Opening Daily Highlight
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Recovery gaining momentum
Thu, 23-Jan-2025 07:14 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI (+0.46%) recorded its fourth consecutive session of gains as traders responded positively to BNM's decision to maintain the OPR at 3.0%.  On the other hand, the lower liners turned negative on mild profit taking activities. Sectorial performance wise, the Transportation sector (+0.66%) led gains while the Technology sector (-1.11%) closed in red.

 

Global Markets Review:US stock markets advanced, driven by gains in technology stocks such as Oracle and Nvidia, amid optimism on AI and Trump’s potential pro-business policies, including regulatory easing and lower corporate taxes. Meanwhile, the European charged higher while Asia market closed mixed following Trump’s remarks on imposing a 10% tariff on China.

 

Market Outlook: Once again, the FBM KLCI has retained its recovery momentum and is now advancing toward 1,600 to retest its immediate psychological level. While any pullback is likely to be well-supported by continued local fund net buying position, investors may adopt a cautious approach until further clarity on Trump’s policies. Meanwhile, the lower liners may trend within rangebound pattern with selective trading opportunities given the uncertainty on the global market with traders may also adopt quick profit taking from recent gains. Economic wise, investors will be monitoring onto US home sales and Michigan Consumer Sentiment to be release this Friday. 

 

Sector focus. We reckon there may be some buying interest in consumer stocks as BNM's decision to keep the OPR steady is likely to strengthen the Ringgit against the US Dollar. We also favour the technology sector as it is expected to mirror the positive performance on Nasdaq overnight.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI formed another gap up formation to advance for the fourth consecutive session yesterday, extending its v-shaped recovery pattern. 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)

Sunway Bhd has started the ball rolling for the initial public offer (IPO) of its healthcare unit Sunway Healthcare Group, according to sources.

 

CapitaLand Malaysia Trust posted a 15% rise in its net property income (NPI) for the fourth quarter ended Dec 31, 2024 (4QFY2024) to RM72.49 million from RM63.02 million on higher revenue contribution from the majority of CLMT’s properties, supported by stronger retail sentiment.

 

Sentral REIT posted a flat 1.25% increase in NPI for 4QFY2024 to RM36.71 million from RM36.26 million.

 

AME Real Estate Investment Trust reported a 1.4% increase in NPI for the third quarter ended Dec 31, 2024 (3QFY2025) to RM11.71 million from RM11.55 million, thanks to contributions from a newly-acquired property and tenancy renewals at higher rates.

 

Jentayu Sustainables Bhd said the Securities Commission Malaysia (SC) has denied the group’s bid for an extension of time up to March 26, 2025, to complete its acquisition of three RE firms proposed in 2021.

 

Power Root Bhd has been slapped with a lawsuit from Export-Import Bank of Malaysia Bhd (EXIM Bank) for RM7.39 million over insurance claim payout dispute.

Sentiment: Positive
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