Previous Day Highlights

FBM KLCI pared its earlier gains to close lower following some late profit taking activities ahead of the Awal Muharram long weekend. The benchmark index was down 0.35% or 5.73 pts to close at 1,611.02. Majority of sectors were negative with telecommunications (-0.7%), property (-0.4%), and financial services (-0.3%) leading the losses; while gainers were seen in industrial products & services (+0.4%), and REIT (+0.4%). Market breadth was negative with 670 losers against 447 gainers. Total volume stood at 4.34bn shares valued at RM2.95bn.

Major regional indices trended negatively as sentiment remained jittery on the concerns over China trade war. HSI tumbled 1.55%, to end at 17,524.06. SHCOMP fell by 0.93%, to close at 2,922.45. Nikkei 225 declined 0.32%, to finish at 40,780.70. STI slipped 0.19%, to close at 3,404.47.

Wall Street closed mixed as investor shifted focus to the Fed's semi-annual testimony. The DJIA dropped 0.08%, to end at 39,344.79. Nasdaq added 0.28%, to close at 18,403.74. S&P500 advanced 0.10%, to finish at 5,572.85.

News For The Day

Maybank aims to double Vietnam assets by 2027

Malayan Banking plans to double assets in Vietnam to US$2bn (RM9.42bn) by 2027 and become the country’s top foreign bank for syndicated loans, to capitalise on a booming economy. It also aims for its securities unit to be the leading foreign broker, according to Maybank Vietnam country chief executive officer Michael Foong. The bank also aims to strengthen its role in foreign direct investment in Vietnam and will target new mid- tier corporate clients with annual revenues ranging from US$50m to US$100m. -The Edge Markets

Petronas adds 3 LNG vessels ahead of LNG Canada start-up

Petroliam Nasional (Petronas) said it would add three energy- efficient liquefied natural gas (LNG) vessels to its North American operations. The addition of the vessels, which brings the total number in Petronas' fleet in North America to six, comes ahead of the start-up of LNG Canada's gas-export facility due later this year. The vessels were built at the Hyundai Heavy Industries (HHI) shipyard in Ulsan, South Korea. Each has a cargo capacity of 174,000 cubic meters and are the largest ships in Petronas' fleet, the firm said. -The Edge Markets

Southern Cable clinches RM99.6m contract from TNB

Cables and wires manufacturer Southern Cable Group has secured a RM99.6m contract extension to supply underground power cables and conductors of various sizes to utility giant Tenaga Nasional (TNB). The contract was awarded to the group’s wholly-owned subsidiary Southern Cable SB, and will boost the total value of the group’s ongoing supply agreement with TNB to RM854.3m. -The Edge Markets

Tex Cycle proposes listing transfer to Main Market

Scheduled waste recycling company Tex Cycle Technology has proposed to transfer its listing from the ACE Market to the Main Market of Bursa Malaysia. The company said it has met the profit requirements, maintains a healthy financial position and satisfies the public shareholding spread under the Securities Commission of Malaysia and Main Market listing requirements.-The Edge Markets

Pestech, Sesco to terminate Entinggan project

Pestech International and Syarikat Sesco have amicably decided to terminate their contract for the Entinggan project, after considering the economic factors of the project. Pestech's subsidiary Pestech SB, in a joint venture with Sky High Construction SB, secured a RM109.98m contract from Syarikat Sesco for the construction of an electrical substation project in Entinggan in Kuching, Sarawak. -NST

Our Thoughts

Wall Street closed on a mixed note with the DJIA ended in negative territory as both the Nasdaq and S&P 500 touched new record highs. Meanwhile, traders are looking forward to the inflation data later this week amid elevated expectations that the Federal Reserve will cut rates twice this year. As a result, the DJIA ended lower by 31 points while the Nasdaq added 51 points with the US 10-year yield inching marginally higher at 4.279%. Over in Hong Kong, the HSI ended in negative territory despite a strong opening on concerns over the escalation of trade war between China and the EU. Back home, we expect buyers to emerge after a spate of late selling last Friday. Nonetheless, we believe sentiment may remain cautious following a weak regional performance yesterday thus anticipate the FBM KLCI to trend within the 1,610-1,620 range today.

Source: Rakuten Research - 9 Jul 2024

To sign up for an account: http://bit.ly/40BNqKI

[Youtube Tutorial] Account Opening & Enable Foreign Equity: http://bit.ly/3I5Jzxo