Previous Day Highlights

FBM KLCI closed lower due to mixed performance across the region. The benchmark index declined 0.11% or 1.82 pts to close at 1,611.43. Majority of sectors were negative with utilities (-1.2%), transportation (-0.8%), and energy (-0.7%) leading the losses; while gainers were seen in plantation (+0.1%), and property (+0.1%). Market breadth was negative with 662 losers against 433 gainers. Total volume stood at 3.02bn shares valued at RM2.42bn.

Major regional indices trended mixed. HSI gained 2.76%, to end at 20,414.09. SHCOMP dropped 0.05%, to close at 3,402.53. Nikkei 225 was up 0.18%, to finish at 39,160.50. STI slid 0.03%, to close at 3,794.92.

Wall Street closed lower as investors looked ahead to a crucial inflation report. The DJIA dropped 0.54%, to end at 44,401.93. Nasdaq eased 0.62%, to close at 19,736.69. S&P500 eased 0.61%, to finish at 6,052.85.

News For The Day

Datasonic in talks with Home Ministry for passport contract

Datasonic Group confirmed that it is in negotiations with the Home Ministry regarding a Malaysian passport contract. Datasonic is believed to have secured a new five-year contract to supply materials for 3m Malaysian passports annually, with the fee estimated to be between RM100 and RM115 per document. - The Edge Market

Trading in SkyWorld securities to be halted on Tuesday

SkyWorld Development will suspend trading on Dec 10 (Tuesday) pending an announcement of a material transaction, pursuant to Paragraph 3.1(b) of Practice Note 2 of the listing requirements. For 2QFY25, net profit fell 24% YoY to RM14.5m, with revenue declining 16.2% YoY to RM124.3m due to the completion of two key projects. As at end- September, the group reported unbilled sales of RM592m. - The Edge Market

Globetronics to partner Invest Penang

Globetronics Technology is partnering with Invest Penang to support the state government's initiative to enhance Penang's semiconductor and IC design ecosystem. Its unit, Globetronics Manufacturing, will play a pivotal role as an OSAT provider, highlighting the company's strategic focus on innovation and expanding its offerings to meet the region's growing demand for advanced semiconductor solutions. – New Straits Times Gagasan Nadi signs DRA for over RM1bn housing project Gagasan Nadi Cergas (GNCB) has signed a development rights agreement (DRA) to develop affordable housing in Kwasa Damansara worth over RM1bn in gross development value. It will fund the entire development through a combination of internally generated funds and bank borrowings. Its construction segment has an orderbook of RM462m. - The Star

Haily bags RM38m housing project in Johor Bahru

Haily Group has secured a contract to build 168 double-storey terrace houses in Taman Bestari Perdana in Johor Bahru worth RM38.2m. It brings the group's total contract wins for 2024 to about RM770.6m, surpassing the RM272.1m it secured in 2023. The group’s number of ongoing projects has grown to 26, with cumulative contract value exceeding RM1.14bn. The new job is expected to contribute positively to Haily’s financial performance for the financial years ending 2025 and 2026. - The Edge Market

Our Thoughts

Wall Street closed lower as traders await for November’s inflation data due this Wednesday. Meanwhile, China’s latest investigation on Nvidia for antimonopoly violation further exacerbated the market’s decline. Meanwhile, the US 10-year yield edged higher to 4.201%. Over in Hong Kong, the HSI surged past the 20,000 mark after China’s top policymaker alluded to more easing measures to boost domestic demand just days before the key economic policy meeting. On the domestic front, though the FBM KLCI ended slightly lower amid early selling . pressure, we remain hopeful that buying support to emerge and that the benchmark index still has the legs to climb higher. Already, RM2.5bn of net foreign outflows were recorded last week hence foreign selling may be at its tail-end. As such, we expect the index to hover between the 1,610-1,620 range today with 1,600 as a rather solid psychological support level for now.

Source: Rakuten Research - 10 Dec 2024

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

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