Previous Day Highlights

FBM KLCI closed lower as market sentiment weakened. The benchmark index was down 0.71% or 11.58 pts to close at 1,629.97. Majority of sectors were negative with telecommunications (-1.8%), technology (-0.8%), and consumer (-0.8%) leading the losses; while gainers were seen in energy (+4.1%), and plantation (+0.1%). Market breadth was negative with 610 losers against 410 gainers. Total volume stood at 3.7bn shares valued at RM2.1bn.

Major regional indices trended higher. HSI was up 2.82% to close at 22,736.87. Nikkei 225 rose 0.22%, to finish at 38,635.55. STI gained 0.33%, to close at 3,589.13. SHCOMP was closed for public holiday.

Wall Street closed higher as the surge in September’s job data countered the escalating tension in the Middle East. The DJIA added 0.81%, to end at 42,352.75. Nasdaq rose 1.22%, to close at 18,137.85. S&P500 rose 0.90%, to finish at 5,751.07.

News For The Day

ECERDC secures RM3.1bn in Terengganu

The East Coast Economic Region Development Council (ECERDC) has realised investments totalling RM3.1bn in Terengganu, 98% of which is in the manufacturing sector and the balance in the tourism sector. This sets the state on the fast track to achieving its 2024 investment target of RM4.2bn, further boosting economic growth and development in the region. - The Star

SimeProp’s XME Business Park 2 fully booked at preview

Sime Darby Property has achieved a 100% take-up rate for XME Business Park 2 during its preview. This reflects the demand for premium industrial hubs that offer accessibility and future- ready facilities. Stage 2 of XME Business Park 2 is anticipated to launch in the first quarter of 2025. - The Star

SP Setia launches Atlas Melbourne project

SP Setia launched Atlas Melbourne located on 383 La Trobe Street in Melbourne's central business district (CBD). The project offers 839 residential apartment units, selling prices range from A$410,000 to A$12.8m. Construction is set to start in the second quarter of 2025, which is estimated to be completed by mid- 2029, will be developed in stages. - The Edge Markets

Velesto Energy signs MoU with SLB

Velesto Energy, through its subsidiary Velesto Drilling, has signed a memorandum of understanding (MoU) with global technology company, SLB to enhance rig capabilities. These digital solutions are designed to enhance and optimise drilling performance and monitor emissions, unlocking commercial potential for both parties. - The Edge Markets

Solar District Cooling plans expansion into Brunei

Solar District Cooling Group has entered into an MOU with Brunei-based Serikandi Oil Field Services via wholly owned subsidiary, Solar District Cooling, where it aims to enhance business prospects in Brunei, particularly in solar-powered air- conditioning, solar thermal systems and energy-efficient solutions. The MOU is expected to facilitate the exchange of information, expertise and exploration of potential business opportunities in the country and valid until Oct 3, 2026. - The Edge Markets

Gamuda Land now manages Paya Indah Discovery Wetlands

Gamuda Land, the property arm of Gamuda, has taken over the management and operations of Paya Indah Discovery Wetlands at Gamuda Cove, Kuala Langat. This follows the recent tripartite MOA signing between Gamuda Land, the federal government, and Selangor state. - The Edge Markets

Our Thoughts

Wall Street closed broadly higher attributed to a robust monthly job data which exceeded expectations plus the ending of the US dockworkers strike. As such, the DJIA jumped 314 points while the Nasdaq added 219 points as the US 10-year yield edging higher at 3.969%. Over in Hong Kong, buyers returned with a vengeance as the HSI surged closer to the 22,800 level. Traders flocked into Hong Kong stocks as valuations remain below their historical averages. Back home, the FBM KLCI closed weaker to end below the 1,630 level due to persistent selling from the foreign funds. As the index has lost 25 points over the past 5 days, a quick rebound is needed before we enter into another prolong consolidation phase. Therefore, we expect the index to trend within the 1,630-1,640 range today. Meanwhile, we noticed that the CPO price maintained its uptrend to hover above RM4,200/tonne spur by the higher crude oil prices amid the tension in the middle east and partly due to the lower MYR currently at RM4.23 vs the greenback.

Source: Rakuten Research - 7 Oct 2024

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

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