Previous Day Highlights

FBM KLCI closed lower due to absence of buying catalyst. The benchmark index was down 0.15% or 2.46 pts to close at 1,608.97. Majority of sectors were negative with utilities (-0.7%), telecommunications (-0.5%), and REIT (-0.4%) leading the losers; while gainers were seen in health care (+1.8%), and construction (+1.0%). Market breadth was positive with 534 gainers against 513 losers. Total volume stood at 2.74bn shares valued at RM2.63bn.

Major regional indices trended higher. HSI declined 0.50%, to end at 20,311.28. SHCOMP increased 0.59%, to close at 3,422.66. Nikkei 225 was up 0.53%, to finish at 39,367.58. STI rose 0.42%, to close at 3,810.98.

Wall Street closed lower ahead of consumer inflation report. The DJIA dropped 0.35%, to end at 44,247.83. Nasdaq eased 0.25%, to close at 19,687.24. S&P500 eased 0.30%, to finish at 6,034.91.

News For The Day

Gamuda to acquire 20% stake in AI firm Cloud Space

Gamuda has proposed to acquire a 20% equity interest in Cloud Space for RM18m to accelerate its digital ambitions in Cloud and AI technologies. Cloud Space’s deep expertise in cloud engineering, augments Gamuda’s in-house technology and digital capabilities in delivering large-scale complex engineering and construction projects. Gamuda and Cloud Space will have strong technical and financial resource to jointly access the emerging and fast-growing cloud adoption opportunities in Malaysia. - The Star

Dnex partners Gamuda to distribute Google Cloud solutions

Dagang Nexchange’s (Dnex) wholly-owned subsidiary Dnex Solutions has entered into a joint venture and shareholders agreement with Gamuda Technologies, a unit of Gamuda, to manage and operate the business of providing Google Distributed Cloud air-gapped services to the government and private clients in Malaysia. This JV will leverage the combined resources and expertise of DNeX and Gamuda in delivering GDC services, a cloud-based service focusing on data sovereignty and further supported with advanced Artificial Intelligence capabilities. - The Star

SNS Network’s 3QFY25 net profits increased 4x

SNS Network’s 3QFY25 net profits jumped 4x YoY to RM10.2m due to higher gross profit (GP) and GP margin for 3QFY25, primarily contributed by the commercial channel. SNS is expected to continue to ride on the growing demand for information and communication technology (ICT) products and services, supported by the replacement cycle of devices and government initiatives. The group has committed RM16.8m for AI graphics processing unit servers as at end- October, with options to scale up as industry demand grows. – The Star

Sunview unit bags 2 PV solar contracts worth RM196.1m

Sunview Group via its wholly-owned subsidiary Fabulous Sunview has secured 2 contracts for two ground-mounted photovoltaic (PV) solar generation facilities in Sungai Petani in Kuala Muda, Kedah, for a combined RM196.1m. This collaboration aligns with the vision for sustainable growth as the Group continues to explore new opportunities for expansion both locally and internationally - The Star

Our Thoughts

Wall Street declined as traders are looking at November’s CPI data later today, that may influence the Fed’s decision on interest rates next week. Meanwhile, the US 10-year yield inched higher at 4.228%. In Hong Kong, the HSI ended lower after it opened on a high above the 21,000 level. However, the uptrend was short-lived as traders decided to lock-in profits following the recent mini rally and looking for more concrete evidence during the key economic policy meeting later this month. Back home, the FBM KLCI closed slightly lower after a superb opening as selling emerged, limiting the ongoing uptrend. Nonetheless, we remain adamant that buyers would still prevail . hence expect the benchmark index to chart further upside. In view of the recent conclusion of earnings season, we noticed slight upgrades of estimates at 17% for 2024 and around 10% for 2025, showing that corporate Malaysia is still in good health hence expect the index to hover within the 1,605-1,615 range today.

Source: Rakuten Research - 11 Dec 2024

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