Previous Day Highlights

FBM KLCI closed lower due to cautious market. The benchmark index down 0.58% or 9.46 pts to close at 1,632.87. Gainers were seen in energy (+0.91%), REIT (+0.45%), and technology (+0.26%); while losers were seen in industrial products & services (-1.31%), transportation (- 0.96%), and property (-0.73%). Market breadth was negative with 580 losers against 449 gainers. Total volume stood at 2.64bn shares valued at RM1.97bn.

Major regional indices trended lower. HSI dropped 2.2%, to end at 19,623.32. SHCOMP slid 2.7%, to close at 3,262.56. STI up 0.2%, to close at 3,793.57. Japan Nikkei 225 down 1.0%, to close at 39,894.32.

Wall Street closed lower weighed down by Tesla shares. The DJIA dropped 0.36%, to end at 42,392.27. Nasdaq eased 0.16%, to close at 19,280.79. S&P500 eased 0.22%, to finish at 5,868.55.

News For The Day

Maxis, UTAR collaborate on 5G solutions

Maxis, Malaysia’s leading integrated telecommunications provider, has partnered with Universiti Tunku Abdul Rahman (UTAR) to jointly develop 5G solutions, with a focus on innovation in healthcare and education. By leveraging the combined strengths of academia and industry, Maxis and UTAR can co-create transformative solutions that contribute to technological advancements and societal progress. - The Edge Market

Terengganu-backed Eastern Pacific bags contract

Eastern Pacific Industrial Corp, a Terengganu government- linked company has secured a contract to provide pan Malaysia services to national oil-and-gas company Petronas. The five-year contract covers the provision of pan Malaysia maintenance, commissioning, and modification as well as hook-up and commissioning services under Package A2. The three-year contract, with potential extensions of one year and another subsequent year, covers Malaysia's east and west coasts, and southern regions. - The Edge Market

Sunway REIT completes Kluang Mall acquisition

Sunway Real Estate Investment Trust has completed the acquisition of Kluang Mall in Johor for RM158m. Kluang Mall is expected to provide an estimated initial net property income yield of 7%. The mall, now rebranded as Sunway Kluang Mall, is nearly fully occupied with over 130 tenants. The acquisition expanded Sunway REIT’s property portfolio to 28 assets, worth RM10.3bn. - The Edge Market

Awantec secures extension, provide cloud services to govt

Awanbiru Technology has secured at least a one-year extension to its cloud framework agreement with the government, under which it manages and delivers Google cloud services to the government. This extension underscores the continued and strengthened collaboration between all parties involved to support the government of Malaysia’s cloud initiatives, ensuring continued progress and innovation in cloud infrastructure and solutions. - The Edge Market

Peterlabs acquires land in Negeri Sembilan

Peterlabs Holdings is acquiring 2.7 acres of land in Seremban, Negeri Sembilan from N9 Matrix Development for RM7.4m. The acquisition represents a good opportunity to invest and own the property for the long-term benefit and interest of the group. The group has no plans on the usage nor rent out the property to any third parties at the juncture. - The Star

Our Thoughts

Wall Street closed lower amid a volatile session as high valuations remain a major stumbling block with an eye on Trump’s return. In addition, the latest job data showed that the US labour market is still strong and resilient hence the US 10-year yield stays elevated at 4.563%. On a broader perspective, Asian markets welcomed 2025 on a weak note as investors are faced with trepidation ahead of Trump’s return to the White House. As such, the HSI closed below the 20,000 mark over the uncertainty on China’s growth and Trump’s policy. Back home, the FBM KLCI also ended lower to just above the 1,630 level, suffering from indigestion after almost a 30-point gain since last Friday. Nonetheless, we believe this is only temporary as market valuations will play a pivotal role and Malaysian stocks are reasonably priced. Therefore, we expect the index to recover and hover within the 1,630- 1,640 range today.

Source: Rakuten Research - 3 Jan 2025

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

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