Previous Day Highlights

FBM KLCI closed in negative territory as overall sentiment remained cautious. The benchmark index was down 0.06% or 0.88 pts to close at 1,441.97. Gainers were seen in utilities (+2.03%), energy (+1.03%), and industrial products & services (+0.72%); while losers were seen in telecommunications (-0.52%), REIT (-0.25%), and health care (-0.09%). Market breadth was positive with 453 gainers against 377 losers. Total volume stood at 2.99bn shares valued at RM1.99bn.

Major regional indices trended mixed amid the speculation that the Bank of Japan may end its negative interest rate policy. HSI declined 0.07%, to end at 16,334.37. SHCOMP increased 0.11%, to close at 2,969.56. Nikkei 225 eased 1.68%, to finish at 32,307.86. STI rose 1.19%, to close at 3,110.73.

Wall Street closed higher following the strong job data and lower than expected unemployment rate. The DJIA added 0.36%, to end at 36,247.87. Nasdaq rose 0.45%, to close at 14,403.97. S&P500 rose 0.41%, to finish at 4,604.37.

News For The Day

YTL Power confirms AI data centre deal with Nvidia

YTL Power International has confirmed that it is going to collaborate with Nvidia Corp to build an artificial intelligence (AI) infrastructure that will be powered by the US-based chip giant’s technology, with the first phase of the data centre expected to commence operations by the middle of next year. The data centre, which will provide AI computing services to the country, will be owned and managed by YTL Power’s 60%- owned subsidiary YTL Communications SB and be hosted in YTL Power’s 500MW solar-powered Green Data Centre Park in Johor. -The Edge Markets

Westports signs agreement with govt to extend concession.

Westports Holdings has secured a 58-year extension until 2082 to its concession agreement with the government. The group's wholly-owned subsidiary, Westports Malaysia SB (WMSB) had entered into a third supplemental privatisation agreement with the government and Port Klang Authority (PKA) for the extension of the concession. The new concession until 2082 will include the existing port facilities in Westports as well as the new facilities to be developed during the concession period involving an investment of RM39.6bn.-The Edge Markets

Supermax's US factory nears completion

Supermax Corp announced that its first glove manufacturing facility in the US is nearing completion, with the group having fulfilled and complied with various regulatory requirements, including permits, to operate the plant in Brazoria County, Texas. “The next stage will involve the installation of various manufacturing equipment including AI, automation and robotics facilities," said Supermax.-The Edge Markets

Mah Sing to develop M Azura in Setapak with GDV of RM508m

Mah Sing Group will be developing M Azura, a new transit- oriented development on four acres of prime land in Setapak, Kuala Lumpur, with an estimated gross development value (GDV) of RM508m. The total land cost is RM74.3m and M Azura will comprise two blocks of serviced apartments based on preliminary plans and subject to authorities’ approval. The indicative selling price starts from RM396,800. Registration of interest is targeted to open in 1Q2024.-The Star

MSM Malaysia extends CFO's garden leave until Jan 15

MSM Malaysia Holdings has extended the garden leave of its chief financial officer Mazatul 'Aini Shahar Abdul Malek Shahar from Dec 15 to Jan 15, or until further notice from the board. “MSM will continue its business operations as usual.” MSM said. -The Star

Our Thoughts

Wall Street trended broadly higher as traders are looking at the Federal Reserves reaction towards a slew of positive economic data. The higher than expected job data coupled with improving consumer sentiment may indicate that the US economy be recessionary for the time being. Therefore, the DJI Average jumped 130 points while the Nasdaq gained 64 points as the US 10-year yield inched higher at 4.229%. Over in Hong Kong, the HSI ended slightly lower as sentiment remains affected by China’s import contraction which reduces the appetite for Hong Kong equities. Back home, the FBM KLCI closed on a flat note to stay just above the 1,440 level due to the lack of catalysts and regional weaknesses especially from China and that Japan may reverse its low interest rate policy. Expectations of bargain hunting and window dressing activities are still absent but may emerge anytime soon. Nonetheless, we noticed market’s undertone is still cautious hence do not anticipate any strong run-up. As such, we reckon the index to hover within the 1,440-1,450 range today.

Source: Rakuten Research - 11 Dec 2023

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