Previous Day Highlights

2 January 2025 FBM KLCI maintained its upward momentum on Tuesday, ending the year on a positive note. The benchmark index was up 0.28% or 4.65 pts to close at 1,642.33. Majority of sectors were positive with transportation (+0.7%), property (+0.5%), and consumer (+0.4%), leading the gainers; while losers were seen in construction (-0.9%), and energy (-0.4%). Market breadth was negative with 515 losers against 485 gainers. Total volume stood at 2.41bn shares valued at RM2.07bn.

Major regional indices trended negatively. HSI increased 0.1%, to end at 20,059.95. SHCOMP slid 1.6%, to close at 3,351.76. STI eased 0.2%, to close at 3,787.60. Japan Nikkei 225 was closed for New Year’s holidays.

Wall Street closed lower due to profit taking activities. The DJIA dropped 0.07%, to end at 42,544.22. Nasdaq eased 0.90%, to close at 19,310.79. S&P500 eased 0.43%, to finish at 5,881.63.

News For The Day

Bintulu Port secures one-year operation extension

Bintulu Port has been granted approval to continue operating the Bintulu Port, Sarawak’s main port for liquified natural gas (LNG), for another 12 months. These interim agreements came as the federal government agreed to transfer regulatory powers over to the Sarawak state government, resulting in the port’s status going from a federal port to a state port. - The Edge Market

Cahya Mata Sarawak aborts joint development of hotel

Cahya Mata Sarawak has aborted its JV project to build a four-star hotel and serviced apartments in Kuching Isthmus, a business district in Kuching, Sarawak, with its JV partners. When the JV was formed, CMSB said the hotel’s development was estimated to cost RM380m. - The Edge Market

Cypark returns to the black in 2QFY4/25

Cypark has returned to profitability with a 2QFY4/25 net profit surged more than doubled to RM2.28m. The increase in earnings was mainly due to a RM30.1m one-off reversal on a provision that had been made previously. - The Edge Market

Analabs Resources 2QFY4/25 earnings rise

Analabs Resources’ 2QFY4/25 net profit increase 33.7% YoY to RM17.4m. However, revenue dropped due to lower revenue for its manufacturing, formulation and sales of resin, chemicals and building materials segment, as well as its contract work, pipe laying and rehabilitation segment. - The Star

Hextar Retail calls off deal to acquire stake

Hextar Retail has terminated an agreement to acquire a 51% stake in a shoes and clothing company Redina Malaysia for RM35.7m cash. The termination was due to Redina’s unaudited loss after tax recorded for the nine-month period. The acquisition initially comes with a total profit guarantee of RM12m for two years, which was supposed to provide Hextar Retail with an additional income stream in the near term.- The Edge Market

Permaju proposes RM258m capital reduction plant

Permaju has proposed a capital reduction of up to RM258m via the cancellation of its issued share capital "which is lost and unrepresented by available assets”. The remaining balance will be credited to the company’s retained earnings and used as deemed fit by its board. The company also does not intend to grant any ESOS options prior to the completion of the proposed share capital reduction. - The Star

Our Thoughts

Wall Street ended in negative territory amid continued profit taking activities following a solid 2024. Last year, all 3 major indices, the DJI Average (+12.9%), Nasdaq (+28.6%) and S&P 500 (+23.3%) recorded solid gains. Meanwhile, the US 10-year yield inched higher at 4.573%. Over in Hong Kong, the HSI ended 2024 on a positive note up 19.5% y-o- y after 4 consecutive years of decline. Though, China’s economy growth remains bumpy, the latest purchasing manager’s index (PMI) showed expansion within the manufacturing sector. Back home, the FBM KLCI maintained its uptrend to close above the 1,640 mark or a 13% gain y-o-y, however still way off our 2024 target of 1,750 due mainly to major foreign outflows in the 4Q24. Notwithstanding this, we are confident that the 1,700 threshold will be surpassed by 1H25 hence expect index to hover within the 1,645-1,655 range today.

Source: Rakuten Research - 2 Jan 2025

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