Previous Day Highlights

FBM KLCI closed lower as investors turned cautious ahead of the US elections. The benchmark index was down 0.82% or 13.20 pts to close at 1,601.88. Majority of sectors were negative with technology (-1.2%), plantation (-1.1%), and property (-0.9%) leading the losses; while gainers were seen in construction (+0.5%), and REIT (+0.1%). Market breadth was negative with 671 losers against 363 gainers. Total volume stood at 2.52bn shares valued at RM2.95bn.

Major regional indices trended lower. HSI declined 0.31%, to end at 20,317.33. SHCOMP increased 0.42%, to close at 3,279.82. Nikkei 225 eased 0.50%, to finish at 39,081.18. STI slid 0.88%, to close at 3,558.88.

Wall Street closed lower due to weaker earnings results. The DJIA dropped 0.90%, to end at 41,763.46. Nasdaq eased 2.76%, to close at 18,095.15. S&P500 eased 1.86%, to finish at 5,705.45.

News For The Day

Sarawak's Petros allocates RM40bn for capex over five years

Petros, the Sarawak government-owned oil and gas (O&G) company. The company registered a total revenue of RM4bn last year, and this figure is projected to grow over the next few years. Petros is now participating in 19 production-sharing contracts in collaboration with major oil players from several countries. Petros is developing four strategic hubs in Kuching, Miri, Bintulu and Similaju, with a potential investment of RM100bn in the next few years, and, together with Petronas, becoming the sole distributor of liquefied petroleum gas in Sarawak. - The Edge Market

SunCon wins additional RM347m data centre works in Johor

Sunway Construction Group has been awarded additional tenant improvement works (TIWs) for its data centre construction project at the Sedenak Tech Park (STeP) in Johor for RM347m. The contract was awarded by Yellowwood Properties, which brings up the contract amount from RM3.2bn initially, to RM3.5bn now. All phases of both the notice to proceed (NTP) works and TIWs scheduled for completion by February 2026. - The Edge Market

Enovix to invest USD100m in battery manufacturing with YBS

YBS International has amended several key terms in the agreement with Nasdaq-listed Enovix Corp on the manufacturing of batteries for the latter. YBS is fully responsible for obtaining and maintaining working capital requirements to sustain compliance with the terms, including, without limitation, fulfilling Enovix’s purchase requirements for materials. Enovix has committed to invest USD1.5bn in Malaysia over the next 15 years and to have multiple lines by 2026. - The Edge Market

Cypark gets PPA revision for LSS3 project

Cypark Resources’ third cycle of large scale solar (LSS3) photovoltaic plant of 100 megawatt (MW) in Merchang, Terengganu, was given an extension of time (EOT) which involves the revision of the period of power purchase agreement (PPA). The EOT will not have any effect on the share capital and shareholding structure of Cypark but is expected to contribute positively towards the earnings and net assets per share of Cypark for the financial year ending Apr 30, 2025.- The Edge Market

Our Thoughts

Wall Street retreated as earnings from mega tech companies disappointed. Meanwhile, the latest personal consumption expenditures price index came in within expectations, but impact was muted with the US 10-year yield inching higher at 4.282%. In Hong Kong, the HSI closed marginally lower as traders are expecting more stimulus measures despite China’s economy showing signs of improving as China’s October purchasing manager index (PMI) came in higher than expected. On the home front, the FBM KLCI declined sharply to almost the 1,600 level as selling from foreign funds persists. We are curious by the sell-down from foreign funds recently but expect bargain hunters to emerge if the index dips below 1,600 thus envisage the index to hover within the 1,600-1,610 range today. Meanwhile, the CPO price charted another YTD high surpassing the RM4,700/tonne but remains under the radar underscoring its role as the underdog.

Source: Rakuten Research - 1 Nov 2024

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

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