Previous Day Highlights

FBM KLCI closed higher supported by optimism ahead of Budget 2025. The benchmark index was up 0.28% or 4.55 pts to close at 1,645.99. Majority of sectors were positive with technology (+1.4%), utilities (+0.9%), and property (+0.8%) leading the gains; while losers were seen in REIT (- 0.3%), and energy (-0.2%). Market breadth was positive with 598 gainers against 396 losers. Total volume stood at 2.52bn shares valued at RM2.2bn.

Major regional indices trended positively. HSI surged 3.61%, to end at 20,804.11. SHCOMP increased 2.91%, to close at 3,261.56. Nikkei 225 was up 0.18%, to finish at 38,981.75. STI rose 0.41%, to close at 3,640.19.

Wall Street closed higher as earnings got off to a good start. The DJIA added 0.09%, to end at 43,275.91. Nasdaq rose 0.63%, to close at 18,489.55. S&P500 rose 0.40%, to finish at 5,864.67.

News For The Day

BNM to support MSMEs with RM3.8bn in holistic financing

Bank Negara Malaysia (BNM) said it will provide micro, small and medium enterprises (MSMEs) with affordable and holistic financing with a fund size of RM3.8bn. The fund will go towards supporting MSMEs' move towards digitalisation and automation, embracing sustainable and low carbon practices, and agrofood production. - The Edge Markets

HeiTech Padu bags RM892.2m NIIse contract

Heitech Padu has secured a contract worth RM892.2m for the Malaysian Immigration Department’s National Integrated Immigration System (NIIse). The nature of the contract is to study, propose, design, develop, supply, deliver, install, test, integrate, migrate and synchronise data commissioning, as well as implement change management and training for the NIISe. The contract is expected to contribute positively to the earnings and net assets per share of the company for the FY12/24 and onwards until the completion of the contract. - The Star

Exsim wins RM60m fit-out works contract

Exsim Hospitality has accepted a letter of award from Totalbuildz in respect of the development of 294 rooms @ Empire City at Damansara Perdana, Selangor, worth RM60m. The contract is for the purpose of designing and building of architecture, interior design and fit-out works to guest rooms. The aforementioned works are expected to be completed over an 18-month period and is expected to contribute positively to the earnings and net assets of the company throughout the duration of the contract. - The Star

SCIB unit secures RM48m islamic banking facilities

Sarawak Consolidated Industries' wholly-owned subsidiary, SCIB Concrete Manufacturing, has accepted Islamic banking facilities totalling RM48m from Affin Islamic Bank. The first facility is a Tawarruq Term Financing-i of RM27m, intended to redeem a two-storey office building with a spun piles factory and another two-storey office with a concrete roofing tiles factory in the Muara Tebas Land District, Sarawak. The remaining amount would be used as working capital, with a tenure of 180 months. -

The New Straits Times

Govt introduces 2% tax on dividend income over RM100,000 The government will introduce a 2% tax on dividend income, as well as expand the scope of the sales and service tax (SST). The 2% dividend tax will be introduced in the year of assessment 2025 on annual dividend income exceeding RM100,000 received by an individual shareholder. - The Edge Markets

Our Thoughts

Wall Street continued with its uptrend as both the DJIA and S&P500 recorded new highs spurred by above expectations earnings. Meanwhile the US 10-year yield closed marginally lower at 4.083%. Over in Hong Kong, the HSI surged as expectations are high for more stimulus measures bolstered by China’s below par 3Q GDP growth reported last Friday. As a result, the HSI rebounded back to the 21,000 threshold. Back home, the FBM KLCI maintained its uptrend ahead of Budget 2025. Looking forward, we are Neutral on Budget 2025. Nonetheless, we expect the market may be a tad disappointed by the absence of infra projects implementation. Nonetheless, the more optimistic GDP growth forecast of between 4.5%-5.5% for 2025 may inject some optimism thus we expect the index to hover within the 1,645-1,655 range today.

Source: Rakuten Research - 21 Oct 2024

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

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