Previous Day Highlights

FBM KLCI rebounded and closed at its intra-day peak, as bargain hunting activities emerged following the recent global melt-down. The benchmark index gained 2.47% or 37.91 pts to close at 1,574.39. All sectors were positive with construction (+4.8%), property (+4.6%), and technology (+3.9%), leading the gains. Market breadth was positive with 1,083 gainers against 309 losers while 348 counters were unchanged. Total volume stood at 6.4bn shares valued at RM5.32bn.

Major regional indices trended mixed amid on-going cautious sentiment. HSI declined 0.31%, to end at 16,647.34. SHCOMP advanced 0.23%, to close at 2,867.28. Nikkei 225 soared 10.23%, to finish at 34,675.46. STI slumped 1.39%, to close at 3,198.44.

Wall Street rebounded after a dramatic sell-off, with recent comments by Federal Reserve officials easing U.S. recession worries. The DJIA jumped 0.76%, to end at 38,997.66. Nasdaq rose 1.03%, to close at 16,366.85. S&P500 climbed 1.04%, to finish at 5,240.03.

News For The Day

Hartalega posts 4th consecutive quarterly profit in 1QFY25

Hartalega Holdings reported its 1QFY3/25 net profit of RM31.9m, a turnaround from the RM52.5m YoY. Quarterly revenue increased by 33% YoY to RM584m from RM440m. It proposed a dividend of 0.35 sen per share. The group’s improved performance for the quarter was primarily due to a recovery in sales volume and increased average selling prices.-The Edge Markets

SP Setia launches Ferrous 3 of Setia Alam Impian

S P Setia officially launched the third phase of the Ferrous series of its Setia Alam Impian township development located in Shah Alam last Saturday (Aug 3). Dubbed Ferrous 3, it consists of 101 freehold units of two-storey terraced homes situated in Setia Alam Impian's Industrial Arts precinct. The homes have built-ups ranging from 1,950 to 2,204 sq ft and are priced from RM915,000 to RM1.42m. -The Edge Markets

Chin Hin enters DC market with RM51.5m acquisitions

Chin Hin Group has acquired substantial stakes in two data centre specialist firms totalling RM51.5m. It had acquired 500,500 (65%) shares in Critical System Specialist SB for RM41.21m and 195,000 shares (65%) in CSS Engineering and Construction SB for RM10.30m. Chin Hin said it had entered into a conditional share sale agreement with Liew Choon Fui, Teng Bee Ling and Ho John Chan for the acquisition of the stakes in the two companies. -The Star

Keyfield to buy AHTS vessel, secures US$10m contract

Keyfield International has secured a contract worth US$10m (RM44.3m) to supply a maritime vessel for two years. The contract, which commences this September, is for subsidiary Keyfield Offshore SB (KOSB) to provide one unit of an 80MT bollard pull anchor handling tug supply (AHTS) vessel for Carigali-PTTEPI Operating Company SB, it said. The contract comes with a one-year extension option for another US$5m (RM22.2m). -The Edge Markets

I-Bhd breaks ground for SkyCity in i-City, Shah Alam

I-Bhd broke ground for SkyCity in I-City, Shah Alam. It is a 60- metre tower featuring a 600-metre glass slide that is poised to be a new tourist attraction. The property developer said that with the addition of SkyWalk in i-City, the accelerated growth of bleisure - business and leisure activities in Shah Alam, such as the opening of DoubleTree by Hilton last year and existing attractions in i-City, will continue to draw local and international travellers. -The Edge Markets

Our Thoughts

Wall Street staged a relief rally as all 3 major indices closed on a positive note supported by broad based buying. Nonetheless, many are aware that market volatility has heightened and do not discount the fact that selling activities may re-emerge. As such, the DJIA gained 294 points while the Nasdaq added 167 points as the US 10- year yield edged higher at 3.90%. Over in Hong Kong, the HSI pared earlier gains to end slightly lower despite the rally in Japan. Confidence remains fragile on concerns over China’s growth and the lack of easing catalysts. Back home, the FBM KLCI rebounded in line with the improved regional performances. However, whether this is sustainable remains to be seen as sentiment has turned jittery. Therefore, we need to see persistent buying support on the local bourse over the next few days before market undertone improves. For today, we believe trading to remain cautious thus expect the index to hover within the 1,570-1,580 range. Finally, we are also keeping an eye in the middle east as prevailing simmering tension may boil into a full wage war.

Source: Rakuten Research - 7 Aug 2024

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