Opening Daily Highlight
Mixed
Window Dressing activity continues
Mon, 30-Dec-2024 08:08 am
by Research team • Apex Research

Malaysia Market Review: The FBM KLCI continued its “Santa Claus rally”, surging 0.9% last Friday, driven by gains in Tenaga Nasional Berhad during year-end window dressing activities. The utility giant’s rise was bolstered by the announcement of base tariff adjustments for Peninsular Malaysia, effective July next year. Sector performance was largely positive, led by sharp gains in the Healthcare Index (+2.0%) and the Construction Index (+1.5%).

 

Global Markets Review: Wall Street struggled to meaningfully extend its “Santa Claus rally” on Friday following a selloff in big tech stocks. The Dow dropped 0.8%, the S&P 500 lost 1.1%, while the Nasdaq fell 1.5%. In Europe, markets were broadly up in a thinly traded session, led by gains in automotive and financial stocks. Elsewhere in Asia, markets closed mixed as China posted another monthly drop in industrial profits, while Japan faced the prospect of a potential rate hike. Japan’s Nikkei 225 jumped 1.8% as a weak yen lifted exporters. South Korea’s Kospi index dropped 1.0% amid strong dollar and political uncertainty. In China, Shanghai Composite index rose marginally by 0.1% despite the decline in industrial profit. 

 

Market Outlook: Stock markets have traditionally fared well during the last five trading days of the year and the first two trading days of the new year, a trend known as the “Santa Claus rally”. The benchmark FBM KLCI has managed to remain firm above the 1,600 psychological level but may face some profit taking activity, weighed down by last Friday’s selloff on Wall Street. Similarly, lower liners could also experience some selling pressure. Manufacturing data will be in focus this week as the US, China, EU and Malaysia release their manufacturing PMI figures.

 

Sector focus. We anticipate that the plantation sector may see some bargain hunting activity, following the rally in CPO prices last Friday. Conversely, the technology sector could beset some selling pressure, reflecting the selloff in Nasdaq on Friday.

 

Technical Commentary: The FBM KLCI advanced to strengthened its position above 1,600 as the key index marched above SMA50 for the first time since Oct 2024. Year-end window dressing activities may extend over time. Indicators stayed positive as MACD Line hovered above the Signal Line, while the RSI trended above 50. Immediate resistance is located at 1,645. Support is envisaged around 1,600.

Sentiment: Positive
Read more details in:

Disclaimer

The report is for internal and private circulation only and shall not be reproduced either in part or otherwise without the prior written consent of Apex Securities Berhad. The opinions and information contained herein are based on available data believed to be reliable. It is not to be construed as an offer, invitation or solicitation to buy or sell the securities covered by this report.

Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.

Apex Securities Berhad does not warrant the accuracy of anything stated herein in any manner whatsoever and no reliance upon such statement by anyone shall give rise to any claim whatsoever against Apex Securities Berhad. Apex Securities Berhad may from time to time have an interest in the company mentioned by this report. This report may not be reproduced, copied or circulated without the prior written approval of Apex Securities Berhad.

Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.461616 4.492488
EUR 4.631791 4.636328
CNY 0.610703 0.611330
HKD 0.573670 0.577678
SGD 3.274754 3.297759