Previous Day Highlights

FBM KLCI closed lower due to weakness in regional markets. The benchmark index down 0.24% or 3.99 pts to close at 1,625.47. Gainers were seen in construction (+2.36%), health care (+1.26%), and energy (+0.47%); while losers were seen in consumer (-0.61%), plantation (-0.46%), and property (-0.33%). Market breadth was negative with 577 losers against 503 gainers. Total volume stood at 3.48bn shares valued at RM2.66bn.

Major regional indices trended lower. HSI declined 0.4%, to end at 19,688.29. SHCOMP slid 0.1%, to close at 3,206.92. Japan Nikkei eased 1.5%, to close at 39,306.83. STI up 0.5%, to close at 3,821.84.

Wall Street closed mixed as tariff jitters ease. The DJIA dropped 0.06%, to end at 42,706.56. Nasdaq rose 1.24%, to close at 19,864.98. S&P500 rose 0.55%, to finish at 5,975.38.

News For The Day

D&O unit signs MOU with China-listed technologies

D&O Green Technologies' subsidiary, Dominant Electronics (DESB), signed an MOU with Jing Wei Hirain to establish a Malaysian-based company focusing on engineering services and automotive module production. The partnership will see DESB managing production and R&D, while Hirain contributes technical expertise and sales channels. - The Edge Market

Keyfield acquires platform supply vessel for US$17.6m

Keyfield International is acquiring a five-year-old platform supply vessel for US$17.6m, funded through sukuk proceeds and internal funds. It is renamed as Keyfield Gratitude, the vessel will support its chartering business, transporting materials and equipment offshore. CEO Datuk Darren Kee highlighted the acquisition as a strategic fleet expansion to target chartering contracts. Keyfield currently operates various vessels, including supply and workboats. - The Edge Market

Citaglobal acquires 55% of LAWI Germany

Citaglobal acquired a 55% stake in LAWI Engineering GmbH for an undisclosed amount, marking a strategic move into waste-to-energy (WTE) technology. The deal, finalized on Jan 3, 2025, enables Citaglobal to offer comprehensive waste management solutions. This acquisition strengthens Citaglobal's ability to provide end-to-end WTE services without relying on foreign technology. - The Edge Market

Kumpulan Kitacon bags RM65.7m residential job

Kumpulan Kitacon (KKB) has accepted a letter of award from KL-Kepong Country Homes for main building works to a residential project at Bandar Seri Coalfields, Selangor, worth RM65.7m. The contract shall commence on Feb 3, 2025 and is to be completed within 20 months from the commencement date. The contract is expected to contribute positively to the earnings and net assets per share of KKB for the financial years ending FY25 onwards until the expiry of the contract. - The Star

Aizo Group Shortlisted for 99.99 MW LSS Plant in Perak

Aizo Group has been shortlisted to develop a 99.99 megawatts (MW) large-scale solar (LSS) plant in Kampar, Perak. The project will be executed under a solar power purchase agreement with a tenure of 21 years and is scheduled to achieve its commercial operation date by Oct 30, 2027. While the project is not expected to have an immediate material impact on the company’s financial performance for the financial year ending FY3/25. - The Star

Our Thoughts

Wall Street ended the session mixed, with profit-taking weighing on the Dow, while the S&P 500 and Nasdaq extended their rallies, driven by strong demand for tech stocks. Selling in telecom and utilities caused the DJIA to decline by 0.06%. Meanwhile, investors turned bullish on the semiconductor sector after stellar results from Foxconn, driving Nvidia's stock to a fresh peak. This momentum propelled the S&P 500 and Nasdaq to close 0.55% and 1.24% higher, respectively. In Hong Kong, stocks closed lower due to a regional sell-off, as market sentiment was affected by fears that U.S. interest rate reductions may occur more slowly than anticipated. Back home, the FBM KLCI fell below the 1,630 support level, and consolidation is expected to persist until a new catalyst emerges. A decisive breakthrough above the 1,645 resistance level is crucial for the index to reestablish its bullish trajectory. For today, the FBM KLCI is expected to trade within the 1,620 to 1,630 range, reflecting cautious market sentiment.

Source: Rakuten Research - 7 Jan 2025

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