Previous Day Highlights

FBM KLCI closed higher driven by bargain hunting in heavyweights with a focus on plantation and construction stocks. The benchmark index was up 0.78% or 12.45 pts to close at 1,616.43. Majority of sectors were positive with plantation (+1.7%), construction (+1.6%), and utilities (+0.9%), leading the gainers; while losers were seen in technology (-0.5%), and transportation (-0.3%). Market breadth was positive with 537 gainers against 485 losers. Total volume stood at 2.42bn shares valued at RM2.16bn.

Major regional indices trended higher. HSI gained 0.30%, to end at 20,567.52. SHCOMP was up 1.17%, to close at 3,310.21. STI added 0.47%, to close at 3,572.04. Nikkei 225 closed for market holiday.

Wall Street closed lower ahead of the presidential election. The DJIA dropped 0.61%, to end at 41,794.60. Nasdaq eased 0.33%, to close at 18,179.98. S&P500 dipped 0.28%, to finish at 5,712.69.

News For The Day

Elridge Energy signs MoU to supply biomass fuel for 15 years

Elridge Energy Holdings' wholly-owned subsidiary, Bio Eneco, has signed a memorandum of understanding (MoU) with JFE Shoji Group, a trading group headquartered in Tokyo, to supply biomass fuel for 15 years, beginning next year. This long-term MoU is expected to positively impact Elridge Energy's financial performance into the foreseeable future. This MoU reflects the growing demand for certified biomass fuel, particularly in countries like Japan, which is highly committed to addressing climate change - The Star

MN Holdings's order book hits record high at RM625.8m

MN Holdings has secured various contracts worth RM315m since its new financial year started on July 1, 2024, pushing its order book to RM625.8m. The order book will provide MN Holdings’ earnings for the next two to three financial years. Looking ahead, MN Holdings intends to persist in advancing and optimising its operational projects within the gas sector as the natural gas distribution system in Peninsular Malaysia is undergoing expansion. - The Edge Market

Bina Puri bags RM113.3m Sarawak water supply job

Bina Puri Holdings Bhd has secured a contract worth RM113.3m to complete the construction of water pipelines, civil and structure work under the proposed Serian Regional Water Supply Phase II (Stage 1) in Sarawak. The contract is expected to be completed by April 2027 and is anticipated to positively impact the group's earnings and net assets throughout its duration. – New Straits Times Bintai Kinden bags RM61.2m contract in Melaka Bintai Kinden Corp wholly-owned Kejuruteraan Bintai Kindenko has been awarded a RM61.2m contract by N&T Asset to build a housing project in Jasin, Melaka. The contract strengthens Bintai Kinden's portfolio in the construction sector and is expected to contribute to its earnings over the next four financial years. - New Straits Times

Tuju Setia gets RM411m job for Sunway Serene 2

Builder Tuju Setia has secured a construction contract worth RM411m to build serviced apartments and landed residential units in Kelana Jaya for the Sunway Serene 2 development project. The contract involves two blocks of 45-storey serviced apartments and landed properties. Tuju Setia has secured four contracts this year totalling RM1.19bn. Works on the latest contract are expected to be completed within 40 months once it begins at a date to be determined. - The Edge Market

Our Thoughts

Wall Street closed lower amid a choppy session as sentiment remains jittery ahead of the US presidential election today. Meanwhile, traders were also focused on the Federal Reserve’s purported rate cut on Thursday. As such, the US 10-year yield retreated to 4.287% after days of uptrend. Over in Hong Kong, the HSI managed to close positively largely buoyed by interests on EV stocks which recorded robust sales while waiting for more easing measures. On the home front, bargain hunting activities propped the FBM KLCI to above the 1,615 level predominantly led by renewed interests in Plantation stocks. As we had highlighted over the past 2 weeks, the strong CPO price will eventually place the planters back into the radar. We believe there are still legs for these stocks as the CPO futures are racing towards the RM5,000/tonne level. As we enter into the earnings season, we reckon sentiment should improve underpinned by the solid 15.4% earnings growth forecast for CY24 thus expect the index to chart within the 1,610- 1,620 range today.

Source: Rakuten Research - 5 Nov 2024

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