Previous Day Highlights

FBM KLCI surged to a 20-month high since June 2022, sustained by late buying activities, in tandem with the regional performance. The benchmark index soared 1.26% or 19.09 pts to close at 1,531.37. All the sectors were positive with construction (+2.1%), property (+1.7%), and financial services (+1.6%), leading the gains. Market breadth was positive with 634 gainers against 297 losers. Total volume stood at 2.11bn shares valued at RM2.04bn.

Major regional indices surged, buoyed by positive sentiment across the Asia-Pacific region. Nikkei 225 up 2.89%, to finish at 37,963.97. STI rose 0.11%, to close at 3,141.87. Meanwhile, HKSE and SSE remain closed for Lunar New Year.

Wall Street tumbled following higher-than-expected consumer inflation reading pushing the uncertainty of early rate cuts. The DJIA dropped 1.35%, to end at 38,272.75. Nasdaq eased 1.80%, to close at 15,655.60. S&P500 eased 1.37%, to finish at 4,953.17.

Our Thoughts

Wall Street ended broadly lower as January inflation figures came in higher than expected putting rate cuts into more uncertainty. As a result, the DJI Average declined by 525 points while the Nasdaq lost 287 points as the US 10-year yield edged higher at 4.326%. The Hong Kong market will resume trading today but recent move by MSCI to cut 66 Chinese stocks from its global benchmarks may add more negativity into Hong Kong equities. Back home, the FBM KLCI surged past the 1,520 mark with ease as it closed above the 1,530 level attributed to the continuous buying of blue chips by foreign funds. Though daily volume remains low, we believe if such accumulation on the blue chips is sustained, the improving liquidity will cascade into the smaller caps hence enticing retailers back into action. For today, we anticipate the index to possibly hover within the 1,525-1,535 range as sentiment may have turned cautious, no thanks to Wall Street’s performance overnight.

News For The Day

KPJ unit to renovate, sub-let Damansara Specialist Hospital

KPJ Healthcare's wholly-owned unit Rawang Specialist Hospital SB has proposed to sub-tenant the royal suite of Damansara Specialist Hospital 2 (DSH2) to Johor Corp (JCorp) following renovations to the hospital. The healthcare provider said it has accepted an agreement with JLG & BP Design SB for renovations at DSH2 for RM15.9m. It added that the renovation works commenced on Feb 9, 2024, and will be completed on Sept 30, 2024. – The Star

Dayang gets contract extensions from Petronas Carigali

Dayang Enterprise Holdings said its wholly owned DESB Marine Services SB has secured contract extensions for the supply of three accommodation work boats to Petronas Carigali SB. The values of the extensions are based on work orders issued by Petronas Carigali throughout the duration of the extended contracts.-The Edge Markets

EPF grants Ekovest extension to exit from Duke

Ekovest has obtained approval from the Employees Provident Fund (EPF) an extension of up to two years to facilitate and implement exit plan for the company from its investment in Konsortium Lebuhraya Utara-Timur (KL) SB (Kesturi), the concessionaire of Duke highway. Ekovest was given a one-year extension with an automatic extension for another year for the extended exit date under the shareholders’ agreement to Feb 12, 2026.-The Edge Markets

Kitacon bags RM65.4m construction contract

Kumpulan Kitacon’s wholly owned subsidiary, Kitacon SB secured a contract of RM65.4m from Worldwide Holdings to undertake a proposed development in Dengkil, Selangor. The project entails the construction of 182 units of double-storey terrace houses and one electrical substation, where construction works are expected to commence on Feb 19, 2024, for 18 months. Kitacon’s outstanding order book has now increased to RM1.18bn. -The Star

Awantec inks RM294.27m deal to be Redtone's tech partner

AnwanBiru Technology via its wholly-owned subsidiary Awantec Systems SB has entered into a service agreement with Redtone Engineering and Network Services SB to support the government's unified communication and collaboration project, MyGovUC3.0. Awantec will be providing Cloud computing solutions and services which includes products such as Google Workspace Enterprise and Google Cloud Platform. The service agreement is valued at RM294.27m, with a duration of 57.5months, from Feb 14, 2024, to Nov 30, 2028.-The Star

Source: Rakuten Research - 14 Feb 2024

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