Previous Day Highlights

FBM KLCI closed lower as profit-takers outpaced bargain- hunters. The benchmark index was down 0.22% or 3.47 pts to close at 1,573.73. Majority of sectors were negative with utilities (-2.7%), construction (-2.0%), and property (-1.0%) leading the losses; while gainers were seen in telecommunications (+0.5%), and financial services (+0.2%). Market breadth was negative with 654 losers against 314 gainers. Total volume stood at 3.01bn shares valued at RM3.04bn.

Major regional indices trended mixed. HSI gained 1.86%, to end at 20,066.19. SHCOMP increased 0.70%, to close at 3,252.63. Nikkei 225 eased 0.07%, to finish at 39,931.98. STI slid 0.06%, to close at 3,804.26.

Wall Street closed lower dragged by technology stocks. The DJIA dropped 0.32%, to end at 44,424.25. Nasdaq eased 0.50%, to close at 19,954.30. S&P500 eased 0.29%, to finish at 6,101.24.

News For The Day

Gamuda to build hydroelectric storage system in Australia

Gamuda, via the Gamuda-Ferrovial JV, signed an early contractor involvement (ECI) deal with Capricornia Energy Hub (owned by Copenhagen Infrastructure Partners) for the Capricornia Pumped Hydroelectric Storage System in Central Queensland, Australia. The project will supply power to 900,000 homes, featuring a 750MW hydro system with 12GWh storage. The ECI phase aims to finalise the EPC contract within five months. – The Star

Genting Plantations disposed Melaka land for RM333m

Scientex is acquiring 528.49 acres in Paya Rumput, Melaka, for RM333.8m from Genting Plantations to expand its landbank and support its goal of building 50,000 affordable homes by 2028. The acquisition, funded via internal funds and borrowings, is expected to enhance Scientex’s earnings from future developments. Genting Plantations will record a RM284.92m gain from the sale, with minimal impact on its plantation activities. – The Edge Market

AmanahRaya Reit drops RM42.5m Cyberjaya building sale

AmanahRaya Reit has terminated the RM42.5m sale of the Contraves Building in Cyberjaya due to the buyer's inability to meet conditions by Dec 26, 2024. The termination will not impact the Reit’s performance. AmanahRaya Reit remains focused on acquiring sustainable assets to enhance portfolio value, optimise distribution per unit, and drive long-term growth for unitholders. – New Straits Times Taghill Holdings unit bags project worth RM152m Taghill Holdings' subsidiary, Taghill Projects, has secured a RM152m contract to develop a commercial strata scheme in Kuantan, Pahang. The project includes four business blocks, a 456-unit serviced apartment block, podium parking, and supporting facilities. Scheduled to run from Feb 2025 to June 2027, it is expected to boost Taghill's earnings and net assets throughout the project duration. - New Straits Times

ICT Zone Asia gets greenlight for ACE Market transfer

ICT Zone Asia has secured Bursa Malaysia's approval to migrate from the LEAP Market to the ACE Market by 2Q25. The tech financing firm will offer a 23.62% stake via IPO, using proceeds for ICT hardware/software acquisition and marketing. With an expanded share capital of 795.45m shares, the move reflects its growth ambitions. Malacca Securities advises and underwrites the IPO. - The Edge Market

Our Thoughts

Wall Street took a breather as all 3 major indices ended lower after a solid run-up recently. Technology stocks led the decline following Texas Instruments disappointing guidance along with other analog chip manufacturers which fell sharply lower. Meanwhile, the US 10-year yield eased slightly to 4.617%. As for Hong Kong, the HSI rebounded to above the 20,000 mark as prospects that the US-China relationship is warming up. On the home front, the FBM KLCI continued with its erratic performance as it closed below the 1,575 level. We presumed that foreign sellers again being the culprits with the much-touted CNY rally to be just an illusion at the current moment. Nonetheless, Moody’s latest reaffirmation of the nation’s sovereign credit at “A3” being upper medium grade with low credit risk illustrates that Malaysia remains at investable grade. For today, we expect the index to hover within the 1,570-1,580 range.

Source: Rakuten Research - 27 Jan 2025

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