Previous Day Highlights

21 January 2025 FBM KLCI closed higher boosted by bargain hunting activities. The benchmark index was up 0.36% or 5.62 pts to close at 1,572.34. Majority of sectors were positive with energy (+1.8%), industrial products & services (+1.1%), and construction (+1.0%), leading the gains; while losers were seen in financial services (-0.1%), and consumer (0.1%). Market breadth was positive with 628 gainers against 397 losers. Total volume stood at 2.95bn shares valued at RM2.45bn.

Major regional indices trended mixed. HSI gained 1.75%, to end at 19,925.81. SHCOMP increased 0.08%, to close at 3,244.38. Nikkei 225 up 1.17%, to finish at 38,902.50. STI slid 0.01%, to close at 3,810.52.

Wall Street was closed in observance of Martin Luther King Jr. Day.

News For The Day

7-Eleven to set up 100 Seven Bank cash recycling machines

7-Eleven Malaysia is setting up 100 original cash recycling machines (CRMs) at its outlets across Malaysia. The CRMs - offering cheque deposit machine (CDM) and automated teller machine (ATM) services are deployed by Reachful Malaysia. Like MEPS ATMs, Reachful will also be charging a RM1 fee for each interbank cash withdrawal for its CRM services. Malaysia is the fourth market outside Japan for Seven Bank's ATM installations. – The Edge Market

Solarvest partners with Fajarbaru

Solarvest has signed a collaboration agreement with FBG Land, a subsidiary of Fajarbaru Builder Group to jointly develop the net-zero Medi-city in Batu Kawan, Penang. Solarvest will supply and install solar photovoltaic systems across Medicity’s buildings and facilities, empowering energy transformation from the beginning of operation. Meanwhile, Fajarbaru anticipates the upcoming Penang Medi-City phase 1 to have a GDV of RM2bn.– The Edge Market

Skyworld ties up with Singapore-based firm

Skyworld is proposing to diversify its existing business operations to include the manufacturing of prefabricated and prefinished modular systems by signed a shareholders’ agreement with Singapore-based Teambuild Holding (S). SkyWorld said the prefabricated manufacturing business will significantly enhance the group’s operational efficiency and position the company with a competitive edge, particularly in undertaking large development projects such as the proposed joint development. - The Edge Market

UUE secures RM27.5m in contract renewals

UUE Holdings, via its wholly-owned subsidiary Kum Fatt Engineering, has secured two contract renewals worth a total of RM27.5m from Sutera Utama. These latest wins bring UUE’s total order book for 2025 to RM64m. The company are now planning the construction of a new factory to support the in- house manufacturing of HDPE pipes and in the process of submitting planning permission to the relevant authorities to ensure all construction plans are properly executed. – The Star

Tex Cycle partners with Xantara

Tex Cycle Technology, through its wholly-owned subsidiary Tex Cycle (P2), has partnered with Xantara to enhance waste management and expand business opportunities in line with Malaysia's environmental quality regulations. This collaboration underscores our belief in creating mutual value while addressing the critical need for sustainable and efficient waste management solutions. - The Star

Our Thoughts

Wall Street is closed for Martin Luther King Jr birthday while it also marks the beginning of Trump 2.0. At time of writing, all 3 major index futures are all in positive territory. Meanwhile in Hong Kong, the HSI jumped to almost the 20,000 mark as sentiment is buoyed by the encouraging interaction between Xi Jinping and Trump. As a result, tech giants namely JD.com, Alibaba and Baidu led the gainers. Back home, the FBM KLCI closed on a positive note amid a choppy session, possibly boosted by persistent bargain hunting activities. Though overall sentiment remains cautious, we believe Trump’s recent leniency on TikTok may be a prelude that he would be friendlier with his tariff stance and curbs. While the situation is still fluid, at least we can expect a lesser degree of confusion. For today, we expect the index to hover within the 1,570-1,580 range.

Source: Rakuten Research - 21 Jan 2025

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