Previous Day Highlights

FBM KLCI closed marginally higher despite the weak performance across the region. The benchmark index was up 0.18% or 2.81 pts to close at 1,547.57. Majority of the sectors were negative with technology (-1.7%), construction (-1.3%), and property (-1.2%) leading the decline; while gainers were seen in energy (+1.8%), and plantation (+0.3%). Market breadth was negative with 918 losers against 289 gainers. Total volume stood at 4.71bn shares valued at RM3.4bn.

Major regional indices trended negatively amid the heightened geopolitical tension. HSI declined 0.99% to 16,224.14. SHCOMP dropped 0.29% to 3,065.26. Nikkei 225 dived 2.66% to 37,068.35. STI slid 0.35%, to close at 3,176.51.

Wall Street closed mixed, dragged by tech stocks. The DJIA added 0.56%, to end at 37,986.40. Nasdaq fell 2.05%, to close at 15,282.01. S&P500 lost 0.88%, to finish at 4,967.23.

News For The Day

MISC enters time charter party contracts with Petronas unit

MISC , via its petroleum arm AET, entered into time charter party contracts with PETCO Trading Labuan Company Ltd for the world’s first two ammonia dual-fuel Aframaxes (tankers with a deadweight of between 80,000 and 120,000 tonnes), as it seeks to reduce overall emissions from its operations. MISC said the tankers will enable PTLCL to transport its products to customers around the world while contributing to the industry decarbonisation by utilising ammonia as the cleaner alternative to conventional fuel. -The Edge Markets

PIE Industrial confirms bagging new client

PIE Industrial confirmed that it has secured a new customer and is expecting the new customer to contribute an additional RM2.5bn in revenue to the group, of which RM1bn will be recognised as early as next year. The client specialises in servers and switches, the group's managing director Alvin Mui told, but did not disclose its identity.-The Edge Markets

EG Industries expands partnership with US-based R&D firm

EG Industries has signed a second letter of intent with US-based Cambridge Industries Group (CIG) to produce the next- generation 1.6T advanced high-speed optical signal transmitter and receiver for 5G wireless networks at EG Industries’ new Smart Factory 4.0 in Penang (PG2). The latest LOI will include the production of 800-gigabit (G) optical modules, complementing the previous 100G, 200G, and 400G models in the first LOI in 2022. CIG will transfer its technology and intellectual property (IP) to EG Industries. The Star

Fajarbaru clinches RM13m contract from MAHB

Fajarbaru Builder Group said it has secured a RM13.33m contract to upgrade fire engineering systems at the Kuala Lumpur International Airport’s Terminal 1 satellite building. The contract was awarded to its wholly owned subsidiary Fajarbaru Builder SB by Malaysia Airports (S) SB, a wholly owned unit of Malaysia Airports Holdings (MAHB). The contract duration spans 11 months, starting from April 22.-The Edge Markets

Fitters Diversified bags RM26.1m subcontract from IJM

Fitters Diversified’s wholly-owned subsidiary Fitters Engineering Services SB has secured a RM26.1m subcontract from IJM Construction SB. The subcontract is for the fire protection services on the proposed phase 1A in Shah Alam, Selangor for Messrs. Global Vision Logistics SB. The subcontract commenced on Feb 20 and to conclude on Oct 21, 2025.-The Star

Our Thoughts

Wall Street close mixed amid mounting tension in the Middle east. Confidence is further eroded over the interest rate uncertainty coupled with earnings of some mega caps this week that should instigate some profit taking activities. As such, though the DJI Average added 211 points, the Nasdaq lost 319 points as the US 10-year yield eased marginally to 4.621%. The situation in Hong Kong was also unpromising with the HSI losing 162 points as traders sold equities in favour of safe haven namely gold. Back home, the FBM KLCI managed to close positively underpinned by accumulation from local institutions amid a regional bloodbath. Nonetheless, we believe trading to be muted today as sentiment would have turned cautious in view of the heightened volatility. Therefore, we expect the index to hover within the 1,540- 1,550 range today.

Source: Rakuten Research - 22 Apr 2024

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