Previous Day Highlights

FBM KLCI closed higher as bargain hunting activity emerged. The benchmark index was up 0.45% or 7.48 pts to close at 1,656.39. Majority of sectors were positive with health care (+1.9%), technology (+1.9%), and property (+1.3%), leading the gains; while losers were seen in energy (-0.4%), and construction (-0.2%). Market breadth was positive with 672 gainers against 379 losers. Total volume stood at 2.55bn shares valued at RM2.41bn.

Major regional indices trended mixed. HSI and SHCOMP were closed for public holiday. Nikkei 225 rose 1.93%, to finish at 38,651.75. STI dipped 0.12%, to close at 3,580.96.

Wall Street closed lower while oil prices surged due to escalating geopolitical tensions in the Middle East. The DJIA dropped 0.41%, to end at 42,156.97. Nasdaq eased 1.53%, to close at 17,910.36. S&P500 declined 0.93%, to finish at 5,708.75.

News For The Day

Petronas inks 5-year gas sales agreement

Petroliam, through Malaysia Petroleum Management (MPM), will supply gas to Sabah Electricity (SESB) for power generation in Sabah and Labuan. With the 5-year gas sales agreement inked on June 30, Petronas will continue to supply 16m standard cubic feet of gas per day to SESB. The O&G firm remains committed to securing the nation’s energy supply, while advancing low-carbon and low-emission operations. - The Edge Markets

MISC signs shipbuilding contract for two LNG carriers

MISC and Samsung Heavy Industries have signed shipbuilding contracts for the construction of two newbuild liquefied natural gas (LNG) carriers, scheduled for delivery in 2027. The new LNG carriers support the strategic intent of rejuvenating MISC’s LNG fleet with modern and efficient vessels towards achieving reduction of greenhouse gas emissions and intensity by 2030. - The Star

Tanco gets unconditional nod from Marine Dept

Tanco Holdings said its 79%-owned subsidiary, Midports Holdings had received the nod from the Malaysian Marine Department (MMD) to develop a container port in Port Dickson, Negeri Sembilan. The port is to be developed within a 480-acre (194.25 hectares) land bank owned by Tanco. It will feature a 1.8km jetty, terminal and container handling area measuring 809,300sq m. - The Edge Markets

MHB bags RM43m subcontract from Uzma

Malaysia Marine and Heavy Engineering has secured a RM43m subcontract from a subsidiary of Uzma for the conversion of a mobile offshore drilling unit (MODU) into a mobile water injection facility (WIF). This system is designed to optimise reservoir pressure, enhance oil recovery rates, and reduce environmental impact. - The Edge Markets

Central Global acquires property in Sabah for RM19.5m

Central Global is acquiring a 4-storey office and showroom from Sribina Resources in Kota Kinabalu, Sabah for RM19.5m. The acquisition is part of the overall strategy of increasing the group’s profile as one of the leading construction groups in East Malaysia, specifically Sabah allow the company to cross-sell and expand its presence of its products and to be the headquarters/ warehouse/ storehouse for its vehicles/ machinery when projects are completed. - The Star

Our Thoughts

US stocks closed lower amid the growing tensions in the Middle East. As a result, the DJIA lost 173 points while the Nasdaq declined by 278 points as the US 10-year yield eased slightly to 3.732%. Hong Kong market will resume trading today after closing for National Day yesterday. Back home, the FBMKLCI finally rebounded amidst some bargain hunting activities. Though the index managed to stay above the 1,650, overall sentiment was cautious. In view of the ongoing consolidation phase, daily volume traded was extremely low at around the 2.5bn mark which indicates that the retail participation remains muted. For today, we believe trading pattern to be similar in view of the latest events in the Middle East thus expect the index to hover within the 1,650-1,660 range today. Meanwhile, gold is looking set to test another all time high soon from current level at around USD2,660/oz.

Source: Rakuten Research - 2 Oct 2024

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