Previous Day Highlights

FBM KLCI continue its uptrend buoyed by broad-based buying. The benchmark index was up 1.02% or 14.89 pts to close at 1,477.26. Gainers were seen in utilities (+2.99%), construction (+2.71%), and property (+1.94%); while losers were seen in transportation (-0.83%), health care (-0.71%), and technology (-0.22%). Market breadth was positive with 630 gainers against 424 losers. Total volume stood at 6.37bn shares valued at RM3.82bn.

Major regional indices trended negative as investors reassess their expectations for Fed rate cut. HSI ended flat at 16,645.98 while SHCOMP dropped 0.43%, to close at 2,954.35. Nikkei 225 eased 0.53%, to finish at 33,288.29. STI slid 0.79%, to close at 3,174.01.

Wall Street closed mixed following stronger than expected labour market data. The DJIA added 0.03%, to end at 37,440.34. Nasdaq eased 0.56%, to close at 14,510.30. S&P500 slid 0.34%, to finish at 4,688.68.

News For The Day

Dayang bags rectification works contract from PETRONAS

Dayang Enterprise Holdings via its wholly-owned subsidiary Dayang Enterprise SB has secured a contract from PETRONAS Carigali for rectification works and associated services for asset integrity findings of Package A of Sarawak Oil Asset (SK Oil). Dayang said the value of the contract will be based on work orders to be issued by PETRONAS Carigali throughout the contract duration, including any other related work and services. The contract is effective from Dec 15, 2023, for a period of three years. -The Star

Pharmaniaga signs 7-year concession agreement with MOH

Pharmaniaga has entered into a concession agreement (CA) with the Ministry of Health (MOH) to undertake the procurement, storage, supply and delivery of medical products to MOH-operated offices and facilities. Pharmaniaga said the CA will take effect retrospectively from July 1, 2023 and remain in force for a period of seven years until June 30, 2030, subject to earlier termination. -The Star

Ibraco forms joint venture with China Railway units

Ibraco, through its wholly-owned unit Ibraco Construction SB (ICSP), has partnered with two units of China Railway Group Ltd to incorporate Ibraco CREC JV SB (ICJVSB), a joint venture company to undertake infrastructure works for the Kuching Urban Transportation System (KUTS). The JV company has an initial paid-up capital of RM2m, with ICSP holding a 51% stake, CRECM with 39% and Nanyang with 10%. -The Edge Markets

MN Holdings bags data centre contract worth RM98m

MN Holdings via its wholly-owned subsidiary Mutu Nusantara SB has bagged a RM98m contract to undertake high voltage horizontal directional drilling and cable bridge works for a data centre located in the southern region of Peninsular Malaysia. MN Holdings said the customer did not provide consent for the "disclosure of information in relation to the customer". The tenure of the contract is 13.5 months commencing from Dec 1, 2023.-The Edge Markets

AmanahRaya REIT completes RM145m sale of resort

AmanahRaya Real Estate Investment Trust (ARREIT) has completed the disposal of its 4-star Holiday Villa Beach Resort and Spa Langkawi with 238 rooms in Langkawi, Kedah to property developer Plenitude for RM145m cash. Upon completion of the disposal, the REIT is poised to lock in a RM45m gain while gearing will improve to 43.5% on proforma basis, from 45% based on its audited total asset value at end- December 2022. -The Edge Markets

Our Thoughts

Wall Street closed mixed as sentiment remains cautious on interest rates and the stretched valuations of US equities. The latest strong job data can be interpreted as the Fed may not lower interest rates anytime soon. Thus, despite the DJI Average ending 10 points higher, the Nasdaq lost 81 points as the US 10-year yield inched higher to above the 4.00% level. Over in Hong Kong, the HSI was flat as expectations on lower interest rates from the Federal Reserve dissipates. Back home, the FBM KLCI finally came to life from the influx of buyers on a broad based basis. The index managed to break above the 1,465 mark to close in on the 1,480 level hence we reckon the uptrend seems sustainable. As such, we expect the index to trend between the 1,475-1,485 range today as accumulation on the big caps continues. Meanwhile, crude oil, prices remain soft attributed to the building up of US inventory. As a result, the Brent crude dipped to US$77/barrel. FBM KLCI continue its uptrend buoyed by broad-based buying. The benchmark index was up 1.02% or 14.89 pts to close at 1,477.26. Gainers were seen in utilities (+2.99%), construction (+2.71%), and property (+1.94%); while losers were seen in transportation (-0.83%), health care (-0.71%), and technology (-0.22%). Market breadth was positive with 630 gainers against 424 losers. Total volume stood at 6.37bn shares valued at RM3.82bn. Major regional indices trended negative as investors reassess their expectations for Fed rate cut. HSI ended flat at 16,645.98 while SHCOMP dropped 0.43%, to close at 2,954.35. Nikkei 225 eased 0.53%, to finish at 33,288.29. STI slid 0.79%, to close at 3,174.01. Wall Street closed mixed following stronger than expected labour market data. The DJIA added 0.03%, to end at 37,440.34. Nasdaq eased 0.56%, to close at 14,510.30. S&P500 slid 0.34%, to finish at 4,688.68.

Source: Rakuten Research - 5 Jan 2024

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

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