Previous Day Highlights

6 November 2024 FBM KLCI closed higher lifted by late buying activities. The benchmark index was up 0.26% or 4.27 pts to close at 1,620.70. Majority of sectors were positive with health care (+0.7%), financial services (+0.6%), and plantation (+0.4%), leading the gainers; while losers were seen in industrial products & services (-1.5%), and energy (-0.6%). Market breadth was positive with 512 gainers against 476 losers. Total volume stood at 2.59bn shares valued at RM2.49bn.

Major regional indices trended higher. HSI gained 2.14%, to end at 21,006.97. SHCOMP was up 2.32%, to close at 3,386.99. Nikkei 225 rose 1.11%, to end at 38,474.68. STI added 0.27%, to close at 3,581.61.

Wall Street closed higher as markets await for the election results. The DJIA added 1.02%, to end at 42,221.88. Nasdaq rose 1.43%, to close at 18,439.17. S&P500 rose 1.23%, to finish at 5,782.76.

News For The Day

F&N profit falls 38% on higher taxes from Thai ops

Fraser & Neave Holdings' net profit for 4QFY9/24 dropped 38.21% YoY to RM85m, impacted by higher tax expenses and increased withholding taxes on dividends repatriated from its Thailand operations. Looking ahead, F&N said it remains focused on optimising its existing businesses while advancing growth initiatives in agriculture through its F&N AgriValley project. - The Edge Market

IOI Corp allocates land in Johor for solar power plant

IOI Corp has allocated part of its aged plantation landbank in Johor to build a solar power plant, in a move to venture into the renewable energy sector. IOI Corp's total landbank in Johor spans 23,961ha, according to the group's latest annual report. The project is expected to generate additional revenue streams for the group, which is Malaysia’s second-largest palm oil producer. – The Edge Market

T7 Global's unit bags 5-year job from Exxonmobil

T7 Global's unit Tanjung Offshore Services has received a letter of award for a job from ExxonMobil Exploration and Production Malaysia Inc. It is for the provision of Pan-Malaysia Offshore Maintenance, Construction, Modification (MCM) and Hook-Up & Commissioning (HUC) Services for Package B2 - Guntong. The contract will take effect from Dec 1 2024, for a period of five years until Nov 30, 2029. The board envisage that the award will contribute positively to the earnings and net assets of the company for FY12/24 and onwards until the expiry of the contract. - New Straits Times

NADI BHD acquires polytechnic concessions for RM185m

Gagasan Nadi Cergas has entered into a RM185m deal to acquire the entire 100% stake in Konsortium PAE Sepakat (KPSSB), via the purchase of holding companies Serata Ehsan and Seri Delima Anggun. KPSSB is the owner of special purpose vehicles (SPV) that hold concession agreements with the government to construct buildings, facilities and infrastructure, as well as provide maintenance services to seven polytechnics in various locations in the country. – The Star

TCS secures RM86.4m construction contract

TCS Group’s wholly-owned subsidiary TCS Construction has bagged a RM86.4m contract from Sime Darby Property for the construction of 60 units of two-storey semi-detached factories in Elmina Business Park, Selangor. The contract is for a period of 24 months, commencing December 2024 and is expected to be completed by December 2026. - The Star

Our Thoughts

Wall Street closed broadly higher as we await for the results from the US presidential election which will be tight. Meanwhile, the US 10-year yield dipped to 4.281% ahead of the Federal Reserve’s decision in a couple of days. In Hong Kong, the HSI maintained its ascension hitting past the 21,000 mark from latest data showing China’s service sector grew at its fastest pace since July. Meanwhile, sentiment was further boosted by Beijing’s move to ease foreign investments into local markets. Back home, the FBM KLCI managed to close just above the 1,620 level amid a choppy session as investors continue to mop up banks, plantation and telco stocks ahead of corporate earnings results later this month. Although, outlook on Wall Street remains jittery, we believe the local bourse to stay steady following recent sell-down hence expect the index to trend within the 1,615, 1,625 range today.

Source: Rakuten Research - 6 Nov 2024

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