Previous Day Highlights

FBM KLCI closed higher, continuing its five-day winning streak, boosted by broad-based buying amid improving regional confidence. The benchmark index was up 0.43% or 6.19 pts to close at 1,462.45. Majority of sectors were positive with energy (+1.5%), utilities (+1.3%), and construction (+1.0%) leading the gains; while losers were seen in health care (-0.9%), and property (-0.5%). Market breadth was positive with 528 gainers against 426 losers. Total volume stood at 3.77bn shares valued at RM3.41bn.

Major regional indices trended mixed. HSI gained 2.38%, to end at 16,792.19. SHCOMP dropped 0.56%, to close at 2,942.56. Nikkei 225 was up 0.87% to finish at 32,970.55. STI slid 0.21%, to close at 3,116.51.

Wall Street closed higher on Friday registering a seventh straight week of gains in its longest weekly winning streak since 2017 after the dovish pivot by the Federal Reserve. The DJIA added 0.15% to end at 37,305.16. Nasdaq rose 0.35% to close at 14,813.92. S&P500 gained 0.01% to finish at 4,719.19.

News For The Day

Apollo Food's 2Q net profit up 5.15%

Apollo Food Holdings' net profit increased 5.15% to RM9.95m for the second quarter ended Oct 31, 2023 (2QFY2024), from RM9.46m a year earlier, on higher gross profit margin. Earnings per share rose to 12.44 sen from 11.83 sen, the confectionery manufacturer's Bursa Malaysia filing showed on Friday.-The Edge Markets

Hextar Industries to acquire industrial solutions unit

Hextar Industries has inked a deal with its major shareholder Hextar Holdings SB to acquire 70% equity interest in industrial solutions provider Hextar Mitai SB for RM4.55m cash. Hextar Industries said the related party transaction will give it immediate access to specialised engineering capabilities to complement its existing businesses while also leveraging the wider group's client base to achieve greater synergies.-The Star

Hiap Huat acquires 60% in KL Bunkering (M) SB

Hiap Huat Holdings has proposed to acquire a 60% interest in petroleum products supplier KL Bunkering (M) SB (KLB) for a purchase consideration of RM2.1m. The company which is involved in scheduled waste management, manufacture of lubricants and paint products, among others told Bursa Malaysia on Friday that upon completion of the acquisition, KLB will become a subsidiary of the group.-The Edge Markets

Bintai Kinden lodges police report over RM4.5m

Bintai Kinden Corp via its subsidiary Bintai Energy SB (BESB) has filed a police report against IFZ Oil & Gas (M) SB after it denied receiving an initial advance amounting to RM4.5m for a project back in May 2022. The advance payment was handed to IFZ via BESB's immediate holding company Kejuruteraan Bintai Kindenko SB, as a stakeholder for contributions and payments for successfully procured projects, according to its filing on Friday (Dec 15).-The Edge Markets

FGV upsizes sukuk programme to RM3bn

FGV Holdings has upsized its sukuk Murabahah programme to RM3bn in nominal value, from the initial sum of RM500m two years ago. The tenure of the sukuk programme will also be extended from eight years to perpetual, with each tranche having a minimum tenure of one year.-The Edge Markets

Our Thoughts

Wall Street closed mildly positive as traders remained sidelined following a strong performance of late amid the buzz of easing interest rates. As such, the DJI Average gained 57 points while the Nasdaq added 52 points with the US 10-year yield dipped marginally to 3.915%. Over in Hong Kong, the HSI jumped 390 points to end nearly at the 16,800 mark predominantly due to the softer interest rate scenario as opted by the Federal Reserve. Additionally, sentiment was further boosted by China’s latest measures to lower ratios on home repayments and extending deadlines for mortgages. Back home, the FBM KLCI closed above 1,460 underpinned by buying activities during the afternoon session. We reckon there is staying power for the local bourse as diversification of funds may prevail since many will look for values especially amongst the emerging markets thus expect the index to climb further and hover within the 1,460-1,470 range today.

Source: Rakuten Research - 18 Dec 2023

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