Previous Day Highlights

12 December 2024 FBM KLCI closed lower bogged down by heavyweights. The benchmark index was down 0.36% or 5.77 pts to close at 1,603.20. Gainers were seen in technology (+0.50%), financial services (+0.26%), and telecommunications (+0.10%); while losers were seen in health care (-1.69%), industrial products & services (-1.25%), and plantation (- 1.09%). Market breadth was negative with 652 losers against 419 gainers. Total volume stood at 2.59bn shares valued at RM2.46bn.

Major regional indices trended mixed. HSI declined 0.77%, to end at 20,155.05. SHCOMP increased 0.29%, to close at 3,432.49. Nikkei 225 was up 0.01%, to finish at 39,372.23. STI slid 0.54%, to close at 3,792.82.

Wall Street closed mixed as markets assessed the upcoming inflation data. The DJIA dropped 0.22%, to end at 44,148.56. Nasdaq rose 1.77%, to close at 20,034.89. S&P500 rose 0.82%, to finish at 6,084.19.

News For The Day

Axiata seals definitive deal to merge Indonesian ops

Axiata Group has signed a definitive agreement with Sinar Mas to proceed with the proposed merger of PT XL Axiata Tbk (XL Axiata) and two other companies in Indonesia. This expanded scale will support combined pro forma revenues of 45.41 trillion rupiah and EBITDA of 22.42 trillion rupiah, providing a solid financial foundation for reinvestment into profitable growth and yield. Upon completion, Axiata will operate in the market with a three-player structure, where the group holds an over 25% market share. – The Star

Mara teams up with Privasia to develop DC in Perak

Mara Inc and ACE Market-listed Privasia Technology, a business process outsourcing company, are teaming up to develop and operate a data centre in Bagan Datuk, Perak. The project’s first phase, comprising 10MW, is expected to be completed by October 2026. Due to the project still being at a preliminary stage, details are scant. Mara Inc and Privasia also entered into a non-disclosure agreement in relation to the project. - The Edge Market

Sale of 'majority stake' in U Mobile, says ST Telemedia

ST Telemedia, a unit of Temasek, announced the sale of a "majority stake" in U Mobile to Mawar Setia, owned by Tan Sri Vincent Tan (70%) and Johor Princess Tunku Tun Aminah (30%). The sale includes financial instruments contingent on regulatory approvals. ST Telemedia, holding a 49% equity stake, clarified it also owns convertible instruments in U Mobile. Upon deal completion, Mawar Setia will hold 51%, while ST Telemedia retains a 20% minority stake. U Mobile, which has been chosen to lead the development of the second 5G network, currently has about nine million subscribers. - The Edge Market

Astro Malaysia’s 3QFY24 net profit jumped 2x

Astro Malaysia’s 3QFY24 net profit swing into the black to RM46.9m (YoY) from net loss of RM45.1m. The increase resulted from lower net financing costs driven by favourable unrealised forex arising from unhedged lease liabilities and lower amortisation of intangible assets, offset by lower earnings before interest, taxes, depreciation and amortisation and higher tax expense. The focus remains on growing new customers, strengthening adjacent businesses, and reducing legacy costs. - The Star

Our Thoughts

Wall Street closed mixed as sentiment remained jittery amid the high expectations and market valuations. While the DJIA ended lower, the Nasdaq notched another record high as many expect the Fed to reduce interest rate underpinned by November’s CPI figure that came in within expectations. Meanwhile, the US 10-year yield inched higher at 4.275%. Over in Hong Kong, the HSI eased further as traders are waiting for more details from China’s economic conference which kicked-off yesterday. As a result, the HSI slid from the intra-day high of almost 21,000 on Tuesday to currently at the 20,100 threshold. On the home front, the FBM KLCI continued with its decline, back to around 1,600 amid persistent selling by foreign funds. We were indeed perplexed by the unrelenting foreign unloading that started in October rendering the local bo. urse short of liquidity. Nonetheless, we believe 1,600 to remain as a solid psychological support for now thus expect the index to hover within the 1,600-1,610 today.

Source: Rakuten Research - 12 Dec 2024

To sign up for an account: http://bit.ly/40BNqKI

[Youtube Tutorial] Account Opening & Enable Foreign Equity: http://bit.ly/3I5Jzxo