Previous Day Highlights

FBM KLCI closed marginally higher as market undertone remained cautious. The benchmark index was up 0.13% or 2.01 pts to close at 1,555.25. Gainers were seen in industrial products & services (+1.06%), plantation (+0.72%), and telecommunications(+0.56%); while losers were seen in energy (-1.35%), utilities (-0.50%), and construction (-0.42%). Market breadth was negative with 563 losers against 483 gainers. Total volume stood at 4.05bn shares valued at RM2.68bn.

Major regional indices trended negatively. HSI closed almost unchanged at 16,723.92 Nikkei 225 dived 1.96%, to finish at 38,992.08. STI slid 0.52% to 3,218.26. Meanwhile, SHCOMP remain closed for Ching Ming Festival.

Wall Street rebounded following the strong labour report. The DJIA added 0.80%, to end at 38,904.04. Nasdaq skyrocketed 1.24%, to close at 16,248.52. S&P500 rose 1.11%, to finish at 5,204.34.

News For The Day

Mah Sing acquires JB land for RM103.75m

Mah Sing Group’s wholly owned subsidiary Venice View Development SB has entered into a conditional sale and purchase agreement to acquire 40.4686 hectares for RM103.75m. Located in Johor, the site is about 400 metres from a June 2023 purchase of 30.63 ha (75.7 acres) known as M Tiara, estimated to have a gross development value of RM1.45bn, Amanah Raya is the vendor. -The Star

KWAP raises stake in Farm Fresh to 5.07%

Retirement Fund Inc (KWAP) bought an additional four million shares in home-grown dairy producer Farm Fresh, raising its stake to 5.07%. The purchase, amounting to a 0.21% stake, exceeded the 5% threshold for substantial shareholders. Although the purchase price was not disclosed, based on the company's closing price of RM1.43, the value of the shares is estimated at approximately RM5.72m. KWAP is now Farm Fresh's sixth largest shareholder. -The Edge Markets

UEM Edgenta unit bags RM963m contracts in Singapore

UEM Edgenta has secured contracts for hospital support services in Singapore for five years, valued up to RM963.49m. The contracts, facilitated by its Singapore-based subsidiary UEMS Solutions Pte Ltd, will contribute positively to future earnings and net assets per share. Although the number of hospitals involved was not disclosed, the total contract value ranges from RM934.57m to RM963.49m, subject to the finalisation of manpower resources. The contracts will not impact the company's issued share capital or the shareholding of substantial shareholders. - The Edge Markets

MMAG appointed freighter operator for MASKargo

MMAG Holdings' subsidiary, MJets Air SB, has been appointed to provide a regional cargo feeder network using narrowbody freighters for MAB Kargo SB (MASKargo) starting May 1, 2024, for a six-month period. The appointment follows MJets Air's acceptance of a letter of award from Malaysia Airlines, a subsidiary of Malaysia Aviation Group. The contract is expected to positively impact MMAG's overall earnings and earnings per share for the FY3/25. -The Edge Markets

Keyfield's IPO public issue oversubscribed 9.69 times Main

Market-bound Keyfield International's initial public offering (IPO) received 9,339 applications for 427.7m issue shares from the Malaysian public, representing an overall subscription rate of 9.69 times. - The Star

Our Thoughts

Wall Street rebounded as traders decided to cheer on the strong job data and ignore the prospects of more delay in interest rates cut for the time being. As a result, the DJIA gained 307 points while the Nasdaq added 199 points as the US 10-year yield edged higher at 4.40%. Over in Hong Kong, the HSI closed flat but off the day’s low over the uncertainty on the Federal Reserve’s stance on rate adjustment. Back home, the FBM KLCI maintained its resilience to end positively despite the weak regional performance. Despite the positive reaction from Wall Street, we believe sentiment to stay cautious hence expect the index to hover within the 1,550-1,560 range today. Buying interests should shift to the Energy sector in line with the solid Brent crude price that closed above the US$91/barrel level.

Source: Rakuten Research - 8 Apr 2024

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