Previous Day Highlights

FBM KLCI closed higher in tandem with the advances amongst regional bourses. The benchmark index was up 0.30% or 5.07 pts to close at 1,670.37. Majority of sectors were positive with utilities (+0.8%), energy (+0.8%), and consumer (+0.6%), leading the gains; while losers were seen in technology (-1.7%), and construction (-0.8%). Market breadth was neutral with 558 gainers against 549 losers. Total volume stood at 3.51bn shares valued at RM3.13bn.

Major regional indices trended broadly higher. HSI gained 4.1%, to end at 19,000.56. SHCOMP increased 4.2%, to close at 2,863.13. STI slid 0.4%, to close at 3,622.74. Nikkei225 was up 0.6%, to close at 37,940.52.

Wall Street closed higher as traders largely shrugged off a grim consumer confidence reading. The DJIA added 0.20%, to end at 42,208.22. Nasdaq rose 0.56%, to close at 18,074.52. S&P500 rose 0.25%, to finish at 5,732.93.

News For The Day

Yinson’s 97MWp Matarani Solar Plant in Peru is operational

Yinson Renewables, a subsidiary of Yinson Holdings, recently saw the full operational launch of its 97MWp Matarani Solar Plant in Peru. The plant, located near Arequipa, a city in Peru, commenced its power export and sales in July 2024, and now stands as the second-largest solar energy producer in the country. Meanwhile, a long-term Power Purchase Agreement (PPA) is in place with Orygen, Peru’s leading renewable energy provider. - The Edge Markets

VS Industry's 4QFY7/24 net profit up 107%

VS Industry’s 4QFY7/24 net profit surged 107% YoY to RM126.7m, due to a one-off gain of RM46.7m arising from the partial disposal of its equity interest in a subsidiary and increased orders and a better product mix that helped improve utilisation rate. The group’s newly incorporated Philippines subsidiary has secured new orders with an aggregate value of about RM1.5bn for the next two years. - The Edge Markets

Pesona Metro secures RM321m contract from SIMEPROP

Pesona Metro Holdings has accepted a letter of award from Sime Darby Property (Golfhome) for the execution and completion of superstructure works worth RM321.1m. The project shall be for 27 months from the date of commencement, Oct 11, 2024. It is expected to contribute positively to the earnings and enhance the net assets of the group during the duration of the project. – The Star

Poh Kong’s 4QFY7/24 net profit up fourfold

Poh Kong Holdings saw its net profit for its 4QFY7/24 increase by more than fourfold YoY to RM22m. This is attributed to an increase in demand for gold jewellery and gold investment products during the quarter under review, while also pointing to the added demand and a rise in gold prices for its surge in earnings. - The Edge Markets

SDCG to JV with Sunrise Shares Energy

Solar District Cooling Group (SDCG) has entered into a collaboration agreement with Sunrise Shares Energy SB (SSE) to promote the adoption of renewable energy solutions and sustainability advisory services across multiple sectors in Malaysia. – The Star

Harn Len to dispose of JB land for RM55m

Harn Len Corp is disposing of a piece of land measuring 3,725.8 sq metres in Johor Baru, Johor to Starsea Resources SB for RM55m. The company said that the availability of the surplus cash flow will enable the company to reaffirm its commitment to expand its business in the food security segment. – The Star

Our Thoughts

Wall Street closed positively with all 3 major indices hitting all-time highs despite consumer confidence suffering its biggest 1-month decline. As such, the DJIA gained 83 points while the Nasdaq added 100 points as the US 10-year yield was flat at 3.732%. Over in Hong Kong, stocks surged following China’s PBOC cut in the Reserve Requirement Ratio (RRR) by 50bps releasing USD142bn into the financial system. In addition to this, there are also a slew of incentives for buying shares and cuts in borrowing costs as an effort to boost economic growth and the equity market. As a result, the HSI surged past the 19,000 level or a 4-month high. Back home, the FBMKLCI closed positively but remains stuck in a consolidation mode. As such, we reckon the index needs to break the 1,680 mark decisively to resume its challenge towards the 1,700 mark. We see recent strength of the Ringgit may be the main catalyst for the inflow of foreign funds in line with the widening 10-year MGS and 10-year Bond yield spread now at around 50bps.As such, we expect the index to hover within the 1,670-1,680 range today.

Source: Rakuten Research - 25 Sep 2024

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