Previous Day Highlights

FBM KLCI closed lower, reflecting the weak sentiment seen in emerging regional markets. The benchmark index down 0.67% or 11.18 pts to close at 1,648.91. Majority of sectors were negative with energy (-1.2%), construction (- 1.1%), and transportation (-1.0%) leading the losses; while gainers were seen in utilities (+0.6%), and REIT (+0.6%). Market breadth was negative with 652 losers against 488 gainers. Total volume stood at 4.06bn shares valued at RM3.21bn.

Major regional indices trended higher. HSI gained 2.43%, to end at 21,133.68. SHCOMP surged 8.06%, to close at 3,336.50. Nikkei 225 plunged 4.80%, to finish at 37,919.55 as investors looked for direction from their new Prime Minister. STI rose 0.33%, to close at 3,585.29.

Wall Street closed higher as investors assessed comments made by Federal Reserve Chair Jerome Powell. The DJIA added 0.04%, to end at 42,330.15. Nasdaq gained 0.38%, to close at 18,189.17. S&P500 rose 0.42%, to finish at 5,762.49.

News For The Day

CelcomDigi inks MOU with South Korea’s SK Telecom (SKT)

CelcomDigi and South Korea’s leading wireless telecommunications operator SK Telecom have inked MOU to collaborate on artificial intelligence (AI) initiatives. In terms of ‘AI use cases in Malaysia’, CelcomDigi and SKT will collaborate to introduce and implement mutually agreed AI solutions within CelcomDigi’s departments, with SKT providing the necessary resources and expertise. - The Edge Markets

DNeX partners Google to provide cloud services

Dagang NeXchange is partnering with Singapore-based Google Asia Pacific to provide sovereign cloud services in the country. Additionally, this collaboration aims to expand DNeX’s information technology services by offering hosting solutions to meet the growing demand for in-country data centres and cloud infrastructure in Malaysia. - The Edge Markets

Astro posts best quarter on lower expenses

Astro Malaysia posted 2QFY1/25 net profit of RM54.7m, its best quarterly results since the quarter ended January 2023, on the back of lower expenses, and better finance costs on favourable foreign exchange impact. As part of the ongoing transformation, Astro is planning to launch three streamlined TV packs in the future for: entry-level viewers, sports fans, and all- access seekers. – The Edge Markets

Critical wins RM82m contract from US-based company

Critical Holdings wholly owned subsidiary Critical M&E Engineering has been awarded an RM82m contract from a MNC headquartered in the US. It is expected to contribute positively to the earnings and net assets of the company for FY25 and will swell the order book to RM204m. - The Edge Markets

Samaiden secures RM52m solar PV power plant job

Samaiden has accepted a letter of award from Legasi Green Power to undertake, amongst others, the main contract works in relation to the development of a 14-megawatt alternating current large scale solar photovoltaic power plant in Sungai Petani, Kedah, worth RM52m.– The Star

TCS bags RM116.6m contract from SP Setia

TCS Group has secured a RM116.6m construction contract for the proposed building and related infrastructure works for 561 units of affordable housing for the Setia Bayuemas project. With this contract win, it further boosts their order book and gives clear earnings visibility. The overall outlook of the construction sector is currently more favourable as the raw material prices of goods have stabilised. – The Star

Our Thoughts

Wall Street closed positively as prevailing optimism over more rate cuts from the Federal Reserve continues. Nonetheless, market watchers are also waiting for job data this Friday. As such, the DJIA added 17 points while the Nasdaq gained 69 points as the US 10-year yield eased to 3.787%. Over in Hong Kong, the HSI maintained its ascension after a week of buying frenzy following PBOC massive easing measures. Sentiment was further buoyed by the easing of property buying restrictions in Guangzhou, Shanghai and Shenzhen. The recent sharp uptrend in the HSI has also force short-sellers rushing to cover their positions. Back home, sentiment remained subdued as profit taking activities continued within the ASEAN region. As such, the FBMKLCI dipped below the 1,650 mark as the index remains stuck within a consolidation mode. We noticed foreign funds as net sellers but are hopeful that the retail segment has begun to accumulate on stocks of late. For today, we expect the index to over within the 1,645-1655 range in the absence of strong catalysts for now.

Source: Rakuten Research - 1 Oct 2024

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

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