Previous Day Highlights

FBM KLCI closed higher as buying momentum continue across the board. The benchmark index was up 0.52% or 7.95 pts to close at 1,544.02. Majority of sectors were positive with utilities (+0.9%), consumer (+0.7%), and transportation (+0.5%), leading the gains; while losers were seen in construction (-0.8%), and property (- 0.1%). Market breadth was positive with 577 gainers against 465 losers. Total volume stood at 3.18bn shares valued at RM2.13bn.

Major regional indices trended mostly higher following China’s upbeat manufacturing data. SHCOMP increased 1.19%, to close at 3,077.38. Nikkei 225 eased 1.40%, to finish at 39,803.09. STI rose 0.34%, to close at 3,234.89. HSI resume closure for Easter Monday.

Wall Street closed mixed as rate cut optimism fades. The DJIA dropped 0.60%, to end at 39,566.85. Nasdaq rose 0.11%, to close at 16,396.83. S&P500 eased 0.20%, to finish at 5,243.77.

News For The Day

MISC signs charter contracts with QatarEnergy

MISC, which owns one of the world's largest fleets of petroleum shipping vessels, announced that it has secured long-term contracts for three liquefied natural gas (LNG) carriers from QatarEnergy. The contract involves the time charter of three newbuild LNG carriers to be constructed by Samsung Heavy Industries Co Ltd. These carriers will be chartered by QatarEnergy for a firm period of 15 years starting from 2026 onwards. - The Edge Markets

Kerjaya Prospek secures earthworks job for RM33.19m

Kerjaya Prospek Group's wholly-owned subsidiary Kerjaya Prospek (M) SB has accepted a letter of award from Persada Mentari SB, an indirect subsidiary company of E&O, for piling and earthworks at a service apartment at Tanjung Pinang in Pulau Pinang for RM33.19m. The contract will commence on June 17, 2024, and to be completed within 12 months. -The Star

HSS Engineers boosts regional presence with 12% stake in PT

Oriental HSS Engineers is acquiring a 12% equity stake in PT Oriental Consultants Indonesia to bolster its regional presence. PT Oriental, a 55% subsidiary of Oriental Consultants Global Co Ltd, is an Indonesian firm specialising in engineering consultancy services, including engineering design, urban planning services, and construction consultancy. The acquisition is to take advantage of the booming construction sector in Indonesia, along with its partnership with OC Global in the country. -The Star

AZRB bags RM316m Istana Abu Bakar renovation contract

Ahmad Zaki Resources (AZRB) said it has been awarded a contract worth RM315.90m by the Public Works Department for upgrading and renovation works on Istana Abu Bakar in Pekan, Pahang. The company said its wholly-owned subsidiary Ahmad Zaki SB received the letter of acceptance and that the contract would be valid for 30 months, starting from April 1, 2024.- The Edge Markets

Betamek to acquire tuner-and-stereo maker Sanshin

Betamek said it is acquiring tuner and car stereo maker Sanshin (M) SB for RM13.44m from its Japanese owner. The addition of Sanshin's products and its production capacity is expected to broaden Betamek's offerings and generate “favourable” profit margins, the company said. Sanshin also offers access to clients in Japan, Hong Kong and Thailand, it noted. The proposed acquisition is expected to be completed by 2QFY3/25, the company said. - The Edge Markets

Our Thoughts

Wall Street kicked off the 2Q on a mixed note as sentiment remains affected by the stronger than expected inflation data rendering the Federal Reserve in no hurry to cut rates. While the DJI Average dropped 240 points, the Nasdaq added 17 points as the US 10-year yield eased marginally to 4.317%. Hong Kong market will resume trading today. Back home, the FBM KLCI closed broadly higher to almost the 1,545 mark. We believe recent continuous accumulation by the local institutions a good sign as this should only force the foreign funds to buy at higher levels when they return. As for the benchmark index, it needs to break the 1,550 level decisively to sustain its 2nd leg of uptrend hence we expect it to hover the 1,545-1,555 range today. Meanwhile, Gold prices has touched an all-time high at US$2,254/oz as traders began their shift from equities.

Source: Rakuten Research - 2 Apr 2024

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