Market Review & Outlook
Malaysia Market Review: The FBM KLCI pares losses as global equities rebounded from the shock of a fresh tariffs announcement from US president Donald Trump, which threatened higher import taxes on steel and aluminium, as well as reciprocal taxes on its trading. The benchmark index fell -0.1% to close at 1,589.95. Similarly, lower liners fell, with most sectors closing in negative territory. The worst performing sectors were Technology (-1.1%), Construction (-1.0%) and Plantation (-0.7%).
Global Markets Review: Wall Street ended on a mixed note as the Dow (+0.3%) and S&P (+0.03%) advanced despite the hawkish remarks from the US Federal Reserve Chairman Jerome Powell over interest rate policy, while the Nasdaq (-0.4%) underperformed. Meanwhile, Asian markets were finished mostly on a weaker note as investors digested the recent batch of tariffs announcement. Nikkei (+0.04%) ended relatively flattish, while the Shanghai Composite (-0.1%) and Hang Seng (-1.1%) recorded negative movement.
Market Outlook: Local bourse outlook continues to remain uncertain and slightly skewed towards the negative, with the balance of risk hinging squarely on US trade policy. Further clarity on tariff plans could imply mild gains. With sentiment improving and net selling from foreign funds abating, bargain hunting activities and rotational play will be in focus, providing some upside to an otherwise uncertain time. In Malaysia, data centre-related stocks could continue to gain interests following their earlier steep losses.
Sector focus. Export-related players such as Technology, Furniture, Gloves may capitalise onto the stronger USD against MYR. 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. Oil & gas related stocks may also gain traction following the recovery in crude oil prices as of late.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI took a minor step backwards as the key index snapped a four-day winning run ahead of the mid-week festive break. Indicators, however, remained positive with the MACD Line lingering above the Signal Line, while the RSI floats above 50. Immediate resistance is located at 1,600. Support is envisaged around 1,530.
Company News (source: various)
TMC Life Sciences Bhd sank into the red with a net loss of RM947,000 in the second quarter ended Dec 31, 2024 (2QFY2025), from a net profit of RM14.52 million a year ago, dragged by termination and discount of customer contracts.
Biscuit maker Hup Seng Industries Bhd sustained its record earnings streak in the fourth quarter of 2024, with net profit rising 26.74% year-on-year to RM17.34 million for the fourth quarter ended Dec 31, 2024 (4QFY2024), marking its highest since listing in 2000.
MGB Bhd — in which LBS Bina Group Bhd owns a 57.7% stake — has secured a contract worth RM194.72 million to undertake the construction of a 22-storey serviced apartment in Cameron Highlands in a related-party transaction.
Kumpulan Kitacon Bhd has secured a RM104.3 million building works contract. The contract covers the construction and completion of 16 semi-detached factories with offices, four additional factory units, and three substations with related infrastructure in Bandar Bukit Raja III, Klang, Selangor.
Keyfield International Bhd has bagged two contracts worth a total RM56 million for vessel charter jobs from Petronas Carigali Sdn Bhd.
Divfex Bhd’s 51%-owned unit Excel Commerce Solutions Sdn Bhd has clinched a new letter of award valued at RM18.5 million to supply and install data centre equipment systems.
Colform Group Bhd, a newly listed steel product company, will focus its expansion efforts on the home market amid risks from potential US tariff escalations.
Sarawak Consolidated Industries Berhad said its unit, SCIB Properties Sdn Bhd (SCIBP), has filed a writ of summons against housing developer Awana JV Suria Saga Sdn Bhd, seeking legal redress over what it claims as unauthorised loan drawdowns by the latter.
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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 |