Opening Daily Highlight
Local
KLCI Advances as Global Markets Stay Firm
Wed, 24-Dec-2025 07:18 am
by Research Team • Apex Research

Malaysia Market Review: The FBM KLCI closed 0.3% higher to register a fourth straight day of gains, with lower liners mirroring the performance. Market breadth turned marginally negative with 487 decliners edging out 462 advancers as foreign investors remained net sellers. Sector wise, Property (+0.6%), Utilities (+0.6%) and Industrial Products (+0.4%) led gains, while Transportation and Logistics (-0.7%) and Construction (-0.2%) were the main laggards.

 

Global Markets Review: Wall Street extended its upward momentum overnight, led by a 0.6% gain in the Nasdaq, while the S&P and Dow Jones rose 0.5% and 0.2% respectively. The rally was underpinned by stronger-than-expected macro data, with the US economy expanding at an annualised 4.3% in 3Q25, its fastest pace in two years, reflecting resilient consumer spending and the rollback of some of the earlier tariffs. That said, sentiment indicators were less supportive, as the Conference Board reported a further decline in US Consumer Confidence in December, signalling rising concerns over employment and income prospects. Meanwhile, European shares gained with the STOXX 600 up 0.3%, lifted largely by the pharmaceuticals sector as Novo Nordisk received FDA approval for its obesity pill. Asian equities were mixed, with the Shenzhen Composite Index rising 0.3%, the SET gaining 0.1% and the Nikkei ending flat, as the US delays the announcement of China chip tariffs until June 2027.

 

Market Outlook. We expect the local bourse to remain on a positive trajectory, supported by improved global sentiment following strong US GDP data. While the FBM KLCI has shown resilience, the softer performance across the broader market suggests investors remain selective. Investors will keep a keen eye on US initial jobless claims later today for further indications of the Fed’s policy direction. Buying interest in Malaysian equities is likely to be supported by year-end institutional rebalancing and selective accumulation in heavyweight and domestically oriented stocks.

 

Sector focus. We remain positive on selective power-ancillary and renewable energy names, supported by long-term energy transition trends that underpin earnings resilience and continue to attract investor rotation amid heightened global trade uncertainty. In addition, improving global tech sentiment has helped stabilise the AI theme, which could provide a near-term sentiment tailwind for selected local technology and AI related stocks.

 

Technical Commentary: The FBM KLCI continued on its uptrend after late session gains, testing its immediate resistance while holding above all major EMAs. Indicators remained positive, with the MACD line trading above the signal line and the RSI remaining above 50. The next resistance is located at 1,680, while support is envisaged around 1,640.

 

Company News (source: various)

PETRONAS Gas Bhd said it will prepay up to US$173.64 million (RM705.67 million) in cash for jetty usage fees at its Pengerang liquefied natural gas (LNG) terminal, covering the remaining 18 years of the contract period.

 

Citaglobal Bhd said its consortium has secured Tenaga Nasional Bhd as the long-term off-taker for a 200-megawatt solar project at Chereh Dam in Pahang.

 

Tanco Holdings Bhd has entered into a joint-venture agreement with China-backed construction firm CNECC Engineering (Malaysia) Sdn Bhd (CEMSB) to jointly bid for logistics warehouse and mega-storage construction projects.

 

Clean energy player Solarvest Holdings Bhd is acquiring a 22% stake in ACE Market-listed Solar District Cooling Group Bhd from its controlling shareholders, managing director Kong Kam Onn and his wife, executive director Liuk Ing Hong, for RM41.96 million in cash.

 

Automotive solutions provider EP Manufacturing Bhd has cancelled plans to jointly develop a 30-storey commercial project in Kota Kinabalu after the project’s turnkey contractor, Bina Puri Properties Sdn Bhd — a wholly-owned subsidiary of Bina Puri Holdings Bhd — was wound up.

 

Jasa Kita Bhd said it has entered into a deal with the spouse of its recently appointed executive chairman, Datuk Yasmin Mahmood, to acquire a 55% stake in a firm that owns a parcel of industrial land in Pahang, in a transaction valued at RM38.34 million.

 

Agrochemical company Hextar Global Bhd is acquiring three fertiliser-related companies in a RM120 million related-party cash transaction to strengthen and expand its agriculture business.

 

ITMAX System Bhd has won a RM42 million contract from the Kuala Lumpur City Hall (DBKL) to operate and maintain a smart traffic light system in the city for three years.

 

Johor Plantations Group Bhd is acquiring the remaining 45% stake in JPG Greenergy Ventures from MTC Orec Sdn Bhd, giving it full ownership of the bioenergy company.

 

CBH Engineering Holding Bhd has secured two contracts worth a total of RM130 million for electrical works to extend a 275-kilovolt consumer landing station at a data centre.

 

Kedah-based healthcare services provider PMCK Bhd reported a net profit of RM5.83 million for its second quarter ended Oct 31, 2025 (2QFY2026), on revenue of RM25.42 million.

 

Kimlun Corp Bhd has secured three construction contracts in Johor through its wholly-owned subsidiary, Kimlun Sdn Bhd, with a combined value of RM617.73 million.

 

UOA Real Estate Investment Trust has postponed its unitholders’ meeting, which was scheduled for Wednesday, after unitholders passed a motion to adjourn.

Sentiment: Positive
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