Previous Day Highlights

17 January 2025 FBM KLCI closed lower, underperforming regional peers due to muted investor sentiment. The benchmark index was down 0.42% or 6.58 pts to close at 1,555.54. Gainers were seen in technology (+1.76%), energy (+1.18%), and health care (+0.76%); while losers were seen in construction (-3.58%), telecommunications (-0.70%), and utilities (-0.59%). Market breadth was negative with 525 losers against 480 gainers. Total volume stood at 3.61bn shares valued at RM3.16bn.

Major regional indices trended positively. HSI gained 1.23%, to end at 19,522.89. SHCOMP increased 0.28%, to close at 3,236.03. Nikkei 225 was up 0.33%, to finish at 38,572.60. STI rose 0.81%, to close at 3,803.30.

Wall Street closed lower as traders digested earnings and economic data. The DJIA dropped 0.16%, to end at 43,153.13. Nasdaq eased 0.89%, to close at 19,338.29. S&P500 eased 0.21%, to finish at 5,937.34.

News For The Day

Sime Darby Property to partner Singapore's YCH Group

Sime Darby Property is joining hands with Singapore-based YCH Group, a supply chain solutions outfit, to develop logistics hubs in Malaysia, Vietnam and other Asean markets. According to Asean-BAC, the first major milestone will be the development of a landmark logistics facility in Sime Darby Property's port-centric township of Bandar Bukit Raja in Klang, Selangor. The facility is expected to cost at least RM300m and will be modelled after YCH's flagship Supply Chain City in Singapore. – The Edge Market

E&O to develop RM700m GDV waterfront residence

Eastern & Oriental Bhd (E&O) has unveiled its latest waterfront residence Maris with a gross development value (GDV) close to RM700m. The development will have eight waterfront shophouses, seamlessly integrating retail and residential components, allowing residents to enjoy a host of conveniences and social gatherings. - The Star

Hextar Industries to soft open 5 Luckin Coffee outlets

Hextar Industries through its subsidiary Global Aroma is set to launch a soft opening for five Luckin Coffee outlets by the end of this month. Global Aroma chief executive officer Jeff Lim Chee Lip said the coffee culture is growing rapidly in Malaysia. "With Luckin Coffee’s value-driven pricing and technology- driven approach, the company are confident that the brand will resonate with local customers. – The Star

Ancom Nylex's 2QFY5/25 net profit down 31%

Ancom Nylex’s 2QFY5/25 net profit down 31% YoY to RM15.2m on elevated freight cost and sharp forex fluctuations that affected its gross profit margin. No dividend was recommended or proposed for the latest financial quarter. The sales volume for their agricultural chemical segment has been healthy, and they expect this demand to continue in the coming quarters, as they advance towards a brighter 2HFY25. - The Edge Market

Jati Tinggi bags RM25.5m job from TNB

Jati Tinggi Group has won the tender for a RM25.5m contract from Tenaga Nasional to lay underground double-circuit cables for a data centre in Selangor. The company secured RM270m worth of contracts in 9MFY24, bringing its outstanding order book to about RM400m. About 20% of its project wins are related to data centres. – The Edge Market

Our Thoughts

Wall Street closed in negative territory following a choppy session amid the sell-down on mega tech stocks namely Apple, Nvidia and Alphabet. Meanwhile, the muted CPI data reported recently saw the US 10-year yield further easing to 4.613%. Over in Hong Kong, the HSI added more than 200 points to close in on the 20,000 level again as sentiment improves on the Fed rate cut possibility following a tame inflation data for December. On the home front, the FBM KLCI again failed to sustain its strong opening as selling pressure persists. The unrelenting selling predominantly from foreign funds remains high with a net outflow of RM1.45bn since the start of 2025. We suspect the unloading could be attributed to the uncertainty of Trump’s return hence we may see similar pattern over the next few days hence expect the index to hover within the 1,550-1,560 today.

Source: Rakuten Research - 17 Jan 2025

To sign up for an account: http://bit.ly/40BNqKI

[Youtube Tutorial] Account Opening & Enable Foreign Equity: http://bit.ly/3I5Jzxo