Previous Day Highlights

FBM KLCI closed marginally lower as sentiment turned cautious, in line with the weak market performance across the region. The benchmark index down 0.13% or 2.04 pts to close at 1,529.33. Gainers were seen in telecommunications (+0.37%), transportation (+0.11%), and consumer (+0.11%); while losers were seen in technology (-0.75%), property (-0.61%), and plantation (- 0.57%). Market breadth was negative with 503 losers against 387 gainers. Total volume stood at 2.81bn shares valued at RM1.93bn.

Major regional indices ended mostly lower, taking the negative cue from Wall Street’s performance overnight except HSI gained 0.84%, to end at 15,879.38. Nikkei 225 eased 0.69%, to finish at 37,703.32. STI slid 0.09%, to close at 3,139.07. SSE remain closed for Chinese New Year Holiday.

Wall Street closed higher, rebounding from recent inflation-fuelled sell off. The DJIA added 0.40%, to end at 38,424.27. Nasdaq rose 1.30%, to close at 15,859.15. S&P500 rose 0.96%, to finish at 5,000.62.

Our Thoughts

Wall Street rebounded attributed to some bargain hunting activities following Tuesday’s sell-off as prospects of a rate cut by the Federal Reserve may be delayed. As such, the DJI Average gained 151 points while the Nasdaq jumped by 203 points as the US 10-year yield eased marginally to 4.261%. In Hong Kong, the HSI advanced by 133 points giving an auspicious start for the Year of the Dragon despite recent move from MSCI cutting 66 Chinese companies from its indices. On the home front, the FBM KLCI closed slightly lower mainly attributed to the weak performance on Wall Street overnight. Nonetheless, we noticed that the market undertone remains solid and is still well supported by foreign buying. In view of the uncertainty in the US, we believe funds will continue to flow into the region whereby value propositions are still in abundance. Hence, we expect the index to hover within the 1,530- 1,540 range today.

News For The Day

IHH’s Indian subsidiary withdraws plan for IPO

IHH Healthcare said Agilus Diagnostic Ltd, a subsidiary of its 31.17%-owned associate Fortis Healthcare Ltd, has decided to withdraw its initial public offer (IPO) application to the Securities and Exchange Board of India (Sebi). IHH said the withdrawal was due to "commercial considerations and in consultation and mutual agreement" with Agilus’s private equity investors and selling shareholders. However, the healthcare group disclosed its intention to refile the IPO prospectus with Sebi for a proposed IPO in the future.– The Edge Market

UMW to be delisted on Feb 19

UMW Holdings will be delisted from Bursa Malaysia next Monday to mark the completion of its privatisation by Sime Darby Bhd. Shares of UMW had been suspended by Bursa Malaysia last Friday, after the expiration of five trading days from the extended closing date of the takeover offer by Sime Darby. As of Jan 31, Sime Darby already held 98.86% of the total shares in UMW. -The Edge Markets

MHB closes FY23 in the red as 4Q net profit tumbles 77%

Malaysia Marine and Heavy Engineering Holdings (MHB) incurred a net loss RM484.18m for FY12/23, contrasting sharply with the RM67.77m net profit YoY, due to additional cost provisions recognised for ongoing heavy engineering projects and the adverse impact of the weakening ringgit against the US dollar on the hedging of receivables for a heavy engineering project. This was despite its full-year revenue doubling to RM3.31bn from RM1.65bn. MHB's 4QFY12/23 net profit tumbled 77.21% YoY to RM6.18m from RM27.14m on lower operating income and higher finance costs. -The Edge Markets

HSS Engineers bags RM9.52m water system upgrade project

HSS Engineers' associate SMHB SB has secured a RM9.52m contract from Pengurusan Aset Air for engineering consulting services for Phase One of the proposed water systems upgrade project in Kuantan, Pekan and Rompin in Pahang. The contract will commence on Feb 19, 2024, and is estimated to be completed in July 2027. It said services conducted by SMHB shall include but not limited to detailed design and construction supervision. -The Star

Pansar bags RM130m contract in Sarawak

Pansar’s wholly owned subsidiary, Perbena Emas SB has won a construction contract worth RM129.99m from Borneo Development Corporation (S) SB. The scope of work includes the construction and completion of the Sarawak Infectious Disease Centre. The contract period is 30 months. -The Star

Source: Rakuten Research - 15 Feb 2024

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