Previous Day Highlights

FBM KLCI closed lower due to weakness in regional markets. The benchmark index dipped 0.92% or 14.96 pts to close at 1,614.83. Majority of sectors were negative with health care (-2.8%), technology (-2.1%), and consumer (- 1.1%) leading the losses; while gainers were seen in REIT (+0.1%), and utilities (+0.2%). Market breadth was negative with 827 losers against 285 gainers. Total volume stood at 3.59bn shares valued at RM3.05bn.

Major regional indices trended mixed. HSI declined 0.86%, to end at 19,279.84. SHCOMP increased 0.02%, to close at 3,230.17. Nikkei 225 eased 0.26%, to finish at 39,981.06. STI rose 1.41%, to close at 3,881.97.

Wall Street closed mixed as traders reviewed the Fed's December meeting minutes. The DJIA added 0.25%, to end at 42,635.20. Nasdaq eased 0.06%, to close at 19,478.88. S&P500 rose 0.16%, to finish at 5,918.25.

News For The Day

ITmax's Penang contract opens doors for more CCTV jobs

ITMax System's recent contract win in Penang opens new avenues for it to secure more CCTV contracts in the coming years, which will strengthen the company's recurring income streams and technological leadership. With the latest contract, the company has a total unbilled order book of RM1.5bn, to be recognised progressively up to July 2039. At the end of 3QCY24, ITmax’s tender book stood at about RM300- 400m.- The Star

Penang to kick off six water projects worth over RM1.8bn

The Penang Water Supply Corporation (PBAPP) will roll out six water supply related projects worth over RM1.8bn, as part of its efforts to address rising water consumption. PBAPP, a wholly owned subsidiary of PBA Holdings has confirmed that it has received a commitment from PAAB, which is fully owned by Minister of Finance, to collaborate on 2 additional water treatment plants, one of which has a capacity of 136 MLD in Sungai Perai for RM588m while the other has a capacity of 114 MLD in Sungai Muda for RM435m. - The Edge Market

HSS Engineers' consortium wins contract

HSS Engineers has announced that the partnership between its wholly-owned subsidiary HEB Energy and Unique Fire Holdings has secured a contract for the development of a 95MW large scale solar photovoltaic power plant in Hilir Perak, Perak. The consortium had the winning bid after submitting its proposal under Package 3, which covers the 30 MWAC to 500 MWAC category, and was subsequently selected as a shortlisted bidder by the EC. – The Star

Reservoir Link Energy's bags RM20m solar project

Reservoir Link's 45%-owned associate Founder Group has secured a RM20m contract for the construction of a floating solar farm located in Kuala Langat, Selangor. Given the growing demand for renewable energy solutions, the company look forward to continuously support Malaysia’s renewable energy goals as they promote a greener, more sustainable future. - The Star

MClean Technologies raises RM13.2m

MClean Technologies has completed its private placement, issuing 49m new shares at RM0.27 each, representing about 25% of the company's total issued shares, excluding treasury shares. The private placement exercise raised a total of RM13.2m, which will be used mainly to fund the acquisition of We Total Engineering’s (WTE) plastic business and as working capital of the plastic business. – The Edge Market

Our Thoughts

Wall Street finished mixed, fluctuating between minor gains and losses throughout the session, as investors prepared for the highly anticipated jobs report and assessed the potential risks of policies such as mass deportations and tariffs, which could spark a global trade war and fuel inflationary pressures. The Dow and S&P 500 gained 0.25% and 0.16%, respectively, while profit-taking in tech stocks caused the Nasdaq to slip by 0.06%. Over to Hong Kong, the HSI fell for a third day to a six-week low on concerns a robust US labour market will restrain the Federal Reserve from more interest-rate cuts this year. Back home, the FBM KLCI ended lower reflecting the overall negative performance of regional bourses. We observe a cautious market sentiment as investors brace for policy adjustments following US President-elect Donald Trump's swearing-in on 20th January. On the flip side, we see yesterday’s market decline provides an opportunity for investors to accumulate at lower prices, supported by appealing valuations. As such, we expect the FBM KLCI to trade within the range of 1,615–1,625 for today.

Source: Rakuten Research - 9 Jan 2025

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