Previous Day Highlights

FBM KLCI closed higher ahead of Budget 2025 announcement. The benchmark index was up 0.18% or 2.99 pts to close at 1,636.54. Gainers were seen in telecommunications (+0.89%), financial services (+0.42%), and REIT (+0.34%); while losers were seen in technology (-0.82%), property (-0.66%), and transportation (-0.60%). Market breadth was negative with 654 losers against 341 gainers. Total volume stood at 2.24bn shares valued at RM2.09bn.

Major regional indices trended higher. HSI declined 0.7% to close at 21,092.87. SHCOMP increased 2.1%, to close at 3,284.32. STI slid 0.6%, to close at 3,595.91. Nikkei 225 was closed for public holiday.

Wall Street closed higher as traders geared up for crucial corporate earnings. The DJIA added 0.47%, to end at 43,065.22. Nasdaq rose 0.87%, to close at 18,502.69. S&P500 rose 0.77%, to finish at 5,859.85.

News For The Day

Genting Malaysia's US unit sued for RM2.6bn by JV partner

Genting Malaysia’s US incorporated subsidiary is being sued RM2.6bn (USD600m) for alleged fraud by its joint venture (JV) partner. GENM maintains that the claims are unfounded and lacking in merit, stating that it will vigorously defend itself against the allegation and would provide updates as significant developments arise. - The Star

Hibiscus expands into Brunei's gas field

Hibiscus Petroleum has completed its acquisition of TotalEnergies EP (Brunei) BV, marking its venture into Brunei’s gas sector. Post-acquisition, Hibiscus Petroleum said this marks the expansion of the group’s geographic footprint into Brunei and solidifies its position as an independent exploration and production player in the Asean region. - The Edge Markets

Critical Holdings secures services job from IJM unit

Critical Holdings has bagged a RM62.5m contract from IJM Corp to provide mechanical and electrical services for a semiconductor plant in mainland Penang. Last month, the company announced that it had secured a contract from a US- based multinational company worth RM82m for mechanical and electrical related fit-out, cleanroom and interior design works for a new office building and production and warehouse facility at Pasir Gudang, Johor. - The Edge Markets

Fajarbaru to develop Medi-City project in Batu Kawan

Fajarbaru Builder has accepted a letter of offer from Penang Development Corporation (PDC) for the proposed development of Medi-City in Batu Kawan, covering approximately 235.8 acres. Additionally, Fajarbaru will develop a wellness village, a medical education hub, a hybrid health-tech park, a waterfront commercial centre. In line with the government’s agenda to promote sustainable development, Medi-City Bandar Cassia will include an integrated district cooling system, green buildings, renewable energy sources, and EV charging hubs. - The Edge Markets

UCrest enters deal to provide digital transformation

Digital health firm UCrest has entered a deal to provide artificial intelligence (AI)-powered digital transformation for a Singapore- listed healthcare group. The deal valued at over SGD1.5m (RM4.9m), will see UCrest incorporating AI and Internet of Things technologies into Singapore Paincare Holdings’ operations to improve efficiency. UCrest has entered into a 3-year agreement with an option for automatic renewal for an additional 24 months and will receive recurring and non-recurring fees for its services throughout the partnership period- The Edge Markets

Our Thoughts

Wall Street closed broadly higher as both the DJIA and S&P500 charted record highs ahead of the latest batch of corporate results ignoring the higher US 10-year yield which touched 4.096%. In Hong Kong, the HSI declined but off day’s low to remain above the 21,000 as traders were disappointed over China’s latest fiscal policy to strengthen the local property market and more measures to fund the economy attributed to lack of details. Back home, the FBM KLCI managed to close positively amid another lacklustre session as sentiment stayed cautious. Daily volume traded was disappointing at just above the 2bn shares level as retail investors were mostly sidelined. Taking cue from the robust US stocks’ performance overnight, we expect the benchmark index to hover within the 1,635-1,645 range today.

Source: Rakuten Research - 15 Oct 2024

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

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