Previous Day Highlights

FBM KLCI closed lower tracking the weak overnight US market performance. The benchmark index was down 0.21% or 3.29 pts to close at 1,553.63. Majority of sectors were negative with industrial products & services (-1.0%), energy (-0.9%), and transportation (-0.6%) leading the losses; while gainers were seen in health care (+2.5%), and construction (+1.0%). Market breadth was negative with 589 losers against 383 gainers. Total volume stood at 2.08bn shares valued at RM1.76bn.

Major regional indices trended negatively. HSI decreased 0.04%, to end at 20,217.27. STI slid 0.8%, to finish at 3,826.47. Nikkei 225 drop 2.7%, to finish at 38,520.09. SHCOMP remains closed for the CNY holidays.

Wall Street closed lower as Trump delayed tariffs on Mexico and Canada. The DJIA dropped 0.28%, to end at 44,421.91. Nasdaq eased 1.20%, to close at 19,391.96. S&P500 eased 0.76%, to finish at 5,994.57.

News For The Day

Sunway REIT net profit rises to RM524.8m

Sunway Reit’s 4QFY24 net profit surged 55% YoY to RM524.8m driven by contributions from 9 newly acquired properties during the year, as well as strong performance in the retail and hotel segments, complemented by stable results from other segments. The manager proposed a distribution per unit (DPU) of 5.34sen for 2HFY24, resulting in a total DPU of 10sen for the full financial year. – The Star

F&N posts record high quarterly sales

Fraser & Neave Holdings’ 1QFY9/25 revenue soared to a record high of RM1.39bn, driven by festive sales in Malaysia, coupled with sales recovery in Thailand and increased sales in the Indochina market due to the availability of fresh milk supply. However, net profit fell marginally to RM169m YoY dragged by higher tax expense, which nearly doubled to RM70.1m. Nevertheless, the company said it remains vigilant and recognises the risks arising from geopolitical uncertainties, volatility in raw material prices, and fluctuations in foreign currency. – The Edge Market

KJTS to buy Malakoff’s energy-efficient cooling unit

KJTS is to acquire the entire equity stake in Malakoff’s energy- efficient cooling unit Malakoff Utilities for RM65.5m in cash. KJTS chairperson Azura Azman said the acquisition will “significantly” increase KJTS’ total revenue and broaden the company’s service capabilities. The company are confident in unlocking greater efficiencies and long-term value, reinforcing commitment to sustainable and high- performance cooling solutions. - The Edge Market

AZRB bags RM63m bridge construction job

Ahmad Zaki Resources announced that it has secured a RM63.4m contract to undertake the construction of a bridge at Kampung Binjai in Kuala Lipis, Pahang. The group received the letter of award from the Public Works Department. AZRB said the latest project will support the group’s ongoing strategic plans, continued growth and success over the next 3years. – The Edge Market

KGW Group partners with US-based AGS

KGW Group has announced a transformative partnership with US-based Accelerated Global Solutions Inc (AGS), following AGS’s acquisition of a 15% equity stake in KGW. The collaboration with AGS and SpeedX Logistics, a last-mile delivery specialist, allows KGW to integrate resources and expertise, creating a complete logistics solution for global shippers. – The Star

Our Thoughts

Wall Street closed off the day’s lows as Trump’s Tariffs Typhoon on both Mexico and Canada will take a 1-month pause after a fruitful discussion between the leaders. Meanwhile, the US 10-year yield inched higher at 4.553%. Over in Hong Kong, the HSI ended flat as buyers emerged after it dipped below the 20,000 level. The benchmark index opened on a weak note following Trump’s drastic tariffs measures on its neighbours. Nonetheless, sentiment improved on China’s advancement in the AI developments which saw major tech stocks rallied. Back home, the FBM KLCI closed lower but off day’s low due to bargain hunting activities. However, overall sentiment was cautious in line with the weak regional markets’ performances. In view of the heightening volatility in equities as we noticed funds are shifting to safe asset classes, especially gold where prices have surged past the USD2,800/oz. For today, we anticipate the index to hover within the 1,550-1,560 range as investors may prefer to stay sidelined while waiting for prevailing chaos to dissipate.

Source: Rakuten Research - 4 Feb 2025

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