Previous Day Highlights

FBM KLCI closed lower as investors continued to offload shares. The benchmark index down 0.91% or 14.34 pts to close at 1,562.12. Majority of sectors were negative with construction (-4.8%), technology (-3.3%), and property (- 3.1%) leading the losses; while gainers were seen in plantation (+0.4%), and financial services (+0.5%). Market breadth was negative with 964 losers against 193 gainers. Total volume stood at 3.41bn shares valued at RM3.07bn.

Major regional indices trended mixed. HSI gained 0.34%, to end at 19,286.07. SHCOMP dropped 0.43%, to close at 3,227.12. Nikkei 225 eased 0.08%, to finish at 38,444.58. STI slid 0.43%, to close at 3,772.58.

Wall Street closed higher as CPI assuages fears of inflation re-acceleration. The DJIA added 1.65%, to end at 43,221.55. Nasdaq rose 2.45%, to close at 19,511.23. S&P500 rose 1.83%, to finish at 5,949.91.

News For The Day

Exsim Group enters JV agreement with Liew Yin Yin Group

Exsim Ipoh City, a member of Exsim Group, has entered into a JV agreement with Liew Yin Yin Land for the development of a 1.291-acre tract of land in Ipoh which has an estimated gross development value of RM230m. - The Edge Market

EPF's investment in MAHB

In a statement, the EPF said the recent decision to make a voluntary general offer for MAHB shares at RM11 per share as part of a consortium reflects a separate, long-term strategic plan aimed at achieving sustainable growth and returns. The EPF investment decisions, including the trading of Malaysia Airports Holdings shares, align with its broader investment objectives and are aimed at generating income required for dividend payments during the financial year. – The Star

F&N well capitalised to manage rising energy and wage

costs Fraser & Neave Holdings is well capitalised to navigate rising energy and wage costs. Looking ahead to 2025, the company expect margins to remain tight considering tax rebate rollbacks in Thailand and higher start-up costs for AgriValley. The CEO He believes the company will remain vigilant and responsive to market shifts, geopolitical uncertainties and macroeconomic changes. – The Edge Market

Sunview explore developing solar power plant in Chuping

Sunview Group 60%-owned indirect subsidiary Sirage Energy has partnered with Sirage Skyvast Holdings to explore collaboration to undertake a solar power generation plant for an off-grid technology park — Perlis Advance Tech Park (PATP) located in Chuping, Perlis. - The Edge Market

Southern Score Builders secures RM78m pond project

Southern Score Builders has secured a RM78m contract for the proposed upgrading works of a detention pond in Kuala Lumpur. the new contract will bring the company’s outstanding order book to RM1.3bn. – The Star

SC Estate Builder consortium wins contract

SC Estate Builder via its JV with Anjung Meriah has been shortlisted by the Energy Commission to develop a four- megawatt (MW) large-scale solar photovoltaic project in Arau, Perlis. The company said the award aligns with its mission to build 2000 to 3000 MW solar power plants, as well as up to 3,000 units of affordable houses with solar power on the roofs. – The Star

Our Thoughts

Wall Street rebounded with a vengeance after December’s CPI came in slightly lower than expected thus allowing some breathing space that rate hike may be off the table for now. As a result, the US 10-year yield eased to below the 4.7% level to 4.655%. In Hong Kong, the HSI maintained its uptrend as investors are taking a positive stance ahead of some key economic data from China (economic growth for 4Q24) and the US CPI figure that will shape the outlook for monetary policies. Back home, the FBM KLCI continued to be pressured by foreign selling as it ended just above the 1,560 mark. We suspect foreign funds may be off-loading their position ahead of Trump’s inauguration, thereafter, gauge his move on tariffs. As we moved half-way into January, the index has already lost 5%. Nonetheless, we believe this presents an excellent opportunity to accumulate shares thus expect the index to hover within the 1,565-1,580 range today.

Source: Rakuten Research - 16 Jan 2025

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