Previous Day Highlights

FBM KLCI closed higher ahead of the Fed's rate cut. The benchmark index was up 0.73% or 12.13 pts to close at 1,664.28. Majority of sectors were positive with health care (+10.2%), property (+1.8%), and industrial products & services (+1.0%), leading the gainers; while losers were seen in technology (-1.2%), and transportation (-0.1%). Market breadth was positive with 658 gainers against 433 losers. Total volume stood at 3.19bn shares valued at RM3.38bn.

Major regional indices trended higher. HSI gained 1.4%, to end at 17,660.02. SHCOMP was closed for public holiday. Nikkei 225 slid 1.0% to close at 36203.22. STI rose 0.6%, to close at 3,593.42.

Wall Street closed flat as investors awaits for the crucial Federal Reserve policy decision. The DJIA dropped 0.04%, to end at 41,606.18. Nasdaq rose 0.20%, to close at 17,628.06. S&P500 rose 0.03%, to finish at 5,634.58.

News For The Day

MyEG partners with freight forwarders

MyEG Services teamed up with the FMFF to promote ZTrade — a blockchain-based trade document system — as Malaysia's National Single Window (NSW) for cross-border trade facilitation. The group added that the government’s next priority will be expanding the NSW to integrate with the Asean Single Window, as intra-Asean trade currently stands at only 23% to 25%, leaving significant potential for increased trade among Asean members. – The Edge Markets

Supermax to start glove production at Texas

Supermax will begin commercialising glove production at its first US manufacturing facility in Texas by January 2025. The US plant incorporates a ‘smart manufacturing’ process, featuring digital process control and fully automated end-to-end manufacturing. This approach reduces their reliance on blue- collar labour and leverages the latest technology, including artificial intelligence, automation, and robotics. – The Star

Prolintas eyeing tolled highway acquisitions

Prolintas Infra Business Trust (PIBT) is not ruling out future tolled highway acquisitions both domestically and abroad. The focus will be on organic growth of the existing highways through increased value-added services and focus on cost efficiencies. It is forecast to report a net profit of RM11m in FY24 and RM12m in FY25, after a headline net loss of RM276m in FY23. The manager also intended to distribute at least 90% of PIBT’s distributable income on a semi-annual basis. - The Star

Samaiden to set up JV in Indonesia

Samaiden Group announced plans to expand its renewable energy (RE) business into Indonesia via the setting up JV company. The subsidiary, Samaiden SG will establish the 70:30 JV with PT MCS Bina Energi with an authorised capital of IDR10bn (RM2.8m). The group believe this collaboration will further enhance their capacity to provide more RE solutions and contribute positively to both financial performance and regional green energy transition. – The Edge Markets

Resintech forms JV for industrial plastics business

Resintech is forming a JV with a unit of a Sarawak state agency to jointly trade industrial plastic products in the state. The JV will boost Resintech’s trading capabilities and open doors to new opportunities in Sarawak’s rapidly growing industrial sector and provide steady revenue stream. Resintech also announced its JV with CNH Group last week for a proposed hostel development in Kuala Langat, Selangor, with an estimated GDV of RM34.1m. – The Edge Markets

Our Thoughts

Wall Street closed flat as traders were mostly sidelined ahead of the Fed’s rate cut. The market is now looking at the quantum of the adjustment. As such, the DJIA lost 16 points while the Nasdaq added 36 points while the US 10- year yield edged higher to 3.647%. In Hong Kong, the HSI surged to a 2-week high ahead of the highly anticipated rate cut by the Federal Reserve tomorrow. Meanwhile, market sentiment was also buoyed by the sterling debut from appliance maker Midea group. Back home, the FBM KLCI maintained its impressive performance to ease pass the 1,660 level supported by continuous buying from foreign funds. Nonetheless, we noticed daily volume traded remained thin despite the surge in interests of glove related stocks emanated from the prospective imposition of high tariffs on Chinese glovemakers by the US. With the Fed rate cut looming, we expect the local bourse to sustain its uptrend thus expect the index to hover within the 1,670-1,680 range today. Meanwhile, the Ringgit has strengthened to around a 18-month high at 4.26.

Source: Rakuten Research - 18 Sep 2024

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