Previous Day Highlights

FBM KLCI closed higher driven by the steady sentiment after Bank Negara kept the OPR unchanged at 3%. The benchmark index was up 0.28% or 4.32 pts to close at 1,535.83. Majority of the sectors were positive with construction (+1.4%), property (+0.8%), and plantation (+0.7%), leading the gains; while losers were seen in healthcare (-0.6%), and REIT (-0.1%). Market breadth was positive with 546 gainers against 452 losers. Total volume stood at 3.55bn shares valued at RM2.6bn.

Major regional indices trended negative despite stronger than expected China trade data. HSI tumbled 1.27%, to end at 16,229.78. SHCOMP dropped 0.41%, to close at 3,027.40. Nikkei 225 slid 1.23%, to finish at 39,598.71. STI eased 0.08%, to close at 3,133.78.

Wall Street closed higher driven by optimism surrounding the prospect of rate cuts. The DJIA added 0.34%, to end at 38,791.35. Nasdaq rose 1.51%, to close at 16,273.38. S&P500 rose 1.03%, to finish at 5,157.36.

News For The Day

Lotte Chemical mulls strategic moves for Lotte Titan Holding

Lotte Chemical Titan Holding (LCT) has clarified that after a thorough inquiry, Lotte Chemical Corp (LCC) is currently weighing various strategic measures related to the company. LCC, South Korea’s No. 2 petrochemicals company, has a 74.72% stake in LCT. LCT is one of LCC’s largest overseas subsidiaries. “We wish to clarify that after making due enquiry, we understand that LCC is considering various strategic measures related to the company without making any decision thus far,” LCT said.-The Star

DNeX plans collaboration with paperless trade infra operator

Dagang NeXchange (DNeX) is planning to collaborate with Korea Trade Network (KTNET) on several initiatives involving port community system, electronic customs and IT consultancy services for trade facilitation. DNeX's wholly-owned Dagang Net Technologies SB (DNT) has inked a two-year memorandum of understanding with KTNET for the deployment of home-grown technologies from DNT and global capabilities from KTNET to assist in the transformation of the trade facilitation industry, jointly develop products and services by leveraging on the expertise of both parties, and to expand the offerings each has to offer to their respective clients. -The Edge Markets

PLS Plantations to build regional wholesale market in Johor

PLS Plantations has entered into a memorandum of business exploration with China-based Guangzhou Jiangnan Agriculture Development Co Ltd to build a regional one-stop wholesale market in Pasir Gudang, Johor for the processing and marketing of Malaysian agricultural produce. The regional wholesale market was a significant step towards boosting Malaysia’s food security programme.-The Star

KESM Industries registers turnaround in 2Q

Integrated circuits burn-in and test service provider KESM Industries has reported its 2QFY7/24 net profit of RM138,000 compared with a net loss of RM720,000 YoY, on the back of higher sales generated from processing automotive chips. Quarterly revenue rose 10.32% YoY to RM61.77m from RM55.99m. -The Edge Markets

Tex Cycle subscribes to perpetual MTN worth RM10m

Tex Cycle Technology (M) has subscribed to a perpetual medium-term note (MTN) with a nominal value of RM10m. Tex Cycle said the perpetual MTN offers a fixed return of 7.5% per annum, providing a steady and predictable income stream through regular semi-annual interest payments until redemption. -The Edge Markets

Our Thoughts

Wall Street rebounded with both the Nasdaq and S&P 500 notching record highs as sentiment was boosted by the European Central Bank keeping rate steady while forecasting an easing inflation environment. As such, the DJI Average gained 130 points while both the Nasdaq jumped 242 points and 53 points respectively. Meanwhile, the US 10-year yield slid to 4.088%. In Hong Kong, the HSI tumbled 208 points amid heightened geopolitical tension after the US Senate advanced a bill targeting at Chinese biotech companies. At home, the FBM KLCI closed higher spearheaded by the Plantation sector amid BNM maintaining the OPR steady at 3%. Nonetheless, overall sentiment remains cautious as daily volume has reverted to the norm averaging at 3.5bn shares. Taking cue from the lower interest rate scenario, we believe the local bourse should sustain its uptrend and expect the index to hover within the 1,535-1,545 range today

Source: Rakuten Research - 8 Mar 2024

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