Previous Day Highlights

FBM KLCI closed higher due to buying activities. The benchmark index was up 0.42% or 6.67 pts to close at 1,608.75. Majority of sectors were positive with health care (+2.9%), technology (+2.2%), and construction (+1.2%), leading the gains; while losers were seen in energy (-0.5%), and REIT (-0.4%). Market breadth was positive with 611 gainers against 488 losers. Total volume stood at 2.79bn shares valued at RM2.41bn.

Major regional indices trended lower. HSI declined 2.09%, to end at 19,971.24. SHCOMP dropped 2.01%, to close at 3,391.88. Nikkei 225 eased 0.95%, to finish at 39,470.44. STI rose 0.03%, to close at 3,810.35.

Wall Street closed mixed as investors turn to Fed rate decision next week. The DJIA dropped 0.20%, to end at 43,828.06. Nasdaq rose 0.12%, to close at 19,926.72. S&P500 eased 0.00%, to finish at 6,051.09.

News For The Day

Telekom Malaysia unveils GPU-as-a-Service

Telekom Malaysia introduced its GPU-as-a-Service (GPUaaS), enabling users to rent high-performance GPUs on a pay-as- you-use basis. Powered by Nvidia's technology and hosted at TM's Tier-III certified data centres, GPUaaS provides low- latency, real-time AI computing with data security. This cost- efficient service supports businesses and government sectors in adopting AI solutions, ensuring operational efficiency and scalability. TM has already secured an international client for its latest offering. - The Edge Market

Yinson’s 3QFY25 net profit falls 19%

Yinson Holdings’ net profit fell 19.4% YoY to RM200m in 3QFY25, as it recorded lower revenue and higher administrative expenses, as well as finance costs. Its net gearing ratio currently stands at 2.04 times. The increase in total outstanding loans and borrowings was mainly due to additional loan facilities being drawn down for project and working capital. Yinson expects to transition into a phase of stable growth — where the group is poised to receive steady, contracted income streams for the next few decades. – The Edge Market

Datasonic to raise RM555m as part of transformation plan

Datasonic Group has proposed a transformation plan to emerge as a leader in physical and digital identity markets with an AI-based and digital-centric identity management ecosystem. Datasonic will raise up to RM555m through the bonus issue of up to 1.55bn warrant. The planned transformation will leverage Datasonic's operating record and expanding range of capabilities to significantly improve its growth prospects. Datasonic has also proposed that the company's name be changed to NexG. - The Edge Market

Heavy rain to hit Malaysian palm oil output again in Dec

Malaysia's palm oil production is expected to decline for the fourth consecutive month in December due to heavy rainfall and flooding, potentially reducing output by 5%-20%, according to the Malaysian Palm Oil Board (MPOB). In November, production fell 9.8% to 1.6m tonnes, the lowest for the month since 2020. Severe weather has disrupted harvesting and transportation, further straining supply. With reduced inventories, palm oil prices are nearing 2.5-year highs and trading at a premium to competing oils like soybean and sunflower oil. - The Edge Market

Our Thoughts

Wall Street closed mixed as traders were mostly sidelined ahead of the FOMC meeting next week. Though many expect the Fed to cut rates, the US 10-year yield remains stubbornly high at 4.395%. This will place the US National debt currently at USD36.2 trillion in a very interesting position when the suspension of the debt ceiling ends on January 1, 2025. Over in Hong Kong, the HSI slumped to below the 20,000 level as the conclusion of the Chinese economic policy meeting failed to satisfy investors. While waiting for more clarity, China’s bond market rallied with the 10-year yield hitting a record low of 1.773%. Back home, the FBMKLCI rebounded to close near the 1,610 level amid the emergence of buying activities. We believe liquidity within the local bourse is still low but remain hopeful that the index will test 1,630 before 2024 ends. For today, we expect the index to hover within the 1,605-1,615 range. .

Source: Rakuten Research - 16 Dec 2024

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