Previous Day Highlights

FBM KLCI closed higher from bargain hunting activities. The benchmark index was up 0.27% or 4.23 pts to close at 1,556.92. Majority of sectors were up with utilities (+1.3%), construction (+0.9%), and property (+0.9%), leading the gains; while losers were seen in plantation (-0.7%), and telecommunications (0.1%). Market breadth was positive with 508 gainers against 319 losers. Total volume stood at 1.47bn shares valued at RM1.92bn.

Some major regional markets were still closed for the CNY holidays. Meanwhile, STI soared 1.44%, to finish at 3,855.82. Nikkei 225 edged up 0.15%, to finish at 39,572.42.

Wall Street closed lower as Trump tariffs loom. The DJIA dropped 0.75%, to end at 44,544.66. Nasdaq eased 0.28%, to close at 19,627.44. S&P500 eased 0.50%, to finish at 6,040.53.

News For The Day

Cypark's floating solar farm achieves fully operation

Cypark Resources announced the COD of its remaining 30MW floating solar plant at Danau Tok Uban, Kelantan, completing Malaysia’s largest floating solar project (60MW). Delayed due to Covid-19 and floods, the project marks Cypark’s transformation under new leadership. The company aims to expand its renewable energy footprint, focusing on projects like the German Tech Park in Melaka and Lake Kenyir. – The Edge Market

Citaglobal to buy 1.6-acre land in KL for RM73m

Citaglobal is acquiring a 1.58-acre land on Jalan Tun Razak from Bank Islam Malaysia for RM73m. The company sees it as a strategic investment due to the land’s prime location, visibility, and connectivity. The purchase will be funded through internal funds and borrowings, with valuations from independent consultants. The land has been tenanted since 2019. – The Edge Market

Awantec sells office building for RM25m

Awantec’s subsidiary is selling an eight-storey office building in Sepang for RM25m under eight SPAs with Puncak Hartanah Intelek. The sale, part of its rationalization plan, aims to reduce borrowings and improve cash flow. The property, initially acquired for the terminated SKIN project, will generate RM3.4m in annual savings. The disposal is expected to be completed within 6 months. – The Star

Lebtech wins RM21m terraced project in Shah Alam

Lebtech secured a RM21m contract to develop 104 two-storey terraced houses in Shah Alam. Awarded by Brighton Land, the project began on Jan 28 and will be completed in 18 months. Lebtech expects a positive financial impact in FY2025. The company posted a net loss of RM122,000 for the nine months ended Sept 30, 2024, amid declining revenue and higher costs. - The Edge Market

Compugates plans RM1.36bn Cyberjaya project

Compugates Holdings is partnering with CPG Puncak for a RM1.36bn mixed-use development in Cyberjaya. Through its 70%-owned subsidiary, it will receive a minimum landowner’s entitlement of RM234m. The JV, a related party transaction, aligns with Compugates' strategy to expand its property business. Development starts after approvals, with completion expected in 13 years. – The Edge Market

Our Thoughts

Wall Street tumbled after Trump’s statement that tariffs on Canada, Mexico and China will commence 1st February. Nonetheless, many are still waiting for more details on the tariffs while also looking ahead of earnings from major companies. Meanwhile, the US 10-year yield inched higher at 4.543% as inflation remains a sticky issue. The Hong Kong Stock Exchange will resume trading today. On the home front, the FBM KLCI managed to close on a positive note following a weak performance over the last few days. No signs of any post-CNY rally as yet but certainly the local bourse seems ripe for some stock accumulation at this juncture. As mentioned, we believe some foreign funds would shift to better value propositions thus may re-look at Asia amid the heightening volatility on Wall Street. Already, we noticed gold has reacted with all-time high at almost USD2,800/oz. Therefore, we anticipate the index to trend within the 1,555-1,565 range today.

Source: Rakuten Research - 3 Feb 2025

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