Previous Day Highlights

FBM KLCI continues its upward trajectory amid broadbased buying activities during the late trading hour. The benchmark index was up 0.93% or 13.77 pts to close at 1,501.11. Majority of sectors were positive with property (+2.6%), telecommunications (+1.4%), and utilities (+1.3%), leading the gains; while losers were seen in health care (-0.9%), and consumer (-0.1%). Market breadth was positive with 575 gainers against 456 losers. Total volume stood at 4.99bn shares valued at RM3.13bn.

Major regional indices trended mostly higher on the rate-cut bets except HSI declined 0.17%, to end at 16,216.33. SHCOMP increased 0.15%, to close at 2,886.29. Nikkei 225 up 0.91%, to finish at 35,901.79. STI rose 0.24%, to close at 3,199.42.

Wall Street closed for Martin Luther King Jr. Day

News For The Day

CDB partners Softbank and SC-NEX in IR 4.0 Malaysia

CelcomDigi has partnered Japanese technology giants, SoftBank Corp and Sumitomo’s subsidiary SC-NEX, to accelerate the digitalisation of Malaysian enterprises adopting the Fourth Industrial Revolution (IR 4.0) solutions. The collaboration will see CelcomDigi leveraging the expertise of both companies on artificial intelligence (AI), robotics and analytic solutions, also will focus on agritech (agricultural technology) and smart city solutions.– The Edge Markets

Econframe acquires industrial property development firm

Econframe is proposing to acquire a 70% stake in ETA World SB (ETAW) from ETA Industries SB for RM56m, as part of its move to diversify the group’s business into construction services and property development. Econframe said RM28.1m will be satisfied in cash and the remaining RM27.9m shall be satisfied via the issuance and allotment of 30m new ordinary shares in Econframe at an issue price of 93 sen/share. Econframe said ETAW is an industrial property builder, providing turnkey solutions, specialising in design and building of industrial buildings and related activities.– The Star

George Kent expands to Vietnam with new plant

George Kent (M) has ventured into Vietnam with a new subsidiary that will operate an assembly plant capable of producing 600,000 water meters annually and is set to commence operations in 2QCY24. The group’s wholly owned subsidiary George Kent International Pte Ltd has invested up to US$532,000 (RM2.46m) for a 70% stake in George Kent (Vietnam) Company Ltd. The remaining 30% stake is held by Pham Nguyen Hoang, a Vietnamese entrepreneur with over 30 years of experience in the metering distribution business. -The Edge Markets

Tien Wah inks Vietnam JVco deal

Tien Wah Press Holdings has entered into an agreement with Cat Loi Joint Stock Company (CLC) to form a joint venture company (JVco) to undertake the business of production of paper packaging, print packaging and other business activities in Vietnam. The group’s wholly owned subsidiary Alliance Print Technologies Co Ltd (APTV) has signed an agreement with CLC to establish a company under the proposed name C&A Packaging Company Ltd. APTV will subscribe to 50% of the charter capital of the JVco for a total cash consideration of VND6bn (RM1.14m), while the remaining 50% will be held by CLC.-The Edge Markets

Our Thoughts

Wall Street was closed for Martin Luther King Jr Day yesterday. Nonetheless, many are expecting the market to remain lacklustre following a mixed bag of earnings from the banks as we enter into the 4Q 2023 earnings season. Over in Hong Kong, the HSI ended marginally lower as traders were disappointed that the Peoples Bank of China (PBOC) maintained interest rates after major Chinese commercial banks lowered their deposit rates following recent disappointing economic data stoked the view that more stimulus was warranted. Back home, the FBM KLCI closed above the 1,500 level as buying on heavyweights continues. However, it is crucial that the buying persists and keeps the index above the 1,500 threshold to maintain the healthy trajectory of the local bourse thus we expect the index to hover within the 1,500- 1,510 range today.

Source: Rakuten Research - 16 Jan 2024

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

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