Opening Daily Highlight
Mixed
Bargain hunting preludes
Fri, 31-Jan-2025 07:20 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI (-0.40%) extended its downward trend on the eve of the Chinese New Year festive break, mirroring the weak performance in the US market. Sentiment remained weak, dragged by declines in YTL and YTLP, following concerns over the rollout of China's updated version of low-cost AI language model, DeepSeek. Similarly, lower liners struggled, with broader market weakness persisted. Only two sectors managed to close in positive territory - Plantation (+1.14%) and Transport (+0.41%), while Utilities (-1.74%) and Technology (-1.14%) continued to lead the losses.

 

Global Markets Review: US markets ended higher, with all three major indices closing in the green despite a softer advance reading of GDP growth release, as investor sentiment was lifted by mostly upbeat corporate earnings reports and positive outlook forecasts. Similarly, European markets closed higher, with the Stoxx 600 reaching record highs in response to the ECB’s fifth consecutive rate cut. In the Asia-Pacific region, some markets remained closed for the Chinese New Year holiday, while Japan and Australia stock markets ended on a positive note.

 

Market Outlook: We expect bargain hunting to emerge on the local bourse after the two-day festive break, as investors digest recent developments alongside the positive overnight performance on Wall Street as of late. However, we do not anticipate a strong rebound or significant movements, given that it is the last trading day of the week and many investors remain reeling from the festive break. Also, cautious trading mode amid lingering external risks and weak sentiment may continue to weigh. On the economic front, attention will be on the US PCE price index release later today, which serves as a key gauge for the Federal Reserve's next policy move.

 

Sector focus. The Utilities, Construction, and Technology sectors may experience a mild rebound or bargain hunting today after the sharp sell-off before the festive break. Meanwhile, the Plantation sector could see increased trading activity following reports of a flood incident in Sarawak, which may impact supply dynamics and CPO prices.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI took another step backward to form a hammer candle as the key index registered its fourth straight session of decline. Indicators remained negative as MACD Line lingered below the Signal Line, while the RSI is approaching the oversold territory. Immediate resistance is located at 1,600. Support is envisaged around 1,530.

 

Company News (source: various)

Khazanah-EPF led Gateway Development Alliance Sdn Bhd (GDA) has succeeded in getting enough shares to delist and take Malaysia Airports Holdings Bhd (MAHB) private, almost eight months since the takeover was first proposed.

 

TH Plantations Bhd’s 60%-owned unit TH Pelita Simunjan Sdn Bhd is being sued for RM230.25 million for allegedly trespassing on native land. 

 

Salcon Bhd has been awarded the construction of a seven-megawatt (MW) solar energy generating facility in Sungai Siput, Perak. 

 

Datasonic Group Bhd has secured a one-year contract extension worth RM104.78 million to supply passport chips to the Malaysian Immigration Department. 

 

Key Alliance Group Bhd has appointed Datuk Wira Farhash Wafa Salvador, known for his former roles as political secretary to Prime Minister Datuk Seri Anwar Ibrahim and PKR's Perak chief, as its executive chairman, effective immediately.

 

EVD Bhd has appointed Datuk Seri Shahril Mokhtar as non-executive chairman, effective Feb 1. He is replacing Datuk Wong Sak Kuan

 

Taghill Holdings Bhd is not proceeding with a RM38.88 million contract to build a 15-storey columbarium in the city centre due to escalating material costs.

 

Malakoff Corp Bhd has extended the deadline to fulfil conditions precedent for its proposed acquisition of a 49% stake in solid waste management company E-Idaman Sdn Bhd for three more months.

 

Eonmetall Group Bhd has proposed a private placement of up to 91.41 million shares, or 30% of its share base, to raise RM22.14 million. 

 

Ecobuilt Holdings Bhd has proposed a share capital reduction to wipe out its accumulated losses, as well as a rights issue to raise fresh capital. 

Sentiment: Neutral
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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.375354 4.412699
EUR 4.573391 4.585347
CNY 0.603938 0.605575
HKD 0.561409 0.566244
SGD 3.236779 3.265133