Previous Day Highlights

FBM KLCI closed higher and reached its intraday high, driven by late buying activities. The benchmark index was up 0.31% or 4.42 pts to close at 1,446.39. Majority of sectors were positive with utilities (+2.8%), property (+0.9%), and technology (+0.8%) leading the gains; while losers were seen in energy (-0.4%), and transportation (- 0.4%). Market breadth was positive with 483 gainers against 397 losers. Total volume stood at 3.82bn shares valued at RM2.47bn.

Major regional indices trended mixed as overall sentiment remain subdued ahead of Fed’s final rate decision of the year. HSI declined 0.81%, to end at 16,201.49. SHCOMP increased 0.74%, to close at 2,991.44. Nikkei 225 up 1.50%, to finish at 32,791.80. STI slid 0.66%, to close at 3,090.20.

Wall Street closed higher amid an upbeat momentum as investor eyed on Fed’s policy announcement. The DJIA added 0.43%, to end at 36,404.93. Nasdaq rose 0.20%, to close at 14,432.49.S&P500 rose 0.39%, to finish at 4,622.44.

News For The Day

HLIB disposes of HLI Trading Ltd for RM36m

Hong Leong Industries (HLIB) is disposing of its entire equity interest in HLI Trading Ltd (HLIT) to Guoline International Ltd for RM36.22m. HLIB said the disposal of HLIT will enable HLIB to streamline its offshore non-operating company.-The Star

DRB-Hicom, Geely form JV to develop Automotive project

DRB-Hicom has entered into an agreement to form a jointventure (JV) company with Zhejiang Geely Holding Group Co Ltd for the overall operation and management of the development and construction of the Automotive Hi-Tech Valley (AHTV) project in Tanjung Malim, Perak. DRB-Hicom said it will hold a 50.1% stake in the JV company, while Geely Holding will hold the remaining stake. The JV agreement will leverage on the respective strengths and expertise of DRB-Hicom and Geely Holding in establishing AHTV as the international next generation vehicle hub in Malaysia.-The Edge Markets

Jentayu’s TH2 power plant achieves initial operating date

Jentayu Sustainables’ run-of-river hydropower plant Telekosang Hydro 2 (TH2) has achieved its initial operating date of Dec 9, 2023, with a target feed-in-tariff commencement date (FiTCD) within the next 30 days. Together with the FiTCD of Telekosang Hydro 1 (TH1) in February, Jentayu said in a statement that the successful commissioning of both hydropower plants is a major step towards satisfying the condition precedent necessary for the company to acquire TH1 and TH2.This, it said, would be subject to final approval by shareholders and regulators. -The Star

Sentral REIT completes acquisition of Menara CelcomDigi

Sentral Real Estate Investment Trust (Sentral REIT) has completed the acquisition of Menara CelcomDigi in Petaling Jaya from Malaysian Resources Corp Bhd (MRCB) for RM450m. MRCB is the single largest unitholder of Main Market-listed Sentral REIT, with a 27.94% equity interest. Sentral REIT had on July 25 struck a deal with MRCB’s wholly-owned unit Puncak Wangi SB to acquire Menara CelcomDigi, a 27-storey office building.-The Edge Markets

Censof gets RM9.47m JPJ contract

Censof Holdings has received a letter of acceptance from the Road Transport Department Malaysia worth RM9.47m for the maintenance, verification and calibration services for 48 weighing instruments at the latter’s enforcement stations. Censof said the tenure of the project is for a period of 36 months from Jan 1, 2024 to Dec 31, 2026, with no option to extend and/ or renew upon its expiry.-The Star

Our Thoughts

Wall Street continue with its positive momentum as all 3 major indices closed on a high on expectations that the Federal Reserves is able to balance inflation and strong job data into a soft-landing scenario. As such, the DJI Average added 157 points while the Nasdaq gained 28 points with the US 10-year yield edging higher at 4.237%. Over in Hong Kong, the situation looks less promising as the HSI lost 133 points hanging just above the 16,000 mark as fears of a deflation in China following the 0.5% drop in consumer prices in November that would potentially affect corporate earnings growth going forward. As for the local bourse, some late bargain hunting activities managed to pull the FBM KLCI out from its rut as it ended above the 1,445 level. In view of this, we may even see window dressing activities to prevail as we approach the final 2 trading weeks for 2023. Therefore, we expect the index uptrend to persist and expect it to trend within the 1,445-1,455 range today. Following recent pull-back, there could be some buying interest back on the Construction and Technology counters today.

Source: Rakuten Research - 12 Dec 2023

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

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