Previous Day Highlights

FBM KLCI closed higher amid late buying activity offsetting earlier losses. The benchmark index was up 0.14% or 2.24 pts to close at 1,641.55. Gainers were seen in energy (+0.79%), REIT (+0.52%), and financial services (+0.50%); while losers were seen in technology (-1.27%), construction (-0.96%), and utilities (-0.21%). Market breadth was negative with 504 losers against 473 gainers. Total volume stood at 3.29bn shares valued at RM2.52bn.

Major regional indices trended lower. HSI slid 1.47% to close at 22,113.52. Nikkei 225 rose 1.97%, to finish at 38,551.99. STI eased 0.2%, to close at 3,577.43. SHCOMP was closed for public holiday.

Wall Street closed lower as traders weighed on the Middle East conflict. The DJIA dropped 0.44%, to end at 42,011.59. Nasdaq eased 0.04%, to close at 17,918.47. S&P500 eased 0.17%, to finish at 5,699.94.

News For The Day

Malaysia’s BRICS entry boost investment & trade potential

Malaysia’s entry into the BRICS economic bloc will bring greater investment and trade potential to Johor through the Johor- Singapore Special Economic Zone (JS-SEZ). The memorandum of understanding for the JS-SEZ is expected to be signed during the leaders. The rapid growth in the JS-SEZ area will contribute to increased state tax and non-tax revenue. These can be used to improve infrastructure in areas outside of the JS-SEZ. - The Edge Markets

IJM Land to launch first phase of Batiq homes

IJM Land will launch the first phase of Batiq @ S2 Heights Aman in Seremban, Negeri Sembilan, with 82 two-storey linked homes in the 1QFY3/25. The overall 20-acre Batiq project will have 177 units of linked homes with a gross development value (GDV) of RM173m. - The Edge Markets

MyEG's blockchain developer launches digital ID verification

MyEG’s blockchain developer, Zetrix, has come out with a digital identification (ID) verification service for Chinese nationals on the ZCert service. MyEG’s Zetrix is the international super node for China's national blockchain. MyEG has reported a net profit of RM165.4m for the 2QFY24. KYC processes can now be a simplified and automated process with the introduction of this cross-border digital ID service. Furthermore, user data is always retained by users and only critical information is shared in an encrypted manner. - The Edge Markets

Atlan Holdings' units get compulsory land acquisition

Atlan its indirectly owned units, Cergasjaya and Cergasjaya Properties, have received notices for the compulsory acquisition of their lands in Bukit Kayu Hitam, Kedah, for a road construction project. DFI added that the compulsory land acquisition will lead to the closure of Cergasjaya's duty-free business. As of the end of February, Cergasjaya contributed approximately 24% to the company’s revenue. - The Edge Markets

Kuchai Development-Sg Bagan deal revised to RM267.8m

The total sum for the proposed disposal of Kuchai Development assets and liabilities to Sungei Bagan Rubber has been revised lower following the exclusion of an agricultural land parcel in Semenyih, Selangor. The exclusion was due to the state authority’s rejection of the land transfer from Kuchai to Sungei Bagan. The most valuable asset in Kuchai’s portfolio currently is a block of 3m shares in Singapore-listed Great Eastern, the largest and oldest life insurance company in Singapore and Malaysia. - The Edge Markets

Our Thoughts

Wall Street closed lower on concerns over the escalating tension in the middle east coupled with September’s payroll report due later today. As a result, the DJIA lost 185 points while the Nasdaq dipped marginally by 7 points as the US 10-year yield inched higher at 3.846%. Hong Kong market took a breather yesterday as the HSI declined 330 points after surging by 2,800 points over the past 5 days. Back home, the FBM KLCI closed slightly higher attributed to late buying activities paring earlier losses. Nonetheless, we believe the index remain stuck within a consolidation phase hence expect it to hover within the 1,640-1,650 range today. Meanwhile, crude palm oil (CPO) trended higher at around RM4,200/tonne due to higher crude oil prices and a weaker MYR which currently pegs at RM4.23/USD1.

Source: Rakuten Research - 4 Oct 2024

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