Previous Day Highlights

FBM KLCI pared its earlier losses to end slightly lower attributed to late buying activities. The benchmark index was down 0.15% or 2.29 pts to close at 1,536.98. Majority of sectors were negative with plantation (-1.6%), utilities (- 0.8%), and energy (-0.7%) leading the losses; while gainers were seen in technology (+0.4%), and construction (+0.3%). Market breadth was negative with 653 losers against 381 gainers. Total volume stood at 3.81bn shares valued at RM2.8bn.

Major regional indices trended mixed after China's new growth targets announcement. HSI declined 2.61%, to end at 16,162.64. SHCOMP increased 0.28%, to close at 3,047.79. Nikkei 225 closed flattish at 40,097.63. STI slid 0.48%, to close at 3,107.10.

Wall Street closed sharply lower as profit taking activities emerged following the recent rally. The DJIA dropped 1.04%, to end at 38,585.19. Nasdaq eased 1.65%, to close at 15,939.59. S&P500 eased 1.02%, to finish at 5,078.65.

News For The Day

Solarvest to install solar systems in 300 PETRONAS stations

Solarvest Holdings, via its subsidiary Solarvest Energy SB, has been appointed by Gentari Renewables SB to install solar power systems at over 300 PETRONAS stations in Malaysia. The project is aimed to commence in April 2024, and will see the installation of more than 5.4 MWp of solar capacity across more than 300 PETRONAS stations. Gentari Renewables is a subsidiary of Gentari SB, a unit of PETRONAS focused on delivering clean energy solutions. The solar systems are expected to be operational by 2027.-The Star

IWH, PLS Plantations to develop park, innovation hub in Johor

Iskandar Waterfront Holdings SB (IWH) and PLS Plantations, two entities linked to tycoon Tan Sri Lim Kang Ho, are in talks with a China state-owned company to develop an industrial park and innovation hub in Johor. The two companies inked a memorandum of understanding (MOU) with Shenzhen provincial government-owned Shenzhen Shenyue Joint Investment Co Ltd (SSJI) for the proposed development of a 1,000-acre Johor- Shenzhen Industrial Park in Ulu Sedili, together with a 50-acre Johor-Shenzhen Innovation Development Hub in Johor Bahru. - The Edge Markets

Paramount aims for RM1.4bn sales in FY24

Paramount Corp aims to sell RM1.4bn worth of properties in FY12/24 and plans to launch projects worth RM2.4bn in gross development value this year, including some delayed projects. Paramount booked a 37.6% YoY jump in net profit to RM82.84m for FY23 from RM60.2m, as revenue rose 19.44% YoY to RM1.01bn from RM847.46m, mainly fuelled by improvements in all its business segments, namely property, co-working, investment and others. -The Edge Markets

Fajarbaru bags RM121m job to build clubhouse

Fajarbaru Builder Group has won a RM120.82m contract to build a clubhouse and a driving range complex in Johor Bahru. The Johor Golf and Country Club (JGCC) project was awarded by Tanjung Nakhoda (M) SB. The contract period is 90 weeks from March 11, 2024 to Nov 30, 2025. -The Edge Markets

Crest Builder secures RM448.5m development contract

Crest Builder Holdings' wholly-owned subsidiary Crest Builder SB has received a contract worth RM448.5m from Sunway Velocity Three SB for the proposed commercial development of service apartments in Section 90, Jalan Shahbandar, Kuala Lumpur. The construction works will take approximately 43 months to complete from its scheduled site possession date of March 15, 2024, and targeted to be completed by Oct, 14, 2027.-The Star

Our Thoughts

Wall Street slumped as sellers emerged following the recent record breaking sessions by the 3 major indices. Concerns that prevailing fundamentals may not be able to sustain the high valuations prompted some traders to lock in profits. As a result, the DJI Average lost 404 points while the Nasdaq declined by 268 points despite the US 10-year yield easing to 4.151%. Over in Hong Kong, the HSI weakness continues as it closed 433 points lower to hover just above the 16,000 threshold after China’s annual parliamentary meeting which unveiled only modest fiscal measures amid some ambitious growth targets. Back home, the FBM KLCI pared earlier losses to end slightly lower attributed to some late buying activities. Regional weaknesses coupled with the lack of fresh leads saw a weak morning session for the local bourse. Though we expect market undertone to stay cautious from the decline on Wall Street, a swift rebound is required for the FBM KLCI to maintain its recent progress. Therefore, we believe the index to hover within the 1,535-1,545 range today and recent positive newsflow within the Construction sector should bode well for the contractors.

Source: Rakuten Research - 6 Mar 2024

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