Previous Day Highlights

The FBM KLCI resumed its uptrend as bargain hunting activities continued in tandem with the positive regional performance. The benchmark index rose 5.67 points or 0.357% to close at 1,596.05. All sectors were positive with Tech (+3.36%), construction (+2.56%), and property (+2.31%). Market breadth was positive with 1,103 gainers against 218 losers while 357 counters were unchanged. 4.2bn shares were traded valued at RM2.9bn.

Major regional indices trended higher due to improving global sentiment. HSI surged 1.17%, to end at 17,090.23. SHCOMP dipped 0.27% 2,862.19. Nikkei 225 gained 0.56% to finish at 35,025.00. STI was closed for National Day holiday.

Wall Street closed higher, clawing back much of the week’s losses. The DJIA added 0.12%, to end at 39,497.54. Nasdaq rose 0.51%, to close at 16,745.30. S&P500 gained 0.47%, to finish at 5,344.16.

News For The Day

Solarvest bags 5 green power agreements

Solarvest Holdings has signed five Corporate Green Power Agreements (CGPAs) with Bursa Malaysia, Micron Technology, two global semiconductor manufacturers, and a leading data center service provider under the Corporate Green Power Programme (CGPP). Solarvest, along with its partners, will develop and own two solar power plants in Lumut, Perak, and Kulim, Kedah, as the solar power producers. The CGPAs, which have a 21-year tenure, will enhance Solarvest's recurring income from the sale of electricity generated by these solar plants.- FMT

Swift Haulage’s 2Q net profit down 14%

Swift Haulage, the country's largest container haulier by the number of prime movers, 2QFY24 net profit fell 14.3% YoY to RM8.3m attributed to lower profit margins. “Our acquisition of a 118,000 sq ft warehouse in Penang has been completed in August, which provides us an opportunity to expand our warehousing presence in the northern region of Peninsular Malaysia," it said in a filing with Bursa Malaysia. - The Edge Markets

MN Holdings, Reservoir Link unit eye solar project

MN Holdings and a 51%-owned unit of Reservoir Link Energy are joining hands to tender for a solar project in Pulau Tioman, which is being taken up by TNB. MN Holdings’ 100%-owned unit MN Power Transmission SB, and Founder Energy SB, which is 51% owned by Reservoir Link, are forming a 20:80 JV to submit a tender for the project, MN Holdings said in a filing. -The Edge Markets

P.I.E. Industrial's 2Q24 net profit jumps 49%

PIE’s 2QFY24 net profit jumped 49% YoY to RM17.3m mainly attributable to a higher margin of product mix, lower administrative and distribution expenses and higher income from other investments. The electronics manufacturing services (EMS) company said the improvement has led to higher deliveries of supercomputing server products. -The Star

Asteel consortium bags RM61m data centre cladding deal

Asteel Group, via its wholly-owned subsidiary Asteel (Sarawak) SB(ASWK), has jointly secured a RM61.2m contract for roof and wall cladding of the EBP1A Hyperscale Data Centre at the Elmina Business Park, Selangor. “Barring unforeseen circumstances, the project is anticipated to contribute positively to the future earnings and earnings per share of the Asteel group,” it said. -The Edge Markets

Our Thoughts

Wall Street closed positively last Friday recouping bulk of the losses for the week as an encouraging set of job data alleviated recessionary worries and managed to soothe traders’ temperament. As a result, the DJIA added 51 points while the Nasdaq climbed 85 points higher as the US 10-year yield eased marginally to 3.94%. Over in Hong Kong, the HSI continued with its rebound to end above the 17,000 level on the back of better inflation data from China coupled with the calmer Wall Street performance. Back home, the FBM KLCI managed to close positively but remained below the psychological 1,600 mark attributed to some late profit taking activities. Nonetheless, we deemed the lower daily volume traded as positive signalling that the selling may be at its tail- end. We believe recent positive newsflow particularly from Infineon and its RM30bn additional investments in Kulim will add to the optimism surrounding the nation’s Tech sector of late. For today, we expect the index to hover within the 1,595-1,610 range.

Source: Rakuten Research - 12 Aug 2024

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

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