Previous Day Highlights

FBM KLCI closed lower ahead of long Christmas weekend. The benchmark index was down 0.08% or 1.20 pts to close at 1,454.38. Gainers were seen in industrial products & services (+0.38%), telecommunications (+0.26%), and transportation (+0.24%); while losers were the health care (-0.36%), financial services (-0.13%), and consumer (-0.06%) sectors. Market breadth was mixed with 425 losers against 411 gainers while 484 counters were unchanged. Total volume stood at 2.97bn shares valued at RM1.84bn.

Major regional indices trended higher on Monday. SHCOMP increased 0.14%, to close at 2,918.81. Nikkei 225 was up 0.26%, to finish at 33,254.03. Meanwhile, HSI and STI were closed for Christmas Holiday.

Wall Street closed mostly higher after a subdued core personal consumption expenditure inflation reading. The DJIA dropped 0.05%, to end at 37,385.97. Nasdaq rose 0.19%, to close at 14,992.97. S&P500 gained 0.17%, to finish at 4,754.63.

News For The Day

IJM Corp unit secures RM260m Kuching job via joint venture

IJM Corp’s unit, IJM Construction SB, has bagged a RM260m contract for the Kuching Urban Transportation System (KTUS) project. The job was secured via a joint venture (JV) comprising two other companies – Azam Sehasrat SB and Unique Deco SB. The contract is for the construction and completion of the KTUS Rembus autonomous rapid transit (ART) depot in Samarahan and other associated works that include depot buildings and associated structures, stabling yard, detention pond, access road and civil works.-The Star

MRCB to acquire PJ Sentral office tower development rights

Malaysian Resources Corp (MRCB) has proposed to acquire the rights to carry out the development of an office tower in the PJ Sentral commercial development from the Selangor State Development Corp for RM270m. The acquisition consideration will be satisfied through the disposal of malls and several residential units to PKNS, and funding through internally generated funds. -The Edge Markets

Leong Hup to challenge MyCC's findings

Leong Hup International has reiterated its stand that its wholly owned subsidiary Leong Hup Feedmill Malaysia SB (LFM) was not involved in price-fixing practices involving poultry feed as part of a "chicken feed cartel", as alleged by the Malaysia Competition Commission (MyCC). MyCC’s finding of infringement by LFM is without merit and the group will challenge the decision. -The Edge Markets

Sunview’s unit ups stake in aluminium firm to 30%

Sunview Group said its unit is buying Mestron Holdings' 10% stake in Winstar Aluminium Manufacturing SB, raising the group's interest in the aluminium firm to 30%. Its wholly owned indirect subsidiary, Vafe System SB is buying the additional stake for RM6m. "Our stake in Winstar enables us to establish a cost-effective supply chain for aluminium mounting structures sourced from the local market for use in the solar photovoltaic system,". -The Edge Markets

TRC Synergy bags RM24m flood mitigation construction job

Construction outfit TRC Synergy has secured a RM23.8m contract from the Department of Irrigation and Drainage (DID) to design and build a flood mitigation dam in Gombak, Selangor. TRC Synergy said its wholly owned subsidiary Trans Resources Corp SB had received the letter of acceptance from the department. No further details of the contract were disclosed. -The Edge Markets

Our Thoughts

Wall Street remains in a holiday mood as all 3 major indices closed on a flat note. Nonetheless, sentiment is seen to be buoyant following November core personal consumption expenditure price index which came in within expectations. The DJI Average dipped by 18 points while the Nasdaq added 29 points with the US 10-year yield inched higher at 3.901%. Over in Hong Kong, the HSI slumped 281 points following the government’s latest crackdown on online gaming which saw Tencent and NetEase dropped by 10% and 25% respective, pushing the Hang Seng Tech Index 4.4% lower. Back home, the FBM KLCI eased marginally to below the 1,455 mark amid a lacklustre day. Though we noticed some accumulation from foreign funds, ongoing selling by local institutions capped the index performance. Whether the index is able to test the 1,500 level over the last 4 trading days in 2023 remains to be seen. Meanwhile, it is heartening to see that the Ringgit has strengthened against the greenback at RM4.63 or a 4-month high. We anticipate the benchmark index to trend within the 1,450-1,460 range for today.

Source: Rakuten Research - 26 Dec 2023

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