Previous Day Highlights

FBM KLCI closed lower following losses on

Wall Street due to by mixed economic data. The benchmark index down 0.45% or 7.39 pts to close at 1,633.55. Gainers were seen in transportation (+1.21%), health care (+0.81%), and industrial products & services (+0.14%); while losers were seen in technology (-1.21%), financial services (-0.65%), and telecommunications (-0.37%). Market breadth was negative with 546 losers against 420 gainers. Total volume stood at 2.3bn shares valued at RM2.67bn.

Major regional indices trended lower. HSI was closed for Double Ninth Festival. SHCOMP dropped 2.55%, to close at 3,217.74. Nikkei 225 was up 0.57%, to finish at 39,605.80. STI slid 0.32%, to close at 3,573.76. Wall Street closed higher amid mega-cap bank results lift investor sentiment. The DJIA added 0.97%, to end at 42,863.86. Nasdaq rose 0.33%, to close at 18,342.94. S&P500 rose 0.61%, to finish at 5,815.03.

News For The Day

Sunway REIT completes RM215m acquisition

Sunway REIT has completed the acquisition of a freehold 7- storey mall known as “163 Retail Park” for a purchase consideration of RM215m, rebranded it as “Sunway 163 Mall.” Sunway 163 is expected to be yield-accretive to Sunway REIT’s portfolio with an estimated initial net property income (NPI) yield of 6.5%. The recent MRT3 alignment announcement augurs well for Sunway 163 as the proposed Sri Hartamas station is located within walking distance and would further enhance accessibility to the mall upon completion of the line. - The Star

Pharmaniaga unit secures grant from Mosti for vaccine R&D

Pharmaniaga has secured funding from the government for research and development (R&D) of vaccines through the National Vaccine Production Development and Strengthening Fund (DPVN). DVPN provides grants to applicants with the objective of allowing Malaysia to achieve end-to-end local vaccine production capabilities underlined in the National Vaccine Development Roadmap (PPVN). PPVN targeted Malaysia to be a vaccine production hub in 10 years. - The Edge Markets

Exsim to acquire 70% stake in WMG

Exsim Borneo has proposed to acquire a 70% stake in WMG Holdings at 16.5sen per share and make a general offer for the remaining shares at the same price. In addition, they also intend to acquire the remaining redeemable convertible preference shares (RCPS) in WMG not already owned by them for 33sen per RCPS. As of Sept 30, WMG has a total of 155m RCPS which are held by sole holder Syarikat Kretam. - The Edge Markets

Glostrext diversifies into power supply system

Glostrext has proposed diversifying its business to include the trading of electrical appliances, generators, alternators and related products through the acquisition of a 70% stake, or 3.5m shares, in Powertecs System. The diversification could potentially contribute 25% or more to the group’s future net profit and net assets. - The Edge Markets

Steel Hawk secures contract from Petronas Gas

Oil and gas service provider Steel Hawk has been awarded an operational pigging supply and services contract by Petronas Gas. The 3-year contract is on a call-out basis and so does not have a fixed value. It expects the contract to contribute positively to its earnings for the financial year ending Dec 31, 2024. – The Edge Markets

Our Thoughts

Wall Street finished on a high note last Friday, driven by solid bank earnings that lifted financial stocks, while inflation data fuelled anticipation of a Federal Reserve rate cut in November. Confidence is building among investors that the U.S. economy will achieve a soft landing, with inflation concerns easing after PPI data revealed core and final demand were lower than anticipated, despite a modest rise in CPI. In Asia, major indices ended broadly lower due to profit-taking activities amid rising tensions in the Middle East. Meanwhile, China’s Finance Minister Lan Foan delivered positive news, stating that 2.3 trillion yuan (US$325.5bn) in special bonds will be issued in the next three months to uplift the economy. The Hong Kong market was closed for public holiday. As for the local bourse, the FBM KLCI remains in a consolidation phase, and we anticipate this trend to persist into the week unless new catalysts arise. Investors are urged to remain cautious until the market's direction becomes more evident. As such we anticipate the benchmark index to trend within the range of 1,630- 1,640 for today.

Source: Rakuten Research - 14 Oct 2024

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

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