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Mixed Signals on Trump’s tariffs
Thu, 27-Feb-2025 07:22 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: FBM KLCI (+1.3%) rebounded following the recent sell-off, driven by bargain hunting activity in banking and Petronas-linked stocks. Except for the Construction sector (-0.3%), all sectors rebounded. On the broader market, gainers outpaced losers by 534 to 471, while 473 counters were traded unchanged.

 

Global Markets Review: Wall Street ended mixed on Wednesday due to new tariff threats, with the Dow (-0.4%) retreating, while the S&P 500 (+0.01%) and Nasdaq (+0.3%) both closed with a modest gain due to Nvidia’s stronger-than-expected earnings. Meanwhile, European markets closed record high due to strong corporate earnings, with the Stoxx 600 index up 1.0%. APAC markets traded higher, with HSI index (+3.2%), CSI300 (+0.9%) and Shanghai Composite index (+1.0%) as investors return to tech following US sell-offs especially after Hong Kong’s plans to spend HK$1.0bn on an AI research centre on in a budget speech. Elsewhere, Japan's Nikkei continue the pull-back, slipped by (-0.3%) mainly due to an uncertain economic environment, while the KOSPI rose (+0.4%) after the BoK lower interest rate decision.

 

Market Outlook: The FBM KLCI is likely to remain tepid as investors stay on the sidelines until signs of recovery emerge. Still, the recent recovery may provide a temporary alleviation against the previous sessions. We foresee the index may hover between 1,550 and 1,570 in the near term, with attention focused on the ongoing 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 eye on the US second estimate of Q4 2024 GDP growth.

 

Sector focus. Investors are advised to remain defensive, focusing onto selective sectors such as REITs and financials, which offer attractive dividend yields and act as defensive plays against market volatility. Improved CPO prices along with the recent batch of stronger earnings from planters may drive trading interest within the plantation sector.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI formed bullish engulfing candle, signalling a potential recovery as the key index approaches the SMA50 level. Indicators turned positive with the MACD Line lingering above the Signal Line, but the RSI recovered above 50. Immediate resistance is located at 1,600. Support is envisaged around 1,550.

 

Company News (source: various)

Malayan Bank Bhd (Maybank) net profit rose 6.0% yoy to RM2.53 bn, driven by higher net interest and insurance income. FY2024 net profit increased 8.0% yoy to RM10.1 bn. Net interest income grew 2.0% yoy to RM19.7 bn, while non-interest income surged 23.0% yoy to RM9.9 bn. A dividend of 32 sen per share was declared, totaling 61.0 sen for the year.

 

Public Bank Bhd’s net profit rose 11.4% yoy to RM1.80 bn, supported by higher net interest income and strong Islamic banking. Revenue increased 7.8% yoy to RM7.06 bn. FY2024 net profit grew 7.5% yoy to RM7.15 bn, with revenue rising 7.0% yoy to RM27.21 bn. The Group declared a second interim dividend of 11.0 sen, totaling 21.0 sen for the year.

 

Hong Leong Bank Bhd’s 2QFY2025 net profit rose 5.5% yoy to RM1.15 bn, driven by higher net interest income and Islamic banking contributions. Revenue increased 11.4% yoy to RM1.63 bn. For 1HFY2025, net profit grew 5.7% yoy to RM2.24 bn, with revenue up 16.5% yoy to RM3.23 bn. The Group declared a dividend of 28.0 sen per share, payable on March 26.

 

Hong Leong Financial Group Bhd’s 2QFY2025 net profit nearly flat at RM839.46 m. Revenue rose 9.3% yoy to RM1.86 bn. 1HFY2025 net profit up 7.2% yoy to RM1.69 bn, with a 14.5% yoy revenue increase. Declared 20 sen interim dividend.

 

Axiata Group Bhd’s 4QFY2024 net loss narrowed to RM224.8m from RM695.0m. FY2024 returned to profit of RM946.8m. Revenue slightly up to RM22.33 bn. Declared second dividend of 5.0 sen per share.

 

Sunway Bhd’s 4QFY2024 net profit up 26.0% yoy to RM335.5 m. Annual net profit soared 56.0% to RM1.15 bn. Revenue hit record RM7.88 bn. Declared second interim dividend of 4.0sen.

 

Press Metal Aluminium Holdings Bhd’s 4QFY2024 net profit up 38.5% yoy to RM445.3m. FY2024 net profit hit a record RM1.76bn. Revenue grew 8.0% to RM14.9 bn. Declared 1.75 sen fourth interim dividend.

 

Sime Darby Property Bhd’s 4QFY2024 net profit down 32.6% yoy to RM88.4m. FY2024 net profit up 23.1% yoy to RM502.2m. Revenue rose 23.7% yoy to RM4.25 bn. Declared 1.5 sen second interim dividend.

 

IOI Properties Group Bhd’s 2QFY2025 net profit down 22.0% yoy to RM94.8 m due to higher interest costs. Revenue up 20.0% yoy to RM729.0 m. 6MFY2025 net profit fell 45.0% yoy.

 

Kelington Group Bhd’s 4QFY2024 net profit up 3.9% to RM38.7m. FY2024 net profit rose 18.2% yoy to RM123.1m. Revenue down 21.2% yoy. Declared 2.0sen fourth interim dividend.

 

VSTECS Bhd’s 4QFY2024 net profit down 11.4% yoy to RM21.4m. FY2024 net profit up 4.7% yoy to RM70.6m. Revenue grew 6.4% yoy to RM2.9bn. Declared 4.1sen second interim dividend.

 

Guan Chong Bhd’s 4QFY2024 net profit surged over 14.0 times to RM213.0m. FY2024 net profit more than quadrupled to RM429.2m. Revenue up 96.3% yoy to RM10.4bn. Declared 1.5sen special dividend.

 

RGB International Bhd’s 4QFY2024 net profit hit a record RM31.8m. FY2024 net profit nearly quadrupled to RM92.1m. Revenue up 11.0% yoy. Declared 0.6 sen fourth interim dividend and 0.4 sen special dividend.

 

Apex Healthcare Bhd’s 4QFY2024 net profit down 33.6% yoy to RM13.5m. FY2024 net profit down 80.8% yoy to RM76.5m. Revenue rose 2.7% yoy. Proposed 3.0sen final dividend.

 

Media Prima Bhd’s 2QFY2025 net profit down 67.0% to RM3.5m. Revenue up 2.0% yoy to RM228.0m. 1HFY2025 net profit down 78.0% yoy. No dividend declared.

 

Sapura Energy Bhd secured contracts worth RM3.2bn, increasing order book to RM8.7bn.

 

Chin Hin Property Bhd planning first bonus share issue in nearly 20 years after net profit drop in 4QFY2024.

 

Axis Real Estate Investment Trust is selling warehouse for RM24.2m, resulting in 0.44 sen per unit additional income distribution.

Sentiment: Positive
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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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Market Mover
Settlement Rates
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