Previous Day Highlights

29 October 2024 FBM KLCI closed lower pressured by intensified sell-off activity. The benchmark index was down 0.48% or 7.83 pts to close at 1,610.47. Majority of sectors were negative with utilities (-1.3%), energy (-1.1%), and telecommunications (-1.0%) leading the losses; while gainers were seen in consumer (+0.2%), and plantation (+0.1%). Market breadth was negative with 782 losers against 294 gainers. Total volume stood at 2.45bn shares valued at RM2.21bn.

Major regional indices trended higher. HSI gained 0.04%, to end at 20,599.36. SHCOMP increased 0.68%, to close at 3,322.20. Nikkei 225 up 1.82%, to finish at 38,605.53. STI slid 0.26%, to close at 3,584.08.

Wall Street closed higher ahead of a busy earnings week and the final run up to the 5th Nov presidential election. The DJIA added 0.65%, to end at 42,387.57. Nasdaq rose 0.26%, to close at 18,567.19. S&P500 rose 0.27%, to finish at 5,823.52.

News For The Day

Maxis, Ambank deepen collab

Maxis has signed a MOU with AmBank to accelerate digital transformation in Malaysia’s healthcare sector. This collaboration seeks to enhance service delivery and accessibility to medical services and infrastructure across the healthcare ecosystem, by enabling the adoption of connectivity and digital solutions. - The Edge Market

Mah Sing, Bridge Data Centres sign second JV

Mah Sing has signed a second collaboration agreement with Bridge Data Centres (BDC), backed by Bain Capital, to expand the development at Mah Sing DC Hub@Southville City. This collaboration underscores Mah Sing’s commitment to building cutting-edge digital infrastructure. - The Edge Market

PGF Capital’s 2QFY2/25 net profit more than doubles

PGF Capital’s 2QFY2/25 net profit more than double (from RM2.9m to RM7.0m) attributed to its insulation segment, driven by strong demand from the Oceania market. The group declared a first interim dividend of 2sen per share. Looking ahead, the group expects potential impact from the recent strengthening of the ringgit against the Australian dollar, a temporary shortage in skilled labour in Australia, as well as disruption caused by strike among Australian construction workers over the federal administration of its union. - The Edge Market

Meta Bright’s units secure RM43.9m banking facilities

Meta Bright subsidiaries Expogaya (EXPO) and Jesselton Concrete (Jesselton Concrete) have secured banking facilities totalling RM43.9m from Hong Leong Bank (HLB) to boost the company’s concrete business segment growth. The facilities are set to fuel operational scalability for both EXPO and Jesselton Concrete, facilitating the procurement of advanced machinery, ensuring consistent working capital, and supporting project expansions to meet Sabah’s escalating demand for construction materials. - The Edge Market

Pintaras Jaya buys 33 acres of agricultural land

Pintaras Jaya is acquiring 11 pieces of freehold land totalling 33 acres in Kapar for RM22.9m cash. The property, which is an oil palm plantation, is currently categorised as agricultural land but is zoned for residential development. The acquisition represents an opportunity to diversify substantially into property development in the future. - The Edge Market

Our Thoughts

Wall Street closed firmer ahead of a spate of earnings results and economic data in the coming days. The decline in crude oil prices further eased concerns as Israel latest attacks did not target Iran’s oil facilities. Meanwhile, the US 10-year yield edged higher at 4.282%. In Hong Kong, the HSI closed positively paring earlier losses as expectations of more stimulus measures may be in the offing following the declining earnings amongst industrial companies. On the home front, the FBM KLCI continued to slide as it dipped to just above the 1,610 level despite a promising opening attributed to late profit taking activities by foreign funds again. We suspect recent outflows of foreign funds can be due to expectations of a smaller rate cut by the Federal Reserve, which also saw the MYR weakening against the greenback to currently RM4.36. All said, the crude palm oil (CPO) price is heading for a highest monthly average closing for October at RM4,391/tonne thus may see some focus on the Plantation stocks. For today, we expect the index to hover within the 1,610-1,620 range.

Source: Rakuten Research - 29 Oct 2024

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