Previous Day Highlights

FBM KLCI closed higher lifted by some bargain hunting activities. The benchmark index was up 0.10% or 1.55 pts to close at 1,615.64. Majority of sectors were positive with health care (+1.5%), telecommunications (+1.4%), and plantation (+0.4%), leading the gainers; while losers were seen in industrial products & services (-0.5%), and construction (-0.4%). Market breadth was positive with 538 gainers against 537 losers. Total volume stood at 3.24bn shares valued at RM2.74bn.

Major regional indices trended mostly higher. HSI declined 0.92%, to end at 19,560.44. SHCOMP increased 0.12%, to close at 3,368.86. Nikkei 225 up 0.30%, to finish at 39,395.60. STI rose 0.55%, to close at 3,820.82.

Wall Street closed lower ahead of November jobs report. The DJIA dropped 0.55%, to end at 44,765.71. Nasdaq eased 0.18%, to close at 19,700.26. S&P500 eased 0.19%, to finish at 6,075.11.

News For The Day

99 Speed Mart, Gamuda included in FBM KLCI list

The FTSE Bursa Malaysia (FBM) KLCI has included 99 Speed Mart Retail Holdings and Gamuda in its list, replacing Genting and Genting Malaysia. As for the FBM Mid 70 Index, the list saw nine new inclusions. They are Carlsberg Brewery Malaysia, Genting, Genting Malaysia, Genting Plantations, Malakoff Corporation, Nationgate Holdings, Oriental Holdings, Tanco Holdings and Vitrox Corporation. All constituent changes will take effect on December 23, 2024. - New Straits Times

Dialog wins RAJA Cluster small field production

Dialog Group won a contract with Petroliam Nasional (Petronas) to assume 100% participating interest and the role of operator in the RAJA Cluster small field asset production sharing contract (PSC), located offshore Peninsular Malaysia. The 14-year contract, which commenced on Dec 2, 2024, comes with a two-year pre-development phase. The first commercial production expected by the end of the development phase, this could materialise in end-2028. - The Edge Market

Pavilion Reit buying KL hotels for RM480m

Pavilion Real Estate Investment Trust is buying two hospitality assets namely the Banyan Tree Kuala Lumpur and Pavilion Hotel Kuala Lumpur, in a landmark deal worth RM480m. Both acquisitions aligned with Pavilion Reit's strategy which contributes positively to the overall portfolio and future growth. The acquisitions will be funded via a combination of debt and/or equity. - New Straits Times

NationGate launches its latest AI server

NationGate Holdings has launched its latest artificial intelligence (AI) server. NationGate’s venture into AI server manufacturing is a timely and significant move that complements this momentum. With data centre capacity projected to grow at a compound annual rate of nearly 20% through 2028, Malaysia is well on its way to establishing itself as a leader in AI technology and innovation. - The Edge Market

Paragon Globe 2QFY25 profit rose 21x

Paragon Globe’s 2QFY25 net profit rose 2089.4% YoY to RM9.1m, attributed to the strong performance in its property development segment. The property development segment remained Paragon Global's primary revenue driver, contributing over 99% of total revenue. Key contributors to the performance included land sales in Desa Cemerlang, Johor and robust sales of detached factories and shop offices in Pekan Nenas, Johor. - New Straits Times

Our Thoughts

Wall Street closed lower as traders unloaded their position ahead of the US November employment data that could impact the Federal Reserve’s stance on interest rate. Meanwhile, the US 10-year yield ended marginally lower at 4.178%. Over in Hong Kong, the HSI retreated as traders locked in profits ahead of a major policy conference in Beijing next week amid concerns over the impending trade war by Trump. Back home, the FBM KLCI closed positively but off the day’s high. We believe the ongoing buying streak will continue and remain hopeful that foreign selling will not derail the current uptrend. Crucially the benchmark index is still stuck within the consolidation phase and needs to break the 1,630 mark, before the local bourse improves to higher levels. For today, we expect the index to trend within the 1,610- 1,620 range. Meanwhile, the CPO futures is looking solid currently trending at around the YTD high of RM5,20.0/tonne.

Source: Rakuten Research - 6 Dec 2024

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