Previous Day Highlights

FBM KLCI closed higher due to bargain hunting activities. The benchmark index was up 0.36% or 5.47 pts to close at 1,536.07. Majority of sectors were positive with energy (+1.0%), utilities (+0.8%), and telecommunications (+0.6%), leading the gains; while losers were seen in plantation (- 0.1%), and consumer (-0.1%). Market breadth was positive with 516 gainers against 469 losers. Total volume stood at 3.06bn shares valued at RM2.59bn.

Major regional indices trended higher. SHCOMP increased 1.01%, to close at 3,041.17. Nikkei 225 added 0.50% to finish at 40,369.44. HSI and STI were closed for a public holiday.

Wall Street was closed for Good Friday.

News For The Day

KWAP as anchor investor for Yinson’s private placement

Yinson Holdings said KWAP is the anchor investor for its private share placement, following completion of the cash call exercise to raise RM283.2m to expand its renewable energy and green technology business. The private placement involved an issuance of 120m new shares or about 4.1% of the group’s total issued shares at an issue price of RM2.36 per share. -The Edge Markets

Cypark records 3Q net loss of RM27.7m

Cypark Resources has registered a 3QFY4/24 net loss of RM27.7m on revenue of RM35.9m. It said the net loss largely stemmed from losses recorded by its waste management and waste-to-energy (WTE) division due to adjustments made on amortisation on trade receivables amounted to RM21m. Going forward, Cypark said it is proactively identifying expansion and diversification opportunities in the industry as it seeks to realise its target of reaching a capacity goal of 800MW by 2027. - The Edge Markets

Signature International gets takeover offer from Chin Hin

Kitchen cabinet manufacturer Signature International has received a conditional takeover offer from home-grown building materials specialist Chin Hin Group on Friday to acquire all remaining shares Chin Hin does not own, at 84sen per share. Chin Hin first bought into Signature in March 2021 at RM1.17per share, when the group paid RM93.6m to buy 80m Signature shares. - The Edge Markets

MKHOP to raise RM136.4m from IPO

MKH Oil Palm (East Kalimantan) Bhd (MKHOP) is set to raise RM136.4m from its initial public offering (IPO), en route to a listing on the Main Market of Bursa Malaysia on 30 April 2024. With an enlarged issued share capital of 1.02bn shares and an IPO price of 62sen per share, MKHOP will have a market capitalisation of RM634.6m upon listing. -The Star

US monthly inflation slows

US prices increased less than expected in February, with the cost of services outside housing and energy slowing significantly, keeping a June interest rate cut from the Federal Reserve on the table. The report from the Commerce Department on Friday also showed consumer spending rising by the most in just over a year last month, underscoring the economy's resilience. - The Edge Markets

Our Thoughts

Both the US and Hong Kong markets were closed last Friday. The Hong Kong market will resume trading on Tuesday before closing again on 4th April. Domestically, the FBM KLCI managed to close higher aligned with the positive regional performances despite some strong selling during the afternoon session. We noticed there were strong buying interests among the Financials and Telcos late in the session that helped prop the index up. For today, we believe sentiment to remain uninspiring thus expect the index to hover within the 1,530-1,540 range. Meanwhile, the crude palm oil (CPO) continued with its uptrend at around the RM4,200/tonne in line with the strength of other edible oils. As for crude oil, the Brent crude closed at US$87/barrel amid a better economic environment and production cuts by OPEC+ and many anticipate the price to surpass US$90/barrel soon.

Source: Rakuten Research - 1 Apr 2024

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