Previous Day Highlights

FBM KLCI closed slightly higher amid a cautious market condition. The benchmark index was up 0.03% or 0.51 pts to close at 1,600.09. Majority of sectors were negative with industrial products & services (-0.9%), telecommunications (-0.9%), and consumer (-0.8%) leading the losses; while gainers were seen in utilities (+3.2%), and health care (+1.1%). Market breadth was negative with 693 losers against 369 gainers. Total volume stood at 3.21bn shares valued at RM3.07bn.

Major regional indices trended negatively. HSI declined 0.56%, to end at 19,752.51. SHCOMP dropped 0.36%, to close at 3,370.03. Nikkei 225 eased 0.69%, to finish at 38,813.58. STI slid 0.44%, to close at 3,762.88.

Wall Street closed mixed as traders evaluate macro data. The DJIA added 0.04%, to end at 42,342.24. Nasdaq eased 0.10%, to close at 19,372.77. S&P500 eased 0.09%, to finish at 5,867.08.

News For The Day

Mah Sing buys Johor land from SP Setia for RM157m

Mah Sing Group has acquired 2.42 hectares of freehold land at Taman Pelangi, Johor Bahru, for RM156.8m. The new land will be named M Grand Minori and is planned for the development of premium serviced apartments and some retail units with an estimated gross development value (GDV) of approximately RM1.5bn. This marks the group's sixth acquisition this year, bringing the total GDV of all six lands to RM5.8bn. - New Straits Times

Binastra's 3QFY25 net profit more than doubles

Binastra Corp’s 3QFY25 net profit more than doubled YoY to RM24.2m, mainly due to the construction segment. Binastra recently announced its 14th new contract in early December 2024, bringing its financial YTD contract wins to RM3.1bn. With a total outstanding order book of RM3.7bn across 22 ongoing projects, the group ensures stable earnings visibility for the next five financial years. - The Star

Mynews’ 4QFY10/24 net profit jumps fourfold

Mynews’ 4QFY10/24 net profit jumps fourfold YoY to RM3.8m driven by a combination of increased store count and improved in-store sales. Mynews, which operates convenience store chains under brands such as myNEWS, CU and WHSmith, attributed the improved performance to the addition of 29 new outlets during the year and enhanced operational efficiency. Looking ahead, the group plans to continue its expansion strategy by opening new stores throughout Malaysia, including standalone Maru Coffee outlets. – The Edge Market

Vestland bags RM70m construction contract

Vestland’s subsidiary, Vestland Resources (VRSB) has secured a construction contract worth RM70m from Sg. Besi Construction. The contract is expected to be completed by Dec 15, 2027, with work set to commence on Dec 19, 2024. Vestland expects the contract to contribute positively towards its earnings and net assets for the duration of the contract. – The Star

Uzma secures RM44m Kedah solar farm cotract

Uzma has been awarded a sub-contract by Samaiden, a unit of Samaiden Group for the development of a 13.42MW AC solar photovoltaic plant in Sungai Petani, Kedah. The project is scheduled for completion within eight months and 14 days, with the commercial operation date set for Aug 30, 2025. Uzma's new energy segment posted operating profit of RM39,000 in 1QFY6/25. – The Edge Market

Our Thoughts

Uncertainty rules as Wall Street closed on a mixed note depicting that US equities are entering into a consolidation phase. Sentiment was spooked by the outlook on interest rates which may stay elevated as reflected from the US 10-year yield that ended higher at 4.566%. As for Hong Kong, the HSI declined in tandem with the plunge on Wall Street overnight, underscored by the hawkish statement from the Fed’s slower rate cuts in 2025 comment. As such, the 25bps cut by the Hong Kong Monetary Authority failed to ignite any excitement. On the home front, the FBMKLCI maintained above the 1,600 mark to remain as the only stockmarket within the SEA region to reverse earlier losses. This underpins our belief that the index is looking to end 2024 above the 1,600 level. Anyhow, we still hold the fact that the US debt ceiling and National Debt as the major headwinds on Wall Street that hopefully should divert foreign funds back to Asia/SEA regions. As such, we expect the index to hover within the 1,600-1,610 range today.

Source: Rakuten Research - 20 Dec 2024

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