Previous Day Highlights

FBM KLCI closed flat amid cautious sentiment attributed to global volatility. The benchmark index was up 0.05% or 0.81 pts to close at 1,553.64. Majority of sectors were positive with utilities (+2.2%), energy (+1.4%), and property (+1.2%), leading the gains; while losers were seen in telecommunications (-1.1%), and REIT (-0.3%). Market breadth was positive with 546 gainers against 480 losers while 476 counters were unchanged. Total volume stood at 4.24bn shares valued at RM2.79bn.

Major regional indices trended mixed following a slew of China economic data. HSI gained 0.10%, to end at 16,737.12. SHCOMP increased 0.99%, to close at 3,084.93. Nikkei 225 up 2.67%, to finish at 39,740.44. STI closed flat at 3,171.93.

Wall Street closed higher despite the cautious sentiment. The DJIA gained 0.20%, to end at 38,790.43. Nasdaq surged 0.82%, to close at 16,103.45. S&P500 added 0.63% to finish at 5,149.42.

News For The Day

MOT wants KLIA’s aerotrain project completed by end-2024

The Ministry of Transport (MOT) has urged Malaysia Airports Holdings (MAHB) to complete the Kuala Lumpur International Airport aerotrain project by year-end, instead of an earlier target set for the 1QCY25. The aerotrain replacement project is currently being undertaken by a consortium consisting of Alstom Transport Systems (M) SB, IJM Construction SB(IJMC) and Pestech Technology SB. -The Edge Markets

MAHB, govt extend operating agreements to 2069

Malaysia Airports Holdings (MAHB) has secured new operating agreements (OA) from the government to extend its management of Malaysia's airports by another 35 years to Feb 11, 2069. MAHB had entered into two operating frameworks comprising an OA for KL International Airport and a separate OA for designated airports to drive sustainable growth and elevate services across the nation's airports. -The Star

ITMAX’s subsidiary get RM77m contract from Kulai Council

ITMAX System’s subsidiary has secured a video surveillance and traffic light system services contract worth RM77.09m from the Kulai Municipal Council. ITMAX said its 65%-owned Southmax SB had received a letter of award (LOA) for the contract for the period of March 23, 2024 to March 25, 2039. -The Edge Markets

Apollo declares dividend as 3Q profit triples on disposal gain

Apollo Food Holdings’ 3QFY4/24 net profit rose to RM30.24m from RM10.82m YoY, lifted by gain on disposal, improved margins and higher domestic sales. Quarterly revenue rose 3.9% YoY to RM73.85m from RM71.08m. It declared a dividend of 50 sen per share for the quarter, bringing its YTD dividends to 70 sen per share. The group recorded a gain on disposal of investment properties of RM18.6m.-The Edge Markets

Epicon gets RM191m building job

Epicon as received a letter of award from Maju Teluk Batik SB for building works to two apartments in Bandar Meru Raya, Perak worth RM191.13m. The contract period is 36 months, which is expected to commence on March 19, 2024 and be completed on March 18, 2027. -The Star

Zantat's IPO public portion oversubscribed 130.15 times

The public portion of Zantat Holdings' initial public offering (IPO) has been oversubscribed 130.15 times, the company said. The company said a total of 13,755 application seeking 1.84bn new shares with a value of RM459.01m were received from the Malaysian public for 14m new shares available for public subscription. -The Star

Our Thoughts

Wall Street closed higher amid a cautious mode as many are expecting another stagnant rate outlook ahead of the FOMC meeting. As such, the DJI Average gained 76 points while the Nasdaq benefited from rotational play, jumped 130 points despite the US 10-year yield edging higher at 4.328%. In Hong Kong, the HSI reversed earlier losses to end in positive territory as traders are expecting more policy easing process after the latest batch of China’s economic data remained rather dull. Back home, the FBM KLCI ended flat as overall sentiment is still cautious notwithstanding the ongoing accumulation of blue chips. This time around we believe the buying is predominantly from the local institutions as more funds are being ploughed back into the domestic market thus expect the index to hover within the 1,550-1,560 range today. Meanwhile, the Brent crude jumped to almost US$87/barrel underpinned by strong demand hence may see interests shift to the Energy counters today.

Source: Rakuten Research - 19 Mar 2024

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