Opening Daily Highlight
Mixed
Window Dressing activity continues
Tue, 31-Dec-2024 07:30 am
by Research team • Apex Research

Malaysia Market Review: The FBM KLCI ended the day on a positive note after a weak start, advancing 0.6% on the penultimate trading day of the year, driven by gains in Maybank and Petronas Chemicals amid year-end window dressing activities. Except for the Technology Index (-0.2%), sector performances were broadly positive, led by sharp gains in the Construction Index (+1.7%), Property Index (+1.6%) and Utilities Index (+1.3%).

 

Global Markets Review: Wall Street ended on a sour note on Monday, as all three indices closed with sharp losses in a broad-based selloff on the back of concern over the elevated treasury yields. The Dow dropped 1.0%, the S&P 500 lost 1.1%, while the Nasdaq fell 1.2%. In Europe, markets were also down on Monday, with technology and healthcare leading broad-based declines. Elsewhere in Asia, markets closed mixed. Japan’s Nikkei 225 dipped 1.0%, mirroring the slump in Wall Street on Friday. South Korea’s Kospi index dropped 0.2% as political turmoil continued. In China, Shanghai Composite index rose marginally by 0.2%. 

 

Market Outlook: Despite the selloff in global stock market, the Malaysian stock market remained relatively resilient, with the benchmark FBM KLCI extending its rally on Monday. We expect the benchmark index to sustain its upward momentum, supported by the year-end window-dressing activities. Similarly, lower liners are likely to continue attracting buying interest on the bck of the improved trading sentiment. Manufacturing data will be in focus this week, with the US, China, EU and Malaysia set to release their manufacturing PMI figures. Looking ahead, investors should brace for a potentially more volatile 2025, as uncertainties surrounding Trump’s second term, geopolitical risks, and Federal Reserve’s rate cut trajectory are expected to weigh on market sentiment.

 

Sector focus. We expect the construction, property and utilities sectors to build onto their previous session’s gains. In contrast, the energy sector could face selling pressure following Petronas’ statement that it is reviewing its productivity in response to report suggesting potential workforce reductions linked to its gas distribution agreement with Petroleum Sarawak Bhd.

 

Technical Commentary: The FBM KLCI took another step forward to drift towards near two-month high yesterday. We opine that year-end window dressing activities may extend into the final trading day of the year. 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