Previous Day Highlights

FBM KLCI closed higher due to bargain-hunting activities following the recent downturn. The benchmark index was up 0.28% or 4.34 pts to close at 1,544.76. Majority of sectors were positive with utilities (+1.9%), health care (+0.8%), and REIT (+0.7%), leading the gains; while losers were seen in energy (-0.7%), and telecommunications (-0.5%). Market breadth was positive with 570 gainers against 469 losers. Total volume stood at 3.84bn shares valued at RM2.62bn.

Major regional indices trended positively. HSI gained 0.82%, to end at 16,385.87. SHCOMP increased 0.09%, to close at 3,074.23. Nikkei 225 was up 0.31%, to finish at 38,079.70. STI rose 1.05%, to close at 3,187.66.

Wall Street closed mixed on Thursday. The DJIA added 0.06%, to end at 37,775.38. Nasdaq eased 0.52%, to close at 15,601.50. S&P500 dipped 0.22%, to finish at 5,011.12.

News For The Day

Malaysia’s Axiata, Bharti Airtel to combine Sri Lankan ops

Axiata Group and India’s Bharti Airtel Ltd signed a definitive agreement to combine their Sri Lankan operations. Under a share swap deal, Axiata’s unit Dialog Axiata will acquire a 100% stake in Airtel Lanka, with issuance equivalent to 10.355% of Dialog shares to Bharti Airtel. The Telecommunications Regulatory Commission of Sri Lanka has granted its approval for the proposed merger, though the transaction is still pending other relevant approvals.-The Edge Markets

AmFirst REIT 4Q net property income falls 7.8%

AmFirst REIT 4QFY3/24 net property income fell 7.82% YoY to RM14.5m from RM15.73m mainly due to higher property expenses. Revenue slipped 0.26% YoY to RM25.61m from RM25.67m, due to lower occupancy at several of its properties. It expects the office market to remain challenging due to oversupply while the retail sector is expected to grow at a moderate level amid soft consumer demand. A distribution per unit of 1.18 sen was also declared payable on May 31, 2024.-The Edge Markets

Pansar bags RM269m job for water treatment plant

Pansar has secured a contract worth RM269.1m to upgrade the capacity of a water treatment plant in Sibu, Sarawak. The construction and infrastructure outfit secured the job from Lembaga Air Sibu via an open tender, through its wholly-owned Perbena Emas SB. The 30-month job from May this year would require Pansar to upgrade the capacity of the Salim Water Treatment Plant from its current 150m litres per day (MLD) to 300 MLD. -The Edge Markets

Astaka awards Kimlun RM150m construction contract

Singapore-listed Astaka Holdings Limited has awarded a RM150m construction contract to Kimlun SB, a subsidiary of Kimlun Corp. Kimlun will assume the role of main contractor for the RM254m gross development value (GDV) project, Aliva. Aliva will have a total of 499 units and is strategically positioned to target the premium market segment in Mount Austin, a bustling township in Johor Bahru. The development is slated for completion in 4QCY26.-The Star

Trading in Awanbiru shares to be suspended April 26

Trading in the securities of Awanbiru Technology Bhd will be suspended effective April 26, 2024, as it has failed to comply with the conditions imposed by Bursa Malaysia. The company said it had failed to submit its regularisation plan to the relevant regulatory authorities for approval within the extended timeframe of April 13, 2024.-The Star

Our Thoughts

It was another mixed day on Wall Street as traders were sidelined, unwilling to commit themselves amid the numerous headwinds. Due to US equities’ high valuations, any shortcomings from the upcoming earnings reporting will see another bout of selling. In view of the choppy session, the DJI Average added 22 points, while the Nasdaq lost 82 points with the US 10-year yield edged higher at 4.637%. In Hong Kong, the HSI jumped 134 points from bargain hunting activities as many traders are attracted by the low valuations of HK stocks as the banks, insurers and casino operators all ended higher. Locally, the FBM KLCI rebounded attributed to broad-based buying in line with the regional recovery. However, we believe overall sentiment remains jittery and there is a bias that investors may eventually go “Cash is King”. For today, we expect the index to hover within the 1,540-1,550 range. Anyhow, we noticed that a correction has started amongst the commodities namely CPO which dipped to below RM4,000/tonne and the Brent crude that eased to US$86/barrel.

Source: Rakuten Research - 19 Apr 2024

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