Market Review & Outlook
Malaysia Market Review: FBM KLCI posted a 0.3% loss yesterday, as investor sentiment remained cautious ahead of the upcoming release of the US Federal Open Market Committee (FOMC) meeting minutes. Aside from the Construction sector (+0.3%), most sectors on Bursa Malaysia ended in the red. The Healthcare sector posted the largest decline at -1.7%, followed by the Consumer sector (-1.6%) and the Technology sector (-1.5%).
Global Markets Review: U.S. stocks finished higher, with the S&P 500 (+0.2%) marking its third record close of the year. The Dow Jones (+0.2%) and Nasdaq (+0.1%) also gained, despite confirmation that policymakers agreed to hold rates steady and President Donald Trump’s threat of additional tariffs. In Asia, stocks were mixed on Wednesday. Chinese tech stocks struggled after a brief rally, with the Shanghai Composite and Hang Seng Index closing mixed by +0.8% and -0.1%, respectively. Meanwhile, South Korea's Kospi jumped 1.7%, while Japan's Nikkei 225 slipped 0.3%, resulting in a mixed performance overall.
Market Outlook: FBM KLCI is expected to continue trading within a tight range as market sentiment remains cautious. We expect uncertainties to prevail over fresh tariff imposition from the US. However, the market pullback presents an opportunity for investors to capitalize on lower prices, supported by attractive valuations. Foreign funds are likely to remain net sellers in the local market due to the absence of clear recovery catalysts.
Sector focus. We remain positive on export-oriented sectors like gloves, furniture, and logistics, as the weaker MYR against the USD enhances their competitiveness. We also favour the plantation sector, riding onto the recent recovery in CPO prices.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI formed a bearish harami candle as the key index erased all its previous session gains. Indicators are now mixed with the MACD Line lingering above the Signal Line, while the RSI tripped below 50. Immediate resistance is located at 1,630. Support is envisaged around 1,570.
Company News (source: various)
Southern Acids (M) Bhd reported a 5-fold increase in net profit to RM24.96m for 3QFY2025, driven by higher earnings from its oleochemical manufacturing and milling businesses amid strong commodity prices. 9MFY25 net profit surged nearly fourfold to RM31.8m, with cumulative revenue increasing 23.8%.
Malaysia Marine and Heavy Engineering Holdings Bhd saw 4QFY2024 net profit triple to RM21.38m, despite a 26.9% revenue decline. FY2024 net profit returned to RM121m, compared to a loss of RM484.19m in FY2023.
Duopharma Biotech Bhd posted a 77.4% rise in 4QFY2024 net profit to RM15.08m, driven by higher revenue and the normalization of active pharmaceutical ingredient prices. Full-year net profit rose 19% to RM62.65m. Declared a second interim dividend of 2 sen per share.
ITMAX System Bhd executive director, Datin Afinaliza Zainal Abidin, sold her remaining 4.58% stake for RM174.41m at a discount.
Southern Cable Group Bhd secured a RM403.55m contract from Tenaga Nasional Bhd to supply underground cables and conductors to TNB’s distribution network division. The one-year contract includes an option to extend for another year at the same price.
Salcon Bhd won a RM70.52m pipe replacement contract from Pengurusan Aset Air Bhd for a project in Kota Bharu, Kelantan. The 24-month project is due for completion in 2027.
EA Technique (M) Bhd was removed from Practice Note 17 (PN17) status, effective February 20, 2025. It will trade under the new name, Avangaad Bhd, starting Monday.
Hektar Real Estate Investment Trust is acquiring a RM30m light industrial asset in Penang from Microlead Precision Technology Sdn Bhd, with MPT leasing back the property for 15 years.
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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 |