Previous Day Highlights

FBM KLCI closed flat due to late profit taking activities. The benchmark index was down 0.02% or 0.31 pts to close at 1,645.68. Gainers were seen in health care (+0.87%), energy (+0.77%), and technology (+0.74%); while losers were seen in property (-1.29%), utilities (-1.01%), and plantation (-0.44%). Market breadth was negative with 519 losers against 395 gainers. Total volume stood at 3.02bn shares valued at RM2.18bn.

Major regional indices trended lower. HSI declined 1.57%, to end at 20,478.46. SHCOMP increased 0.20%, to close at 3,268.11. Nikkei 225 eased 0.07%, to finish at 38,954.53. STI slid 0.64%, to close at 3,614.58.

Wall Street closed mixed as traders remained cautious amid rising geopolitical tensions and stubborn US economy. The DJIA dropped 0.80%, to end at 42,931.60. Nasdaq rose 0.27%, to close at 18,540.01. S&P500 slid 0.18%, to finish at 5,853.97.

News For The Day

Petronas to dish out up to RM10bn worth of jobs

NATIONAL oil company Petroliam Nasional (Petronas) is close to awarding RM8bn to RM10bn worth of contracts as part of its maintenance, construction and modification (MCM) initiatives. The contracts are on a five-year basis and broken up into 15 to 16 packages. It will commence early next year with an option for two extensions, the first for three years and the second for a two- year time period. The average value of each package is about RM500m. - The Edge Markets

Miti helps Perodua produce Malaysia's first EV under RM100k

The Ministry of Investment, Trade and Industry (MITI) will help Perodua produce Malaysia's first electric vehicle (EV) priced under RM100,000 and reach its goal by the end of 2025. In 2024, nearly 16,000 new battery electric vehicles (BEVs) were registered in Malaysia, surpassing the 13,000 registered in 2023. This progress brings Malaysia closer to its target of having EVs comprise 20% of total industry volume by 2030. The automotive sector remains a key contributor to Malaysia’s economy, accounting for about 4% of GDP annually. - The Star

Yinson's FPSO Maria Quitéria achieves first oil

Yinson Holdings announced that floating, production, storage and offloading vessel (FPSO) Maria Quitéria has achieved first oil on Oct 15, 2024. This marks the commencement of the project’s firm charter, with contracted day rates being paid to the group's FPSO unit Yinson Production for a period of 22.5 years, until 2047. - The Edge Market

Samaiden, Chudenko ink solar PV partnership

Samaiden Group's subsidiary, Samaiden Capital Management, and Chudenko (Malaysia) have signed a shareholders' agreement with their joint venture company, Samaiden Chudenko Renewables, to jointly invest in solar photovoltaic (PV) facilities and related services. The agreement outlines the rights and responsibilities of each party in executing renewable energy projects. The agreement is expected to contribute positively to its future earnings upon successfully implementing the solar PV related project. - The Star

AWC unit secures RM30.5m housekeeping contract in JB

AWC said a tender submitted by its wholly-owned subsidiary Ambang Wira for housekeeping services at JB Sentral Building in Johor Bahru has been accepted by KCJ Engineering. The contract is valued at RM30.5m, will run for 54 months from Oct 1, 2024, to March 31, 2029. The contract is expected to contribute positively to the earnings of the AWC Group over the duration of the contract. - The Star

Our Thoughts

Wall Street closed mixed on concerns that the US economy remains resilient and that the Federal Reserve may find it hard to keep inflation down. As such, the DJIA lost 344 points with the US 10-year yield jumping to 4.196%. Over in Hong Kong, the HSI declined as traders are waiting for more Chinese stimulus following the cut in the one and five year Loan Prime Rate by the PBOC yesterday. On the home front, the FBM KLCI closed flat, paring earlier gains amid profit taking activities late in the session. The local bourse may be suffering from a post-Budget blues as investors are still digesting the implications and there remain some unanswered questions. Meanwhile, sentiment remains cautious, underscored by the low trading volume. Thus, we expect the index to trend between the 1,640-1,650 range today.

Source: Rakuten Research - 22 Oct 2024

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