Market Review & Outlook
Malaysia Market Review. The FBM KLCI (+0.5%) rebounded to near the 1,600 level, following the quarterly MSCI rebalancing yesterday. However, market breadth remained weak as losers continued to outnumber gainers. Sector-wise, the Technology sector (+2.0%) led gains, while the Consumer sector (-0.8%) recorded the largest decline.
Global Markets Review. Wall Street extended its rally, with the Dow reaching fresh all-time high following Donald Trump’s nomination for Treasury Secretary, which brushed off concerns about potential new tariffs. Similarly, European markets mirrored Wall Street's positive performance, while Asian markets ended mixed as investors awaited key economic data, including China’s industrial output and India’s third-quarter GDP data.
Market Outlook. The local bourse continues to grapple with weak sentiment amid ongoing foreign fund outflows. However, local funds rotating into large-cap stocks have helped push the index higher yesterday. Investors are likely to focus on domestic corporate earnings this week, while global key events, such as the US FOMC meeting, GDP data, and PCE releases, will be closely monitored. We opine the key index may attempt to build onto yesterday’s recovery on the back of Wall Street’s positive overnight performance. Still, a cautious approach is advised due to lingering weak sentiment and a lack of significant catalysts. Large-cap or blue-chip stocks are recommended under current market conditions. The Construction sector is expected to outperform, led by Gamuda following its inclusion in the KLCI index. Conversely, gold and O&G-related stocks may face pressure due to declining gold and oil prices following news of an Israel-Hezbollah ceasefire.
FBM KLCI Technical Review & Outlook
Technical Commentary: The FBM KLCI edged higher as the key index briefly re-tested the 1,600 psychological level yesterday. Indicators, however, remained negative as MACD Line hovered below the Signal Line, while the RSI lingered below 50. Immediate resistance is located at 1,625. Support is envisaged around 1,570.
Company News
Haily Group Bhd has secured a RM115.1 million contract, its largest this year, for the construction of residential units in Johor Bahru.
Ho Hup Construction Company Bhd has resolved a winding-up petition filed by its supplier, Joterix Sdn Bhd, over an alleged unpaid sum of RM184,438.80.
Solarvest Holdings Bhd posted a 28.1% rise in net profit to RM9.2 million for its second quarter ended Sept 30, 2024 (2QFY2025), from RM7.2 million a year earlier, driven by improved margins from its commercial and industrial segment, supported by a reduction in solar panel costs.
Malaysian Pacific Industries Bhd said it is anticipating a challenging operating environment ahead, even as it reported a near doubling of its net profit for its first quarter spanning July to September this year.
IOI Properties Group Bhd’s net profit fell 60.3% to RM69.17 million in the first quarter ended Sept 30, 2024 (1QFY2025), to RM174.45 million a year ago, no thanks to higher interest expense.
The Indonesian sister company of Mr DIY Group (M) Bhd will list shares in Jakarta through an initial public offering (IPO) that seeks to raise as much as 4.7 trillion rupiah (US$297 million or RM1.32 billion), in what would be the nation’s biggest listing in more than a year.
Some 647.13 million shares in Affin Bank Bhd representing a 26.96% stake were traded off-market on Monday.
RHB Bank Bhd will be divesting its entire 99.95% stake in RHB Securities (Thailand) Public Company Ltd to Singapore-based stock brokerage firm Phillip Brokerage Pte Ltd for THB1,253.77 million (RM161.81 million), marking its exit from Thailand's stockbroking and securities market.
IJM Corp Bhd is buying a 50% stake in UK-based construction firm JRL Group Holdings Ltd for £50 million (RM283 million) to expand into the UK and strengthen its core construction capabilities.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.436869 | 4.470612 |
EUR | 4.675505 | 4.679374 |
CNY | 0.611103 | 0.611560 |
HKD | 0.570272 | 0.574102 |
SGD | 3.296965 | 3.319254 |