Review & Outlook

The local blue-chip benchmark slipped on Monday in-line with regional markets after President Donald Trump imposed tariffs on Canada, Mexico and China over the weekend, sparking concerns about higher inflation and fewer rate cuts in the U.S. The FBM KLCI lost 3.29 points to close at 1,553.63, off an opening low of 1,546.68 and high of 1,556.74, as losers edged gainers 589 to 383 on total turnover of 2.08bn shares worth RM1.75bn.

Trade will likely remain cautious with a downward bias as investors await the release of key employment data from the U.S. later this week for further cues on the Federal Reserve's interest rate direction following President Trump's new tariffs. Immediate index support remains at 1,550, with stronger supports at the 6/8/24 low of 1,529 and 1,500 psychological level. Immediate resistance is maintained at 1,605, with next upside hurdles at 1,630, followed by 1648.

A confirmed breakout on Hartalega shares above the 100%FP (RM3.72), would enhance upside momentum for share price to target the 19/12/24 peak (RM4.00) and the 123.6%FP (RM4.27) ahead, while downside risk is cushioned by the 76.4%FR (RM3.16) and 61.8%FR (RM2.81). Similarly, Kossan shares will need convincing breakout above RM2.55, to challenge the 100%FP (RM2.71), with tougher resistance coming from the 06/01/25 peak (RM2.87), while key chart supports at the 61.8%FR (RM2.10) and 50%FR (RM1.91) limit downside.

News Bites

• The S&P Global Malaysia Manufacturing PMI for January rose slightly to 48.7 from 48.6 in December but the survey indicated the second strongest reduction in prices charged in the series' history since January 2015.

• The government is drafting an amendment to the Employees Provident Fund Act 1991 to enable the implementation of a mandatory 2% EPF contribution rate for foreign workers.

• AMMB Holdings Bhd has terminated its plans to sell all its interest in AmMetLife Insurance Bhd and AmMetLife Takaful Bhd to Great Eastern Life Assurance (Malaysia) Bhd and Great Eastern Takaful Bhd.

• SD Guthrie Bhd has acquired a 48.0% equity interest in Netherlandsbased Marvesa Supply Chain Services BV for €54.0mn (RM250.0mn) from Dutch private equity firm, Parcom.

• KJTS Group Bhd has proposed to acquire Malakoff Utilities Sdn Bhd, a wholly-owned subsidiary of Malakoff Corporation Bhd for RM65.5mn cash.

• Mulpha International Bhd has entered into a contract for the disposal of a shopping centre, Capri on Via Roma, and associated marina located in Queensland, Australia for AUS85.5mn (RM233.4mn).

• Ahmad Zaki Resources Bhd has been awarded a contract worth RM63.5mn by the Public Works Department for the construction of a bridge in Kampung Binjai, Kuala Lipis, Pahang.

• Wisma Majujaya Sdn Bhd has obtained a summary judgement from the High Court over its RM28.1mn suit filed against Bina Puri Holdings Bhd, its subsidiary Bina Puri Properties Sdn Bhd, and its director Tan Sri Tee Hock Seng.

• Maxland Bhd has entered into a 60-year land lease agreement with Kulim Technology Park Corp Sdn Bhd for a 4.9-acre parcel located in Industrial Zone Phase 2 of the Kulim High-Tech Park for RM10.6mn.

• Cahya Mata Sarawak Bhd has initiated arbitration proceedings against Vienna Advantage GmbH over a contract dispute.

• KGW Group Bhd said US-based logistics firm Accelerated Global Solutions Inc has acquired a 15.0% stake in the company.

• Steel Hawk Bhd has secured a contract extension for the provision of onshore facilities maintenance, construction and modification services from Petronas Carigali Sdn Bhd.

• LYC Healthcare Bhd said Messrs Baker Tilly Monteiro Heng PLT has resigned as the group's external auditors after both sides were unable to agree on the audit fees.

• Salutica Bhd has filed an appeal against the High Court's decision to dismiss its patent infringement suit against Apple Malaysia Sdn Bhd.

• Prolintas Infra Business Trust said Datuk Mohammad Azlan Abdullah has relinquished his role as non-independent and non-executive director from its trustee-manager, Prolintas Managers Sdn Bhd.

• President Donald Trump agreed to delay 25% tariffs against Mexico and Canada for one month after a conversation with his counterpart.

• The Institute for Supply Management said on Monday that its manufacturing PMI increased to 50.9 last month, the highest reading since September 2022, from 49.2 in December.

• President Donald Trump signed an executive action he said would direct officials to create a sovereign wealth fund for the US.

Source: TA Research - 4 Feb 2025