Market Review & Outlook
Malaysia Market Review: The FBM KLCI closed flat on Friday, as investors remained cautious ahead of key U.S. inflation data, especially given the Federal Reserve's hawkish stance in December. Across sectors, Consumer (+0.5%), Financial Services (+0.5%), and REIT (+0.2%) led the gains, while Energy (-2.4%) and Transport (-0.7%) were the biggest laggards.
Global Markets Review: The S&P 500 closed nearly unchanged on Friday after a strong rally earlier during the week that brought it close to its all-time high. Meanwhile, the Dow Jones dropped -0.4%, while the Nasdaq gained +0.4%. In Asia, China's major indexes were mostly flat, but Hong Kong's Hang Seng surged +3.7%, driven by strong demand for tech stocks, following the release of DeepSeek R1 in Jan 2025, which boosted optimism around China's AI capabilities. Concurrently, Japan's Nikkei fell -0.8% due to a stronger yen, while South Korea's KOSPI rose +0.3% amid mixed signals from political discussions between the U.S. and India.
Market Outlook: FBMKLCI continued its upward movement, reaching 1,590, indicating there is a potential return of foreign funds. We anticipate the index could close above the psychological resistance level of 1,600. The bullish crossover in the MACD, coupled with an uptick in the RSI, suggests that buying momentum is gaining strength, which may lead to further upside in the near term.
Sector focus. We believe that the uncertainty and pricy valuations on Wall Street may lead to a shift of funds towards Asian markets. We expect the REIT sector which is touted to be defensive in nature to remain resilient. We also favour the plantation sector that is riding onto the higher CPO prices that inched towards RM4,700/MT.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI formed a doji candle to edge marginally lower as the key index drifted away from the SMA50 level. Indicators, however, remained positive with the MACD Line lingering above the Signal Line, while the RSI floats above 50. Immediate resistance is located at 1,630. Support is envisaged around 1,570.
Company News (source: various)
LPI Capital reported a 6.24% decline in 4QFY2024 net profit to RM73.86m, despite strong underwriting performance. The full-year profit grew by 20.2%, and the company declared an 80 sen dividend, up from last year’s 66 sen.
EA Technique saw a 7.6-fold increase in its 4QFY2024 net profit to RM25.17m, driven by other operating income, while revenue fell by 11.6%. The company aims to exit its PN17 status and rebrand.
CPE Technology recorded a seven-fold increase in its 2QFY2025 net profit to RM10.47m, with a 52% rise in revenue. The company is optimistic about continued demand growth in 2025.
Marine & General secured RM300m in vessel provision contracts over three years with Petronas, ExxonMobil, and Vestigo Petroleum.
Master Tec Group won a RM107.75m supply contract from Tenaga Nasional Bhd, with an option to extend for another year.
Maxis appointed Datuk Johan Idris, chairman of KPMG Malaysia, as its new chairman, effective March 1.
MNRB appointed Datuk Sulaiman Mohd Tahir as its new chairman, effective immediately.
Gateway Development Alliance proposed to acquire the remaining shares of Malaysia Airports Holdings at RM11 each and has applied for delisting from Bursa Malaysia.
Able Global's CEO, Edward Goh, was remanded after the arrest of the executive chairman, as part of a corruption investigation.
YBS International stated it is unaware of any reason for its unusual share price movement, except for an MOU to acquire precision manufacturing companies for RM167.2m.
Waja Konsortium's directors were fined RM100k each by Bursa Malaysia for failing to announce their GN3 status on time.
Disclaimer
The report is for internal and private circulation only and shall not be reproduced either in part or otherwise without the prior written consent of Apex Securities Berhad. The opinions and information contained herein are based on available data believed to be reliable. It is not to be construed as an offer, invitation or solicitation to buy or sell the securities covered by this report.
Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.414040 | 4.448807 |
EUR | 4.620143 | 4.628820 |
CNY | 0.609646 | 0.610262 |
HKD | 0.567510 | 0.571990 |
SGD | 3.295973 | 3.322194 |