Previous Day Highlights

FBM KLCI closed lower in the absence of fresh catalysts amid the regional weaknesses. The benchmark index was down 0.11% or 1.56 pts to close at 1,449.46. Gainers were seen in property (+0.56%), utilities (+0.46%), and health care (+0.25%); while losers were seen in energy (- 0.37%), industrial products & services (-0.26%), and telecommunications (-0.16%). Market breadth was negative with 492 losers against 369 gainers. Total volume stood at 3.54bn shares valued at RM2bn.

Major regional indices trended negative following Moody downgrade in China's outlook amid the ongoing downsizing of the property sector. HSI declined 1.91%, to end at 16,327.86. SHCOMP dropped 1.67%, to close at 2,972.30. Nikkei 225 eased 1.37%, to finish at 32,775.82. STI slid 0.22%, to close at 3,077.16.

Wall Street closed mixed after job openings in October indicated cooling economy. The DJIA dropped 0.22%, to end at 36,124.56. Nasdaq rose 0.31%, to close at 14,229.91. S&P500 eased 0.06%, to finish at 4,567.18.

News For The Day

Carlsberg Malaysia to manufacture Japan’s Sapporo beer

Carlsberg Brewery Malaysia has entered into a deal with Japan’s Sapporo Breweries Ltd to produce the Sapporo Premium Beer for distribution in Malaysia and Singapore. The group secured the licence from Sapporo, to brew and manufacture Japan’s pioneer beer in Malaysia, effective Jan 1, 2024, for five years, with an automatic renewal for a further three years. The group will produce and sell the beer across all channels in the country, including duty-free zones.-The Edge Markets

Magni-Tech 2Q net profit declines 12.8% on lower revenue

Magni-Tech Industries' 2QFY4/24 net profit slipped 12.8% YoY to RM21.78m, from RM24.98m, on the back of lower revenue and other income from both its garments and packaging business segments. Quarterly revenue fell 16.2% YoY to RM287.6m from RM343.03m attributed to lower sales orders received. The garment segment, which accounted for about 94.5% of the group's revenue and profit from operations, recorded a 15.6% YoY decrease in revenue. The group declared a second single tier interim dividend of 2.2 sen per share, to be paid on Dec 20.-The Edge Markets

Kinergy Advancement wins RM31m contract for Mah Sing

Kinergy Advancement (KAB) has won a RM31.04m contract to undertake electrical works for Mah Sing Group’s multistorey M Nova residential development in Kepong, Kuala Lumpur. KAB has been appointed as the subcontractor to carry out electrical, telephone and extra low voltage works for these three blocks service apartment project.-The Star

Advancecon clinches RM35.6m job from Sime Darby Property

Advancecon Holdings has secured another earthworks contract from Sime Darby Property for the Bandar Bukit Raja project in Klang. The latest contract is valued at RM35.58m. Last month, Advancecon won a RM22.8m earthworks job from Sime Darby Property (Pagoh) SB for its industrial park project at Bandar Universiti Pagoh, Johor.-The Edge Markets

Haily bags RM64m construction contract in Johor Bahru

Haily Group has secured a RM64m construction contract from Meridin East SB, a wholly-owned subsidiary of Mah Sing Group, for the construction of 327 units of double-storey terrace houses and two Tenaga Nasional (TNB) substations in Johor Bahru. “This contract, which is among Haily's largest to date and the fifth major job clinched by the group this year, brings the total contract value of its ongoing projects to RM697.51m,” the group said. -The Star

Our Thoughts

Wall Street closed on a mixed note as US equities took a breather as many see recent strong performances may have outrun the underlying fundamentals amid a cooling labour market. As such, the DJI Average lost 80 points while the Nasdaq gained 44 points with the US 10-year yield dipping below the 4.2% at 4.167%. Over in Hong Kong, the HSI slumped 318 points to below the 16,500 mark or a 13-month low after Moody’s downgraded China rating outlook to negative from stable while maintaining the sovereign bond rating at A1. Back home, late buying activities lifted the FBM KLCI off the day’s low as the index declined marginally to just below the 1,450-level prompted by weaknesses across the region following Moody’s rating on China’s outlook. Despite recent good corporate earnings showing, sentiment remains cautious in the absence of strong inflows of funds. Therefore, we expect the index to maintain its consolidation and oscillate within the 1,445-1,455 for today. Meanwhile, higher US inventory coupled with weakening demand had sent crude oil prices lower with the Brent crude hanging around the US$77/barrel.

Source: Rakuten Research - 6 Dec 2023

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