Previous Day Highlights

27 December 2024 FBM KLCI extended its gains due to positive market sentiment. The benchmark index was up 0.67% or 10.71 pts to close at 1,613.70. Majority of sectors were positive with industrial products & services (+1.7%), property (+1.4%), and technology (+1.3%), leading the gains; while losers were seen in REIT (0.2%), and financial services (0.4%). Market breadth was positive with 692 gainers against 295 losers. Total volume stood at 2.47bn shares valued at RM1.87bn.

Major regional indices trended positively. SHCOMP increased 0.1%, to close at 3,398.08. Nikkei 225 gained 1.4%, to finish at 39,569.06. STI ended flat at 3,765.46. HSI was closed for Boxing Day.

Wall Street closed mixed following the Christmas holiday. The DJIA added 0.07%, to end at 43,325.80. Nasdaq eased 0.05%, to close at 20,020.36. S&P500 eased 0.04%, to finish at 6,037.59.

News For The Day

TNB among LSS5 winners, bags solar farm project in Kedah

Tenaga Nasional has been shortlisted by the Energy Commission (EC) to develop a 500-megawatt (MWac) large- scale solar photovoltaic (PV) plant in Kuala Muda, Kedah. This is the largest solar farm project to be dished out in Malaysia to-date under the LSS reverse bidding process. - The Edge Market

EPF ceases substantial shareholder in YTL Power

EPF has ceased to be a substantial shareholder of YTL Power International after disposing of 14.9m shares. The EPF holds a total of 412.1m shares in YTL Power, or a 5.019% stake, according to YTL Power’s filing on Dec 18. - The Star

Southern Cable wins RM172.6m cable supply contract

Southern Cable Group 's wholly-owned subsidiary, Southern Cable has secured a RM172.6m contract for the supply and delivery of cables and conductors in East Malaysia. - The Star

CCK Consolidated declares special dividend

CCK Consolidated has declared its first-ever special dividend of 5sen per share FY24, payable Jan 22, 2025. CCK’s 3QFY24 net profit rose 17% YoY to RM23.3m, due to strong performance from its poultry segment, as well as improved profitability from the prawn and retail segments. - The Edge Market

Lebtech to collaborate on water works worth RM10.8m

Lebtech has been selected by Affizal Resources (M) to collaborate on various water works in Selangor valued at RM10.8m. In April, Lebtech’s auditor, Messrs Jamal Amin & Partners, flagged a material uncertainty in its FY23 financial statements due to reliance on related parties. The group has been working to reduce this reliance, resulting in a 7.08% decrease in related party receivables, from RM71.9m in FY22 to RM66.4m in FY23. - The Edge Market

Teck Guan's 3QFY1/25 net profit falls 34%

Teck Guan Perdana’s 3QFY1/25 net profit fell 34.3% YoY to RM2.4m, on lower revenue and a net loss on forward currency contracts amounting to RM4.3m. The group did not announce any dividend for the quarter. Despite the headwinds faced, management is cautiously optimistic on the long-term prospects of the palm-based business and will forge ahead with its focus on optimising all business operations. - The Edge Market

Our Thoughts

Wall Street ended little changed after a weak opening as the pre-Christmas buying fizzled out. Meanwhile, the US 10-year yield remains high at 4.585%. The Hong Kong market was closed for Boxing Day and will resume trading today. On the home front, the FBM KLCI finally closed above the 1,610 level underpinned by bargain hunting activities. Based on 2025 estimates, the local bourse is currently trading at a PE of almost 15x which is deem reasonable. Nonetheless, daily volume traded remained low as foreign selling may be drying up, hence offer ample opportunities for the benchmark index to climb further, hopefully to above the 1,630 mark. As such, we expect the index to possibly hover within the 1,610-1,620 range today.

Source: Rakuten Research - 27 Dec 2024

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