Opening Daily Highlight
Mixed
Adopting Cautiousness
Thu, 09-Jan-2025 07:24 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI closed 0.9% lower at 1,614.83, with Petronas Gas (+0.3%) and YTLP (+0.2%) among the gainers. In contrast, MISC Bhd was the top laggard, falling 4.2%. Sector performance was broadly negative, with all 13 major sectors finishing in the red, reflecting investor concerns amid the ripple effects of a widespread selloff in US Treasuries.

 

Global Markets Review: Wall Street ended Tuesday on a positive note, with the S&P 500 (+0.2%), Dow Jones (+0.3%) advanced, despite broader bond selloff specifically the 10-year yield rising to 4.73%, (highest since April 2024). In contrast, Nasdaq fell 0.1% as seen with the reaction. In Europe, STOXX Europe 600 closed down 0.2%, with most regional bourses also in the red. In the Asia-pacific region, Hong Kong’s Hang Seng index shed 0.9% comes as Trump prepares to impose steep trade tariffs on the country. South Korea’s KOSPI climbed for the fourth day in a row, boosted by a 1.2% surge in Samsung Electronics following praise from Nvidia's CEO.

 

Market Outlook: Market sentiment is expected to remain subdued followed Wall Street’s downbeat performance, driven by the ripple effects of a broad-based selloff in US Treasuries. We expect the FBM KLCI downbeat momentum to sustain towards the 1,600 psychological level, while renewed volatility may send the lower liners deeper into the negative territory. Investors remained cautious, refraining from taking significant positions ahead of key US employment data due later this week. Foreign funds are likely to continue as net sellers in the local market, given the lack of clear catalysts to drive recovery.

 

Sector focus.  Energy sector may see some correction, as Brent crude oil prices hover near their 3-month high of $77.3 per barrel. Meanwhile, export-oriented sectors such as gloves, furniture, and technology could benefit, as the weaker MYR against the USD enhances their competitiveness in global markets.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI took a beating as the key index slumped towards the middle Bollinger Band yesterday. Indicators have now turned mixed as MACD Line hovered above the Signal Line, while the RSI tripped below 50. Immediate resistance is located at 1,645. Support is envisaged around 1,600.

 

Company News

Reservoir Link Energy Bhd 's 45%-owned associate, Founder Group Ltd secured a RM20m subcontract for a 10MW floating solar farm in Kuala Langat, Selangor. The project, covering 24 acres, will be completed by Jun 2025.

 

Swift Energy Technology Bhd, which debuted on the ACE Market, is targeting mid-teen earnings growth for FY2025, driven by new opportunities in the renewable energy sector within the oil and gas industry. The company currently has an order book worth RM71m and a past tender win success rate between 20% and 30%.

 

The Gateway Development Alliance consortium, led by Khazanah Nasional Bhd and the Employees Provident Fund, now controls 84.12% of Malaysia Airports Holdings Bhd following a privatisation offer. The consortium must secure 90% acceptance by Jan 17, 2025, to meet the privatisation condition.

 

Aeon Co (M) Bhd has been granted a conditional stay on a High Court judgment in its tenancy dispute with Betanaz Properties, agreeing to deposit RM18.68m pending the appeal.

 

Century Logistics Holdings Bhd appointed Kim HyunChul as deputy CEO, replacing Kim JinMok. Kim brings 20 years of experience from CJ Logistics Corporation.

 

UUE Holdings Bhd’ directors sold RM29.14m worth of shares after the IPO moratorium expired. The shares were sold at a 4.65% discount to market price but remain well above the IPO price.

 

Erdasan Group Bhd has proposed a share capital reduction to eliminate up to RM100m of its accumulated losses, which total RM72.7m as of Sept 2024.

 

Edaran Bhd plans a RM52m share capital reduction to eliminate its RM47.05m accumulated losses, leaving it with pro forma retained earnings of RM4.76m.

 

Lim Seong Hai Capital Bhd and Fibromat have both received approval from Bursa Malaysia to transfer their listings from the LEAP Market to the ACE Market. Fibromat, a soil erosion control company, had debuted on the LEAP Market in May 2019.

Sentiment: Negative
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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.484302 4.519188
EUR 4.641002 4.649515
CNY 0.611991 0.612616
HKD 0.576492 0.581009
SGD 3.281642 3.304886