Market Review & Outlook
Malaysia Market Review: The FBM KLCI rebounded from early weakness on Friday, edging up 0.17% to close at a more than six-year high of 1,719.99. The late-session recovery was supported by a firmer ringgit, which lifted investor sentiment. Sector performance was mixed, with Property (+1.08%) and Finance (+0.23%) leading gains, while Technology (-1.65%) and Energy (-1.16%) were the main laggards.
Global Markets. Wall Street closed mixed overnight, with the Nasdaq (+0.28%) and S&P 500 (+0.03%) edging higher, while the Dow (-0.58%) declined. Markets recovered from early losses, supported by easing inflation expectations, lower bond yields and selective buying in mega-cap technology stocks, though gains were tempered by weakness in industrials and a sharp sell-off in Intel following softer guidance. In Europe, equities closed slightly lower, with the STOXX 600
(-0.09%) easing amid cautious positioning. In Asia, markets finished firmer, led by gains in Japan’s Nikkei 225 (+0.29%) and South Korea’s KOSPI (+0.76%), while China’s Hang Seng (+0.45%) and Shanghai Composite (+0.33%) posted modest advances amid selective risk-taking.
Market Outlook. We expect the FBM KLCI to trade with a cautious to mildly constructive bias today as investors remain selective ahead of key US macro events. Attention will first turn to the US Conference Board consumer confidence reading on 27 January for signals on household sentiment and spending momentum, followed by the US Federal Reserve’s interest rate decision on 29 January, which will be closely watched for policy guidance. Domestically, continued institutional participation and steady foreign interest should provide downside support, particularly for large-cap defensives and earnings-visible names, although upside may be capped in the absence of a fresh catalyst.
Sector focus.We continue to favour domestic-oriented defensives, particularly consumer, utilities and power-ancillary names, given their earnings visibility and relative insulation from external volatility. Renewable energy plays also remain in focus, supported by government-led decarbonisation initiatives, while current valuations should continue to attract institutional and foreign interest.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI formed a bullish candle with a long upper shadow, signalling buying strength into the close despite profit-taking pressure near resistance. Indicators remained positive, with the MACD line trading above the signal line while the RSI remained above 50. The next resistance is located at 1,750, while support is envisaged around 1,685.
Company News (source: various)
Hartanah Kenyalang Bhd secured a RM184.3m contract from the Sarawak Public Works Department to undertake upgrading and repair works for the Sarawak Stadium. The 12-month project will commence this month and run until Jan 2027.
Citaglobal Bhd won a contract of up to RM48.5m to provide Wi-Fi network facilities at public higher education institutions nationwide. The project comprises an eight-month implementation phase followed by a three-year support and warranty period, under its appointment by MCMC as the universal service provider.
Capital A Bhd completed its PN17 regularisation exercise following the lodgement of a RM5.51bn capital reduction with the Registrar of Companies. This marks the final step of its restructuring, which included the disposal of its aviation businesses to AirAsia X Bhd and the distribution of AAX shares to Capital A shareholders.
Sin-Kung Logistics Bhd initiated arbitration proceedings against Teleport Everywhere Sdn Bhd, alleging a breach of exclusivity under a 2023 trucking services agreement for AirAsia cargo operations after Teleport adopted a multi-provider model.
YNH Property Bhd exercised its option to defer coupon payments on selected tranches under its RM750m perpetual securities programme, covering payments due in Jan and Feb 2026, as part of efforts to conserve cash and strengthen liquidity.
EG Industries Bhd plans to invest about RM40m to build a new manufacturing facility at Thailand’s 304 Industrial Park, driven by expected demand from US customers in energy storage, EV-related products and data centre applications.
GuocoLand (Malaysia) Bhd announced the resignation of its managing director Noorbaizura Hermeyney effective Jan 24, with chief operating officer Raymond Chin assuming responsibility for day-to-day operations.
Sentral REIT recorded a 3.4% YoY decline in 4QFY25 net property income to RM35.5m due to higher operating expenses and MFRS 16 lease accounting. A final distribution per unit of 2.99 sen was declared, payable on Feb 27.
Poh Kong Holdings Bhd expects FY2026 earnings to outperform, supported by sustained high gold prices and strong demand for gold investment products, which continue to offset softer jewellery demand.
DKSH Holdings (Malaysia) Bhd received an extension until Jan 30 to respond to its parent’s RM6.15 per share privatisation offer, which faces opposition from a key minority shareholder citing valuation concerns.
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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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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 3.990029 | 4.022161 |
| EUR | 4.698682 | 4.703547 |
| CNY | 0.575203 | 0.575806 |
| HKD | 0.511905 | 0.515524 |
| SGD | 3.120382 | 3.142438 |