Previous Day Highlights

FBM KLCI rebounded ahead of the crucial Budget 2025 announcement later today. The benchmark index was up 0.54% or 8.81 pts to close at 1,641.44. Majority of sectors were positive with property (+1.1%), energy (+0.8%), and financial services (+0.7%), leading the gains; while losers were seen in telecommunications (-0.6%), and consumer (-0.5%). Market breadth was positive with 634 gainers against 391 losers. Total volume stood at 2.69bn shares valued at RM2.45bn.

Major regional indices trended mixed. HSI declined 1.02%, to end at 20,079.10. SHCOMP dropped 1.05%, to close at 3,169.38. Nikkei 225 eased 0.69%, to finish at 38,911.19. STI rose 0.95%, to close at 3,624.81.

Wall Street closed higher following positive economic data. The DJIA added 0.37%, to end at 43,239.05. Nasdaq rose 0.04%, to close at 18,373.61. Meanwhile S&P500 was flattish at 5,8441.47.

News For The Day

Alpha IVF Group expands into Indonesia

Alpha IVF Group is expanding into Indonesia by opening its first satellite clinic in an upmarket Jakarta district. With Indonesia as the fastest-growing market for in-vitro fertilisation (IVF) services, this move comes at a perfect time to meet rising demand. It noted that contributions from Indonesian patients to the group’s Malaysia operations revenue increased from 21.5% in the FY20 to 42.4% in FY24. - The Star

Varia bags RM572m Socso rehabilitation centre project

Varia has secured a contract worth RM571.8m from the Social Security Organisation (Socso) to build a rehabilitation centre in Merang, Terengganu. As of Aug 27, Varia’s order book stood at RM2.24bn. In September, Pembinaan Teguh Maju secured a flood mitigation project worth RM334.7m in Kota Tinggi, Johor. Prior to that, in August, it secured a flood mitigation project worth RM410.3m in Segamat, Johor. - The Edge Markets

Salcon wins RM18.5m water reticulation contract

Salcon’s wholly owned subsidiary Salcon Engineering has won an external water reticulation work package for RM18.5m. The work packages are split into two sections and are related to Fraser & Neave Holdings integrated dairy farm. - The Edge Markets

LKL expands into Indonesia market via JV

Medical equipment and furniture manufacturer LKL International has announced a proposed joint venture (JV) with PT Fasilitas Teknologi Nusantara (Fastech) to expand into the Indonesian healthcare market. LKL opines the JV will help to reduce costs, enhance operational efficiency and meet the growing demand of quality healthcare solutions in Indonesia. - The Edge Markets

SC Estate Builder to partner JK Spark

SC Estate Builder has entered a JV with JK Spark to bid as a consortium for the large-scale solar power plants for Sabah. The partners will participate in projects with a system size ranging from 1MWac to 15 MWac. This collaboration enables both parties to align their strategic objectives and capitalise on their core competencies. - The Star

SC-Khazanah MOU to catalyse mid-tier companies

The Securities Commission Malaysia (SC) has inked MOU with Khazanah Nasional to support the growth and expansion of Malaysian mid-tier companies. The MOU will focus on measures to support MTCs’ next growth phase and joint programmes and initiatives to raise their awareness and access to the capital market. - The Edge Markets

Our Thoughts

Wall Street closed higher with the DJIA recording another historical high buoyed by robust retail sales for September erasing concerns of a recession. Nonetheless, the Nasdaq ended flat as the US 10-year yield inched higher at 4.095%. In Hong Kong, the HSI closed weaker to just above the 20,000 mark despite a solid opening, as traders were left disappointed following China’s Housing Ministry press conference which many deemed as lacking punch despite committing USD560bn in bank loans to designated property projects until end-2024. On the home front, the FBM KLCI rebounded to above the 1,640 level underpinned by selective buying on blue chips by foreign funds. Overall, sentiment remained cautious as reflected by the low volume traded. For today, we expect trading activities on the local bourse to stay muted ahead of Budget 2025 thus expect the index to hover within the 1,635-1,645 range.

Source: Rakuten Research - 18 Oct 2024

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