Previous Day Highlights

FBM KLCI closed higher due to strong buying interest. The benchmark index was up 0.44% or 7.13 pts to close at 1,614.09. Majority of sectors were positive with technology (+2.6%), health care (+2.1%), and energy (+2.0%), leading the gains; while losers were seen in construction, and transportation. Market breadth was positive with 727 gainers against 381 losers. Total volume stood at 3.6bn shares valued at RM3.31bn.

Major regional indices trended mixed. HSI declined 0.02%, to end at 19,742.46. SHCOMP dropped 0.42%, to close at 3,364.65. Nikkei 225 was up 0.07%, to finish at 39,276.39. STI rose 0.40%, to close at 3,801.27.

Wall Street closed higher as technology shares rallied. The DJIA added 0.69%, to end at 45,014.04. Nasdaq rose 1.30%, to close at 19,735.12. S&P500 rose 0.61%, to finish at 6,086.49.

News For The Day

Public Bank completes 44.15% stake buy in LPI Capital

Public Bank has completed the acquisition of 175.9m shares, representing a 44.15% stake, in insurer LPI Capital. Public Bank intends to maintain the listing status of LPI Capital. Besides Teh’s estate and Consolidated Teh, LPI’s other substantial shareholders include Public Mutual with a 9.41% stake and Sompo Japan Insurance, with 8.54%. - The Edge Market

Radium to develop mixed-used RM470m GDV

Radium will develop a mixed-used property venture in Ampang, Selangor, with a RM470m GDV. It is Radium’s first project outside Kuala Lumpur and aligns with the company’s expansion and its plan to strengthen its foothold in key Klang Valley locations. The project is ideally positioned to meet the increasing demand for high-quality, accessible urban spaces in the Klang Valley, and signalled the company’s commitment to creating sustainable, long-term value for shareholders. - The Edge Market

Mulpha buys land in Australia

Mulpha International has been focusing its activities on Australia in recent years, has proposed to buy a 6.46-hectare land in New South Wales state for AUD68.1m (RM196.8m). The group intends to develop the property into 63 residential land lots with a projected GDV of AUD150m. The total development cost is estimated at about AUD100m. - The Edge Market

Uzma bags hydraulic workover unit works

Uzma awarded a contract by Enquest Petroleum Production Malaysia to supply hydraulic workover unit (HWU) equipment and services for Enquest’s offshore East Malaysia workover campaign. Earlier in mid-November, Uzma announced that it had been appointed as a panel contractor by Petronas for integrated well continuity services across Malaysia. The appointment is for five years, effective from Oct 10, 2024, until Oct 9, 2029.- The Edge Market

Superlon 2QFY4/25 profit down on forex loss

Superlon’s 2QFY25 net profit dropped 12.4% YoY to RM3.2m, weighed down by higher foreign exchange losses. The group declared a second interim alongside with a special single-tier dividend of 0.75sen and 1.25sen per share respectively, totalling 2sen. Superlon noted that while its operating environment remains encouraging, geopolitical tensions and global economic uncertainties could pose challenges. - The Edge Market

Our Thoughts

Wall Street continues to scale record highs with tech stocks leading the charge. At the same time, traders are also waiting for the US latest employment data this Friday that may dictate the Fed stance on interest rates. Meanwhile, the US 10-year yield eased slightly to 4.184%. In Hong Kong, the HSI closed marginally lower after the strong performance recently. Nonetheless, sentiment remains upbeat as traders are expecting more easing measures from China. Meanwhile, the expansion of visa free countries boosted interest in travel agencies namely Trip.com. Domestically, the FBM KLCI maintained its uptrend, to end at almost the 1,615 level. In the absence of any agg. ressive selling from foreign funds, we expect the index to possibly hover within the 1,615-1,625 range today, with the hope that the 1,630 mark will be broken along the way to avert a prolonged consolidation phase.

Source: Rakuten Research - 5 Dec 2024

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