Market Review

The FBM KLCI closed higher at 1,580.5 (+0.5%) for its third straight s ssion of gains, as investors' sentiment improved on expectations f a potential delay in US Presi ent D nald Trump's tariff hike proposals. Among th index constituents, YTL (+6.3%), SUNWAY (+5.4%), and PMET L (+4.0%) were the top 3 gainers. Sector-wise, Construction (+2.0%) and Technology (+1.5%) outperformed, driven by r newed optimis i data centre-related and AI-li ked stocks, with Industrial Products & Servic s (+1.5%) also contributing to the rally. In short, the overall m rke breadth remained positive, with 665 gainers outpacing 372 decliners.

Economics

US: Trump holds off on immediate tariffs but plans trade overhaul

President Donald Trump did not immediately impose tariffs on Monday as previously promised but directed federal agencies to "investigate and remedy" persistent US trade deficits and unfair trade practices and currency manipulation by other countries. Trump, sworn in on Monday, said in his inaugural address the US would collect "massive amounts" of income from foreign trade duties as his administration works to rebuild American industry. "Tariffs are going to make us rich as hell," Trump later told supporters at Capital One Arena in Washington. "It's going to bring our country's businesses back that left us." His first day reprieve signals a possibly more deliberative approach to imposing tariffs, an issue that has shaken global policymakers and investors, and prompted a relief rally in global stocks and key foreign currencies against the dollar. (Bloomberg)

EU: ECB's Villeroy says it's plausible to cut at each meeting

It's possible that the European Central Bank will lower interest rates at each of its upcoming meetings, according to governing council member Francois Villeroy de Galhau. Officials' task of bringing inflation back to 2% is on track, despite President Donald Trump's threats of trade tariffs, the Bank of France chief told Bloomberg Television in Davos. That may allow the deposit rate to be lowered to 2% by summer from 3% now, he said. "There's a plausible consensus that we will go on acting at each meeting, which we have successfully practiced since September," Villeroy said Tuesday. (Reuters)

UK: Wage growth hits six-month high ahead of crunch central bank meeting

UK employment plunged in the weeks after Labour increased payroll taxes in its first budget, reinforcing the case for the Bank of England (BOE) to continue cutting interest rates. Data based on tax records showed the number of employees on payroll at the lowest level in over a year after falling by 47,000 in December - the largest drop since the end of 2020 when the country was under Covid restrictions. It was a second consecutive decline that will add to concerns that Labour's £26bn (US$31.9bn or RM142.47bn) hike in employers' national insurance is causing firms to shed workers. Signs of a weakening labour market are a headache for Chancellor of the Exchequer Rachel Reeves but pave the way for the BOE to deliver a third rate cut in just over two weeks' time. Separate figures showed wage growth picking up in the three months through November, though forecasters pointed to strong base effects lifting the figures. (Bloomberg)

China: Vice premier vows to import more after dodging US tariffs

Chinese Vice Premier Ding Xuexiang said China will import more products, hours after US President Donald Trump left the economy out of countries he's looking to hit with tariffs imminently. "We don't seek a trade surplus. We want to import more competitive, quality products and services to promote balanced trade," Ding said on Tuesday at the annual World Economic Forum in Davos, Switzerland, without naming any country. Ding's comments came shortly after Trump avoided committing to a plan for Chinese tariffs following his inauguration on Monday. Instead, he focused on levies on Canada and Mexico, signalling plans to impose previously threatened tariffs of as much as 25% by Feb 1. (Bloomberg)

Thailand: Cabinet approves collection of carbon tax

Thailand's cabinet on Tuesday agreed to levy a carbon tax of 200 baht (US$5.88 or RM26.20) per tonne of carbon emissions, a deputy finance minister said, as part of the country's efforts to reduce greenhouse gas emissions. The tax, however, will be included in the existing oil tax and will not affect the retail price of oil and oil products, Paopoom Rojanasakul said in a statement. The measure is a change in the internal structure of the excise tax that calculates the carbon price embedded in the oil tax, he said. "The carbon price setting will not affect the cost of the industrial sector and will not affect retail oil prices," he added. The move seeks to help change consumer behaviour to be environmentally friendly and assist in international trade negotiations that prioritise environmental impacts, Paopoom said. (Reuters)

Companies

Mah Sing: Buys RM32m land for third project in Sentul

Mah Sing Group Bhd is purchasing a 2.78-acre prime land in Sentul here for RM32m, where it plans to develop its new RM283m residential development project dubbed M Aria. The new project marks Mah Sing's third development in Sentul and is estimated to carry a gross development value (GDV) of RM283m, according to the property developer's bourse filing. Mah Sing's wholly owned unit Klassik Tropika Development Sdn Bhd has inked a sale and purchase agreement with vendors for the land purchase. The land purchase is expected to be completed by the second half of 2025. (The Edge)

