Previous Day Highlights

FBM KLCI closed lower amid escalating tension in the middle east. The benchmark index was down 1.03% or 17.08 pts to close at 1,639.31. Majority of sectors were negative with property (-1.7%), industrial products & services (-1.6%), and utilities (-1.5%) leading the losses; while gainers were seen in energy (+1.0%), and plantation (+0.2%). Market breadth was negative with 874 losers against 270 gainers. Total volume stood at 3.86bn shares valued at RM2.75bn.

Major regional indices trended higher. HSI surged 6.20% to close at 22,443.74. Nikkei 225 slid 2.18%, to finish at 37,808.69. STI increased 0.1%, to close at 3,584.67. SHCOMP was closed for public holiday.

Wall Street closed higher following latest macro data. The DJIA added 0.09%, to end at 42,196.52. Nasdaq rose 0.08%, to close at 17,925.12. S&P500 increased 0.01%, to finish at 5,709.54.

News For The Day

Sunway's unit acquires freehold land in KL for RM320m

Sunway ’s wholly owned subsidiary, Sunway Melawati, has entered into a sales and purchase agreement with Viva Impian to acquire a parcel of land for RM320m in Cheras. The parcel is earmarked for a mixed-use development, with an estimated gross development value of RM3.2bn. The company confident that this development will catalyse and elevate growth in the surrounding area. - The Star

Sime Darby Property commences hyperscale data centre

Google held a groundbreaking ceremony on Tuesday at The St Regis Kuala Lumpur to commence the construction of its first data centre in Malaysia at Sime Darby Property Elmina Business Park in the City of Elmina township, Selangor. Moving forward, Sime Darby expects to roll out more projects under this business model with high-calibre clients in technology-driven manufacturing, logistics businesses and data centre space as part of its growth initiative. - The Edge Markets

Econpile bags RM33m piling and substructure jobs in KL

Econpile has secured two contracts from Sg Besi Construction, totalling RM33.3m to carry out piling and substructure works for residential and office buildings in Kuala Lumpur. These contracts are expected to contribute positively to revenue and earnings for FY25 onwards. - The Edge Markets

KIP REIT secures approval for RM320m acquisition

KIP REIT has secured shareholders’ approval to acquire the DPulze Shopping Centre in Cyberjaya for RM320m. This project expects the private placement exercise to raise up to RM146.7m in gross proceeds. KIP REIT remains committed to its strategy of growing its total assets under management to RM2bn in the coming years. - The Edge Markets

Samaiden bags contract to build solar power plant

Samaiden has bagged a RM39.2m contract to undertake a 10- megawatt large-scale solar photovoltaic power plant in Bahau, Negeri Sembilan, in a related-party transaction. Bahau Power is involved in renewable energy generation through the harvesting of solar energy for electricity production. - The Edge Markets

Sin-Kung expands into private jet and air freight services

Sin-Kung is diversifying into private jet charter and air freight cargo services with the acquisition of loss-making Prima Air for RM20.7m cash. Sin-Kung group would offer air feeder services and expects to enter cargo interline agreements to establish a strategic interline partnership to transport each other’s shipments on specific routes - The Edge Markets

Our Thoughts

Wall Street closed on a positive note despite the heightening tensions in the middle east. As such, the DJIA gained 39 points while the Nasdaq added 15 points while the US 10-year yield edged higher at 3.783%. Meanwhile, Hong Kong stocks maintained their bullish trajectory as the HSI breached the 22,000 mark, a level last seen in early-2023. Sentiment remains buoyant from China’s easing measures as traders jumped into the buying bandwagon. On the home front, the FBM KLCI closed below the 1,640 mark as selling from foreign funds gathered momentum. Regionally, sentiment has turned extremely cautious amid the escalating tensions in the middle east. Judging by the recent unloading of riskier assets, we believe investors may have switched to “Cash is King” mode. Nonetheless, we expect some bargain hunting activities to emerge and anticipate the index to hover within the 1,635-1,645 range today.

Source: Rakuten Research - 3 Oct 2024

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