Market Review & Outlook
Malaysia Market Review: The FBM KLCI (-0.67%) reverse its earlier gains as profit taking activities loomed across the board. The lower liners extended its decline mirroring the weaker trading sentiment on the main bourse, while the Energy sector (+1.45%) was the worst performer amongst the sectorial peers.
Global Markets Review: US markets closed on a positive note after Trump expressed a dovish stance on interest rates and emphasised the need for lower oil prices. Meanwhile, the European also charged higher, while Asian markets ended mixed as investors evaluated a range of economic data from the region, with Chinese stocks leading the gains.
Market Outlook: Following the recent setback, the FBM KLCI could continue to consolidate above the 1,570 level in absence of fresh catalyst. We deemed the current pullback to be expected as investors adopt a more defensive stance ahead of the upcoming Chinese New Year festive period. 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 later today.
Sector focus. We reckon gold-related stocks remain appealing as fund flows are likely to shift toward safe-haven assets during periods of market turbulence. We also advocate investors to stay clear on the energy sector as it continues to face headwinds from Trump’s threats of tariffs and his request to Saudi Arabia to lower oil prices.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI formed a bearish candle to snap a four-day winning streak as the key index drifted away from the SMA 50 level. Indicators 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)
YTL Corp Bhd and YTL Power International Bhd have each proposed a bonus issue of free warrants, on the basis of one free warrant for every five shares held in the respective companies.
Malaysian Resources Corp Bhd is partnering Ipoh Sentral Sdn Bhd (ISSB) to jointly develop the Ipoh Sentral project, with an estimated gross development value of RM6.25 billion.
Westports Holdings Bhd reported a record-high net profit of RM256.7 million for the fourth quarter ended Dec 31, 2024 (4QFY2024), a 25% increase from RM206.1 million a year ago, driven by higher container revenue.
Maintenance and upgrading works led to a decline in net property income (NPI) for IGB Real Estate Investment Trust (REIT) and IGB Commercial REIT in their 4QFY2024.
Axis REIT’s NPI for 4QFY2024 rose 15.39% to RM76.35 million compared to RM66.16 million a year earlier,thanks to its newly acquired properties, new tenancies from its logistics warehouse Axis Mega Distribution Centre (Phase 2), as well as positive rental reversion from the existing portfolio.
KIP Real Estate Investment Trust unitholders have approved the acquisition of four industrial properties associated to its largest shareholder, Datuk Eddie Ong Choo Meng, for a total purchase price of RM98.3 million.
Destini Bhd has managed to stay in the black for a second consecutive quarter as revenue more than doubled, mainly due to the delivery of trains and equipment by its mobility and aviation sectors, as well as cost-cutting measures undertaken by the company.
Citaglobal Bhd has secured two subcontracts worth a combined RM36.26 million for station works and other works as part of the Kuching Urban Transportation System (KUTS) project in Sarawak.
T7 Global Bhd has secured a contract with Hess Exploration and Production Malaysia BV for the provision of pan-Malaysian offshore maintenance, construction, modification and hook-up commissioning services.
Café chain operator Oriental Kopi Holdings Bhd, which gained 99% in its ACE Market debut on Thursday, is scaling up its product offerings in the fast-moving consumer goods segment, targeting the launch of over 20 products by year end.
Econframe Bhd is buying Ipoh-based manufacturer and seller of wooden doors Ivory Pearl Sdn Bhd (IPSB) for RM56 million, in a move to expand its footprint in the UK and Australian markets.
Unitrade Industries Bhd, a building material wholesaler and distributor, says its 51%-owned subsidiary Intergreen Metal Sdn Bhd is acquiring a controlling stake in metal recycling specialist Kien San Metal Sdn Bhd (KMSB) for RM42 million to expand its business to Sabah and Sarawak.
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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 |