Previous Day Highlights

FBM KLCI closed higher due to bargain hunting activities. The benchmark index was up 0.54% or 8.86 pts to close at 1,660.35. Gainers were seen in financial services (+1.00%), plantation (+0.87%), and health care (+0.68%); while losers were seen in industrial products & services (-0.73%), technology (-0.37%), and transportation (-0.33%). Market breadth was negative with 501 losers against 479 gainers. Total volume stood at 3.05bn shares valued at RM3.78bn.

Major regional indices trended mostly higher. HSI gained 0.22%, to end at 17,234.09. SHCOMP increased 0.28%, to close at 2,744.19. Nikkei 225 eased 0.16%, to finish at 36,159.16. STI rose 0.46%, to close at 3,512.67.

Wall Street closed mixed ahead of key inflation data later this week. The DJIA dropped 0.23%, to end at 40,736.96. Nasdaq rose 0.84%, to close at 17,025.88. S&P500 rose 0.45%, to finish at 5,495.52.

News For The Day

Resorts World Genting sign MOUs worth RM12m

Resorts World Genting (RWG), owned and operated by Genting Malaysia is set to sign a total of 5 MOUs worth RM12m at its first sustainability focused exhibition, Genting SustainBiz F&B Expo at Genting International Convention Centre. – The Edge Markets

Chin Hin Group jointly undertake project in JB

Chin Hin Group Property is partnering with Atlan Holdings to jointly undertake a high-rise project in Johor Bahru, with an estimated GDV of RM478.4m. The project's development cost is estimated at RM406.4m, which will be funded by Chin Hin Group Property using proceeds from the sales of the parcel units, bank borrowings and internally generated funds. – The Edge Markets

Suria Capital and Dubai-based DP World ink agreement

Suria Capital’s wholly owned Sabah Ports (SPSB) has signed a collaboration agreement with Dubai-based port operator DP World FZE to operate the Sapangar Bay Container Port (SBCP). Under the collaboration, DP World aims to increase the port’s container handling capacity to 1.25m TEUs by 2025. The partnership includes investments in workflow optimisation, digital enhancements to boost operational efficiency, and improved port connectivity. - The Edge Markets

L&G to launch RM2.4bn GDV township project

Land & General (L&G) plans to launch U10 Aria Rimba, a new township project in Shah Alam with a total GDV of approximately RM2.4bn next year. The group also plans to launch 1,008 units of high-rise service apartments in Sri Damansara Club with an estimated GDV of RM621m in FY25. L&G declared a single tier dividend payment of 0.7sen per share in respect of FY2024. – Bernama JAKS Resources dispose of oil palm land in Penang JAKS Resources is disposing of 178.48 acres of oil palm land in mainland Penang for RM77.7m. The land located in Seberang Perai Selatan had a net book value of RM16m as of the end of Dec 2023. The group expects a net pro forma gain of RM50.4m from the disposal. - The Edge Markets

HE Group secures RM30.6m power station contract

HE Group has secured a contract worth RM30.6m to build a 132kV power station for a proposed semiconductor manufacturing plant in the Ulu Klang Free Trade Zone. The group that just debuted on the ACE Market of Bursa Malaysia in Jan this year reported a 2QFY24 net profit of RM4.2m, driven largely by its power distribution system that contributed 65.2%. – The Edge Markets

Our Thoughts

Wall Street closed mixed as sentiment remained cautious ahead of the consumer price index (CPI) and producer price index (PPI) to be released later today and tomorrow respectively. As such, while the DJIA declined 93 points, the Nasdaq gained 141 points with the US 10- year yield easing to 3.64%. Over in Hong Kong, the HSI reversed earlier losses spurred by the surprising August stronger than expected exports data from China. There was also a tech-related rally led by Alibaba after both the Shanghai and Shenzhen exchanges admitted it to the stock connect scheme. Back home, the FBM KLCI finally rebounded as it broke away decisively from the 1,650 mark. Nonetheless, daily volume traded remains low as the retail segment stay sidelined. For today, we expect the index to hover within the 1,660-1,670 range. Meanwhile, crude oil prices continue to slide with the Brent crude ending below USD70/barrel amid a weakening global demand as forecast by OPEC.

Source: Rakuten Research - 11 Sep 2024

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