Previous Day Highlights

FBM KLCI closed lower amid a weak regional performance. The benchmark index was down 0.59% or 9.52 pts to close at 1,597.33. Majority of sectors were negative with industrial products & services (-1.7%), property (-0.9%), and consumer (-0.7%) leading the losses; while gainers were seen in telecommunications (+0.1%), and utilities (+0.0%). Market breadth was negative with 704 losers against 346 gainers. Total volume stood at 3bn shares valued at RM2.42bn.

Major regional indices trended negative. HSI declined 0.48%, to end at 19,700.48. SHCOMP dropped 0.73%, to close at 3,361.49. Nikkei 225 eased 0.24%, to finish at 39,364.68. STI slid 0.55%, to close at 3,799.93.

Wall Street closed lower as traders assessed the latest economic data. The DJIA dropped 0.61%, to end at 43,449.90. Nasdaq eased 0.32%, to close at 20,109.06. S&P500 eased 0.39%, to finish at 6,050.61.

News For The Day

Poh Kong's 1QFY25 net profit up 12%

Poh Kong Holdings’ 1QFY25 net profit rose 12.3% YoY to RM21.3m thanks to the overall uptrend in gold prices. The Malaysian economy is expected to remain resilient through 2025, supported by robust domestic consumption, increased EPF withdrawals, and higher government spending. Improved household income is anticipated to boost demand for gold and gold products. - The Edge Market

PT Resources 2QFY25 net profit records lowest quarterly

PT Resources Holdings’ 2QFY25 earnings dropped YoY to RM1.7m, impacted by weaker local sales and higher administrative expenses, marking its worst performance since listing in August 2022. Facing ongoing challenges from geopolitical tensions and supply chain disruptions, particularly in China, the company is introducing value-added seafood products and strengthening its supply chain with plant-based fish feed collaboration. - The Star

KNM's Borsig group secures €60m multi-currency facility

KNM Group’s German-based subsidiaries in the Borsig Group have secured a new credit facility of €60m (RM280.4m), enabling them to continue operations as usual. The facility has a tenure of three years, with two options for extensions of one year each. The group, which slipped into PN17 status in October 2022, has applied for a time extension until April 30, 2025 to submit its regularisation plan to Bursa Malaysia. – The Edge Market Jati Tinggi to install solar panels at Public Bank's branches Public Bank and Jati Tinggi Group have signed a memorandum of understanding (MOU) for a project valued at RM14.9m. Jati Tinggi Holding, will install photovoltaic (PV) solar panel systems across 135 Public Bank branches, covering 333 lots of properties. Public Bank is dedicated to lead by example in the financial sector by integrating sustainable practices into our operations and forms a key part of its broader ESG strategy. - The Star

Scanwolf wins RM6m construction job

Scanwolf Corp secured a RM6m contract from Golden Rainbow View for the supply, delivery, construction, and completion of sales gallery works, excluding interior design. The project is expected to be completed within six months of building plan approval and will contribute positively to Scanwolf's earnings for the financial year ending June 30, 2025. – The Edge Market

Our Thoughts

Wall Street closed broadly lower as traders are now worried that Trump’s as president may not be as positive as initially expected amid the elevated interest rates and heightened uncertainties. In view of the highly anticipated 25bps rate cut anytime soon, the US 10-year yield eased to 4.395%. As for Hong Kong, the HSI declined further as investors remained disillusioned over the lack of details from Beijing’s recent mention of easing measures policy, while waiting for the Fed decision to adjust interest rates soon. On the local front, the FBM KLCI finally relented from the continuous foreign fund selling as it closes below the 1,600 level. Admittedly, it was another dismal day for regional markets, especially those within the SEA region. The recent weakness of the local bourse has rendered valuation to a more alluring level estimated at 14.7x currently based on 2025 numbers. For today, we expect the index to hover within the 1,595-1,605 range.

Source: Rakuten Research - 18 Dec 2024

To sign up for an account: http://bit.ly/40BNqKI

[Youtube Tutorial] Account Opening & Enable Foreign Equity: http://bit.ly/3I5Jzxo