MY Morning Wrap | Inflation Forecast to Rise: Navigating Through Policy Changes and Climate Impacts in 2024

On the inaugural trading day of the new year, US stocks saw a downturn as the 'Magnificent Seven' tech behemoths pulled back, solidifying the gains of the previous year. The Bloomberg index tracking these key stocks fell by 1.7%, exerting pressure on the tech-heavy S&P 500 and the Nasdaq indices. The $Nasdaq Composite Index(.IXIC.US)$ experienced a significant drop of 1.6% to finish at 14,765.94, marking its largest single-day loss since October, while the $S&P 500 Index(.SPX.US)$ declined by 0.6% to 4,742.83. In contrast, the $Dow Jones Industrial Average(.DJI.US)$ marginally rose by 0.07% to 37,715.04.

Malaysia is poised for enhanced economic growth in 2024, with $MAYBANK(1155.MY)$ Research forecasting a robust expansion driven by sturdy consumer spending and continued investment in private sectors and infrastructure. The growth is further bolstered by anticipated recoveries in trade-related services and key manufacturing sectors, including tourism and electronics. Maybank IB projects the gross domestic product (GDP) to rise to 4.4% in 2024, up from the estimated 3.9% in 2023, signaling a positive economic trajectory for the nation.

$SUNVIEW(0262.MY)$: Sunview Group Bhd, through its subsidiary Fabulous Sunview Sdn Bhd, has signed a Memorandum of Understanding with Vision Ambassadors Company for International Trade Consultancy, a Saudi Arabia-based firm, to explore opportunities in renewable energy development and investment. The partnership aims to pinpoint potential project sites, with both companies acting as principal investors. Vision Ambassadors is known for its business development investments and strong international and local ties.

$EDARAN(5036.MY)$: Edaran Bhd has landed a RM356.56 million deal through its subsidiary, Edaran IT Services Sdn Bhd, to supply hardware and software rental services to the Royal Malaysian Customs Department. The four-year contract, issued by the Ministry of Finance, was confirmed on Tuesday.

$FAST(0084.MY)$: On the first trading day of the year, Fast Energy Holdings Bhd, an oil bunkering service provider, experienced a notable surge, peaking at a nearly one-year high with a 65.38% rise before trimming gains. Closing at 17.5 sen, up 34.62%, the company's market value reached RM37.67 million. Fast Energy became the third most traded stock on Bursa Securities that day, although the catalyst for this spike remains unclear after a reported net loss for the nine-month period ending September 30, 2023.

$PBA(5041.MY)$: Shares of PBA Holdings Bhd soared to a record RM1.89 following the announcement of an upcoming water supply agreement between Penang and Perak, making it one of the top gainers on Bursa Malaysia. The agreement for the Sungai Perak water scheme could see Perak supplying 700 million litres of water daily to Penang.

$HTPADU(5028.MY)$: Heitech Padu Bhd, a provider of technology services, has clinched a RM58.88 million agreement to deliver Next Generation Network services to the Inland Revenue Board (LHDN). The contract, signed on December 29, is set to extend from January 1, 2024, to June 30, 2027, covering a period of three and a half years.

$NESTCON(0235.MY)$: Nestcon Bhd has secured a RM251.5 million contract to construct a mixed-use development in Mukim Petaling, Klang Valley. The company's arm, Nestcon Builders Sdn Bhd, was awarded the Letter of Award by Altimas Sdn Bhd for the main building works, including a 30-storey apartment suite with 408 units and a 34-storey apartment suite with 526 units, featuring amenities, car parks, and retail spaces. The project is set to kick off on January 3, with a targeted completion date of November 2, 2026, spanning a 34-month construction period.