Opening Daily Highlight
Mixed
Remain Cautious
Tue, 18-Feb-2025 08:00 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI ended lower for the third consecutive day, falling -0.6% to 1,582.8, as foreign selling persisted amid investors seeking better opportunities in other regional markets. All sectors on Bursa Malaysia saw declines, with the largest losses in Construction (-1.5%), Property (-1.1%), and Telco (-0.7%).

 

Global Markets Review: US market was closed yesterday for President's Day. In Asia, the Shanghai Composite rose +0.3% to 3,355.8, while the Hang Seng was flat at 22,616.2. Japan's Nikkei gained by +0.1% led by financials though automakers were weighed down by US tariff threats. The KOSPI rose +0.8% to 2,610.4, its highest since Oct 2024, thanks to optimism in AI which was driven by expectations of ongoing economic recovery as well as strong demand for technology and exports from China.

 

Market Outlook: The upward momentum in the FBM KLCI appears to be waning after briefly surpassing the 1,580 resistance level. Foreign funds are expected to remain net sellers in the local market, as traders continue to favour Hong Kong for its attractive valuations and growth potential. Given the current lack of clear catalysts in the local market, we anticipate this trend to persist today. Investors would be advised to reduce trading exposure and keep funds on standby until clearer market signals emerge.

 

Sector focus. We continue to favour the REITs and plantation sectors as defensive plays against market volatility. Meanwhile, export-oriented sectors such as gloves, furniture, and technology stand to benefit from a weaker MYR against the USD, boosted their competitiveness in global markets.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI 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 close to 50. Immediate resistance is located at 1,630. Support is envisaged around 1,570.

 

Company News (source: various)

Maybank announced the immediate departure of its group CFO, Khalijah Ismail, following an internal inquiry. Khalijah disputes the reason and plans to take legal action. Malique Firdauz Ahmad Sidique will serve as acting CFO starting Feb 17, 2025.

 

Two subcontractors are suing Prolintas for RM500m, accusing the company of causing losses and reputational damage during the SUKE project. The suit also includes allegations of corruption and conspiracy.

 

YNH Property has completed an independent review of its JV and turnkey contracts. The final report, prompted by concerns over RM1.1bn in payments, will be released by March 17, 2025.

 

EcoWorld is selling 138.532 acres of land in Iskandar Malaysia to Microsoft for RM693.96m, bringing the total value of land sold for data centre development in the past year to RM1.3bn.

 

Johor Plantations posted a 27.84% increase in 4QFY2024 net profit to RM80.51m, driven by higher selling prices. Full-year net profit rose 53.8%, reaching RM257.32m.

 

Teo Seng Capital’s 4QFY2024 net profit fell 2.96%, but the company achieved a record high full-year profit of RM183.36m. It declared a total dividend of 11.5 sen per share.

 

Chin Hin Group’s Chiau Haw Loon and Chiau Haw Yew acquired a 5.4% stake in K Seng Seng for RM8.3m, becoming the third-largest shareholders.

 

Proven Venture Capital acquired a 7.14% stake in Malaysian Genomics for RM3.23m, making it the second-largest shareholder.

Sentiment: Negative
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Market Mover
Settlement Rates
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