Previous Day Highlights

FBM KLCI closed lower due to ongoing weak sentiment. The benchmark index was down 1.05% or 16.82 pts to close at 1,585.59. Majority of sectors were negative with construction (-2.9%), utilities (-2.7%), and technology (- 1.6%) leading the losses; while gainers were seen in energy (+0.3%), and REIT (+0.2%). Market breadth was negative with 913 losers against 211 gainers. Total volume stood at 2.85bn shares valued at RM2.54bn.

Major regional indices trended negative. HSI declined 1.00%, to end at 18,874.14. SHCOMP dropped 0.253%, to close at 3,160.76. STI slid 0.26%, to close at 3,791.70. Nikkei 225 was closed for Coming of Age Day Holiday.

Wall Street closed mixed as market awaits CPI data. The DJIA added 0.86%, to end at 42,297.12. Nasdaq eased 0.38%, to close at 19,088.10. S&P500 rose 0.16%, to finish at 5,836.22.

News For The Day

Guan Chong acquires 25% in cocoa processor for RM130m

Guan Chong’s subsidiary, GCB Cocoa Singapore, is acquiring a 25% stake in Ivory Coast-based cocoa processor Transcao CI for RM130.1m. The move aligns with Guan Chong's growth strategy and supports Ivory Coast's cocoa industrialization vision. The acquisition will not significantly impact financials for FY25 as it’s an associate investment. – New Straits Times

Solarvest buys 3 pieces of land in Kedah for RM20m

Solarvest Holdings is acquiring 120.746 acres in Kuala Muda, Kedah, for RM20m to support its five-year strategic roadmap. The land, strategically located under high-voltage transmission lines, will be developed for a large-scale solar photovoltaic system and LILO station, enhancing its solar EPCC and renewable energy asset businesses. The acquisition promises future revenue and recurring income opportunities. - The Star

Infomina wins RM13m order from PCCW Group

Infomina secured RM13m in purchase orders from PCCW Ltd Group for two years, starting Jan 2025. The deal involves technology application, infrastructure operations, and support services for Hong Kong Telecommunications Ltd (HKT). Infomina will oversee license renewals, personnel training, installation supervision, and software environment monitoring. - The Star

Kimlun sells plantation land in Kota Tinggi for RM55m

Kimlun Corp is selling 56.5ha of freehold land in Kota Tinggi, Johor, for RM55m, representing a 59.98% premium over its net book value. The sale unlocks value and is expected to yield a RM13.7m net gain. Proceeds will support working capital and a property development JV with Astaka Holdings. Completion is expected by October 2025. - The Edge Market

Hextar Healthcare disposes of industrial land for RM11.9m

Hextar Healthcare’s subsidiary Rubberex Alliance is selling two industrial land parcels in Sungai Terap, Perak, to Jutanaga for RM11.9m, matching the original 2021 purchase price. The sale aligns with Hextar's strategy, reducing maintenance costs and strengthening working capital. Completion is expected within three months. – The Star

Our Thoughts

Wall Street closed mixed as traders are shifting their holdings out of tech into other sectors, namely power with an eye on tomorrow’s CPI figure. Meanwhile, the US 10-year yield edged higher at 4.79%. On a wider perspective Asian markets tanked as prospects of rate cuts in the US diminished following a robust job data. As a result, the HSI lost 190 points to end below the 19,000 level or a 4-month low. On the home front, the FBM KLCI weakened to below the 1,590 mark in line with the regional sell-off. In view of the recent sell-down, investors are re-setting their investment strategy and stay side-lined ahead of “Tariff Trump” return hence we believe this is a good opportunity to bargain hunt. We opined that Trump 2.0 may not be assertive cos this risk a total isolation of the US from the rest of the world. For today, we anticipate the index to hover within the 1,580- 1,595 range.

Source: Rakuten Research - 14 Jan 2025

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