Previous Day Highlights

10 January 2025 FBM KLCI closed lower amid rising external risks. The benchmark index down 0.87% or 14.02 pts to close at 1,600.81. Majority of sectors were negative with construction (-3.3%), technology (-2.5%), and health care (- 2.2%) leading the losses; while gainers were seen in REIT (+0.0%), and telecommunications (+0.1%). Market breadth was negative with 900 losers against 231 gainers. Total volume stood at 3.49bn shares valued at RM2.91bn.

Major regional indices trended negatively. HSI declined 0.20%, to end at 19,240.89. SHCOMP dropped 0.58%, to close at 3,211.39. Nikkei 225 eased 0.94%, to finish at 39,605.09. STI slid 0.63%, to close at 3,862.60.

Wall Street was closed for National Day of Mourning for former President Jimmy Carter.

News For The Day

Public Bank fails to meet 50% acceptance level

Public Bank failed to secure more than 50% of the voting shares in LPI Capital and will return all LPI shares to the accepting shareholders. Accordingly, the offer has lapsed and can no longer accept further acceptances, and all acceptances shall be returned to the accepting holders, and the offeror will thereafter cease to be bound by any such prior acceptances of the offer. – The Star

Dialog secures USD235m final investment decision

Dialog Group has secured the final investment decision (FID) for the field development and abandonment plan under the Baram Junior Cluster Small Field Asset Production Sharing Contract (PSC), amounting to USD235m (RM1.02bn). The project aims to achieve first gas production within two years. Dialog will remain focused and steadfast in the pursuit of diversification across the energy sector to strategically position the group to weather different economic and oil price cycles, which is in line with the group’s strategy of generating long-term recurring income. – The Edge Market

Yinson's FPSO Atlanta in Brazil hits first oil

Yinson Production’s floating production storage and offloading (FPSO) vessel, FPSO Atlanta, has achieved first oil in Brazil. FPSO Atlanta is a redevelopment project awarded to Yinson Production by Brava on Feb 21, 2022, as an engineering, procurement, construction, and installation (EPCI) contract. The total contract value is estimated at USD1.98bn (RM8.92 bn). Yinson said FPSO Atlanta will operate in the Atlanta field within Brazil’s Santos Basin and boasts a production capacity of 50,000 barrels of oil per day, and a maximum storage capacity of 1.2m barrels. - The Edge Market

T7 Global gets 6-month contract from Hibiscus Petroleum

T7 Global has been awarded a 6-month contract with undisclosed value. The contract involves maintenance, construction, and modification (MCM) for Hibiscus Petroleum ‘s production asset. The announcement marks T7 Global’s second MCM contract this week, following its recent win from Carigali Hess Operating Company. - The Edge Market

Green Packet secures digital lending licence

Green Packet’s wholly owned Packet Interactive has obtained a digital lending licence from the Ministry of Housing and Local Government. With demand for flexible funding options on the rise in the digital economy, PISB is well positioned to play an impactful role in providing innovative access to lending options tailored for SMEs. - The Edge Market

Our Thoughts

Wall Street was closed in recognition of a National Day of Mourning for the late President Jimmy Carter. In Asia, markets closed in the red, pressured by rising expectations of a slower pace of US interest rate cuts this year, while soft inflation data from China further fuelled worries about slowing economic growth. The HSI dipped 0.2% as trade tariffs under Trump pose significant challenges to the Chinese economy, but Beijing is expected to counterbalance these with enhanced stimulus efforts. On the local front, the FBM KLCI continued its downward trend, ending slightly above the critical 1,600 psychological support level. The recent sell-off offers an attractive opportunity for investors to buy, with the benchmark index trading at 15x PER, significantly below its historical average of 18x. Hence, we believe bargain hunting may emerge and anticipate the FBM KLCI to trend within the range of 1,600- 1,610 for today.

Source: Rakuten Research - 10 Jan 2025

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