Pansar: Bags RM478m highway construction job in Sarawak

Pansar Bhd has secured an RM477.69m highway construction job from the Sarawak Public Works Department. The contract, awarded to its wholly owned subsidiary Perbena Emas Sdn Bhd via an invited tender, involves the design and construction of the Serian-Gedong-Samarahan dual carriageway highway. Specifically, this is for Package 1 (Simpang Rayang/Munggu Kopi/Tanah Puteh/Sebemban to Gedong District), focusing on Section 1B, which entails a new road from Simpang Tanah Puteh to Gedong Isthmus, according to its bourse filing on Tuesday. The scope of work includes the development of an 8.5km of a new four-lane dual carriageway, including two bridges, an autonomous rail transit (ART) reserve, bicycle tracks, utility corridors, road lighting, road furniture, and signage. (The Edge)

MRCB: Wins bid for Ipoh Sentral, say sources

Malaysian Resources Corp Bhd is said to have won the bid for the Ipoh Railway Station Integrated Development Plan (iRide) project, which will be inked on Thursday (Jan 23) in Ipoh, Perak, according to sources. There were two consortiums shortlisted by the Railway Assets Corporation (RAC) to develop iRide, Transport Minister Anthony Loke was reported saying in September last year. The iRide project, which is based on the transit-oriented development (TOD) concept, will see the development of almost 70 acres of RAC land behind Ipoh Railway Station, which will be rebranded as Ipoh Sentral. The development will include affordable housing, hotel, commercial, green spaces, and educational institutions. (The Edge)

Keyfield: Completes installation of Malaysia's largest solar PV system on offshore vessel

Oil and gas services firm Keyfield International Bhd has completed its first solar photovoltaic (PV) system onboard its largest vessel, Keyfield Wisdom. The project, which integrates a 121.2kWp solar hybrid system with battery energy storage (BESS), reduces the vessel's reliance on onboard generator sets, thereby reducing its fuel consumption and cutting carbon emissions, Keyfield said in a statement on Tuesday. The group said that the Keyfield Wisdom, a 500-men accommodation work barge, has been certified by the Malaysia Book of Records for hosting the most solar panels with battery storage on an offshore vessel. (The Edge)

Taghill: Bags RM58m commercial complex construction job

Taghill Holdings Bhd's said it has secured a RM58m contract for construction work on an 18-storey commercial complex in Ipoh. The construction and ICT solutions company, formerly known as Siab Holdings Bhd, said the 18-storey commercial complex comprises 271 hotel rooms, offices, restaurants, cafes, function rooms, banquet halls and swimming pools. The contract, awarded by One Roof Development Sdn Bhd, will span 16 months from March 1, 2025, with a target completion date of June 30, 2026, said Taghill in a bourse filing on Tuesday. (The Edge)

KTI Landmark: Explores affordable housing project in Kota Kinabalu

ACE Market-listed KTI Landmark Bhd is exploring a potential affordable housing project in Kota Kinabalu, Sabah, to be jointly developed with a state government agency. KTI's wholly owned unit KTI Sdn Bhd accepted a letter of intent in relation to the project from Sabah's Housing and Town Development Authority on Tuesday, according to the integrated property developer's bourse filing. The project comprises developing 5,000 units of houses atop 57.25 hectares of land in Sepanggar district, subject to relevant authorities' approvals on the development and building plans. (The Edge)

YNH: To sell AEON Mall Seri Manjung to Sunway REIT for RM138m

YNH Property Bhd is disposing of a two-storey shopping centre, AEON Mall Seri Manjung in Perak, to Sunway Real Estate Investment Trust for RM138m. A sale and purchase agreement was inked between YNH Property's wholly owned units Kar Sin Bhd and YNH Hospitality Sdn Bhd, with RHB Trustees Bhd, the trustee of Sunway REIT, for the asset sale, according to the property developer in a bourse filing on Tuesday. The property is 100% leased to supermarket chain operator AEON Co (M) Bhd, whose lease will last another 13 years until Dec 3, 2037. For the financial year ended June 30, 2024, AEON Mall Seri Manjung logged a gross property revenue of RM10.4m. (The Edge)

Ann Joo: Ordered to pay Amsteel Mills RM11.98m over supply contract dispute

Ann Joo Resources Bhd has been ordered by the High Court to pay Amsteel Mills Sdn Bhd RM11.98m in general damages over a supply contract dispute. The general damages claim was the only claim the court allowed in Amsteel's suit against Ann Joo's wholly owned unit, Ann Joo Steel Bhd, over the alleged wrongful termination of a supply contract and addendum, according to Ann Joo, a steel billet, bar and wire rod producer, in a bourse filing on Tuesday. Other claims by Amsteel, a unit of Lion Corp Bhd, which were dismissed by the court, including RM14.96m for loss of profit, and RM885,200 in alternative damages. Amsteel was also unsuccessful in seeking a court declaration that it is entitled to loss of profits for Ann Joo Steel's failure to proceed with the contract, and restitution or an account of profits for unjust enrichment by the unit. (The Edge)

Source: Mercury Securities Research - 22 Jan 2025