Market Review & Outlook
Malaysia Market Review: The FBM KLCI started the week on a positive note, climbing 1.25% on Monday to close at 1,624.6, lifted by firm buying support in selected heavyweights. Domestic economic data also remained positive, with the S&P Global Malaysia Manufacturing PMI returning to expansion at 50.1 in November (October: 49.5), reflecting an improvement in new orders. Sector-wise, Consumer (+1.30%), Telecommunications & Media (+1.25%) and Industrial Products (+1.18%) led the gains, while Technology (-2.22%) and Utilities (-0.82%) were the main laggards.
Global Markets Review: Wall Street closed lower at the start of a historically strong December, pausing after five consecutive days of gains last week. The Dow (-0.90%), S&P 500 (-0.53%) and Nasdaq (-0.38%) slipped as risk sentiment softened, reflected in a 6.0% pullback in Bitcoin, which fell below 90,000. Among major tech names, Broadcom (-4.2%) and Super Micro Computer (-1.3%) declined on profit-taking activities. In Europe, the Stoxx 600 eased (-0.20%) as defence stocks retreated, with investors closely monitoring developments on Ukraine peace deal this week. Asian markets were mixed, with Japan’s Nikkei 225 down (-1.89%) and Korea’s KOSPI lower (-0.16%), while Hang Seng (+0.67%) and Shenzhen (+1.25%) rose despite RatingDog’s China General Manufacturing PMI slipping to 49.9 in November (Oct: 50.6).
Market Outlook. In the near term, investors will remain focused on the Fed’s rate-cut trajectory. CME FedWatch now implies an 88% probability of a 25-bp rate cut at next week’s FOMC meeting. This week, investors will be watching closely Fed Chair Powell’s speech on Tuesday, along with the releases of September Core PCE and the latest job data. A dovish tone from the Fed and softer labour readings could reinforce expectations of a more aggressive easing cycle, potentially supporting foreign inflows and lending further strength to domestic market. In addition, year-end window-dressing activity should provide modest support to the local market through December.
Sector focus. Gold-related stocks could see continued interest amid firmer expectations of a Fed rate cut. We maintain a positive outlook on selected construction, power ancillary and renewable energy stocks, supported by sustained data centre demand and the ongoing transition toward cleaner energy. We also favour selected consumer staples, underpinned by resilient domestic consumption amid a benign economic backdrop.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI held on to early gains to end above all moving averages. Indicators turned mixed, with the MACD Line trading below the Signal Line, while the RSI trading above 50. The next resistance is located at 1,660. Support is envisaged at around 1,600.
Company News (source: various)
Genting Malaysia Bhd is set to remain listed, after Genting Bhd secured less than a 75% stake in the company following its privatisation bid.
CelcomDigi Bhd has secured spectrum access for 1800MHz and 2600MHz bands from the Malaysian Communications and Multimedia Commission (MCMC), which will strengthen its network and enhance customer experience.
Petron Malaysia Refining & Marketing Bhd said its Port Dickson Refinery’s product jetty was damaged and partially collapsed during tropical storm Senyar on Nov 28, prompting a temporary halt in refinery operations.
Sunway Real Estate Investment Trust has appointed Derek Teh Wan Wei as its new chief executive officer (CEO), effective Monday.
Oil and gas services provider T7 Global Bhd announced changes in its leadership team with the appointment of Azman Yakim as its new group chief executive officer (CEO).
Sunway Real Estate Investment Trust has appointed Derek Teh Wan Wei as its new chief executive officer (CEO), effective Monday.
Tuju Setia Bhd has secured a construction contract from Sunway Bhd worth RM420 million, nearly six times the company’s market capitalisation of RM62.73 million.
Sunway Bhd said its unit Sunway Cochrane Sdn Bhd has proposed to establish a sukuk wakalah programme of up to RM2 billion to support its working capital and expansion plans.
Ho Hup Construction Company Bhd’s shareholders have rejected the re-election of the founding family’s last board member Datin Chan Bee Leng and blocked RM500,000 in directors’ fees at Monday’s annual general meeting.
Disclaimer
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.116228 | 4.149111 |
| EUR | 4.800323 | 4.805223 |
| CNY | 0.584269 | 0.584863 |
| HKD | 0.528729 | 0.532442 |
| SGD | 3.178741 | 3.201165 |