,813.89 sq m, for RM21m cash, to realise the value of the unused property, with proceeds from the sale to be used for working capital. The group's wholly owned Pekat Teknologi SB had inked an unconditional sale and purchase deal with Titan Equity SB for the proposed disposal. -The Edge Markets

Country Heights faces trading suspension

Having missed the Feb 29, 2024 deadline to release 4QFY12/23 results, Country Heights Holdings is likely to be slapped with a trading suspension. CHHB said the results were delayed as the Malaysian Department of Insolvency is still verifying the claims amount between the creditors and Mines Waterfront Business Park SB, an indirect wholly owned subsidiary of the company that is in liquidation, due to non-substantiated claims. The management is also in the midst of negotiation with a bank on the defaulted loan. -The Edge Markets

ACE Market-bound Alpha IVF to raise RM466.5m from IPO

Alpha IVF Group aims to raise RM466.5m from its initial public offering (IPO) en route to its listing on the ACE Market of Bursa Malaysia on March 22, 2024. The fertility care specialist's IPO exercise entails 1.46bn shares in the company priced at 32 sen per share, comprising 364.5m new shares and 1.09bn offer-for- sale shares from eight offerors. -The Star

Our Thoughts

Record chasing Wall Street closed on another high as sentiment remains very much entrenched on the AI frenzy. While the DJI Average gained 91 points, both the Nasdaq and S&P500 tested record highs adding 183 points and 41 points respectively. Meanwhile, the US 10- year yield eased further to 4.186%. In Hong Kong, the HSI closed higher as traders are betting that Chinese authorities will inject more stimulus following another dip in manufacturing activities for February. On the home front, the FBM KLCI surprisingly performed quite badly to dip below the 1,540 level after a positive start as profit taking activities emerged despite some decent corporate earnings results. Nonetheless, we remain adamant that buying from foreign funds to persist thus expect the local bourse to stage a rebound and hover within the 1,540-1,550 range today. Meanwhile, we noticed that daily volume traded has been improving over the last few days illustrating better retail participation.

Source: Rakuten Research - 4 Mar 2024

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