Previous Day Highlights

FBM KLCI closed marginally higher despite some late profit taking activities. The benchmark index was up 0.18% or 3.01 pts to close at 1,673.38. Majority of sectors were negative with health care (-3.3%), technology (-2.1%), and property (-2.0%) leading the losses; while gainers were seen in plantation (+1.0%), and consumer (+0.7%). Market breadth was negative with 790 losers against 397 gainers. Total volume stood at 3.6bn shares valued at RM3.29bn.

Major regional indices trended mixed. HSI gained 0.68%, to end at 19,129.10. SHCOMP increased 1.16%, to close at 2,896.31. Nikkei 225 eased 0.19%, to finish at 37,870.26. STI slid 1.09%, to close at 3,583.27.

Wall Street closed mixed as investors pondered the Federal Reserve’s path of rate cuts. The DJIA eased 0.70%, to end at 41,914.75. Nasdaq rose 0.04%, to close at 18,082.21. S&P500 slid 0.19%, to finish at 5,722.27.

News For The Day

AirAsia X issues circular on proposed RM6.8bn acquisition

AirAsia X has issued a circular on its RM6.8bn plan to acquire Capital A's stake in AirAsia Aviation Group Ltd and AirAsia, ahead of a shareholder meeting on Oct 16. AAX said the proposed acquisition aims to create a focused aviation powerhouse, encompassing seven airlines across Malaysia, Thailand, Indonesia, the Philippines, and Cambodia. – The Edge Markets

Keyfield clinches eight work orders worth RM130m

Oil and gas services firm Keyfield International has secured eight work orders worth about RM130.3m from Petronas Carigali. These work orders are for the provision of six units of accommodation work boat vessels and two anchor handling tug and supply vessels for Petronas Carigali’s offshore activities, which will be carried out in the second half of this year- The Edge Markets Malaysia Airports partners Beijing Daxing Airport Malaysia Airports Holdings (MAHB) has inked a memorandum of understanding (MOU) with the Beijing Daxing International Airport (BDIA) to collaborate on airport management, technology and innovation. The MOU aims to boost economic growth, tourism and connectivity, strengthening both countries' roles in global aviation. – The Edge Markets

SNS Network's 2QFY25 net profit falls 29.7%

SNS Network Technology's net profit fell 29.7% YoY to RM6.4m in the second quarter ended July 31, 2024 (2QFY7/25), dragged down by lower revenue alongside higher selling and distribution costs, which were driven by increased salaries, commissions to third-party online marketplaces, and higher marketing expenses. - The Edge Markets

LB Aluminium's 1QFY25 profit doubles

Aluminium products maker LB Aluminium reported that its net profit for 1QFY10/25 doubled YoY to RM8.9m, as revenue hits its highest in two decades, underpinned by stronger contributions from both its aluminium and property businesses. - The Edge Markets

MCE Holdings’ 4QFY7/24 net profit jumps 40.7%

MCE Holdings’ net profit for the fourth quarter ended July 31, 2024 (4QFY7/2024) rose 40.7% to RM4.1m YoY. This increase was mainly due to lower direct costs resulting from enhanced operational efficiencies, along with a rise in other income. The group also secured its first EV contract in July, supplying mechatronic components for Perodua’s first electric vehicle. – The Edge Markets

Our Thoughts

Wall Street closed mixed as profit taking activities emerged following a strong opening from all 3 major indices. As such, the DJIA lost 293 points while the Nasdaq added 8 points as the US 10-year yield inched higher at 3.791%. In Hong Kong, the HSI opened at almost its 52-week high before fizzling out at just above the 19,000 mark. Nonetheless, sentiment remains buoyant following a spate of incentives to spur both the economy and equity market. On the home front, the FBMKLCI managed to close on a positive note despite some intermittent profit taking activities during the afternoon session. Again, we believe the 1,680 remains a tough resistance and must be broken decisively before the index enters its 2nd phase of uptrend. For today, we expect the index to hover within the 1,670-1,680 range. Meanwhile, crude palm oil (CPO) trended above the RM4,000/tonne amid still stuck within a consolidation mode. The uptick in price can be attributed to lower stock in Indonesia amid high biodiesel demand.

Source: Rakuten Research - 26 Sep 2024

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

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