Market Review & Outlook
Malaysia Market Review: The FBM KLCI closed higher on Wednesday, lifted by bargain hunting activities in data centre-related stocks. The benchmark index rose 0.6%, supported by gains in Gamuda, YTL Power and YTL Corp. Similarly, lower liners advanced, with all sectors closing in the positive territory. The top performing sectors were the Construction (+2.8%), Property (+2.0%) and Technology (+1.5%) sectors.
Global Markets Review: Wall Street rebounded for a second consecutive session, overcoming early losses as investors looked past tariff concerns. All three major indices closed higher despite steep losses in AMD and Alphabet following disappointing earnings. In Europe, stocks traded higher, supported by gains in healthcare stocks, which offset losses in carmaker stocks. The pan-European Stoxx 600 climbed 0.5% in a choppy trading session. Meanwhile, Asian markets mostly rose, tracking overnight gains from Wall Street, as investors shrugged off US-China tariff tensions. All eyes are on China, which resumed trading after the week-long Lunar New Year holiday. Nikkei rose 0.1%, while Kospi jumped 1.1%. In contrast, Shanghai Composite dropped 0.7%, while Hang Seng dipped 0.9%.
Market Outlook: With global sentiment improving in recent days following the 30-day pause on tariffs for Mexico and Canada, we reckon extended bargain hunting activities will continue to dominate the local sentiment. Still, volatility remains a concern, prompting a cautious investor stance as on-going tariffs threat remain in place along with the recent batch of China economic data which continues to point towards a slowdown. In Malaysia, data centre-related stocks could continue to gain interests following their earlier steep losses. For the week ahead, market attention will be focused on the Bank of England’s interest rate decision on Thursday, followed by the US jobs report on Friday.
Sector focus. The Construction and Utilities sectors may continue to attract bargain hunting, driven by increased optimism in data-centre related stocks. Meanwhile, the technology sector could see renewed buying interest, tracking the overnight gains in Nasdaq. In contrast, oil and gas stocks may see some profit taking following the plunge in oil prices amid swelling US crude inventories, signalling weaker demand.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI advanced for the third straight session as the key index looks to approach the 1,600 psychological level. Indicators, however, remained negative as MACD Line lingered below the Signal Line, while the RSI treaded below 50. Immediate resistance is located at 1,600. Support is envisaged around 1,530.
Company News (source: various)
KLCCP Stapled Group’s net profit for the fourth quarter ended Dec 31, 2024 (4QFY2024) rose 12% to RM430.91 million from RM384.59 million a year earlier, driven by full ownership of the Suria KLCC Mall and higher fair value gains.
Gamuda Bhd has signed an exclusive agreement with the Perak government to facilitate raw water transfer from Sungai Perak to Bukit Merah and develop the requisite infrastructure for treated water distribution, ensuring long-term water.
ITMAX System Bhd’s 65%-owned subsidiary Southmax Sdn Bhd has secured another contract in Johor to operate an outdoor parking system in the Pontian district.
CapitaLand Malaysia Trust is buying three industrial properties located in the Senai Airport City for RM72 million from Gromutual Bhd’s subsidiary Rainbow Entity Sdn Bhd.
YTL Corp Bhd’s Singapore-listed industrialised building systems (IBS) unit NSL Ltd has received a four-month extension until June 6 to adhere to the Singapore Exchange's (SGX) 10% public shareholding requirement.
Citaglobal Bhd has no immediate plan to develop the 1.58-acre land at Jalan Tun Razak, Kuala Lumpur that it intends to acquire from Bank Islam Malaysia Bhd for RM73 million.
Hextar Industries Bhd’s independent non-executive chairman Datuk Chan Choun Sien has stepped down from his post “due to other commitments”.
Khazanah Nasional Bhd has completed the transfer of its entire equity stake in Malaysia Airports Holdings Bhd to the takeover consortium it leads, Gateway Development Alliance Sdn Bhd (GDA).
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.207953 | 4.240384 |
| EUR | 4.900569 | 4.909007 |
| CNY | 0.592297 | 0.593304 |
| HKD | 0.541528 | 0.545709 |
| SGD | 3.238209 | 3.263373 |