Market Review & Outlook
Malaysia Market Review: FBM KLCI (-1.0%) tumbled, dragged down by wide spread selling pressure to close at its lowest level in three weeks. All sectors closed in the red, with the exception of the Bursa Malaysia Transportation & Logistics Index (+0.8%). On the broader market, losers outpaced gainers by nearly four-to-one, with 904 stocks closing lower and 218 closing higher.
Global Markets Review: Wall Street remained uncertain on Tuesday, with the Dow (+0.4%) closing with a modest gain, while the S&P 500 (-0.5%) and Nasdaq (-1.4%) hit one-month lows following a disappointing confidence report that highlighted growing economic uncertainties. Meanwhile, European markets closed higher, with the Stoxx 600 index up 0.2% after the UK announced an additional £13.4bn/year in defense spending starting in 2027. APAC markets traded lower overnight following Wall Street’s decline, as Trump-era tariffs stoked a risk-off mood. This was particularly evident in the HSI index (-1.0%) and CSI300 (-1.1%), as tech stocks retreated further after reports that the Trump administration is seeking to tighten Biden-era controls on chip technology exports to China, especially targeting Nvidia chips and semiconductor equipment maintenance. Elsewhere, Japan's Nikkei was the worst performer, dropping by (-1.2%) mainly due to an uncertain economic environment, while the KOSPI slipped (-0.6%) after the Bank of Korea revised its growth forecast downward.
Market Outlook: The FBM KLCI is likely to remain under pressure due to an extended weak market sentiment, with the pullback possibly extending as global markets continue to trade cautiously. The index may hover between 1,550 and 1,570 in the near term, with attention focused on the on-going barrage of corporate earnings releases. Additionally, any significant changes in tariff announcements could lead to further market volatility. Looking ahead, investors will be keeping a close tab onto Nvidia’s earnings report to be release later tonight.
Sector focus. Investors are advised to focus on defensive sectors such as REITs and financials, which offer attractive dividend yields and act as defensive plays against market volatility. Gold-related stocks may also advance in tandem with the higher gold prices which is trading at all-time high levels, approaching $3,000 an ounce, as investors turned to safe heavens amid rising trade tensions and expectations of Federal Reserve rate cuts.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI formed another bearish candle as the key index is now forming the lower low formation. Indicators remained mixed with the MACD Line lingering above the Signal Line, but the RSI tripped below 50. Immediate resistance is located at 1,600. Support is envisaged around 1,550.
Company News (source: various)
Nestlé (Malaysia) Bhd’s net profit for 4QFY2024 fell 72.2% yoy to RM41.1m the lowest in 11 years, due to higher input costs and lower sales. Full-year net profit dropped 37.0% to RM415.6m, the lowest in 14 years. Revenue for 4QFY2024 decreased 12.6% to RM1.47 bn, while full-year revenue contracted 11.7% to RM6.22 bn.
Affin Bank Bhd 4QFY2024 net profit surged 3x to RM135.1m, driven by a write-back of credit impairment losses. The bank proposed a bonus issue of one new share for every 18 shares held. FY2024 net profit rose 26.7% to RM509.7m, with net interest income up 5.6% to RM826.4m, supported by an 8.1% increase in loans to RM72.0bn.
Telekom Malaysia Bhd posted a record quarterly net profit of RM730.6m in 4QFY2024, up 68.5%, boosted by RM377.5m in tax credits. Excluding the tax credit, PBT fell 5.7% to RM371.4m. Quarterly revenue increased 2.0% to RM3.05bn. For FY2024, net profit rose 7.8% to RM2.02bn, while annual revenue remained flat at RM11.71bn.
IOI Corp Bhd’s net profit fell 67.0% to RM111.1m in 2QFY2025, due to a RM283.5m foreign exchange and derivative loss, despite higher palm oil prices. Quarterly revenue rose 24.0% to RM2.97bn, driven by higher CPO prices, although fresh fruit bunch output declined 6.0%.
Padini Holdings Bhd’s net profit rose 21.1% to RM64.3m in 2QFY2025, driven by higher gross margins and strong festive season sales. Quarterly revenue increased 5.1% to RM525.6m. For 1HFY2025, net profit fell 4.9% to RM75.8m due to higher unrealised foreign exchange losses, staff costs, and increased depreciation from outlet expansion.
ITMAX System Bhd’s 4QFY2024 net profit grew 26.6% to RM21.1m, driven by higher digital infrastructure and maintenance revenue. Quarterly revenue rose 48.2% to RM63.1m.
Leong Hup International Bhd’s net profit surged 72.6% to RM140.8m in 4QFY2024, driven by higher livestock and poultry product contributions and lower finance costs. Quarterly revenue fell 4.1% to RM2.32bn, due to lower feedmill segment contributions in Indonesia, Vietnam, and Malaysia. For FY2024, net profit rose 42.2% to RM428.9m, while revenue declined 2.4% to RM9.31bn.
AEON Co (M) Bhd’s 4QFY2024 net profit fell 26.3% to RM24m due to a one-off litigation accrual, but excluding this, profit before tax rose 19.1% to RM64.1m. Quarterly revenue grew 3.6% to RM1.07bn, driven by retail and property management growth. For FY2024, net profit increased 11.5% to RM128m, with revenue up 3.2% to RM4.26bn.
Frontken Corp Bhd’s 4QFY2024 net profit rose 28.0% to a record RM38.1m, driven by strong demand in its semiconductor and oil and gas sectors, with full-year net profit reaching RM136.8 m (+22.0% yoy), and record revenue of RM569.2m, up 14.0% from FY2023.
Pentamaster Corp Bhd’s 4QFY2024 net profit fell 31.6% to RM14.16m due to weaker demand in its ATE segment, higher write-offs, and increased expenses, with full-year net profit dropping 26.9% to RM65.2m and revenue declining 10.0% to RM623.0m.
Keyfield International Bhd’s 4QFY2024 net profit doubled to RM45.5m, driven by higher charter rates and fleet expansion, while full-year net profit surged 115.1% to RM226.9m, with revenue rising 59.6% to RM687.2m.
Pekat Group Bhd reported record-high quarterly net profit of RM8.0m in 4QFY2024, more than doubling from the previous year, with annual net profit rising 65.5% to RM22.8m and revenue increasing 28.0% to RM291.1m.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.425598 | 4.460341 |
EUR | 4.655049 | 4.659597 |
CNY | 0.610337 | 0.610983 |
HKD | 0.569502 | 0.573504 |
SGD | 3.301387 | 3.324707 |