Previous Day Highlights

FBM KLCI closed lower due to lack of positive cues. The benchmark index was down 0.21% or 3.41 pts to close at 1,629.46. Gainers were seen in energy (+2.51%), property (+2.10%), and construction (+0.71%); while losers were seen in health care (-0.79%), technology (-0.52%), and plantation (-0.33%). Market breadth was positive with 631 gainers against 477 losers. Total volume stood at 3.7bn shares valued at RM2.87bn.

Major regional indices trended higher. HSI increased 0.7%, to end at 19,760.27. SHCOMP slid 1.6%, to close at 3,211.43. STI up 0.0%, to close at 3,801.83. Japan Nikkei 225 was closed for New Year’s holidays.

Wall Street closed higher on improving market sentiment. The DJIA added 0.80%, to end at 42,732.13. Nasdaq rose 1.77%, to close at 19,621.68. S&P500 rose 1.26%, to finish at 5,942.47.

News For The Day

VS Industry allocates RM150m capex for FY25

VS Industry has allocated RM150m in capital expenditure (capex) for the FY25 with the bulk of it earmarked for a facility in the Philippines, acquisition of a new factory in Indonesia and maintenance capex for Malaysia’s operations. The recent interest rate cuts in the United States provide a welcome boost to businesses and consumer sentiment. The group would continue to be excited by its venture in the Philippines given the potential and it has secured new orders with an expected aggregate value of RM1.5bn over the next two years. - The Star

MFM JV granted leave for judicial review

Malayan Flour Mills JV, Dindings Poultry Development Centre (DPDC), has been granted leave by the High Court on Jan 2, 2025, to judicially review the Malaysia Competition Commission's (MyCC) decision. The judicial review follows DPDC’s challenge to Competition Appeal Tribunal (CAT)’s decision, which rejected its request for a stay on a RM70m penalty imposed by the MyCC for alleged price-fixing cartel activities. - The Star

PNB's unit owns stake in Icon Offshore

Permodalan Nasional's unit, Yayasan Pelaburan Bumiputra (YPB), has now taken over the 5.02% substantial stake that Yayasan Ekuiti Nasional (YEN) held in offshore support vessel firm Icon Offshore via Ekuiti Nasional (Ekuinas). - The Edge Market

Petra Energy gets 4 Pan-Malaysia services contracts

Petra Energy has secured 4 contracts to provide Pan- Malaysia offshore services to the national oil-and-gas company Petronas and its production sharing contractors. Petra Energy, which mainly provides brownfield services for the upstream oil-and-gas industry, is one of the latest winners of the pan-Malaysia services contracts dished out under Petronas’ MCM and HUC initiatives. - The Edge Market

Swift Energy posts 4QFY9/24 net profit of RM5.2m

Swift Energy Technology which is slated to be listed on the ACE Market next Wednesday, made a 4QFY9/24 net profit of RM5.2m. No dividend was declared during the quarter under review. The group's revenue was mainly from its manufacturing segment, which contributed RM22m or 75.11% of total revenue. - The Star

Our Thoughts

Wall Street rebounded after a shaky start to 2025, attributed to broad based buying as traders are still confident of more upside unpinned by decent earnings growth. Meanwhile, the US 10-year yield edged higher at 4.602%. Over in Hong Kong, the HSI recovered from a bad start to 2025 as China regulators ramped up institutional support via a USD7.53bn swap facility in liquid assts to rebuild confidence. Back home, the FBM KLCI ended lower to just below the 1,630 level amid continued profit taking activities. Despite the absence of catalysts, we believe some stock accumulation to emerge as we expect foreign funds may be forced to re-look at Asia as a prime destination in view of the stuttering US market. As such, we anticipate the index to trend between the 1,630-1,640 range today.

Source: Rakuten Research - 6 Jan 2025

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