Previous Day Highlights

The FBM KLCI ended the day lower as sentiment remains in cautious mode. The benchmark index was down 0.10% or 1.63 pts to close at 1,651.49. Majority of sectors were negative with energy (-2.0%), industrial products & services (-1.2%), and plantation (-1.1%) leading the losers; while gainers were seen in financial services (+0.7%), and REIT (+0.3%). Market breadth was negative with 738 losers against 333 gainers. Total volume stood at 3.38bn shares valued at RM3.86bn.

Major regional indices trended mixed. HSI declined 1.42%, to end at 17,196.96. SHCOMP dropped 1.1%, to close at 2,736.49. Nikkei 225 eased 0.5%, to finish at 36,215.75. STI rose 1.2%, to close at 3,496.53.

Wall Street closed higher as markets parsed a survey of consumers' inflation expectations. The DJIA added 1.20%, to end at 40,829.59. Nasdaq rose 1.16%, to close at 16,884.60. S&P500 rose 1.16%, to finish at 5,471.05.

News For The Day

Kelington secures RM413m new contracts

Kelington Group has secured new contracts totalling RM413m over the past 2 months, bringing its total value of contracts secured YTD to RM977m. Kelington's 1HFY24 net profit jumped 46% YoY to RM51.5m. The company declared total dividends of 4sen per share for the 1HFY24. Kelington is also exploring new opportunities in places such as Germany and Hong Kong. These expansions will open new revenue streams and diversify their global portfolio, positioning the group for broader international growth. – The Edge Markets

Binastra gets RM574m construction job

Binastra has secured a project worth RM574.4m from Exsim Jalil Link for a proposed development of a data centre. The group's current outstanding order book now stands at RM3.3bn. This contract, the second one for Binastra related to the data centre, is expected to provide an additional income stream for the group over the next two financial years. – The Edge Markets

Eversendai order book hits new record of RM6.7bn

Eversendai Corporation has won new contracts worth RM1.1bn worth in India, Singapore and Saudi Arabia, which it said brought its order book to a new record high of RM6.7bn. The scope of all these projects includes connection design, engineering and preparation of shop drawings, steel material supply, fabrication, delivery and erection of structural steel works. There are more lucrative high-profile projects expected to be secured in the Middle East and other countries where we currently have operations. - The Edge Markets

Nova MSC bags RM7.1m AI-driven contract

Nova MSC, via its subsidiary EyRIS, has secured a contract worth RM7.1m from JPMCnova to roll out of the National Diabetic Retinopathy (DR) Screening Program in Brunei Darussalam. It said the five-year project is set to commence in October 2024 and will use EyRIS’ advanced artificial intelligence platforms across hospitals and healthcare centres in the country. – The Star JTGB secures RM29.8m contract Jati Tinggi Group has secured two contracts pertaining to underground cable-laying, totalling RM36.4m. It had secured a contract worth RM29.8m from YM Teras to lay 33 kilovolts of aluminium XLPE underground cables and accessories for asset development in the southern region of Malaysia. Separately, JTGB had bagged a RM6.6m contract from Worktime Engineering for cable pulling of 132 kilovolts of underground cables for a data centre at Bukit Jalil. - The Star

Our Thoughts

Wall Street closed higher amid some bargain hunting activities following recent weaknesses as traders are looking towards the Fed rate cut in a week’s time. As such, the DJIA gained 484 points while the Nasdaq jumped by 194 points with the US 10-year yield easing to 3.702%. In Hong Kong, the HSI resumed trading post- super typhoon Yagi but ended to a 3-week low following the dismal inflation data from China while foreign funds continue to snub Chinese stocks. Though the index managed to close off the day’s low, it is hovering precariously near the 17,000 mark. Back home, the FBM KLCI declined slightly to almost the 1,650 level despite some buying activities for most of yesterday’s session as we noticed selling on YTL related companies continues. Daily volume traded improved predominantly due to 99Speedmart debut, otherwise market sentiment was still in cautious mode despite net foreign fund inflows are still apparent. For today, we expect the index to hover within the 1,650-1,660 range.

Source: Rakuten Research - 10 Sep 2024

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