Previous Day Highlights

FBM KLCI ended higher after a choppy session, in line with the upbeat momentum across the region. The benchmark index was up 0.21% or 3.40 pts to close at 1,614.42. Gainers were seen in technology (+1.31%), financial services (+0.60%), and telecommunications (+0.40%); while losers were seen in plantation (-1.05%), utilities (-0.52%), and consumer (-0.39%). Market breadth was negative with 665 losers against 525 gainers. Total volume stood at 4.66bn shares valued at RM3.84bn.

Major regional indices trended mostly higher except HSI which closed almost unchanged at 17,523.23. SHCOMP surged 1.26%, to close at 2,959.37. Nikkei 225 soared 1.96%, to finish at 41,580.17. STI jumped 0.64%, to close at 3,426.09.

Wall Street closed mixed after the Fed's testimony suggested that cooling economic data supports future rate cuts. The DJIA declined 0.13%, to end at 39,291.97. Nasdaq advanced 0.14%, to close at 18,429.29. S&P500 added 0.07%, to finish at 5,576.98.

News For The Day

15 LOA for Sabah Pan Borneo Highway Phase 1B by 3Q24

A total of 15 Letters of Acceptance (LOA) for contractors of the Sabah Pan Borneo Highway Phase 1B project are expected to be issued in the 3Q24, the Sabah state was told. 4 contractors have been appointed and commenced construction since April this year. 15 work packages for the Pan Borneo Highway Phase 1B are currently in the final evaluation stage of the open pre- qualification tender. These packages have been assessed and submitted to the Federal Government.-The Star

JPG eyes new revenue streams from unutilised land

Johor Plantations Group (JPG) managing director Mohd Faris Adli Shukery said the palm oil producer is exploring alternative revenue sources from its unutilised land, diversifying beyond traditional plantation uses. The company, which owns 56,000 hectares of plantation land, plans to assess the right scheme before committing to solar power generation. -The Edge Markets

Vestland gets RM195m site clearance job

Vestland has received a letter of award from Euro Saga SB (ESSB) worth RM195.35m to undertake the site clearance and demolition works, earthworks, drainage, pavement and road furniture works for the Kota Bharu - Kuala Krai Expressway in Kelantan. Vestland said completion of the construction works under the contract shall be on July 18, 2026, with the commencement date on July 19, 2024.-The Star

Maxim Global unit buys Subang Jaya land for RM95m

Maxim Global subsidiary Maxim Icon SB has acquired 2.35 hectares (5.81 acres) of two contiguous freehold plots in Mukim Damansara, Daerah Petaling, Selangor for a total purchase consideration of RM95m, or RM375.25 per square foot. Maxim said the group acquired the land through a sale and purchase agreement with the joint administrators of the estate of Low Teck Choon. -The Star

Theta Edge secures RM673.8m contract to develop IoT

Theta Edge has secured a RM673.8m contract from the Ampang Jaya Municipal Council for the development, provision and maintenance of Internet of Things (IoT) for its smart business initiative in Ampang Jaya. Its wholly owned subsidiary Theta Telecoms SB had on July 2 received an offer letter from the council for the contract with a concession period of 240 months commencing from July 15, 2024 until July 14, 2044.-The Edge Markets

Our Thoughts

Wall Street closed mixed but both the Nasdaq and S&P 500 inched slightly higher to end at record highs on the back of Fed chair Jerome Powell’s statement that keeping rates high for too long will be bad for the US. Nonetheless, the DJIA dipped 53 points as the US 10-year yield marginally higher at 4.297%. Meanwhile in Hong Kong, the HSI ended flat but off the day’s low as sentiment remains nervous of China’s inflation data which may indicate sluggish domestic demand. Back home, the FBM KLCI closed on a positive note amid a muted session with traces of bargain hunting activities. However, market volume has shrunk to below the 5bn shares mark illustrating that market undertone is still rather cautious. As such, we expect the index to hover within the 1,610-1,620 range today.

Source: Rakuten Research - 10 Jul 2024

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