Previous Day Highlights

FBM KLCI closed lower as profit taking activities emerged across the board after the recent rally, in tandem with the regional weaknesses. The benchmark index was down 0.48% or 7.24 pts to close at 1,493.87. Majority of sectors were negative with property (-2.2%), construction (-1.6%), and energy (-0.9%) leading the losses; while gainers were seen in telecommunications (+0.3%), and health care (+0.2%). Market breadth was negative with 775 losers against 324 gainers. Total volume stood at 5.84bn shares valued at RM3.59bn.

Major regional indices broadly lower except SHCOMP increased 0.27%, to close at 2,893.99. HSI declined 2.16%, to end at 15,865.92. Nikkei 225 eased 0.79%, to finish at 35,619.18. STI slid 0.45%, to close at 3,184.99.

Wall Street closed lower following the mixed earnings from Goldman Sachs and Morgan Stanley and sell-offs in Apple also weighed. The DJIA dropped 0.62%, to end at 37,361.12. Nasdaq eased 0.19%, to close at 14,944.35. S&P500 slid 0.37%, to finish at 4,765.98.

News For The Day

BLD Plantation acquires two Bintulu properties

BLD Plantation has acquired two properties in Bintulu, Sarawak, for RM24m for business expansion. The Sarawak- based plantation is buying the properties a 1.4533-hectare property for RM7m and a 3.459ha property for RM17m from Syarikat Sebangun SB. The group added that the proposed acquisitions align with its future business expansion plans, considering the strategic location and easy accessibility of the land for potential development. – The Edge Markets

SCIB gets UMA query; wins RM97.7mil EPCC contract

Sarawak Consolidated (SCIB) has received an unusual market activity (UMA) query from Bursa Malaysia over the sharp fall in its share price on Tuesday. In a separate filing, SCIB said it has bagged an EPCC subcontract worth RM97.75m. It said the subcontract, secured by its unit SCIB Industrialised Building System SB from Landasan Kapital (M) SB, involved supplying materials, labour, tools and equipment for the execution of civil and structural, architectural and mechanical works for the construction of a residential college at Universiti Malaysia Kelantan’s Bachok campus. The tenure for the subcontract is 23 months, said SCIB. -The Edge Markets

Chin Hin buys lands in Melaka totalling RM41.94m

Chin Hin Group Property (CHGP) has entered into sale and purchase agreements with MDS Developments Management SB, Aim Development Worldwide SB and Aim Holdings Worldwide SB to acquire six parcels of land in Melaka totalling RM41.94m. CHGP said the proposed acquisitions are in line with the overall strategy of the group to source for new landbank and expand its property development segment.– The Star

MN Holdings seeks to raise up to RM37m

MN Holdings is looking to raise between RM20.66m and RM37.16m through a private placement of 73.58m shares or 10% of its enlarged issued share capital at an issue price to be fixed. The ACE Market-listee said proceeds from the corporate exercise will be used for working capital. -The Edge Markets

KJTS Group’s IPO oversubscribed by 31.28 times

ACE Market-bound KJTS Group said its shares offered to the public has been oversubscribed by 31.28 times. KJTS received 9,632 applications for the 1.11bn shares worth RM299.78m. It said there were 5,803 applications for the 562.24m shares under the Bumiputera portion, resulting in an oversubscription rate of 31.69 times. The public portion saw 3,829 applications for 548.1m shares, indicating an oversubscription rate of 30.86 times. -The Edge Markets

Our Thoughts

Wall Street retreated mainly attributed to the weak 4Q 2023 earnings from mega banks in addition to the declines in both Tesla and Apple amid a tougher market environment. As such, the DJI Average lost 232 points while the Nasdaq declined by 28 points with the US 10-year yield inching higher to 4.054%. Over in Hong Kong, the HSI continues to slide as it lost 350 points to below the 16,000 mark or a 14 month low dragged by real estate and consumer non-cyclical stocks. Bank home, the FBM KLCI opened strongly before profit taking activities in the afternoon session pressuring the index to below the crucial 1,500 level. We hope for a quick rebound above this psychological level otherwise we may see another interim consolidation for the index. Hence, we expect the index to trend within the 1,495-1,505 range today underpin by broad based bargain hunting activities.

Source: Rakuten Research - 17 Jan 2024

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