Previous Day Highlights

20 March 2024 FBM KLCI closed lower mirroring the lacklustre performance across the region. The benchmark index was down 0.56% or 8.68 pts to close at 1,544.96. Gainers were seen in property (+1.03%), health care (+0.50%), and REIT(+0.27%); while losers were seen in utilities (-0.58%), telco (-0.48%), and financial services (-0.33%). Market breadth was mixed with 510 gainers against 502 losers while 486 were unchanged. Total volume stood at 4.06bn shares valued at RM3.09bn.

Major regional indices trended broadly lower amid the hawkish outlook from the Fed. HSI declined 1.24%, to end at 16,529.48. SHCOMP dropped 0.72%, to close at 3,062.76. Nikkei 225 up 0.66%, to finish at 40,003.60. STI closed flat at 3,173.55.

Wall Street concluded on a positive note, notwithstanding investor apprehensions regarding the central bank potentially signalling a prolonged period of higher interest rates than previously anticipated. The DJIA jumped 0.83%, to end at 39,110.76. Nasdaq added 0.39%, to close at 16,166.79. S&P500 gained 0.56% to finish at 5,178.51.

News For The Day

YTL Power to manage Nvidia’s AI supercomputer in Johor

YTL Power International has set up YTL AI Cloud, a specialised provider of massive-scale graphics processing unit (GPU)-based accelerated computing, to deploy and manage one of the world’s most advanced supercomputers on Nvidia Grace Blackwell-powered DGX Cloud, for accelerating the development of generative AI. YTL Power will adopt the Nvidia GB200 NVL72, which is a multi-node, liquid-cooled, rack- scale system with fifth-generation NVLink. -The Edge Markets

Eita Resources bags RM48m job

Eita Resources said its 60%-owned unit has won a RM48m contract from TNB to supply a new outdoor transmission substation in Ayer Puteh, Perak. The scope of work includes the erection, testing and commissioning of the 132kV conventional substation, as well as civil, transmission lines and remote ends relay retrofits.- The Edge Markets

KJTS wins RM6.6m contract from Takaful Malaysia

KJTS Group’s wholly-owned subsidiary, KJ Technical Services SB has secured a contract totalling RM6.6m from Syarikat Takaful Malaysia Keluarga. The contract is for the replacement works of the chiller system and subsequently the provision of operation and maintenance (O&M) services at Menara Takaful in Kuala Lumpur..-The Star

Bonia to acquire 30% stake in ITSH for RM7.5m

Bonia Corp is proposing to subscribe to 6.19m shares, or a 30% stake in IT SEA Holdings SB (ITSH) for RM7.5m. If materialises, this will complement and increase Bonia’s range of product offerings adding brand names such as “A Bathing Ape”, “Aape”, and the “I.T.” multi- label brands to Bonia Group’s existing suite of brand names.-The Star

ACE Market-bound Alpha IVF posts 2Q net profit of RM12m

Alpha IVF Group posted its 2Q24 net profit of RM12.21m, on the back of revenue of RM38.54m, riding the wave of medical tourism and growing need for IVF treatments. The revenue was derived mainly from the provision of assisted reproductive services focusing on in-vitro fertilisation (IVF) treatments. -The Edge Markets

Poh Kong expects economic growth

Poh Kong posted its 2QFY7/24 revenue of RM423.8m compared to RM403.8m YoY, on the back of a stronger demand for gold jewellery and gold investment products. Its profit was also higher at RM28.25m for the quarter as gold prices had improved plus a strengthening local economy on the back of better global trade.-The Star

Our Thoughts

Wall Street closed broadly higher following a brief correction recently as traders are now keeping a close tab on the FOMC meeting that started yesterday, As such, the DJI Average jumped 320 points while the Nasdaq added 63 points as the US 10-year yield eased slightly to 4.293%. Over in Hong Kong, the HSI lost 208 points as sentiment turned cautious over the forthcoming corporate earnings which are expected to be weak coupled with a less positive outlook for interest rates from the FOMC meeting following recent hot US inflation data. At home, the FBM KLCI underwent a minor consolidation as profit-taking activities emerged amid a dampened market undertone after a 3-day climb. In line with this, both YTL International and YTL Corp closed lower after a solid opening. We believe the prevailing trading mode to persist until the outcome from the FOMC is revealed hence we see the index to hover within the 1,540-1,550 range today.

Source: Rakuten Research - 20 Mar 2024

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