Market Review & Outlook
Malaysia Market Review: The FBM KLCI closed lower by 0.2% on a mixed performance with Genting Malaysia Bhd (+1.3%) ranked as the top gainer, while Petronas Dagangan Bhd (-3.1%) emerged as the top laggard on the key index. In terms of sectorial performance, gainers were seen in Construction (+2.4%) and Healthcare (+1.3%), while main losers were seen in Consumer (-0.6%) and Plantation (-0.5%).
Global Markets Review: Wall Street ended Monday on a positive note, with the S&P 500 (+0.6%) and Nasdaq (+1.2%) both climbing, fuelled by Foxconn's record fourth-quarter revenue. In contrast, the Dow Jones lagged, dipping by 0.06%. In Europe, the pan-European STOXX 600 index rose by 0.9%, supported by a report suggesting that potential tariffs under a Donald Trump presidency may be more restrained than expected, boosting investor sentiment. Over at the Asia-Pacific region, markets showed mixed results. Hong Kong’s Hang Seng Index fell by 0.4%, reflecting a decline in the PMI for December, signalling slower business activity. On the other hand, South Korea’s Kospi surged 1.9%, largely driven by strong small-cap stock performance.
Market Outlook: We expect the benchmark index to remain in consolidation as investors await a series of US economic data, particularly the non-farm payrolls jobs report set for release this Friday, which will offer further insight into the Federal Reserve's rate outlook. Foreign funds are likely to continue as net sellers in the local market, as traders remain confident in the US market's growth potential, driving capital inflows back to the US. While the local market currently lacks clear catalysts, we believe this trend could be temporary, with foreign funds likely to reconsider emerging markets once the Federal Reserve begins to ease rates.
Sector focus. We expect the Technology sector to continue drawing buying interest, supported by strong earnings prospects following gains in the Nasdaq while global chip market is projected to grow 11.2% yoy to a record USD697.18bn in 2025. The Glove sector is also likely to see sustained buying interest, fueled by active trading in response to new virus outbreaks in China. Meanwhile, the Energy sector is likely to remain in focus, as the Biden administration’s increased sanctions on Russia are expected to tighten global oil supply, further impacting market dynamics.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI extended its pullback after erasing all its earlier intraday gains to register its third straight losing streak. We expect the key index may attempt to defend the 1,600 psychological level. 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.
Company News
Kumpulan Kitacon Bhd secured a RM65.68m residential construction contract for bungalows in Sungai Buloh, Selangor. The project, awarded by KL-Kepong Country Homes, is set for completion within 20 months, starting on Feb 3.
T7 Global Bhd secured a contract to provide maintenance, construction, and modification services for an undisclosed value. The contract, awarded by Carigali Hess Operating, will begin on Jan 15, 2025, with an initial three-year duration and an option for a two-year extension.
Aizo Group Bhd was selected to develop a 99.99MW solar plant in Kampar, Perak, awarded to its subsidiary, Wawasan Demi Sdn Bhd. The project will be executed under a 21-year power purchase agreement, with a commercial operation date set for Oct 30, 2027.
Keyfield International Bhd acquired a platform supply vessel for US$17.6m (RM79.2m), funded through sukuk issuance and internal funds. The acquisition agreement was made with Sinocommerce Harbour Engineering, and the vessel will be renamed Keyfield Gratitude.
Citaglobal Bhd acquired a 55% stake in Germany's LAWI Engineering GmbH for an undisclosed value. The acquisition strengthens its partnership in providing waste-to-energy solutions, with LAWI Germany now operating as a subsidiary.
D&O Green Technologies Bhd’s subsidiary, Dominant Electronics, signed an MOU with Jing Wei Hirain Automotive Electronics Malaysia to create a joint venture in Malaysia. The new company will focus on engineering services and automotive module production.
Kerjaya Prospek Group Bhd secured a RM256.4m contract for construction works in Elmina West, Shah Alam. The project includes building 360 terrace houses and a clubhouse, with completion expected in 26 months.
GDA has extended the deadline for accepting its takeover offer for Malaysia Airports Holdings Bhd (MAHB) to Jan 17, 2025. As of Jan 6, GDA holds 75.73% of MAHB’s total issued shares.
Oriental Kopi Holdings Bhd, the cafe chain set its IPO price at 44 sen per share, aiming to raise RM183.96m ahead of its listing on the ACE Market. The listing is scheduled for Jan 23, with a market capitalization of RM880m.
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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.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.471642 | 4.502668 |
EUR | 4.675689 | 4.682568 |
CNY | 0.611638 | 0.612251 |
HKD | 0.575253 | 0.579249 |
SGD | 3.288461 | 3.311605 |