Previous Day Highlights

26 December 2024 FBM KLCI closed higher on Tuesday, driven by bargain hunting activity. The benchmark index was up 0.43% or 6.79 pts to close at 1,602.99. Majority of sectors were positive with energy (+1.5%), utilities (+0.5%), and telecommunications (+0.5%), leading the gains; while losers were seen in construction (-0.3%), and transportation (-0.3%). Market breadth was positive with 500 gainers against 427 losers. Total volume stood at 2.01bn shares valued at RM1.54bn.

Major regional indices trended positively. HSI gained 1.08%, to end at 20,098.29. SHCOMP increased 1.26%, to close at 3,393.53. Nikkei 225 eased 0.32%, to finish at 39,036.85. STI rose 0.46%, to close at 3,769.55.

Wall Street 's main indices rose on Tuesday, boosted by gains in growth stocks during the shortened Christmas Eve session. The DJIA added 0.91%, to end at 43,297.03. Nasdaq rose 1.35%, to close at 20,031.13. S&P500 rose 1.10%, to finish at 6,040.05.

News For The Day

MMAG buys aircraft for RM21m

MMAG Holdings’s subsidiary, MJets Air is acquiring its seventh aircraft, a Boeing B737-400SF Converted Freighter, from JPA No.161 Co Ltd for RM20.8. cash. The aircraft purchase is part of the group’s strategic move to expand and enhance its air freight capabilities, providing greater control over its fleet and improving operational efficiency. - The Star

Prolintas settles cost-sharing agreement dispute

Prolintas has settled its dispute with KL-Kuala Selangor Expressway (Latar) over a cost-sharing agreement, for an undisclosed amount. Prolintas said the settlement will not have any material implications, reiterating that its major unitholder, Projek Lintasan Kota Holdings, has agreed to indemnify trustee manager Prolintas Managers against any losses incurred from the arbitration case. – The Edge Market

East Navigators' stake in Pharmaniaga falls below 5%

East Navigators Capital is no longer a substantial shareholder in Pharmaniaga after disposing of a 1.76% stake in the PN17- status pharmaceutical firm for RM5.3m. Last month, Pharmaniaga received approval from Bursa Malaysia for its regularisation plan, which includes a RM520m capital reduction, a RM353.5m rights issue (excluding warrants), and a RM300m private placement. - The Edge Market

Nestcon wins bids to develop projects in Sabah

Nestcon has secured two contracts to develop a total of 18.99 megawatts (MWac) of large-scale solar photovoltaic (LSSPV) plants in Sabah. Under the LONs, the projects will include a 25- year power purchase agreement, with strict timeline requirements, including a commercial operation date no later than Nov 30, 2026. Nestcon plans to finance the project through internally generated funds and/or bank borrowings. – The Edge Market

Parlo proposes rights issue and capital reduction

Parlo has proposed a cash call and capital reduction to revive its financials. It intends to undertake a rights issue of 300.6m shares that comes with free detachable warrants to raise fresh capital after capital reduction. The rights issue will be conducted on a renounceable basis of one right share for every one consolidated share, with one Warrant B for every four rights shares subscribed. - The Edge Market

Our Thoughts

Wall Street managed to conjure up a mini Santa Rally as all 3 major indices ended positively ahead of the Christmas break. Nonetheless, overall sentiment remains cautiously bullish as the US 10-year yield remains elevated at 4.591%. Over in Hong Kong, the HSI broke the 20,000 mark amid a muted trading session as mainland investors went on a shopping spree on expectations that China will introduce more stimulus to spur economic growth. Back home, the FBM KLCI closed higher at above the 1,600 level despite daily volume traded dwindling to around 2.0bn shares. Though hints of bargain hunting were apparent, the local bourse is seriously in need of a major dose of liquidity. Hopefully, the buying momentum will gather pace and carry the index higher into 2025. Hence, we expect the benchmark index to hover within the 1,600- 1,610 today.

Source: Rakuten Research - 26 Dec 2024

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