Previous Day Highlights

FBM KLCI closed higher as market undertone remains steady. The benchmark index was up 0.19% or 3.13 pts to close at 1,617.86. All of the sectors were positive with health care (+2.9%), property (+1.5%), and construction (+1.3%), leading the gains. Market breadth was positive with 818 gainers against 395 losers. Total volume stood at 5.73bn shares valued at RM4.05bn.

Major regional indices trended within a narrow range. HSI declined 0.59%, to end at 18,366.95. SHCOMP added 0.08%, to close at 3,051.28. Nikkei 225 eased 0.05%, to finish at 38,683.93. STI ended almost unchanged at 3,330.77.

Wall Street closed lower following the hot job data, which dampened hopes of an interest rate cut. The DJIA dropped 0.22%, to end at 38,798.99. Nasdaq slipped 0.23%, to close at 17,133.13. S&P500 declined 0.11%, to finish at 5,346.99.

News For The Day

Public Bank to acquire RHB’s Vietnam stockbroking business

Public Bank has received approval from the State Securities Commission of Vietnam (Vietnam SSC) to acquire RHB Bank stockbroking firm in Vietnam for RM72.55m. The approval by Vietnam SSC is subject to two conditions, namely the proposed acquisition must be completed within six months from the date of approval, failing which the approval shall lapse, and the stockbroking firm RHB Securities Vietnam Company Ltd shall implement the reporting and publication regime in accordance with the applicable regulation.-The Edge Markets

Maxis ready to finalize share subs agreement with DNB

Maxis is ready to complete the Digital Nasional Bhd (DNB) share subscription agreement (SSA) process. This puts the company on track to an early completion of its SSA process and to participate in the rollout of the second 5G network ahead of the timeline given by Communications Minister Fahmi Fadzil. "We want to see an early conclusion to the SSA process as it will provide greater certainty to the nation's dual 5G network rollout," Maxis CEP Goh Seow Eng said. -The Edge Markets

Binastra secures RM315m works for residential project

Binastra Corp via its wholly-owned subsidiary Binastra Builders SB has accepted a RM315m contract for main building works from Pembinaan Serta Hebat SB for a proposed two blocks of residential apartments in Bandar Tasik Selatan in Petaling, Kuala Lumpur. The contract shall be completed within 33 months from July 8, 2024. -The Star

Sunview bags RM51.9m LSSPV construction contract

Sunview Group's wholly-owned subsidiary, Fabulous Sunview SB, has secured a RM51.9m contract from Cenergi Solar Kuala Ketil SB for the construction of a large scale solar photovoltaic (LSSPV) plant under the corporate green power programme in Ladang Bukit Selarong, Tawar, in Kuala Ketil, Kedah. The LSSPV plant will have a capacity of 44.99 MWp/29.99 MWac. The contract will commence on June 10, 2024 and is expected to achieve commercial operations by June 24, 2025.-The Star

DS Sigma proposes to transfer listing to Main Market

DS Sigma Holdings has proposed to transfer its listing from the ACE Market to the Main Market of Bursa Malaysia Securities (Bursa Securities). The proposed transfer entails the entire issued share capital of RM77.54m comprising of 480m ordinary shares. -The Star

Our Thoughts

Wall Street closed lower as sentiment was affected by the better than expected US job data in May translating to more uncertainties on the Federal Reserve’s stance on intertest rates. As a result, the DJIA lost 87 points while the Nasdaq declined by 40 points as the US 10-year yield climbed to 4.434%. Over in Hong Kong, the HSI slid by 100 points following China’s slower import data underscoring the weak domestic demand. This is despite exports rising by 7.6% in May from 1.5% in April. Back home, the FBM KLCI maintained its upward momentum as bargain hunters returned. Though the benchmark index failed to stay above the 1,620 level, we deem last week’s performance as decent. Post-results for the 2Q24 period, we noticed that many research houses had upgraded their respective 2024 target for the index thus indicating that the market still has the legs to trend higher. For today, we WbeallilevSetrtehetincdloexsetdo hmovixeerdbeatsweinevnetshteor1s,61a5w-1a,6it25froarngkey. inRfelacetinotnmdoavtae.bTyhtehDe JEIuArdorpoepapneCde0n.t2r1a%l B, taonekntdo acutt3i9n,t4e3r1e.5st1. Nratsedaisqarlsoosea0p.o29si%tiv, etoincdloicsaetoart t1h6a,3t8g8l.o2b4a. lSc&ePn5tr0a0l bcalonskesd falartetisbhegaitn5n,i2n2g1.4to2. detach themselves from the Federal Reserve.

Source: Rakuten Research - 10 Jun 2024

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