Previous Day Highlights

FBM KLCI closed higher in tandem with year-end optimism across the region. The benchmark index was up 0.24% or 3.44 pts to close at 1,454.22. Gainers were seen in utilities (+0.57%), transportation (+0.47%), and energy (+0.34%); while losers were seen in REIT (-0.25%), telecommunications (-0.13%), and technology (-0.11%). Market breadth was positive with 468 gainers against 380 losers. Total volume stood at 3.29bn shares valued at RM2.06bn.

Major regional indices all closed in positive territory, taking the positive cue from Wall Street overnight. HSI gained 1.74%, to end at 16,624.84. SHCOMP increased 0.54%, to close at 2,914.61. Nikkei 225 up 1.13%, to finish at 33,681.24. STI rose 0.98%, to close at 3,170.76.

Wall Street closed higher as traders bet on interest rate cuts by the Federal Reserve. The DJIA added 0.30%, to end at 37,656.52. Nasdaq rose 0.16%, to close at 15,099.18. S&P500 gained 0.14%, to finish at 4,781.58.

News For The Day

ATech to diversify and enhance IoT infrastructure

Aurelius Technologies (ATech) will continue to invest in technology infrastructure as the electronic manufacturing services (EMS) provider remains prudent and cautiously optimistic navigating through the unpredictable global market.. For the quarter ended Oct 31, ATech posted 25% YoY drop in revenue to RM98.8m, with its communication and IoT products contributing 80% to the revenue. As at Dec 11, 2023, ATech’s order book stood at about RM473m. ATech managed to retain a pre-tax profit of RM13.5m, largely attributed to its operational cost optimisation measures and the strengthening of the US dollar. ATech’s net profit for the quarter fell 21% YoY to RM9.7m. -The Star

Ekovest partners CICO to explore infrastructure projects

Ekovest is teaming up with Zhejiang Communications Investment Group Co Ltd (CICO), the largest state-owned enterprise established by the Zhejiang provincial government in China, for the joint exploration and development of infrastructure and other projects in Malaysia. The groups will participate in infrastructure concession assets, large-scale infrastructure projects, food security and trading initiatives, retailing ventures and transit-oriented development projects, Ekovest said. -The Edge Markets

Awantech secures contract for digital learning platform

AwanBiru Technology (Awantech) has secured a three-year contract worth RM4.88m from the Ministry of Education for the procurement of Learning Management System licence subscription services. The contract represents Awantech's first major success in providing a digital learning platform, the group said. The three-year contract seeks to meet the requirements of the digital competence improvement course for education service officers.-The Edge Markets

JSB’s Telekosang Hydro 2 achieves feed

Jentayu Sustainables (JSB) announced that Telekosang Hydro Two SB has notified that the Telekosang Hydro 2 (TH2) run-of- river hydropower plant with a capacity of 16 megawatts (MW) has achieved its feed-in-tariff commencement date (FiTCD) as of Dec 25, 2023. This marks the completion of the 40MW Telekosang Hydro run-of-river project as a whole, the group said. JSB said TH2 has completed its development phase and is now fully online and operating commercially, successfully supplying power to the Sabah Electricity SB (SESB) as contracted. -The Star

Our Thoughts

Santa Calus continues to work his magic on Wall Street as all three major indices have reached or approaching their respective all time highs. The DJI Average closed on a record high added 111 points while the Nasdaq gained 25 points to a 52-week high. Meanwhile, the US 10-year yield declined to 3.789%. In Hong Kong, the HSI jumped by 284 points buoyed by the rebound of both Tencent and NetEase coupled with China’s November Industrial profits which doubled amid improving manufacturing activities. At home, the FBM KLCI ended higher as some bargain hunting activities emerged. The benchmark index closed just below the 1,455 mark as trading remains lacklustre. Spurred by the strengthening MYR, interest on local equities seems decent from foreign funds but the upside has been capped by selling from local institutions. Notwithstanding this, we reckon the index may still have legs to test the 1,500 level thus expect the index to hover within the 1,455-1,470 range today as the domestic stocks are ripe for pickings especially the Banks.

Source: Rakuten Research - 28 Dec 2023

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