Previous Day Highlights

6 February 2025 FBM KLCI closed higher driven by continued bargain hunting activities. The benchmark index was up 0.64% or 9.95 pts to close at 1,574.51. Majority of sectors were positive with construction (+2.8%), property (+2.0%), and technology (+1.5%), leading the gains; while losers were seen in telecommunications (0.0%), and financial services (0.2%). Market breadth was positive with 622 gainers against 345 losers. Total volume stood at 2.86bn shares valued at RM2.33bn.

Major regional indices trended negatively. HSI slid 0.9%, to end at 20,597.09. SHCOMP declined 0.65% to close at 3,229.49 after its CNY break. STI dipped 0.2% to finish at 3,815.37. Nikkei 225 edged up 0.1%, to finish at 38,831.48.

Wall Street closed higher as traders assess economic data and corporate earnings. The DJIA added 0.71%, to end at 44,873.28. Nasdaq rose 0.19%, to close at 19,692.33. S&P500 rose 0.39%, to finish at 6,061.48.

News For The Day

PKNPK, Gamuda signed exclusive arrangement

Perbadanan Kemajuan Negeri Perak (PKNPK) and Gamuda have signed an exclusive agreement to develop infrastructure addressing water shortages in Northern Perak. The project aims to transfer raw water from Sungai Perak to Bukit Merah and enhance treated water distribution. The partnership leverages Gamuda’s expertise in water infrastructure and aligns with Perak Sejahtera 2030’s sustainability goals. – The Star

YTL’s NSL Gets 4-Month Extension for SGX Compliance

YTL Corp’s Singapore-listed IBS unit, NSL Ltd, received a 4- month extension to meet SGX’s 10% public shareholding requirement. YTL Cement acquired an 81.24% stake in NSL last October, triggering a mandatory offer that raised its ownership to 91.02%. The extension allows time to determine final shareholding levels before compliance. - The Edge Market

ITMAX gets another parking system contract

ITMAX System’s 65%-owned unit, Southmax secured a 15- year contract to operate the outdoor parking system in Pontian, Johor. Operating on a 70:30 revenue-sharing model with the local authority, ITMAX aims to expand further in Johor. – The Edge Market

CapitaLand Malaysia Trust buys 3 industrial properties

CapitaLand Malaysia Trust (CLMT) is acquiring 3 industrial properties in Senai Airport City for RM72m from Rainbow Entity. One property will be leased to a Shanghai-listed life sciences firm for 7 years. CLMT expects RM5.1m in annual gross rent, with a first-year yield of 7.1%. The acquisition increases CLMT’s industrial asset share to 7.9% and will be financed through debt, raising gearing from 41.3% to 44.4%. - The Edge Market

KLCCP Stapled Group’s 4QFY24 net profit up 12%

KLCCP Stapled Group reported a 12% YoY rise in 4QFY24 net profit to RM430.9m, driven by full ownership of Suria KLCC Mall and higher fair value gains. The group declared a record-high FY24 dividend of 44.5sen per stapled security. KLCCP remains optimistic about 2025. – The Edge Market

Khazanah posts RM5.1bn profit

Khazanah Nasional’s reported FY24 profit of RM5.1bn from operations, driven by disciplined monetisation, dividend income, and fair value gains. Net asset value (NAV) rose 22% YoY to RM103.6bn. The sovereign fund declared a RM1bn dividend. – The Star

Our Thoughts

Wall Street ended higher as traders are looking past the prevailing tariff uncertainty underscored by strong earnings from a selection of tech-based companies. Meanwhile, the US 10-year yield eased further to 4.424%. It is worthwhile noting that the US 10-year yield had declined from 4.8% a month ago to current level. Over in Hong Kong, the HSI eased by almost 200 points as sentiment was weighed down by Trump’s tariff uncertainty amid the ongoing trade tension. Meanwhile, Trump’s tactics help pushed gold prices to another record high to almost USD2,900/oz level. Back home, the FBM KLCI maintained its climb to close above the 1,570 mark thus illustrating that foreign selling may be done for now. We are still adamant that flight of funds from overseas will eventually land into Asia attributed to the reasonable valuations where the risk-reward ratio is better. That said, we still need to see if prevailing stock accumulation is sustainable hence expect the index to hover within the 1,570-1,580 range today.

Source: Rakuten Research -

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