Previous Day Highlights

FBM KLCI closed on a positive note driven by continuous buying activities across the board. The benchmark index was up 0.03% or 0.39 pts to close at 1,465.67. Gainers were seen in utilities (+1.30%), property (+1.13%), and energy (+0.62%); while losers were seen in health care (- 1.26%), technology (-0.67%), and industrial products & services (-0.45%). Market breadth was mixed with 474 gainers against 431 losers while 478 counters remain unchanged. Total volume stood at 3.72bn shares valued at RM2.42bn.

Major regional indices trended mixed after Bank of Japan keeps monetary policy unchanged. HSI declined 0.75%, to end at 16,505.00. SHCOMP increased 0.05%, to close at 2,932.39. Nikkei 225 was up 1.41%, to finish at 33,219.39. STI rose 0.11%, to close at 3,116.62.

Wall Street closed higher as rate-cut fever lingers. The DJIA added 0.68%, to end at 37,557.92. Nasdaq rose 0.66%, to close at 15,003.22. S&P500 gained 0.59%, to finish at 4,768.37.

News For The Day

Miti secures RM29.6bn investment, RM2.8 bn exports

The Ministry of Investment, Trade and Industry (Miti) has secured a total of RM29.6bn in potential investment and RM2.8bn in potential exports from two investment missions to Japan since June this year. Miti said it achieved RM6.6bn of potential foreign direct investment (FDI) and RM700m of potential exports via its recent trade and investment mission to Japan. -The Edge Markets

Group CFO Shafiq Abdul Jabbar leaving Astro for AMMB

Shafiq Abdul Jabbar is set to leave as group chief financial officer (CFO) of Astro Malaysia Holdings to assume the same post at AMMB Holdings, effective Feb 15. Shafiq is slated to take over AMMB’s CFO post from incumbent Jamie Ling FouTsong, who was appointed to succeed Datuk Sulaiman Mohd Tahir as the bank’s chief executive officer last month.-The Edge Markets

Poh Kong posts stronger 1Q profit as gold prices climb

Poh Kong Holdings’ 1QFY7/24 net profit rose 21.29% YoY to RM19m from RM15.67m despite lower revenue, largely driven by an uptrend in gold prices. Quarterly revenue dipped 3.88% YoY to RM355.98m from RM370.36m on lower demand for gold jewellery products amid weaker market sentiment. -The Edge Markets

TT Vision secures RM7.51m solar cell equipment deal

TT Vision Holdings said its wholly-owned subsidiary, TT Vision Technologies SB, has secured several purchase orders for its solar cell inspection equipment totalling RM7.51m from an undisclosed buyer. The Penang-based automated test equipment maker did not disclose information about the buyer, citing non-disclosure agreements signed. The group said the contract is expected to be fulfilled within the next three to four months.-The Edge Markets

Dataprep to buy 70% of DACS Network, plans RM40.17m PP

Dataprep Holdings has proposed to acquire a 70% stake in DACS Network Solutions SB (DNS) for RM10.5m from Cloudaron Group. The purchase consideration will be satisfied via the issuance of 82.68m shares in the group at 12.7 sen per share. The proposed acquisition provides the group with an opportunity to expand its business offerings, whilst simultaneously enabling DHB to derive synergistic benefits through the acquisition of the 70% equity interest in DNS. -The Edge Markets

Our Thoughts

The Santa Claus rally continues on Wall Street fueled by recent remarks from the Federal Reserve on interest rates. Though recent uptrend have outpaced fundamentals, traders remain adamant that there are still legs for equities. The DJI Average rose 252 points while the Nasdaq added 98 points with the US 10-year yield easing slightly to 3.931%. In Hong Kong, the situation is less rosy as the HSI declined by 124 points with traders remain unconvinced of a recovery within China’s property sector. In addition, the recent earthquake in Gansu further weakened amongst the companies based there. Back home, the FBM KLCI maintained its steady progress to end on a flat note supported by mild accumulation of stocks. As mentioned, the 1,465 mark seems to be a tough resistance and if not broken decisively soon, we can expect the index to retrace below the 1,460 level again. For today, we expect the index to hover within the 1,460- 1,470 range with interest returning to the Banks and Plantation stocks.

Source: Rakuten Research - 20 Dec 2023

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