Previous Day Highlights

FBM KLCI closed lower due to profit-taking activities. The benchmark index was down 0.22% or 3.69 pts to close at 1,660.59. Gainers were seen in technology (+0.64%), construction (+0.50%), and REIT (+0.19%); while losers were seen in health care (-1.31%), utilities (-1.16%), and energy (-0.86%). Market breadth was negative with 526 losers against 442 gainers. Total volume stood at 2.3bn shares valued at RM2.75bn.

Major regional indices trended higher. HSI closed for public holiday. SHCOMP rose 0.5% to close at 2,717.28. Nikkei 225 up 0.5% to close at 36,380.17.22. STI slid 0.03%, to close at 3,592.42.

Wall Street closed lower the U.S. Federal Reserve implemented a 50bps reduction to the Fed funds target rate. The DJIA dropped 0.25%, to end at 41,503.10. Nasdaq eased 0.31%, to close at 17,573.30. S&P500 eased 0.29%, to finish at 5,618.26.

News For The Day

Press Metal signs JV deal with 3 Indonesian companies

Press Metal Aluminium has teamed up with 3 Indonesian companies to operate an alumina refinery plant in West Kalimantan, Indonesia. The plant is expected to have an annual production capacity of one to 1.2m tonnes under the first phase, with a potential expansion to double this output. The total cost for phase 1 is USD750m. Press Metal Group CEO Tan Sri Paul Koon said the project represents a unique opportunity to drive sustainable long-term growth. – The Edge Markets

EcoWorld International achieved RM549m sales

EcoWorld achieved RM549m in sales in the first 10 months of FY11/24. Embassy Gardens, which brought in RM224m sales, was the biggest contributor, followed by Wardian RM146 m, and Millbrook Park RM55m. The group will continue to assess the viability of its remaining sites and will proceed with new launches only when market conditions are more conducive and expected returns can be projected with greater confidence. - The Star

Kimlun bags RM128m job in JB

Kimlun Corp has secured a RM128.1m contract to build a residential development in Johor Bahru, the fifth contract win it has announced this year. Kimlun’s 2QFY24 net profit surged YoY to RM31.3m driven by a 39.2% rise in revenue. The company attributed the improved performance to higher external sales in its construction division. - The Edge Markets

Pekat wins RM115m EPCC job for 30MW solar farm

Pekat Group has secured a contract worth RM115m to develop a 29.99MW solar farm in Kinta, Perak. This is the second large- scale-solar EPCC project award secured by Pekat this year. Other projects won by Pekat include the RM21.8m earthing and lightning protection works for Gamuda’s data centre project. – The Edge Markets

TSR Capital secures RM75m contract in Gombak

TSR Capital has secured a RM75m contract to undertake construction works at Elmina Business Park 2 in Gombak, Selangor. The contract will increase and enhance the existing order book. It is expected to contribute positively to earnings and net assets per share for FY25 to FY26. TSR recorded FY6/24’s net profit of RM11.4m that has increase 8 folds YoY due to the completion of a construction project, the sale of an investment property, and contributions from ongoing contracts. – The Edge Markets

Our Thoughts

Wall Street ended lower amid a volatile session after the Federal Reserve cut interest rate by 50bps. Sentiment was mixed on the massive rate cut as this may signal a slowing economy and employment market. As a result, the DJIA lost 103 points while the Nasdaq declined by 55 points as the 10-year yield inched higher at 3.713%. Hong Kong market was closed for mid-Autumm Festival. Back home, we were surprised by the weak performance of the FBM KLCI as sentiment remained cautious ahead of the Fed rate announcement. Nonetheless, we believe buyers to return following the Fed’s big rate cut which is positive for regional currencies. Therefore, we expect the index to hover within the 1,660-1,670 range today. Meanwhile, the Ringgit has strengthened to 4.24 vs the greenback.

Source: Rakuten Research - 19 Sep 2024

To sign up for an account: http://bit.ly/40BNqKI

[Youtube Tutorial] Account Opening & Enable Foreign Equity: http://bit.ly/3I5Jzxo