Market Review & Outlook
Malaysia Market Review: FBM KLCI rose by 0.1% to 1,584.84, supported by gains in major heavyweights such as CIMB Group Holdings Bhd (+1.2%) and Maxis Bhd (+2.9%). Despite that, most sectors on Bursa Malaysia ended in the red, with Healthcare sector (-5.4%) posted the biggest decline following the disappointing quarter results from HARTA. Meanwhile Financials (+0.4%) and Properties (+0.2%) sectors were the only sectors closed in green.
Global Markets Review: Dow Jones (+0.02%), S&P 500 (+0.2%) and Nasdaq (+0.07%) all inched marginally higher investors awaited the release of the Federal Reserve's January FOMC meeting minutes on Wednesday. In the Asia-Pacific region, stock market indexes displayed mixed performance on Tuesday. Shanghai Composite dipped 0.9% after reaching 2025 highs earlier in the session, while Hang Seng Index rose 1.6%, led by the tech sector primarily driven by the DeepSeek effect. Meanwhile, both Japan’s Nikkei 225 and South Korea’s KOSPI gained 0.3% and 0.6% respectively amid increasing European defense spending.
Market Outlook: We expect the local market to trade in a rangebound pattern within the 1,580–1,590 range as investors digest earnings season results and await new catalysts. Sentiment is expected to remain fragile due to escalating geopolitical tensions and continued foreign fund outflows. Investors are advised to reduce exposure until clearer market signals emerge. Going forward, key focus will lean towards upcoming US FOMC minutes releases which may provide further guidance over interest rate policy direction. Back home, investors will be keeping a close tab as we move into the plateau of earnings season.
Sector focus. Given the heightening market volatility, we advocate investors to stay defensive, focusing on Plantation and REITs. We also favour export-oriented sectors, which should benefit from a weaker MYR against the USD, boosting trading activity and global competitiveness.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI formed a bullish candle to snap a three-day losing run after recovering all its intraday losses. Indicators 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)
Hartalega Holdings Bhd's 3QFY2025 net profit fell 13% to RM19.51m due to a 65.9% rise in operating expenses, despite a 77.6% increase in revenue to RM738.19m. No dividend was declared. For 9MFY2025, net profit was RM60.06m, up from a net loss of RM2.39m last year.
Maxis Bhd’s 4QFY2024 net profit jumped fivefold to RM321m, thanks to lower operating costs. Revenue rose 1.1% to RM2.77b. Maxis declared a 5 sen interim dividend, bringing total dividends for the year to 17 sen per share.
MyEG Services Bhd’s 4QFY2024 net profit rose 20.62% to RM181.13m, with revenue increasing 32.19% to RM293.53m. MYEG Services plans to pay a 2.49 sen final dividend, raising total dividends for FY2024 to 2.74 sen. Full-year net profit surged 43.04% to RM697.55m.
Gas Malaysia Bhd’s 4QFY2024 net profit rose 8% to RM112.71m, driven by higher gas sales and improved margins. Revenue increased 14.12% to RM2.06b. Gas Malaysia declared a second interim dividend of 9.6 sen per share, bringing total dividends to 15.91 sen.
Cahya Mata Sarawak Bhd’s 4QFY2024 net profit jumped 85.04% to RM65.8m, driven by improved business segments and other income. Revenue grew 2.46% to RM340.99m. Cahya Mata Sarawak proposed a 3 sen per share dividend.
Ranhill Utilities Bhd’s 4QFY2024 net profit dropped 8.3% to RM17.82m, partly due to a cost overrun at its subsidiary. Revenue declined 6.15% to RM522.45m. No dividend was declared.
Seng Fong Holdings Bhd’s 2QFY2025 net profit almost halved to RM8.81m due to higher raw material costs, despite a 26% revenue increase to RM361.99m. Seng Fong declared a 1 sen second interim dividend. For 1HFY2025, net profit dropped 12.4%, while revenue rose 42.4%.
Perak Corp Bhd proposed a regularisation plan including a share capital reduction, land sales, and preference share issuance to settle debt. Perak Corp plans to jointly develop the Silver Valley Technology Park with its major shareholder. Capital reduction of RM185m aims to offset accumulated losses.
GDB Holdings Bhd won an adjudication ruling against KSK Land for RM82.67m related to the 8 Conlay project. The adjudicator ordered KSK Land to make the payment. GDB filed the notice of adjudication in Oct 2024.
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 |