Previous Day Highlights

FBM KLCI erased gains from the previous session and ended lower amid profit taking activities. The benchmark index declined 0.57% or 9.34 pts to close at 1,632.63. Gainers were consumer (+0.62%), telecommunications (+0.39%), and utilities (+0.34%); while losers were seen in industrial products & services (-0.94%), transportation (- 0.91%), and property (-0.88%). Market breadth was negative with 700 losers against 341 gainers. Total volume stood at 2.79bn shares valued at RM3.17bn.

Major regional indices trended mixed. HSI declined 0.16%, to end at 20,286.85. SHCOMP increased 0.05%, to close at 3,202.95. Nikkei 225 eased 1.83%, to finish at 39,180.30. STI slid 0.13%, to close at 3,590.62.

Wall Street closed higher as markets assessed the latest batch of corporate earnings. The DJIA added 0.79%, to end at 43,077.70. Nasdaq rose 0.28%, to close at 18,367.08. S&P500 rose 0.47%, to finish at 5,842.47.

News For The Day

Maxis teams up with MRCA to boost 5G

Maxis has signed a MoU with the Malaysia Retail Chain Association (MRCA), which represents 562 Malaysian retailers, to encourage the adoption of 5G solutions to strengthen the domestic retail sector. In a statement, the telecommunications company said the partnership aims to enhance the retail customer experience and increase operational efficiency through advanced connectivity and digital solutions. - The Star

Sime Darby to enhance ROE, plans strategic growth

Sime Darby aims to enhance its return on equity (ROE), reduce debt, prioritise the integration of new acquisitions and strengthen its partnership with Toyota and Daihatsu Japan in FY6/25. - The Star

Crescendo to buy SGR Land RM169m deal

Crescendo is buying SGR Land Development and taking on its six land purchase obligations in Johor for RM168.9m. The company will pay RM10.8m for a 100% stake in SGR Land while the balance will not assume any liabilities from the acquisition. Demand for industrial land is expected to enjoy a steady growth, with anticipated investment and tax incentives for companies located within the Johor-Singapore Special Economic Zone. - The Edge Markets

Econpile unit bags RM35.1m contract

Econpile Holdings has secured a contract from WCT OUG Development to undertake bored piling, earthworks, retaining wall and sub-structure works for two 57-storey service apartment blocks in Petaling, Kuala Lumpur, for RM35.1m. The project is expected to contribute positively to the earnings of the company from the FY6/25 onwards. - The Edge Markets

Fajarbaru Builder secures second contract

Construction outfit Fajarbaru Builder has clinched a deal to build apartments under the first phase of WCT Holdings, AdisonWest development in Johor Bahru, has now been awarded the contract for the second phase valued at RM246.1m. With the latest award, the company's order book stands at RM1.23bn, ensuring earnings visibility until 2027. - The Edge Markets

LFE Corp secures subcontract from Gamuda

LFE Corp has secured a subcontract worth RM38.8m at the hyperscale data centre being developed in Elmina Business Park in Sungai Buloh. The contract to build a single-story data centre block with an attached office and utility rooms was awarded by Gamuda and expected to positively contribute to its earnings and net assets. - The Edge Markets

Our Thoughts

Wall Street rebounded with the DJIA closing to another record high. Sentiment was buoyed by a spate of solid earnings reported thus far coupled with it being a Presidential election period despite traders are aware of the stretched valuations. Meanwhile, the US 10-year yield trended lower at 4.018%. Over in Hong Kong, the HSI declined marginally as traders are waiting for more details from China regarding the stimulus announced recently. Meanwhile, property stocks surged as investors are expecting more measures to shore up confidence within the troubled property sector from the Housing Ministry later today. Back home, it was another dismal performance by the local bourse as the FBM KLCI ended just above the crucial 1,630 level. Overall trading was lacklustre as the daily volume remained thin at below the 3bn shares mark. We believe trading should remain muted ahead of the tabling of Budget 2025 tomorrow hence anticipate the index to hover within the 1,630- 1,640 range today.

Source: Rakuten Research - 17 Oct 2024

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