Previous Day Highlights

FBM KLCI pared earlier gains to closed marginally higher after a volatile trading session. The benchmark index added 0.09% or 1.43 pts to close at 1,616.75. Gainers were seen in health care (+1.96%), transportation (+0.58%), and telecommunications(+0.36%); while losers were seen in technology (-0.49%), plantation (-0.17%), and consumer (- 0.15%). Market breadth was mixed with 586 gainers against 558 losers while 495 counters were unchanged. Total volume stood at 4.93bn shares valued at RM3.79bn.

Major regional indices trended mostly higher following soft US data and dovish Federal Reserve comments on inflation. HSI advanced 0.28%, to end at 18,028.28. Nikkei 225 climbed 0.82%, to finish at 40,913.65. STI added 0.71%, to close at 3,439.88. However, SHCOMP dropped 0.83%, to close at 2,957.57.

Meanwhile,Wall Street were closed for Independence Day.

News For The Day

Keyfield secures two contracts totalling RM40m

Keyfield International‘s wholly-owned subsidiary Keyfield Offshore SB has successfully secured two contracts, totalling RM40m, to supply accommodation workboats. The contracts involve providing an accommodation work barge and an anchor handling tug supply vessel for Hess Exploration and Production Malaysia BV’s offshore operations. The contracts, which commenced in June 2024 and July 2024, are for a charter period of five months and six months respectively. -The Edge Markets

NTT DATA's bid to delist GHL Systems crosses 90% threshold

NTT DATA Japan Corp is now in control of GHL Systems after accumulating 92.71% of the payment solutions provider's total issued shares as at July 4, paving the way for GHL to be delisted from Bursa Malaysia. The offer will remain open for acceptances until July 9. CIMB Investment Bank, which is acting on NTTD Japan's behalf in its privatisation bid, said the offeror does not intend to maintain the listing status of GHL on the Main Market.-The Edge Markets

Ekovest pays for adviser's services using PLS shares

Ekovest, the controlling shareholder of PLS Plantations, has transferred some PLS shares to an adviser to pay for services rendered in relation to a corporate proposal that Ekovest undertook previously. PLS revealed that the transfer took place on Wednesday and involved 167,731 PLS shares at 95 sen each, for a total of RM159,344.45. It did not reveal who the adviser is. The number of shares represents an about 0.06% stake in the loss-making PLS.-The Edge Markets

Awantec wins RM25.7m contract renewal from MOE

Awanbiru Technology’s wholly-owned subsidiary, Awantec Systems SB (ASSB) has secured a RM25.7m contract from the Education Ministry (MOE). The contract is for 36 months commencing on July 9, 2024 and expiring on July 8, 2027. Under the award, ASSB will provide cloud-based solutions, such as Google Workspace for education and Google Cloud Platform to all schools under MOE.-The Star

Toyo Ventures confirms termination of Song Hau 2

Toyo Ventures Holdings, whose share price plunged to its lowest in over one month on Thursday, has confirmed the termination of the Song Hau 2 thermal power plant project by the Vietnamese government. Its wholly-owned subsidiary, Song Hau 2 Power Company Ltd (SH2P), received the termination letter from Vietnam's Ministry of Industry and Trade on July 1.- The Edge Markets

Our Thoughts

Wall Street was closed for Independence Day yesterday and will resume trading today. At the time of writing, the futures show that the DJIA is trading 25 points higher while the Nasdaq is down by 41 points. Over in Hong Kong, the HSI closed above the 18,000 mark on hopes of US rate cuts. Chinese EV makers rallied as debate over additional tariffs within the EU continues. Back home, the FBM KLCI ended slightly higher as sentiment remains rather cautious amid some late profit taking activities with lower volume traded. We believe market undertone is still positive judging by the huge premium from recent new listings hence expect some liquidity improvements especially within the smaller cap segment. As for the benchmark index, we expect it to hover within the 1,615- 1,625 range today.

Source: Rakuten Research - 5 Jul 2024

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