Previous Day Highlights

FBM KLCI closed lower as the intensified foreign selling overshadowed the impact of easing inflation in the country. The benchmark index was down 0.85% or 13.93 pts to close at 1,618.30. Majority of sectors were negative with utilities (-1.6%), telecommunications (-1.6%), and energy (-1.5%) leading the losses; while gainers were seen in construction (+0.5%), and plantation (+0.3%). Market breadth was negative with 656 losers against 354 gainers. Total volume stood at 2.47bn shares valued at RM2.13bn.

Major regional indices trended mixed. HSI gained 0.49%, to end at 20,590.15. SHCOMP increased 0.59%, to close at 3,299.70. Nikkei 225 eased 0.60%, to finish at 37,913.92. STI slid 0.32%, to close at 3,593.41.

Wall Street closed mixed as the Nasdaq rose driven by mega cap shares. The DJIA dropped 0.61%, to end at 42,114.40. Nasdaq rose 0.56%, to close at 18,518.61. S&P500 eased 0.03%, to finish at 5,808.12.

News For The Day

PETRONAS introduces initiatives to bolster oil and gas sector

Petroliam Nasional (Petronas), through Malaysia Petroleum Management (MPM), aims to bolster the robustness of the local oil and gas sector with two new initiatives. The national oil firm announced the launch of the Integrated Well Continuity Services (IWCS) contract and the plans for the establishment of the MPM Hydraulic Workover Unit (HWU) Academy. The IWCS contract is designed to address the challenges posed by rising costs and dynamic market conditions by introducing a more balanced approach to cost and margin management compared to the earlier Integrated Well Services (IWS) model. - The Edge Market

Gamuda JV for a total RM3.05bn contract

Gamuda announced on Friday that its 75%-owned joint venture company has been appointed as the total development contractor for RM3.05bn to build a hydroelectric plant in Sabah. The contract involves the design and construction of a 187.5-megawatt Ulu Padas dam in Tenom. It is a related-party transaction as Gamuda holds an indirect interest of 45% in UPPSB through UPP Holdings. - The Edge Market

MyEG partners Philippine home mortgage operator

MyEG JV company MYEG Philippines Inc (MYEG PH) has partnered with the Philippines' National Home Mortgage Finance Corporation (NHMFC) to integrate its payment system with the state-owned agency's platform. Through this partnership, NHMFC clients will benefit from the expanded payment options that make managing their mortgage payments easier and more flexible. - The Edge Market

Malakoff extends E-Idaman stake buy cut-off date

Malakoff said the deadline for the fulfilment of the condition’s precedent in the group's proposed acquisition of a 49% stake in solid management company E-Idaman has been extended for a third time, to Jan 28, 2025. The independent power producer initially expected the acquisition, aimed at expanding its waste management and environmental services business, to be completed within 6 months. - The Edge Market

MN Holdings in JV to bid for data centre

MN Holdings has partnered with Protech Builders (PBSB) to jointly tender for sub-contract works for the construction of a data centre project. Under the JVA, the work will be carried out by MNSB and PBSB on a 51:49 basis. MNSB is the project leader and will undertake work related to the substation's primary and secondary scope, testing and commissioning. - The Edge Market

Our Thoughts

Wall Street ended on a mixed note with the Nasdaq closing on a high boosted by the mega cap tech stocks ahead of their earnings report. This is despite the US 10- year yield remains elevated at 4.242%. Over in Hong Kong, the HSI rose underpinned by a rebound in property sales in China hence the improved optimism on the Chinese growth trajectory. Back home, the FBM KLCI declined to almost the 1,610 level as foreign selling gathered momentum. We were surprised by the sell- down and believe a swift rebound is required to above the 1,630 mark to avoid a pro-longed consolidation for the local bourse. Meanwhile, we expect the index to stay side-ways possibly oscillating between the 1,620-1,630 range today.

Source: Rakuten Research - 28 Oct 2024

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