Previous Day Highlights

4 December 2024 FBM KLCI closed higher reflecting the upbeat sentiment across the region. The benchmark index was up 0.72% or 11.48 pts to close at 1,606.96. Majority of sectors were positive with utilities (+2.1%), technology (+1.4%), and health care (+1.4%), leading the gainers; while losers were seen in energy (-0.9%), and transportation (-0.1%). Market breadth was positive with 683 gainers against 432 losers. Total volume stood at 3.32bn shares valued at RM3.32bn.

Major regional indices trended positively. HSI gained 1.00%, to end at 19,746.32. SHCOMP increased 0.44%, to close at 3,378.81. Nikkei 225 was up 1.91%, to finish at 39,248.86. STI rose 0.98%, to close at 3,788.23.

Wall Street closed mixed while investors await further jobs data. The DJIA dropped 0.17%, to end at 44,705.53. Nasdaq rose 0.40%, to close at 19,480.91. S&P500 rose 0.05%, to finish at 6,049.88.

News For The Day

VS Industry’s 1QFY6/25 net profit drops 38%

VS Industry’s 1QFY25 net profit dropped 37.6%, mainly due to lower sales orders from existing customers, unfavourable forex rates and higher labour costs because of an increase in headcount. The group declared its first interim dividend of 0.4sen per share. On prospects, VS Industry noted that the global macroeconomic environment continues to improve, with the second interest rate cut in the US in November providing further stimulus to businesses and boosting consumer sentiment. - The Edge Market

Solarvest acquires 30% in gas abatement firm

Solarvest has proposed to acquire a 30% stake in Penang- based SIW Manufacturing to expand its presence in the clean energy and sustainable technology ecosystems. Additionally, the vendors have warranted that SMSB’s audited net tangible assets as of end December 2024 will not be less than RM48m. Should this condition not be met, Solarvest has the right to exercise a put option. - The Edge Market

Cloudpoint unit accepts RM33.6m contract

Cloudpoint has accepted a contract from a local bank to implement ServiceNow's integrated service management automation (Isma) solutions for RM33.6m. The contract is expected to contribute positively to the earnings and net assets of Cloudpoint for FY24 onwards. - The Star

CSC Steel’s earnings hit by anti-dumping duties

CSC Steel’s 3QFY24 net profit slid 17.6 % to RM6.88m impacted by government’s lifting of anti-dumping duties on flat-rolled plated steel imports from China and Vietnam. Looking ahead to the 4QFY24, expected interest rate cuts in the US, along with easing monetary policies in China, including interest rate reductions and reserve requirement ratio cuts, are expected to significantly boost steel demand and potentially raise steel prices. - The Edge Market

South Korea political turmoil

South Korean President Yoon Suk Yeol’s surprise decision to impose martial law in South Korea for the first time in more than 40 years — and then just as swiftly reverse course — sparked whiplash in the country’s foreign-traded assets and caught global markets off guard, at one point sending US Treasury yields lower as traders sought a haven from potential instability.

Our Thoughts

It was another mixed session on Wall Street as the DJIA ended in negative territory while both the Nasdaq and S&P 500 eked out marginal gains. Meanwhile, the US job market stays healthy with higher than expected job openings in October as the US 10-yeat yield edged higher at 4.226%. Over in Hong Kong, the HSI maintained its uptrend at almost the 19,800 level, on expectations that more measures may be in the offing to shore up China’s economic growth to counter the impending trade war with the US. On the home front, the FBM KLCI finally surged past the 1,600 mark following a few failed attempts. This illustrates that foreign selling may be at its tail-end.. Anyhow, we remain vigilant if the rebound is sustainable over the next few days. Nonetheless, we expect the index to hover between the 1,605-1,615 range today. Meanwhile, we are mindful of the latest political developments in South Korea that may create some ripple effects across the region.

Source: Rakuten Research - 4 Dec 2024

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