Previous Day Highlights

FBM KLCI continues its upward trajectory driven by the on-going buying activities, in line with its regional peers. The benchmark index up 0.21% or 3.13 pts to close at 1,498.83. Gainers were seen in transportation (+0.43%), financial services (+0.40%), and telecommunications (+0.28%); while losers were seen in property (-1.92%), construction (-1.08%), and utilities (-0.99%). However, market breadth was negative with 605 losers against 410 gainers. Total volume stood at 6.44bn shares valued at RM3.77bn.

Major regional indices trended broadly higher expect HSI declined 0.21%, to end at 16,190.02. SHCOMP increased 0.20%, to close at 2,893.25. Nikkei 225 up 1.16%, to finish at 33,763.18. STI rose 0.34%, to close at 3,197.96.

Wall Street closed mostly lower ahead of inflation data which due this week. The DJIA dropped 0.42%, to end at 37,525.16. Nasdaq rose 0.09%, to close at 14,857.71. S&P500 declined 0.15%, to finish at 4,756.50.

News For The Day

SunCon to receive RM21m in project dispute settlement

Sunway Construction Group (SunCon) and the National Highway Authority of India (NHAI) have reached a settlement regarding the East West Corridor highway construction project, with NHAI agreeing to pay 375.32m rupees (RM20.96m) to Sunway Construction SB (SCSB), a whollyowned unit of SunCon. The settlement marks the resolution of all claims and disputes related to the project, namely on Package EW-II (RJ-9), involving the rehabilitation and upgrading of NH-76 from Km406 to Km449.15 in the state of Rajasthan, SunCon said. The disbursement of the settlement amount would occur within one month from the execution of the agreement, in accordance with the outlined terms, it said. -The Edge Markets

Kelington secures RM143m in Shanghai

Kelington Group has bagged a contract worth about RM143m from China's largest semiconductor foundry to build a gas hookup system in Shanghai, China. The job, which entails the design, procurement, construction and commissioning of the entire system, was awarded to Kelington's wholly owned Kelington Engineering (Shanghai) Co. The actual contract value will be subject to the amount of work carried out, depending on variation orders, scope options and value engineering. The job started this month and is expected to be completed in two years, by January 2026. -The Edge Markets

Datasonic secures new contract and 4 contract extensions

Datasonic Group said it has received a letter of award (LOA) and four contract extensions from the Ministry of Home Affairs (MOHA) for a total of RM175m. The LOA was awarded to its wholly owned Datasonic Technologies SB for the supply of MyKad, MyTentera, MyPOCA raw cards and consumables to the National Registration Department (JPN). The six-month contract is worth RM28.69m and will commence from Dec 1, 2023 to May 31, 2024. MOHA also awarded DTSB letters for four contract extensions of six months, also commencing from Dec 1, 2023 to May 31, 2024.-The Edge Markets

Rohas Tecnic wins RM200m MRT job

Rohas Tecnic (RTB) has secured a RM199.84m contract from Malaysia Rapid Transit System SB (MRTS) for the construction and completion of Bukit Chagar’s facade for the Rapid Transit System Link Johor Bahru – Singapore Project (RTS Link Project - Package 8). The consortium comprised Rohas-Euco Industries Bhd (REI), a wholly-owned subsidiary of RTB Sediabena Builders SB (SBSB). The RTS Link Project - Package 8 is expected to be completed by May 31, 2025.-The Star

Our Thoughts

Wall Street remains weak but all 3 major indices managed to close off their respective lows. Traders stayed cautious as many are waiting for key inflation data over the next 2 days. As such, the DJI Average declined 158 points while the Nasdaq added 14 points while the US 10-year yield dipped slightly lower at 4.015%. In Hong Kong, the HSI resumes with its decline to close below the 16,200 level mainly from sell-down on giant tech companies namely Alibaba, JD.com, Tencent and Meituan. On the local front, the FBM KLCI finally breached the 1,500 mark albeit briefly as profit taking activities surfaces during the afternoon session curbing the index uptrend. Nonetheless, we believe there are still legs for the FBM KLCI amid the intermittent consolidation hence we reckon the index to trend within the 1,495-1,505 range today. Construction and Energy counters may attract some interests after some selling yesterday.

Source: Rakuten Research - 10 Jan 2024

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

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