Market Review & Outlook
Malaysia Market Review: The FBM KLCI started off the day on a bright note, but was quick to erase all its intraday gains to close at its lowest point since August 2024, dragged down persistent weak sentiment. Market sentiment was broadly negative, with only the Telecommunications & Media (+1.1%) and Consumer (+0.4%) sectors finishing in positive territory, led by AXIATA and QL respectively.
Global Markets Review: U.S. stock markets gained with the Dow rising 0.31%, the S&P 500 increasing 0.37%, and the Nasdaq climbing 0.64% following softer-than-expected PPI data. The reported PPI rose by 0.2% yoy, below the market's expected 0.4% yoy increase, implying prospects of rate cuts remain on the table. Meanwhile, European markets lost earlier gains and closed lower as global investors responded to a cooler-than-expected PPI US data. The STOXX Europe 600 dropped 0.08% with mixed. In the APAC region, markets were closing in mixed. Japan's Nikkei 225 further slid to 1.8%, the Hang Seng Index rose 1.83%, South Korea's KOSPI ended up 0.31%, and China's CSI 300 Index jumped 2.63% due to bargain-hunting activities.
Market Outlook: Following the recent pullback, we expect Sentiment is expected to improve as investors may begin bargain hunting. Along with the upcoming batch of corporate earnings releases, Investors will also closely watch Wednesday's Consumer Price Index (CPI) and inflation data, which could potentially influence the Fed's policy outlook. While recovery is on the cards with the FBM KLCI attempting for a rebound towards the psychological 1,600 level, we reckon gains could be measured amid the absence of fresh leads. Foreign funds will likely remain net selling position in the local market, capping further upsides. Meanwhile, investors will monitor the US CPI, inflation data, and Europe's industrial production data later tonight.
Sector focus. Given the stronger USD and weaker MYR, we remain optimistic over export-oriented sectors, as the favourable exchange rate enhances competitiveness in global markets. We also maintain a positive outlook on YTL-related stocks, as the Finance Ministry (MoF) has granted a digital banking license to YTL Digital Bank Bhd, a JV between YTL Digital Capital Sdn Bhd and Sea Ltd. It will operate as Ryt Bank, the next-generation digital bank approved to begin operations on 20 Dec 2024.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI extended it pullback with the key index drifting further from the 1,600 psychological level yesterday. Indicators remained negative as MACD Line fell below the Signal Line, while the RSI lingered below 50. Immediate resistance is located at 1,625. Support is envisaged around 1,570.
Company News (source: various)
Yinson Holdings Bhd has secured US$1 bn (RM4.51 bn) in funding from a consortium of international investors led by a wholly owned subsidiary of the Abu Dhabi Investment Authority (Adia). This gives the unit a post-money valuation of US$3.7 bn. The agreement also includes an option for investors to invest an additional US$500m by subscribing to another 500,000 RCPS within the next 24 months, subject to mutual agreement. The funds will primarily support Yinson Production's expansion in the floating production, storage, and offloading (FPSO) vessel market, with US$200m allocated to its controlling shareholder, a wholly owned subsidiary of Yinson.
Mah Sing Group Bhd is confident that its data centre projects will comply with the proposed US restrictions on AI chip exports. The group stated that Malaysian companies can obtain validated end-user designations by meeting US standards on security, cyber resilience, and human rights. Mah Sing emphasized its commitment to full compliance and risk mitigation. The company also highlighted that its partner, Bridge Data Centres, is mainly owned by US-based Bain Capital.
The digital bank jointly owned by YTL Power International Bhd and Singapore's Sea Ltd has received approval from the Ministry of Finance (MOF) to begin operations on December 20, 2024. Operating as Ryt Bank, the bank will be launched in phases to ensure a smooth rollout. The YTL Power-Sea JV was one of five applicants awarded digital bank licenses by the MOF, as announced by Bank Negara Malaysia (BNM) in April 2022.
Atlan Holdings Bhd is paying an interim dividend of eight sen per share after its 3Q net profit rose over four-fold to RM29.9m, boosted by proceeds from the sale of a subsidiary's land in Kedah. Revenue declined 4.02% to RM112.48m due to lower contributions from its automotive, property, and hospitality segments. The dividend, double that of last year, will be paid on February 17. YTD, Atlan has paid 12.75 sen in dividends, up from 10 sen previously.
Sunway Property has appointed Chung Soo Kiong as managing director, succeeding Datin Paduka Sarena Cheah Yean Tih, who became executive deputy chair of Sunway Group.
Kawan Food Bhd’s plan for an IT equipment joint venture with several individuals, including its chairman, has collapsed after failing to agree on revised terms. The company’s board confirmed that all negotiations have ceased.
Theta Edge Bhd announced the termination of its subsidiary's JV deal with iStream360 Sdn Bhd to develop AI and blockchain solutions. The agreement, signed on November 21 last year, was mutually terminated by Theta Innovation Sdn Bhd and iStream360.
Target 1 Sdn Bhd announced that the Securities Commission Malaysia (SC) has granted a seven-day extension to deliver the mandatory takeover offer documentation to South Malaysia Industries Bhd (SMI) shareholders. The new deadline is January 21.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.373243 | 4.414705 |
EUR | 4.565507 | 4.577376 |
CNY | 0.602867 | 0.604630 |
HKD | 0.561419 | 0.566456 |
SGD | 3.236779 | 3.265133 |