Previous Day Highlights

FBM KLCI closed flat amid a mixed regional performance. The benchmark index was down 0.06% or 1.01 pts to close at 1,641.53. Majority of sectors were positive with telecommunications (+0.4%), consumer (+0.4%), and financial services (+0.3%), leading the gains; while losers were seen in health care (-0.9%), and utilities (-0.5%). Market breadth was positive with 563 gainers against 541 losers. Total volume stood at 3.24bn shares valued at RM2.64bn.

Major regional indices trended higher. HSI gained 1.27%, to end at 20,760.15. SHCOMP increased 0.52%, to close at 3,302.80. Nikkei 225 eased 0.80%, to finish at 38,104.86. STI rose 0.37%, to close at 3,600.78.

Wall Street closed lower, hit by an increase in U.S. Treasury yields. The DJIA dropped 0.96%, to end at 42,514.95. Nasdaq eased 1.60%, to close at 18,276.65. S&P500 slid 0.92%, to finish at 5,797.43.

News For The Day

Capital A to cut capital by RM6bn to put finances in order

Capital A has proposed for a capital reduction of up to RM6bn as part of its plan to regularise its financial condition. The proposed regularisation plan serves to regularise the financial condition of the group in order to address and uplift the PN17 status of the company. - The Straits Times

TDM proposes RM1.5bn sukuk wakalah programme issuance

TDM has proposed the issuance of a sukuk wakalah programme with a total programme limit of RM1.5bn to enhance operational efficiency, support future investments, and meet its financial commitments in compliance with Shariah principles. A significant portion of the sukuk proceeds will be allocated to fund capital expenditures, investments, working capital, and general corporate purposes of the group. - The Star

Kerjaya Prospek bags two contracts totalling RM34.4m

Kerjaya Prospek Group announced that its subsidiary, Kerjaya Prospek (M), secured two contracts worth RM34.4m. The first, valued at RM16m, involves piling and pile cap works in Batu Kawan, Penang, while the second, worth RM18.4m, covers earthworks and structural works in Damansara Damai, Selangor. Both projects are set to start on November 5, 2024, with completion expected within 18 months. A total of 10 contracts secured year-to-date, amounting to RM1.6bn, the group's outstanding order book now stands at RM4.5bn. - The Edge Market

MNRB 2QFY24 profit jumps to RM92.7m

MNRB Holdings' net profit jumped to RM92.7m in the 2QFY25 from RM41.6m in the same period last year. This was driven by an improved claims experience, accretion of interest rates and foreign exchange rate movements” as well as more contribution from an associate. The group recorded a RM19.6m increase in investment income to RM219.6m from RM200.2m in 1HFY24, on the back of higher interest and profit income from fixed deposits and bond investments. - The Edge Market

Master Tec completes Sediacom acquisition

Master Tec Group, a manufacturer of electricity cables, has completed its 1.04m shares subscription in Sediacom for RM3.7m. This signifies a 51% stake and was entirely financed using Master Tec's internally generated funds. Sediacom's expertise integrated into the Group’s portfolio, can now deliver more comprehensive infrastructure solutions and secure larger projects. - The Straits Times

Our Thoughts

Wall Street closed sharply lower as higher Treasury yield weighed on market sentiment. As a result, the DJIA lost 410 points while the Nasdaq declined by 300 points with the US 10-year yield higher at 4.246%. Over in Hong Kong, the HSI rebounded to above the 20,500 level as sentiment improved on optimism of better corporate earnings in line with recent spate of easing measures plus the proposal by the government’s think tank of a USD280bn stock-stabilization fund. At home, the FBM KLCI performance remained subdue as it closed flat erasing earlier gains amid a lacklustre session. We believe such trading pattern to stay in the absence of catalysts thus anticipate the index to trend between the 1,635-1,645 range today. Nonetheless, buying interests may shift to plantation stocks as the CPO futures jumped to almost the RM4,500/tonne amid improving exports and a weaker MYR.

Source: Rakuten Research - 24 Oct 2024

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

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