Previous Day Highlights

01 August 2024 FBM KLCI closed higher following late bargain hunting, in line with the upbeat momentum across the region. The benchmark index climbed 0.85% or 13.63 pts to close at 1,625.57. Gainers were seen in financial services (+1.21%), utilities (+0.50%), and plantation(+0.48%); while losers were seen in technology (- 1.18%), energy (-1.04%), and health care (-1.01%). Market breadth was negative with 602 losers against 480 gainers while 494 counters were unchanged. Total volume stood at 4.42bn shares valued at RM3.62bn.

Major regional indices trended positive. HSI soared 2.01%, to end at 17,344.60. SHCOMP surged 2.06%, to close at 2,938.75. Nikkei 225 jumped 1.49%, to finish at 39,101.82. STI rose 0.41%, to close at 3,455.94.

Wall Street closed higher on optimism over chipmakers, boosted by a bullish sales forecast from Advanced Micro Devices (AMD). The DJIA added 0.24%, to end at 40,842.79. Nasdaq skyrocketed 2.64%, to close at 17,599.40. S&P500 soared 1.58%, to finish at 5,522.30.

News For The Day

CelcomDigi submits proposal for 2nd 5G network

CelcomDigi has submitted its proposal for the deployment of Malaysia’s second 5G network to the industry regulator Malaysian Communications and Multimedia Commission to build “the most advanced 5G network”. Currently, CDB is the only telco operator that has publicly expressed its interest in leading the second 5G network after completing its share subscription of a 16.3% stake in Digital Nasional’s single wholesale network model last month. -The Edge Markets

Lotte Chemical Titan posts 9th straight loss-making quarter

Lotte Chemical Titan Holding reported its ninth consecutive quarterly loss with a narrower net loss of RM248.9m for 2QFY12/24, compared to RM313.5m YoY. The lower losses came as it recorded lower gross negative margin amid lower sales volume, and lower write down of inventories to their net realisable value. Revenue dropped 4.3% YoY to RM1.78bn from RM1.86bn, mainly due to scheduled statutory maintenance that resulted in lower sales volume. It did not declare any dividend for the quarter. -The Edge Markets

Infomina bags RM35m tech services contract

Infomina has bagged a three-year contract worth RM34.71m to provide technology and infrastructure operations and support services to the National Registration Department. The three-year contract was awarded by the Ministry of Home Affairs. It expects the contract to contribute positively to its earnings during the contract period. -The Edge Markets

Censof partners e-invoicing solutions firm Storecove

Censof Holdings via its wholly-owned subsidiary Century Software (M) SB has entered into a collaboration with Netherlands-based e- invoicing solutions provider Storecove to enhance its e-invoicing capabilities. It said Censof has been seeking an e-invoicing service provider to white label and offer e-invoicing solutions to its clients without investing in developing new Peppol-ready middleware.-The Star

Yong Tai to dispose of Melaka hotel for RM160m

Yong Tai (YTB) is proposing to dispose of a five-star hotel known as “Courtyard by Marriott Melaka” in Melaka to Southern Envoy SB for RM160m. Additionally, YTB said it is also proposing a special issue that will entail the issuance of up to 190.05m new YTB shares, to help raise funds for the claims to the hotel contractor, thus improving its gearing level.-The Star

Our Thoughts

Wall Street closed on a positive note as sentiment was buoyed by dovish comments from the Federal Reserve on rate cuts as funds returned to the recently trashed mega tech companies. As a result, the DJIA rose by almost 100 points while the Nasdaq surged by 452 points with the US 10-year yield easing to 4.032%. As for Hong Kong, the HSI rebounded on hopes for more stimulus following a weak China’s manufacturing activity in July. There are also hopes that there will be additional easing policies to enhance domestic demand in China as well. Back home, the FBM KLCI uptrend gathered pace as buyers emerged in force during the afternoon session. For today, we believe buying activities should continue, taking cue from the robust performance on Wall Street overnight thus expecting the index to hover within the 1,625-1,640 range. Meanwhile, the heightening tension in the middle east has pushed crude oil prices higher with the Brent crude closing nearer to USD81/barrel.

Source: Rakuten Research - 1 Aug 2024

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