• Outperformed broader index. AmResearch's model portfolio declined -1.0% YTD.
• Decliners were led by JPG (-16% YTD). This is due to CPO (crude palm oil) prices falling to RM4.2k/tonne. However, we expect CPO price to recover as Indonesia is expected to implement B40 in 1.5 months time. PCHEM (-8% YTD) fell due to uncertainties relating to the progress of a potential feedstock discount at its Pengerang plant.
• Tech remains our largest sector Overweight. There was a mini sell down during the week, as strong US job reports reinforced expectations that interest rates will stay higher for longer.
• Property firms boosted by JS-SEZ. Property firms did well, after Malaysia and Singapore exchanged the signed agreement for the Johor-Singapore Special Economic Zone during the 11th Malaysia-Singapore Leaders Retreat on 7th Jan. The zone is expected to contribute US$28bil to GDP by 2030 (see here).
• Mixed week for data centre stocks. There was optimism on data centre projects, during the start of the week, benefitting Gamuda and SunCon. Unfortunately, gains reversed, after Bloomberg reported that President Biden's administrations plans an additional round of export restrictions on AI chips (see here). Malaysia is reportedly classified as a Tier 2 country, where limits on computing power that can be shipped will be imposed.
• We make no changes to our portfolio during the week. 41% of the portfolio continues to lean on value stocks, where we like sectors that are relatively unloved, after Malaysia delivered a blockbuster 2024.

Source: AmInvest Research - 13 Jan 2025