Previous Day Highlights

24 January 2025 FBM KLCI closed lower due to profit taking activities. The benchmark index was down 0.67% or 10.60 pts to close at 1,577.20. Majority of sectors were negative with energy (- 1.4%), technology (-1.4%), and construction (-0.9%) leading the losses; while gainers were seen in REIT (+0.1%), and plantation (+0.2%). Market breadth was negative with 671 losers against 283 gainers. Total volume stood at 3.24bn shares valued at RM2.77bn.

Major regional indices trended positively. HSI declined 0.40%, to end at 19,700.56. SHCOMP increased 0.51%, to close at 3,230.16. Nikkei 225 was up 0.79%, to finish at 39,958.87. STI rose 0.69%, to close at 3,807.30.

Wall Street closed higher as markets weighed on potential lower interest rates and oil prices. The DJIA added 0.92%, to end at 44,565.07. Nasdaq rose 0.22%, to close at 20,053.68. S&P500 rose 0.53%, to finish at 6,118.71.

News For The Day

YTL Corp, YTL Power plan free warrants

YTL Corp and YTL Power International have each proposed a bonus issue of free warrants, on the basis of one free warrant for every five shares held in the respective companies. The warrants are planned to be exercised at a discount to the share prices of each company —at 37% discount for YTL Corp, and a 39.5% discount for YTL Power based on their closing prices on 23 Jan 2025. - The Edge Market

Westports books record revenue and profit for FY24

Westports reported a record-high in 4QFY24 net profit with 25% increase YoY to of RM256.7m driven by higher container revenue. The group declared a dividend of 10.86sen per share. Looking ahead, the group expects Intra-Asia to remain its primary container volume contributor but forecasts low single-digit container volume growth for the next financial period. This projection reflects ongoing Middle East tensions, a localised focus by the new US administration, and slow growth momentum in developed countries. – The Edge Market

Sime Darby Property signs 5 anchor tenants

Sime Darby Property has signed 5 anchor tenants for its Kuala Lumpur Golf & Country Club (KLGCC) Mall, including Jaya Grocer, Serai Group’s flagship concept, ACE Hardware, Asia Ballet Academy, and Malaysia's first HarborLand kids playland. KLGCC Mall, opening in the 3QCY25, will cover about 600,000 sq. ft. and feature over 80 tenants. With nearly 70% of its space already leased, the mall will offer a community and family-focused retail experience. – The Star

MRCB to jointly undertake RM6.25bn GDV project

Malaysian Resources Corp is partnering Ipoh Sentral (ISSB) to jointly develop the Ipoh Sentral project, with an estimated GDV of RM6.25bn. The proposed development will not only be a modern transportation hub connecting various modes of transportation but will also upgrade the quality of life of the people through the integrated development. – The Edge Market

T7 Global secures pan-Malaysian services contract

T7 Global secured a contract with Hess Exploration and Production Malaysia BV for the provision of pan-Malaysian offshore maintenance, construction, modification and hook- up commissioning services. T7 Global is involved in the provision of engineering equipment packages, maintenance services and production platform services to the oil and gas industry. - The Edge Market

Our Thoughts

Wall Street maintained its uptrend with the S&P 500 notching another record high following Trump’s call to lower interest rates and cheaper oil prices. Nonetheless, the US 10-year yield edged higher at 4.646%. Over in Hong Kong, the HSI ended lower as investors were left unconvinced of China’s latest move to rejuvenate the financial markets via long term investments. Additionally, Trump’s tariffs on China by 1st February further spooked sentiment. On the home front, the FBM KLCI unexpectedly slid to below the 1,580 level as we reckon foreign selling has moved up a gear. Nonetheless, we believe reports that the YTL Group are offering free warrants as bonus issues may see some buying interests returning thus expect the index to hover within the 1,575-1,585 range today.

Source: Rakuten Research - 24 Jan 2025

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