Market Review & Outlook
Malaysia Market Review: The FBM KLCI (+0.52%) posted its third consecutive session of recovery after a volatile trading session, due to an extended bargain-hunting activities. The lower liners also marched upward, while the Construction sector (+1.97%) led gains across the board with only the REIT sector (-0.03%) closed in red.
Global Markets Review: Wall Street rally extended as Trump-led policy appeared less aggressive in pursuing tariff impositions than previously anticipated. Notably, Trump issued a broad memorandum directing federal agencies to review what he considers unfair trade policies with foreign countries. However, the President refrained from authorising new levies on his first day back in the White House. Similarly, both European and Aisa stock market advanced with investors keeping a close tab on further clarity on Trump’s trade policies.
Market Outlook: It appears that the FBM KLCI have stabilised above 1,570 and is now advancing toward 1,600 to retest its next psychological level. Given that there is no sign of pullback on the local bourse, further upside is still prevalent at this juncture. That said, we reckon that foreign funds will likely remain net sellers as foreign investors are likely to stay cautious toward emerging markets under the new US administration. Meanwhile, the lower liners may brace for a consolidation following the recent rally. Economic wise, investors will be monitoring onto BNM OPR and inflation rate later today. For now, we do not expect any changes to the OPR at the upcoming BNM meeting and keep our forecast at 3% for CY25.
Sector focus. We reckon the automotive sector may experience selling pressure as TIV is expected to normalise to a three-year low of 780k units in CY25, down from 817k in CY24 as projected by the Malaysia Automotive Association (MAA). We also foresee some weakness in oil and gas stocks following the overnight retracement in crude oil prices. With Trump’s declaration of a national energy emergency aimed at increasing fossil fuel production, we expect demand for crude oil to likely decline.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI formed a gap up formation to march higher for the third straight session yesterday. Indicators, however, remained negative as MACD Line lingered below the Signal Line, while the RSI is below 50. Immediate resistance is located at 1,600. Support is envisaged around 1,530.
Company News (source: various)
Malaysian Resources Corp Bhd is said to have won the bid for the Ipoh Railway Station Integrated Development Plan (iRide) project, which will be inked on Thursday (Jan 23) in Ipoh, Perak, according to sources.
MNRB Holdings Bhd reported a 36.93% increase in its net profit for the third quarter ended Dec 31, 2024 (3QFY2025) to RM115.86 million from RM84.61 million a year earlier on the back of a RM136.7 million jump in the group’s insurance service earnings.
CIMB Group Holdings Bhd’s 94.83%-owned CIMB Thai Bank PCL saw its net profit surge 77.7% to 2.85 billion baht (RM374.5 million) for the financial year ended Dec 31, 2024 (FY2024), up from 1.61 billion baht a year earlier, thanks to higher operating income and lower expected credit losses.
Pansar Bhd secured a RM477.69 million contract to design and build the Serian-Gedong-Samarahan dual carriageway highway from the Sarawak Public Works Department.
Yinson Holdings Bhd’s floating production storage and offloading unit Yinson Production Offshore Pte Ltd plans to allocate US$4.5 billion to US$6 billion (RM20.2 billion to RM30 billion) capital expenditure in the next three years to expand ahead of a possible initial public offering (IPO) in the US.
Mah Sing Group Bhd is purchasing a 2.78-acre prime land in Sentul here for RM32 million, where it plans to develop its new RM283 million residential development project dubbed M Aria.
YNH Property Bhd is disposing of a two-storey shopping centre, AEON Mall Seri Manjung in Perak, to Sunway Real Estate Investment Trust for RM138 million.
Alpha IVF Group Bhd’s net profit for its second quarter ended Nov 30, 2024 (2QFY2025) increased 23.6% to RM15.1 million, from RM12.21 million a year ago, thanks to higher sales revenue from foreign patients.
KIP Real Estate Investment Trust posted a 28.9% rise in NPI for the second quarter ended Dec 31, 2024 (2QFY2025) to RM21.62 million, from RM16.78 million a year earlier on better performance of its malls, bolstered by newly acquired retail assets, Cyberjaya mall D’Pulze and Perak hypermarket TF Value.
UOA Real Estate Investment Trust posted a 8.55% increase in net rental income for the fourth quarter ended Dec 31, 2024 (4QFY2024) to RM20.36 million from RM18.76 million in the same period a year earlier on improved occupancy.
Taghill Holdings Bhd’s said it has secured a RM58 million contract for construction work on an 18-storey commercial complex in Ipoh.
KTI Landmark Bhd is exploring a potential affordable housing project in Kota Kinabalu, Sabah, to be jointly developed with a state government agency.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.461227 | 4.492117 |
EUR | 4.632123 | 4.637427 |
CNY | 0.613888 | 0.614502 |
HKD | 0.573047 | 0.577030 |
SGD | 3.281156 | 3.304154 |