Previous Day Highlights

FBM KLCI closed higher despite some intermittent profit taking activities. The benchmark index was up 0.19% or 3.17 pts to close at 1,668.82. Majority of sectors were positive with property (+1.7%), health care (+1.6%), and construction (+0.9%), leading the gains; while losers were seen in telecommunications (-0.9%), and industrial products & services (-0.3%). Market breadth was positive with 732 gainers against 468 losers. Total volume stood at 4.1bn shares valued at RM5.8bn.

Major regional indices trended higher. HSI gained 1.36%, to end at 18,258.57. SHCOMP increased 0.03%, to close at 2,736.81. Nikkei 225 up 1.53%, to finish at 37,723.91. STI slid 0.23%, to close at 3,624.76.

Wall Street closed mixed as investor were side-lined digesting if the Fed massive 50bps cut was indeed positive. The DJIA added 0.09%, to end at 42,063.36 while the Nasdaq eased 0.36%, to close at 17,948.32. The S&P500 declined 0.19%, to finish at 5,702.55.

News For The Day

TNB to supply additional 100MW to Singapore

Tenaga Nasional has inked an agreement with Singapore’s Keppel Electric Pte Ltd to supply up to 100MW of electricity to the island-state. The 100MW supply agreement, it said, is part of the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project. The agreement, aimed to enhance energy security and sustainability within Asean, utilises existing interconnections, TNB said. – The Edge Markets

Top Glove Complies with Selangor's Zero Discharge Policy

Glovemaker Top Glove Corp said it is looking at further raising its water recycling capacity by 50% by 2025, from 2024 levels, as part of its active efforts on conservation of natural resources. Top Glove is reportedly the first industrial premises that has completed the ZDP licensing process. This to encourage industry users to recycle and reuse effluent from their premises. – The Edge Markets

NCT Alliance to acquire 51% stake in Setara Juara

NCT Alliance has inked a MoU to acquire a 51% equity interest in Setara Juara as part of plans to expand its property development business. Setara Juara holds the development rights to about 249.67 acres of land in Dumpil Bay in Putatan, Sabah, which has a gross development value of RM3bn. The project will stand to benefit from the recent launch of the Sabah-Malaysia My Second Home Programme. - The Star

Mycron Steel to launch Patented Green Steel by 2025

Steel manufacturer Mycron Steel is planning to develop and launch its own patented green steel products by 2025, as it looks to address the growing demand for sustainable materials. New green steel brand will focus on high-quality, low-carbon products designed for various high-end applications. These applications include for the automotive industry, construction and infrastructure, as well as consumer goods and appliances. - The Edge Markets

Chinese firms to establish operations in Labuan

Three major China-based heavy industry firms, including Hangzhou-based Siemens Energy High Voltage Circuit Breaker Co Ltd, Laian KLX Industrial Liability Co Ltd, and InnoVision Capital, will expand operations to Labuan. They plan to manufacture iron and aluminum products using raw materials from China, recognizing Labuan's strategic potential as a key economic hub. - The Edge Markets

Our Thoughts

Wall Street closed mixed post-rate cut euphoria as traders began to ponder if the market has run ahead of its fundamentals. As a result, while the DJIA added 38 points, the Nasdaq was down by 66 points with the US 10- year yield inching slightly higher at 3.741%. Over in Hong Kong, the HSI maintained its uptrend to end at almost a 2-month high as sentiment remained buoyant following the Fed jumbo rate cut. Back home, the FBM KLCI ended positively but off the day’s high as profit taking activities emerged during the afternoon session. Nonetheless, market undertone seems to have improved in view of the higher volume traded that breached the 4bn shares mark. We expect buying activities to resume on the back of positive news regarding the Agung’s visit to China coupled with the Special Financial Zone encompassing Forest City with highly attractive tax incentives. For today, we expect the index to hover within the 1,665-1,675 range. Meanwhile, the Ringgit continues to strengthen against the USD currently hovering at the 4.20 level.

Source: Rakuten Research - 23 Sep 2024

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