Previous Day Highlights

FBM KLCI closed higher amid advances in regional bourses. The benchmark index was up 0.33% or 5.32 pts to close at 1,635.29. Majority of sectors were positive with technology (+1.7%), healthcare (+1.1%), and consumer (+1.0%), leading the gains; while losers were seen in utilities (-0.6%), and construction (-0.4%). Market breadth was positive with 548 gainers against 476 losers. Total volume stood at 2.76bn shares valued at RM2.75bn.

Major regional indices trended higher. HSI was up 1.60% to close at 23,099.78. Nikkei 225 rose 1.80%, to finish at 39,332.67. STI gained 0.33%, to close at 3,589.13. SHCOMP was closed for golden week holidays.

Wall Street closed lower as traders worried about the Middle East conflict's impact on oil prices. The DJIA dropped 0.94%, to end at 41,954.24. Nasdaq eased 1.18%, to close at 17,923,90. S&P500 slid 0.96%, to finish at 5,695.93.

News For The Day

Tuju Setia bags RM317.56m hospital construction job

Tuju Setia, which is valued at RM66.5m, said its joint venture (JV) company, GPQ has secured a RM317.6m contract to build a new block at Gleneagles Hospital in Jalan Ampang. The JV will handle design and construction of Block C, with a 37-month project duration starting this month. The contract is expected to positively impact the company’s earnings and net assets from the financial year ending FY12/24, until completion. - The Edge Markets

ITMAX secures fifth smart parking contract in Johor

ITMax System’s subsidiary, Southmax has been appointed by Muar Municipal Council as the smart parking operator, managing 8,650 street parking bays in the Muar district. This 15- year contract, effective from Oct 1, 2024, will operate under a revenue-sharing model. Southmax will receive 70% of the revenue generated from parking collections and compounds. - The Star

Dayang wins 6 workboat contracts from PETRONAS Carigali

Dayang Enterprise Holdings (DEHB) has received six work order awards from PETRONAS Carigali (PCSB) for the provision of six units of accommodation workboat vessels. The value of the contracts is based on the work orders issued by PCSB throughout the duration of the contracts. The contracts will have no effect on the issued capital of the company and are expected to contribute to the earnings of DEHB. - The Edge Markets

Ramssol inks addendum agreement for AI-driven HR solutions

Ramssol Group, a human capital management (HCM) provider, has been appointed as the authorised business partner for sales and marketing activities for a Singapore-based company. Under the updated arrangement, Rams will promote Hono's AI-driven human resources (HR) solutions, including the HR Generative AI Platform and HR Chat GPT, in Southeast Asian markets. The updated terms also set a target commercial value of US$4m (RM16.9m) annually, with a total of US$15m over three years. - The Edge Markets

Hibiscus completes 30% stake in key offshore block

Hibiscus Petroleum has completed the farm-in arrangement with Petronas Carigali to acquire a 30% participation interest in the PM327 production sharing contract (PSC). The PM327 PSC covers an area of more than 12,500 sq km, with water depths ranging between 20 metres and 75 metres. Meanwhile, the exploration activities have commenced in 2023, including the acquisition of new 3D seismic data, reprocessing of existing seismic data, and phased drilling of exploration wells. - The Edge Markets

Our Thoughts

Wall Street closed broadly lower as sentiment tuned cautious amid the rising Treasury yields and crude oil prices. As such, the DJIA declined by almost 400 points while the Nasdaq lost 214 points as the US 10-year yield climbed to 4.028%. Meanwhile, Hong Kong market remained buoyant attributed to the meteoric rise of the Chinese markets. The HSI closed above the 23,000 mark, a level last seen in February 2022 as foreign funds returned hoping that there will be more goodies from the Chinese authorities. Back home, the FBM KLCI ended positively as foreign funds turned net buyers. Nonetheless, market undertone remains cautious as illustrated by the low daily volume traded at below 2.8bn shares. We noticed the index is still consolidating within the 1,630-1,680 range and needs to break the 1,680 level decisively before the upward trajectory resumes towards the 1,700 mark. Despite the lack of catalysts currently, we hope recent strong performance of the crude palm oil (CPO) price may attract some interests on the planters hence expect the index to hover within the 1,635-1,645 range today.

Source: Rakuten Research - 8 Oct 2024

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