Market Review & Outlook
Malaysia Market Review: The FBM KLCI index declined for the second consecutive day, dropping by 0.87% to close at 1,600.81 pts. On the local bourse, Telecommunication stocks led the gainers, with Maxis and CelcomDigi both rising 1.4% each, while YTLP and YTL were the top laggards, falling by 6.9% and 8.2%, respectively. Sector performance was broadly negative, with all 13 major sectors finishing in the red, mirroring the overall weaker trend seen in regional bourses.
Global Markets Review: US stock markets were closed yesterday due to National Mourning Day. In Europe, the STOXX Europe 600 rose by 0.4%, despite persistent inflation concerns. Meanwhile, in the Asia-Pacific region, markets experienced a challenging session. The Hang Seng Index in Hong Kong fell by 0.2%, while South Korea’s KOSPI remained nearly flat. This was driven by growing concerns that the US Federal Reserve might delay policy easing due to inflation, compounded by China’s ongoing consumer disinflation, which further dampened sentiment across the region.
Market Outlook: Market sentiment is expected to remain subdued as investors await the highly anticipated jobs report and assess the potential risks associated with policies such as mass deportations and tariffs, which could trigger a global trade war and intensify inflationary pressures. We anticipate that the FBM KLCI’s downbeat momentum will persist towards the psychological 1,600 level, with renewed volatility potentially pushing the lower liners further into negative territory. Foreign funds are likely to remain as net sellers in the local market, given the absence of clear catalysts to drive a recovery. On the other hand, the market pullback presents an opportunity for investors to bargain onto lower prices, supported by attractive valuations. Additionally, the upcoming US Non-Farm Payroll report, scheduled for release tonight, will be closely monitored for insights into economic conditions and potential policy actions from the Federal Reserve
Sector focus. We maintain a positive outlook on export-oriented sectors such as gloves, furniture, and technology, as the weaker MYR against the USD enhances their competitiveness in global markets. We also reckon oil & gas player could be on a better footing as oil prices advanced on the back of improve demand from cold winter weather in Western countries.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI took another hit as the key index dipped below both the SMA50 and SMA200 level yesterday. Indicators remained mixed as MACD Line hovered above the Signal Line, while the RSI lingered below 50. Immediate resistance is located at 1,645. Support is envisaged around 1,600.
Company News
The mandatory takeover offer for LPI Capital Berhad by Public Bank Berhad lapsed as it failed to secure enough acceptances, with Public Bank and its PAC holding 49.57% of LPI Capital's shares, up just 0.01% from before the offer.
Dialog Group Berhad secured a US$235m investment decision for the Baram Junior Cluster Small Field Asset Production Sharing Contract, aiming to achieve first gas production within two years.
Yinson Holdings Berhad’s FPSO Atlanta in Brazil achieved first oil and was delivered to Brava Energia SA under a 15-year contract worth US$2bn.
Hibiscus Petroleum Berhad awarded T7 Global Berhad a six-month contract for maintenance, construction, and modification work, with an undisclosed value.
Major shareholders of NPC Resources Berhad are in discussions about a potential privatization proposal at RM2.82 per share, though there is no certainty the proposal will proceed.
MPHB Capital Berhad’s shares will be suspended on Jan 22 to facilitate a selective capital reduction and cash distribution of RM1.70 per share.
Parkson Holdings Berhad secured a 10-year lease for its department store in Liupanshui, China, worth 46.3m yuan (RM28.2m), effective from 2027.
Green Packet Berhad’s subsidiary Packet Interactive Sdn Bhd obtained a digital lending license from the Ministry of Housing and Local Government, allowing expansion of financial services.
Pos Malaysia Berhad’s indirect wholly-owned subsidiary Pos Logistics Berhad set a Feb 25 deadline for SWA Shipping Sdn Bhd to fulfill its acquisition of PNSL Berhad for RM123.21m.
Target 1 Sdn Bhd, the largest shareholder of South Malaysia Industries Berhad, announced that the company’s EGM successfully passed resolutions to appoint six new directors, including former Perak police chief Datuk Pahlawan Mior Faridalathrash Wahid.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.490853 | 4.522006 |
EUR | 4.639566 | 4.648137 |
CNY | 0.612159 | 0.612811 |
HKD | 0.577202 | 0.581207 |
SGD | 3.277866 | 3.303864 |