Previous Day Highlights

3 December 2024 FBM KLCI closed marginally higher despite late-session selling pressure. The benchmark index was up 0.07% or 1.19 pts to close at 1,595.48. Majority of sectors were positive with industrial products & services (+1.9%), plantation (+1.9%), and technology (+1.1%), leading the gainers; while losers were seen in healthcare (-1.2%), and financial services (-0.7%). Market breadth was negative with 549 losers against 497 gainers. Total volume stood at 2.83bn shares valued at RM2.38bn.

Major regional indices trended positively. HSI gained 0.65%, to end at 19,550.29. SHCOMP increased 1.13%, to close at 3,363.98. Nikkei 225 was up 0.80%, to finish at 38,513.02. STI rose 0.32%, to close at 3,751.22.

Wall Street closed higher boosted by tech stocks as investors anticipated key economic data this week. The DJIA dropped 0.29%, to end at 44,782.00. Nasdaq rose 0.97%, to close at 19,403.95. S&P500 rose 0.24%, to finish at 6,047.15.

News For The Day

Yinson JV to build new FSO vessel

Yinson 49%-owned JV with PetroVietnam Technical Service Corp (PTSC) has executed a provision, charter, operation and maintenance contract with a unit of Murphy Oil Corp, for a floating, storage and offloading (FSO) vessel in Vietnam. The 500,000 barrels of oil equivalent capacity FSO, to be built for operations from 4QCY26, will be chartered for a firm period of 10 years. The contract comes with options to extend for up to 5 years. In total, the contract has a value of up to USD416m. - The Edge Market

Datasonic secures RM81.2m contract extensions

Datasonic has clinched two contract extensions worth a combined RM81.2m from the Home Ministry. The first extension, valued at RM21.4m, inclusive of 8% sales and service tax (SST), covers comprehensive maintenance services for card personalisation centres at the National Registration Department (JPN). The second contract extension, valued at RM59.9m and exempt from SST, involves the supply of MyKad, MyTentera, MyPOCA raw cards and consumables for JPN. - The Edge Market

T7 wins third Pan Malaysia contract

T7 Global has won a contract from Jadestone Energy (M) Pte Ltd for the provision of Pan-Malaysia maintenance, construction, modification (MCM) and hook-up and commissioning (HUC) services for Package B3 and will last five years until Oct 16, 2029. - The Edge Market

Pesona Metro bags RM182m condo construction job

Pesona Metro has secured a RM181.8m contract for the construction of two blocks of 28-storey condominiums in Cyberjaya. The project has a duration of 40 months, commencing on Dec 16. As of the end of September, the group had an outstanding order book of RM2.3bn, comprising of 9 ongoing projects. - The Edge Market

Willowglen MSC bags RM79.2m contract

Willowglen MSC has clinched a RM79.2m contract from Singapore’s Public Utilities Board (PUB). It involves the supply, design, installation, and commissioning of supervisory control and data acquisition (SCADA) and telemetry systems, alongside construction and maintenance services. This eight- year contract is expected to deliver steady revenue growth and strengthen Willowglen’s financial position, contributing positively to earnings in 2025 to 2032.- The Edge Market

Our Thoughts

Wall Street maintained its uptrend despite some profit taking activities as both the Nasdaq and S&P 500 ended in record highs. Liquidity continues to play a pivotal role as the small caps are also clear winners ahead of the proposed tax cuts from Trump. Meanwhile, the US 10-year yield closed higher at 4.196%. In Hong Kong, the HSI continued to advance buoyed by China’s latest manufacturing activity data which jumped to a 5-month high illustrating that its stimulus package is taking effect. Nonetheless, sentiment remains cautious as many are still . hoping for more easing policies to prop confidence up further. On the home front, the FBM KLCI rebound above the 1,600 was short-lived as selling from foreign funds emerged during the afternoon session. As a result, we reckon any window dressing activities may not take effect anytime soon thus expect the index to maintain its consolidation and trend between the 1,595-1,605 range today.

Source: Rakuten Research - 3 Dec 2024

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