Opening Daily Highlight
Mixed
Stayed Vigilant
Mon, 24-Feb-2025 07:27 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: FBM KLCI (+0.9%) ended higher after the two consecutive days downtrend, mainly favouring PCHEM and PETDAG’s favourable quarter results. Sector performance was split, with Construction (+3.1%) and Industrial products & services (+2.4%) indices being notable gainers, while Technology (-1.5%) and Utilities (-0.2%) showed a slight decline.

 

Global Markets Review: Stocks finished lower on War Street but edged higher in Europe's Stoxx 600 (+0.5%) on Friday. Dow (-1.7%), S&P 500 (-1.7%), and Nasdaq (-2.2%) all ended lower, as investors worried about Trump's rapid policy initiatives, including spending cuts and tariffs. While Europe shows the green light due to Germany's election on Sunday. Asian markets showed an overall increase, specifically the HSI index, due to Alibaba's strong quarter results, resulting in a soar of 15%, logging the longest winning streak in 2 years, resulting in an HSI increase of 4.0% on Friday. While major markets were mixed, the Shanghai Composite increased by 0.8%, Japan's Nikkei increased by 0.3%, and the KOSPI was just slightly changed.

 

Market Outlook: The FBM KLCI is expected to remain under pressure due to ongoing foreign fund outflows and weak market sentiment. Following Wall Street's poor performance, negative sentiment may impact the local bourse, potentially leading to a prolonged decline. For today, we expect the index to trade within a range of 1,580 to 1,590. Nevertheless, this trend is temporary, as this week's upcoming corporate earnings season may generate renewed investor interest.

 

Sector focus. Investors are advised to focus on defensive sectors such as REITs and financials, which offer attractive dividend yields and serve as defensive plays against market volatility. We also favour the Consumer sector, supported by higher household spending driven by wage increases and improved economic condition.  

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI formed a bullish candle as the key index recovered most of its weekly losses to resume its recovery trend. Indicators turned positive with the MACD Line lingering above the Signal Line, while the RSI hooked above 50. Immediate resistance is located at 1,630. Support is envisaged around 1,570.

 

Company News (source: various)

Petronas Chemicals Group Bhd returned to profitability in 4QFY2024 with a net profit of RM519.0 m, while its full-year net profit for FY2024 fell 30.7%, and it declared a total dividend of 13 sen.

 

Petronas Gas Bhd’s net profit fell 5.6% in 4QFY2024 to RM417.0 m due to higher expenses and gas costs, though revenue rose 3.0% to RM1.62 bn, while its full-year net profit increased slightly to RM1.84 bn, and declares a total dividend of 72sen for FY2024.

 

MISC Bhd posted a net loss of RM466.2 m in 4QFY2024, hurt by RM735.5 m impairment provisions and lower revenue. This result decreased 44.0% of net profit to RM1.19 bn, and revenue fell 7.3% to RM13.2 bn despite declaring a dividend of 12 sen, bringing its total payout for FY2024 to 36 sen.

 

Malakoff Corp Bhd returned to profitability with a net profit of RM26.0 m in 4QFY2024, reversing a net loss from the previous year. For FY2024, it achieved a net profit of RM268.7 m, compared to a net loss in FY2023, despite a slight decline in revenue.

 

Sports Toto Bhd’s net profit for 2QFY2025 more than doubled to RM49.7 m, driven by STM Lottery Sdn Bhd and HR Owen plc, while 1HFY2025, net profit rose 7.9% to RM91.0 m, despite a slight drop in revenue, and it declared a second interim dividend of 2 sen.

 

Parkson Holdings Bhd’s net loss for 4QFY2024 widened to RM127.7 m due to a higher impairment loss on assets, mainly from underperforming stores in China, while full-year net loss increased to RM102.5 m, with revenue dropping 10.2%.

 

Paramount Corp Bhd posted a significant jump in net profit to RM54.1 m in 4QFY2024- highest since 1QFY2020 – from RM28.2 m for 4QFY2023.

 

PMB Technology Bhd recorded a 54.3% increase in 4QFY2024 net profit to RM48.23 m, mainly due to a one-off gain from land disposal. 

 

Mi Technovation Bhd’s net profit jumped 76.8% to RM20.9m in 4QFY2024 from RM11.8 m from the previous year, driven by higher revenue and forex gains. For FY2024, the group’s net profit rose 23.5% to RM 68.1 m from RM55.1 m in FY2023. No dividend was declared for this quarter.

 

CSC Steel Holdings Bhd’s net profit rose 8.2% to RM11.4 m in 4QFY2024, driven by favourable exchange rates, though quarterly revenue fell 8.4% due to lower steel prices, while full-year net profit declined 31.0% to RM34.2 m, with a slight drop in revenue.

 

CN Asia Crop has proposed a share capital reduction of RM35.0 m to reduce its accumulated losses, which will decrease from RM43.4 m to RM8.66 m as of September 2024.

Sentiment: Positive
Read more details in:

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.

Apex Securities Berhad does not warrant the accuracy of anything stated herein in any manner whatsoever and no reliance upon such statement by anyone shall give rise to any claim whatsoever against Apex Securities Berhad. Apex Securities Berhad may from time to time have an interest in the company mentioned by this report. This report may not be reproduced, copied or circulated without the prior written approval of Apex Securities Berhad.

Market Mover
Settlement Rates
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