Previous Day Highlights

FBM KLCI closed higher driven by widespread buying and mirroring Wall Street's gains. The benchmark index was up 0.83% or 13.47 pts to close at 1,634.17. Majority of sectors were positive with technology (+6.2%), construction (+2.7%), and health care (+2.2%), leading the gains; while losers were seen in energy (-0.1%), and REIT (0.0%). Market breadth was positive with 849 gainers against 352 losers. Total volume stood at 3.40bn shares valued at RM2.97bn.

Major regional indices trended higher. HSI slid 2.23%, to end at 20,538.38. SHCOMP was dropped 0.09%, to close at 3,383.81. Nikkei 225 rose 2.61%, to end at 39,480.45. STI added 0.60%, to close at 3,602.99.

Wall Street closed higher as Donald Trump won the presidential election. The DJIA surged 3.57%, to end at 43,729.93. Nasdaq rose 2.95%, to close at 18,983.46. S&P500 rose 2.53%, to finish at 5,929.04.

News For The Day

Lotte Chemical Titan flags uncertainties as 3QFY24 losses

swell Lotte Chemical Titan Holding posted a larger net loss for 3QFY24, dragged by inventory write-downs to its net realisable value and foreign exchange losses due to maintenance shutdown at its associate Lotte Chemical USA Corp. The group expects the global business environment to remain uncertain in the near future, citing the geopolitical tensions that will continue to impact crude oil prices. – The Edge Market

Hup Seng remains cautious despite strong 3QFY24 results

Hup Seng’s net profit rose 32.6% to RM17.3m in 3QFY24 YoY, due to the improvement in contribution as a result of lower input costs of certain major materials. Hup Seng Industries remains cautious, given the highly competitive nature of the industry. The Group anticipates challenges with the rising cost of raw materials especially palm oil, expects a tighter supply in the near future. – The Star

Pharmaniaga axes free warrants in RM654m fundraising

Pharmaniaga has revised its regularisation plan, which aims to lift it out of Practice Note 17 (PN17) status, by adjusting the capital reduction and excluding warrants from its rights issue. The proposed plan now includes a RM520m capital reduction, as well as a rights issue set to raise up to RM353.5m. Meanwhile, a RM300m private placement proposed by the company remained unchanged. In the 1HFY24, Pharmaniaga booked a net profit of RM28.4m on revenue of RM1.8bn. - The Edge Market

SCIB acquires four plots of land in Bintulu for RM18.4m

Sarawak Consolidated Industries is acquiring four plots of land totaling 7.34 hectares in Bintulu, Sarawak for RM18.4m. The acquisition of the lands, which are primarily for agricultural purposes, is to expand the group’s business operations through collaboration with developers, as well as to jointly develop and construct residential housing projects that use SCIB’s manufactured products. By securing agricultural land at this earlier stage, it could capitalise on cost savings. - The Star

Haily's outstanding order book breaches RM1bn

Haily Group has secured a contract worth RM89.9m from Mah Sing Group to build terrace homes for a housing project in Taman Tiara Indah, Johor Bharu, Johor, which pushes the value of its outstanding orders past RM1bn. Haily now has a portfolio of 27 ongoing projects, with a cumulative value of RM1.01bn. These projects are anticipated to be completed progressively between this year and 2026. - The Edge Market

Our Thoughts

Wall Street closed sharply higher as Donald Trump secured victory in the 2024 presidential election. The Dow surged over 3.5%, while the S&P 500 rose by more than 2.5%, and the Nasdaq gained nearly 3%. Tesla shares soared over 14%, with Trump’s win seen as a potential boost for Elon Musk’s electric vehicle company. Across Asia, stocks ended mostly higher due to positive cue from Wall Street overnight. In Hong Kong, the HSI fell more than 469 points due to profit taking activities following the recent rally. Locally, the FBM KLCI finished higher due to broad-based buying. The recent upward movement in the FBM KLCI suggests some buying interest, which may provide a short-term rebound opportunity. Furthermore, BNM’s decision to hold the OPR at 3% adds clarity to the local market landscape. We believe plantation stocks will remain a key focus, with CPO futures approaching RM5,000/per tonne. We anticipate the benchmark index to trend within the range of 1,630 to 1,640 today.

Source: Rakuten Research - 7 Nov 2024

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