Previous Day Highlights

23 December 2024 FBM KLCI closed lower attributed to persistent foreign outflows. The benchmark index dipped 0.54% or 8.68 pts to close at 1,591.41. Gainers were seen in construction (+1.02%), REIT (+0.79%), and utilities (+0.59%); while losers were seen in health care (-1.98%), plantation (-1.17%), and energy (-0.86%). Market breadth was negative with 552 losers against 462 gainers. Total volume stood at 3.4bn shares valued at RM3.74bn.

Major regional indices trended negatively. HSI declined 0.16%, to end at 19,720.70. SHCOMP dropped 0.06%, to close at 3,368.07. Nikkei 225 eased 0.29%, to finish at 38,701.90. STI slid 1.14%, to close at 3,719.93.

Wall Street closed higher amid steady inflation data. The DJIA added 1.18%, to end at 42,840.26. Nasdaq rose 1.03%, to close at 19,572.60. S&P500 rose 1.09%, to finish at 5,930.85.

News For The Day

Top Glove flags 'start of comeback'

Top Glove returned to black with a 1QFY8/25 net profit of RM5.5m thanks to higher sales volumes and increased foreign exchange gains. Top Glove expects further sales recovery and projects its glove sales volume in FY25 to grow 60% to 43bn pieces, on industry stock replenishment and increase in sales flow from the US as a result of the 50% tariff on China-made gloves set to start on Jan 1, 2025. – The Edge Market

JPG awards RM39m contract

Johor Plantations has awarded a RM39.04m contract to Tg. Langsat Development through a tender process. The contract covers earthworks, main infrastructure development, sewage treatment plant construction, and related works for the Integrated Sustainable Palm Oil Complex (iSPOC) project. Scheduled for completion in the 2HCY26, this integrated approach aims to enhance efficiency, expand JPG’s value chain and product offerings, improve cost-effectiveness, and strengthen its competitiveness in the palm oil industry. – The Star

Bahvest buys equipment to build new plant

Bahvest has proposed to buy mining equipment from China- based Chengdu Mining Maintenance Technology for RM22.8m, to be used to build a new gold mining processing plant. With a processing capacity of over 2,000 tonnes per day (tpd), it is expected to double the output of the current plant. This significant increase in capacity allows the group to meet higher production demands, improve operational throughput and optimise resource utilisation, which in return is expected to increase the group’s profitability when it reaches full capacity. - The Edge Market

Kawan Renergy reports record earnings for FY10/24

Kenergy recorded its 4QFY10/24 net profit of RM5.32m, bringing the full-year net profit to an all-time high of RM19.2m. The company remains optimistic about the group’s prospects, bolstered by a healthy order book of RM141.7m as of Oct 31, 2024. - The Star

LKL secures RM24.6m sales contract

LKL International’s wholly-owned subsidiary, LKL Advance Metaltech (LKLAM), has secured a RM24.6m sales contract from Universiti Kebangsaan Malaysia (UKM). The sales contract represents the single largest award of medical equipment supply and installation received by the group since its inception. Furthermore, it accounts for approximately 50% of the group’s latest audited revenue turnover. – The Star

Our Thoughts

Wall Street staged a relief rebound as sentiment was uplifted by a tame Personal consumption price index. More importantly, the US averted a government shutdown following the Senate’s approval of a federal spending bill as a stopgap measure for 3 months. Meanwhile, the US 10-year yield eased marginally to 4.53%. In Hong Kong, the HSI ended slightly lower as investors await for more catalysts after China’s 3Q GDP growth came in at 4.6% amid headwinds from the property sector and domestic consumption. On the home front, the FBM KLCI weakened further to end at around the 1,590 level due to persistent foreign selling. We expect a swift recovery today taking cue from the brighter prospects on Wall Street last Friday, thus expect the index to hover within the 1,595-1,605 range. All said, the crude palm oil price continues to slide over the past few sessions from around RM5,200/tonne to currently RM4,500/tonne on concerns of demand from China and lower exports.

Source: Rakuten Research - 23 Dec 2024

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