Previous Day Highlights

FBM KLCI closed marginally higher after a volatile trading session. The benchmark index was up 0.08% or 1.25 pts to close at 1,539.27. Gainers were seen in construction (+1.00%), plantation (+1.00%), and property (+0.52%); while losers were seen in technology (-0.78%), telecommunications (-0.77%), and transportation (- 0.37%). Market breadth was negative with 536 losers against 426 gainers while 461 counters were unchanged. Total volume stood at 3.33bn shares valued at RM2.56bn.

Major regional indices trended mixed amid ongoing stimulus efforts by the Chinese authorities. HSI closed flat at 16,595.97. SHCOMP increased 0.41%, to close at 3,039.31. Nikkei 225 up 0.50%, to finish at 40,109.23. STI slid 0.43%, to close at 3,122.21.

Wall Street closed lower amid uncertain sentiment ahead of economic data. The DJIA declined 0.25% to end at 38,989.83. Nasdaq dropped 0.41%, to close at 16,207.51. S&P500 slid 0.12%, to finish at 5,130.95.

News For The Day

Tenaga flags RM400m capacity payment loss

Tenaga Nasional (TNB) guided that the prolonged outage of Manjung 4 power plant may lead to capacity revenue loss of RM400m this year, prompting analysts to moderate their earnings growth forecasts. Its power generation unit may also experience reduction in the so-called capacity rate financing (CFR), fixed payment to cover debt service for some of its other power plants leading to lower revenue, Tenaga told analysts who attended its earnings briefing. -The Edge Market

HCK Capital buys land in Selangor for RM34m

HCK Capital Group is acquiring land measuring 19,243 sq metres in Bukit Raja, Selangor, from Ecofirst Worldwide SB for RM34m. HCK said the proposed acquisition will be a synergistic purchase that will enable the group to increase its landbanks and improve its future development profits.-The Star

Iskandar Waterfront outlines RM4.3bn development projects

Iskandar Waterfront City has unveiled its 10-year development plan comprising three projects in Johor Bahru, with an aggregate gross development value (GDV) of RM4.33bn. The 10- year development plan comprises the RM3.5bn waterfront township Tebrau Bay, RM500m mixed waterfront development Danga Rivera, and RM330m mixed-use development project Danga Heights.-The Edge Markets

Deleum eyes regional growth with US$7m acquisition

Deleum is seeking to acquire a 70% stake in valves company OSA Industries Indonesia for US$7m (RM33.1m) to fortify its power and machinery business in Indonesia. The acquisition by its unit Deleum Services SB represents 70% of OSAII’s total valuation of US$10m, subject to due diligence and finalisation of definitive agreements. Deleum has entered the heads of agreement with five parties, including OSAII and its shareholders Ong Siow Aik and OSA Industries Pte Ltd, to undertake due diligence on the acquisition target. -The Edge Markets

SMRT lands ATM infrastructure project in the Philippines

SMRT Holdings has been awarded a project by Pito AxM Platform (PAPI) to deploy its managed ATM infrastructure solutions in the Philippines through its wholly owned subsidiary N’osairis Technology Solutions Inc (NTSI). SMRT did not disclose the value of the project, which will take place over three years, with NTSI deploying its solutions at the designated ATM sites by the end of 2024. “Following the deployment, SMRT shall fully manage the sites’ network infrastructure for three years, commencing from the installation date of each site,” said SMRT.-The Edge Markets

Our Thoughts

Wall Street retreated as traders were sidelined after a record breaking run amid the ongoing rally within the AI frenzy. Interests are shifted to the Federal Reserve updates on its policy over the next 2 days to gauge the outlook for interest rates. As such, the DJI Average declined by 97 points while the Nasdaq fell 67 points as the US 10-year yield edged higher at 4.217%. In Hong Kong, the HSI ended off the day’s low as focus moved to China’s annual legislative session today to determine the government budgets to tackle the sluggish Chinese economy. At home, the FBM KLCI closed above water attributed to last minute buying activities after a solid performance during the morning session. We see market undertone has turned cautious with investors looking for fresh leads hence expect the index to hover within the 1,545-1,555 range today as daily volume shrunk to the 3bn shares level.

Source: Rakuten Research - 5 Mar 2024

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