Previous Day Highlights

13 January 2025 FBM KLCI closed higher due to bargain hunting activities. The benchmark index up 0.10% or 1.60 pts to close at 1,602.41. Gainers were seen in healthcare (+1.48%), transportation (+0.69%), and telecommunications (+0.41%); while losers were seen in property (-0.68%), technology (-0.45%), and consumer (-0.44%). Market breadth was negative with 530 losers against 443 gainers. Total volume stood at 2.52bn shares valued at RM2.42bn.

Major regional indices trended negative. HSI declined 0.92%, to end at 19,064.29. SHCOMP dropped 1.33%, to close at 3,168.52. Nikkei 225 eased 1.05%, to finish at 39,190.40. STI slid 1.58%, to close at 3,801.56.

Wall Street closed lower as market weigh jobs report. The DJIA dropped 1.63%, to end at 41,938.45. Nasdaq eased 1.63%, to close at 19,161.63. S&P500 eased 1.54%, to finish at 5,827.04.

News For The Day

Tenaga Nasional unit gets additional RM292m tax bill

Tenaga Nasional's subsidiary, TNB Western Energy, received a RM291.6m tax bill for 2018 from the IRB. TNB filed a judicial review on Dec 31, 2024, and secured an interim stay pending the leave hearing on April 14, 2025. Separately, TNB is contesting a RM1.39bn tax bill for 2020-2021, with an interim stay also granted by the High Court. - The Edge Market

Sime Darby Property fully acquires warehouses for RM232m

Sime Darby Property acquired full ownership of two logistics warehouses in Bandar Bukit Raja, Selangor, for RM232m. Previously co-developed with a Japanese consortium, the assets offer 700,000 sq ft of net lettable area. This move strengthens its industrial property portfolio and sustainable income growth. The project’s GDV was RM530m. - The Edge Market

OSK Property buys more land in Sungai Petani

OSK Property Holdings is acquiring 26.33 hectares of freehold land in Sungai Petani, Kedah, for RM14.2m. This move expands its land bank and aligns with its strategy to strengthen its property development presence. With an existing land bank of 1,977 acres valued at RM15.1bn, OSK expects sustained demand for well-located properties. Completion is expected by 2QFY25. - The Edge Market

Berjaya's Vincent Tan seeks new partner in KL-SG HSR bid

Berjaya Group seeks a new partner for its Kuala Lumpur- Singapore HSR bid after MRCB's exit. Founder Tan Sri Vincent Tan confirmed the consortium's proposal, including Berjaya Rail, KTM, and IJM. The project will be fully funded by the private sector and be financially viable, as the government focuses on developing “public utilities and public goods”, Economy Minister Mohd Rafizi Ramli said. – The Edge Market

Uzma gets RM100m contract extension

Uzma’s subsidiary, Setegap Ventures Petroleum, secured a RM100m contract extension from Petronas Carigali for coiled tubing services in East Malaysia. The one-year extension, effective Dec 1, 2024, follows two prior renewals. Uzma expects the contract to positively impact earnings and net assets for FY25. – New Straits Times

Metronic bags RM31m job to supply instrumentation systems

Metronic Global’s subsidiary, MAT JV, secured a RM31m contract from Gamuda M&E for instrumentation systems in the Sungai Rasau Water Supply Scheme. The project, set to complete by January 2027, will be Southeast Asia's largest water supply scheme. – The Edge Market

Our Thoughts

Wall Street finished lower as positive jobs data renewed inflation fears, strengthening the case for a cautious Federal Reserve approach to cutting interest rates this year. Three key major indices ended negatively with the DJIA and Nasdaq losing 1.63% respectively while S&P500 dived 1.54%. In Asia, key indices ended lower after The Treasury selloff intensified on expectations that the Federal Reserve will not cut interest rates again before July amid lingering inflation risks. Over to HK, the HSI fell 0.92% as investors remain cautious about the strength of China’s recovery, weighed down by sluggish consumption and escalating US-China trade tensions. As for the local bourse, the FBM KLCI ended on a positive note, supported by bargain hunting in banking and telco stocks. However, our outlook remains cautious, despite gains in the benchmark index, as external factors continue to weigh on investor sentiment. On the other hand, cheap valuations may attract investors to buy on dip, hence we anticipate the benchmark index to trend within the range of 1,600-1,610 for today.

Source: Rakuten Research - 13 Jan 2025

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