Previous Day Highlights

FBM KLCI closed lower due to weaker regional markets. The benchmark index was down 0.12% or 1.90 pts to close at 1,606.85. Majority of sectors were negative with health care (-1.0%), construction (-1.0%), and consumer (-0.4%) leading the losses; while gainers were seen in technology (+1.0%), and plantation (+0.2%). Market breadth was negative with 656 losers against 424 gainers. Total volume stood at 3.16bn shares valued at RM2.45bn.

Major regional indices trended lower. HSI declined 0.88%, to end at 19,795.49. SHCOMP dropped 0.16%, to close at 3,386.33. Nikkei 225 eased 0.03%, to finish at 39,457.49. STI rose 0.28%, to close at 3,821.03.

Wall Street closed mixed ahead of Fed meeting. The DJIA dropped 0.25%, to end at 43,717.48. Nasdaq rose 1.24%, to close at 20,173.89. S&P500 rose 0.38%, to finish at 6,074.08.

News For The Day

Gamuda's Australian unit bags RM1.8bn EPC job

Gamuda’s Australian subsidiary DT Infrastructure Pty Ltd has secured a A$625m (RM1.8bn) engineering, procurement and construction (EPC) job for the Goulburn River Solar Farm project. DT Infrastructure’s role in the project will include the civil, structural and electrical infrastructure required for the 585MW solar farm commencing Jan 1, 2025. The contract was awarded by Goulburn River Fund Pty Ltd. - The Edge Market

Proton launches its first electric vehicle

Proton launched its first electric vehicle on Monday, the latest entry into the local market as the country seeks to boost EV and hybrid EV use and gain a foothold in the global supply chain. The Proton e.MAS 7's introduction in Malaysia follows that of BYD, Tesla and Stellantis in partnership with Leapmotor. The e.MAS 7 basic and premium models will be priced at RM109,800 and RM123,800, respectively. Malaysia wants EVs and hybrids to account for a fifth of new car sales by 2030. It reported a 112% rise in the sale of battery EVs in the first half of the year. - The Star

KKB Engineering bags two contracts totalling RM89m

KKB Engineering secured RM89m in contracts from PETROSNiaga (PNSB) and Gamuda. The PNSB contract involves supplying liquefied petroleum gas cylinders over three years, while the Gamuda contract is for steel pipe supply in Sabah, set to complete by 2QFY26. These contracts are expected to positively impact the company’s earnings and net assets during the supply period. - The Star

Marine & General's 2QFY25 net profit up 46%

Marine & General’s net profit surged 46% YoY to RM12.1m in 2QFY25, driven by higher charter rates. The upstream division contributed 84% of revenue, with the downstream segment accounting for the remainder. M&G expects strong vessel demand and activity in its upstream division to support growth, while stable downstream operations will be underpinned by robust demand for Malaysian-flagged tankers and economic recovery. – The Edge Market

Winstar posts 3QFY24 net profit of RM3.3m ahead of listing

Aluminium products manufacturer Winstar Capital, set to list on Bursa Malaysia's ACE Market on Dec 19, posted a net profit of RM3.3m. Aluminium extrusion contributed RM33.9m (57.7%) to revenue, followed by RM22.8m from building materials and RM2.1m from solar PV installation. The company plans to expand by securing more orders and growing its customer base. - The Edge Market

Our Thoughts

Wall Street ended mixed again as sentiment remains cautious ahead of the FOMC 2-day meeting starting today. While the DJIA closed negatively, the Nasdaq added 247 points to another record high. Meanwhile, the US 10-year yield stayed elevated at 4.403% illustrating that the market may have priced in the highly anticipated rate cut by the Fed. Over in Hong Kong, the HSI declined to almost a 2-week low as investors remained wary of China’s patchy economic performance following the latest House Price index and retail sales data which both fared badly thus highlighting deflationary pressures again. Back home, the FBM KLCI dipped slightly amid a sea of red regionally as selling from foreign funds persisted. Nonetheless, we noticed there were some buying activities within the local bourse, indicating that 1,600 remains as the immediate support at the moment. Hence, we expect the index to trend between the 1,605- 1,615 range today. .

Source: Rakuten Research - 17 Dec 2024

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