Market Review & Outlook
Malaysia Market Review: The FBM KLCI closed at intra-day high on Thursday, lifted by extended bargain hunting activities in data centre-related stocks. The benchmark index rose 0.7%, led by gains in Petronas Gas, Gamuda and YTL Power. Similarly, lower liners advanced, with all sectors except the Real Estate Investment Trusts closing in the positive territory. The top performing sectors were the Transportation and Logistics (+1.2%), Construction (+0.8%) and Industrial Products and Services (+0.8%).
Global Markets Review: Wall Street closed mixed on Thursday as investors weighed onto the latest corporate earnings. Both S&P (+0.5%) and Nasdaq (+0.4%) rose for a third consecutive session, supported by late buying interest, while the Dow (-0.3%) snapped its two-day winning streak. In Europe, the pan-European Stoxx 600 closed at a record high, driven by gains in mining companies following upbeat earnings reports. Equity indices in regions near Russia surged after reports indicated that preparations for a meeting between Russian president Vladimir Putin and US president Donald Trump are at an advanced stage of discussion, raising expectations of a potential deal to end the Russia-Ukraine war. Meanwhile, Asian markets mostly advanced, tracking broadly positive cues from Wall Street overnight, as concerns over a potential global trade war eased. Nikkei (+0.6%), Kospi (+1.1%), Shanghai Composite (+1.3%) and Hang Seng (+1.4%) all posted strong gains.
Market Outlook: We reckon the local bourse may attempt to build onto the recent string of recovery in tandem with the positive developments across global markets. With sentiment improving and net selling from foreign funds abating, bargain hunting activities and rotational play will be in focus. In Malaysia, data centre-related stocks could continue to gain interests following their earlier steep losses. Market attention will be focused on the US jobs report today, which would provide insights into the health of the US economy.
Sector focus. The Construction, Utilities and Property sectors may continue to attract bargain hunting, driven by increased optimism in data-centre related stocks. Meanwhile, the Plantation sector may also see buying interest, tracking the increase in CPO prices, which is supported by weaker output outlook due to adverse weather conditions in Malaysia and Indonesia.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI extended its recovery momentum as the key index is now only a couple of points shy away from SMA50. Indicators have improved, turning positive with the MACD Line hooked above the Signal Line, while the RSI advanced below 50. Immediate resistance is located at 1,600. Support is envisaged around 1,530.
Company News (source: various)
IHH Healthcare Bhd’s unit Northern TK Venture (NTK) is seeking compensation of up to 109.3 billion Indian rupees (RM5.7 billion) from Japanese drugmaker Daiichi Sankyo Co Ltd over its stake buy in India’s Fortis Healthcare.
Lotte Chemical Titan Holding Bhd’s net loss for the fourth quarter ended Dec 31, 2024 (4QFY2024) widened to RM510.07 million from RM186.48 million a year earlier, attributed to higher loss to impairment of RM940.23 million on property, plant, equipment and right-of-use assets.
British American Tobacco (M) Bhd’s net profit for 4QFY2024 increased 3.38% to RM48.97 million from RM47.36 million a year earlier, on higher sales volume driven by year-end seasonal sales but offset by higher tax expenses.
Bank Islam Malaysia Bhd has signed an agreement to set up a joint venture, Finodyn Sdn Bhd, with local firm Reldyn Tech Sdn Bhd to sell finance-related digital technology products and services.
Zecon Bhd has signed a non-binding pact with Sabah state-owned firm Petrosabah Sdn Bhd to explore joint development of a large-scale floating solar project in Lahad Datu.
Notion VTec Bhd is acquiring a four-hectare piece of vacant freehold agricultural land in Kapar, Klang, for RM29.62 million as part of the expansion of its manufacturing operations.
Bina Puri Holdings Bhd is in the midst of restructuring its loan with Export-Import Bank of Malaysia Bhd (Exim Bank) following a winding-up petition from the bank on Tuesday.
Scomi Energy Services Bhd is set to be delisted from Bursa Malaysia on Feb 12, following the company’s failure to submit its regularisation plan on time.
MN Holdings Bhd has terminated its partnership with cybersecurity solutions company Intelligent Pie Consulting Sdn Bhd aimed at securing tenders for operational technology cybersecurity projects.
ATA IMS Bhd’s chief operating officer (COO) Dharma Rajan Nadarajah has stepped down, effective Wednesday.
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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 |