M+ Market Wrap - 10Mar25
FBM KLCI: 1,536.46 pts (-10.81pts, -0.70%)
The FBMKLCI (-0.70%) traded negatively, as sentiment was dampened by losses in Utilities and Telco & Media heavyweights; in tandem with regional peers’ performance. Market breadth was negative, with losers outpacing gainers by 731-to-254 stocks. On the broader market, all sectors ended in the red, with losses in VITROX (-14.0 sen) and PENTA (-34.0 sen) dragging Technology (-2.82%) to decline the most.
Top 3 Active stocks:
SAPNRG (5218): RM0.035 (unch)
NATGATE (0270): RM1.140 (-19.0 sen)
NEXG (5216): RM0.260 (-1.0 sen)
Volume: 3.10 bn (100-bar avg vol: 2.94 bn)
Value: RM2.40 bn (100-bar avg val: RM2.58 bn)
Market Breadth: ⬆️254⬇️731
Crude palm oil: RM4,511 (-RM114)
Dow Futures: 42,427 pts (-411 pts)
**Source: Bloomberg, M+**
FBM KLCI: 1,536.46 pts (-10.81pts, -0.70%)
The FBMKLCI (-0.70%) traded negatively, as sentiment was dampened by losses in Utilities and Telco & Media heavyweights; in tandem with regional peers’ performance. Market breadth was negative, with losers outpacing gainers by 731-to-254 stocks. On the broader market, all sectors ended in the red, with losses in VITROX (-14.0 sen) and PENTA (-34.0 sen) dragging Technology (-2.82%) to decline the most.
Top 3 Active stocks:
SAPNRG (5218): RM0.035 (unch)
NATGATE (0270): RM1.140 (-19.0 sen)
NEXG (5216): RM0.260 (-1.0 sen)
Volume: 3.10 bn (100-bar avg vol: 2.94 bn)
Value: RM2.40 bn (100-bar avg val: RM2.58 bn)
Market Breadth: ⬆️254⬇️731
Crude palm oil: RM4,511 (-RM114)
Dow Futures: 42,427 pts (-411 pts)
**Source: Bloomberg, M+**
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M+ Morning Market Buzz - 11Mar25
Dow Jones: 41,911.71 pts (-890.01pts, -2.08%)
⬆️ Resistance: 44000
⬇️ Support: 40800
FBM KLCI: 1,536.46 pts (-10.81pts, -0.70%)
⬆️ Resistance: 1610
⬇️ Support: 1510
HSI Index: 23,783.49 pts (-447.81pts, -1.85%)
⬆️ Resistance: 25200
⬇️ Support: 22100
Crude Palm Oil: RM4,499 (-RM11, -0.24%)
⬆️ Resistance: 4760
⬇️ Support: 4250
Brent Oil: $69.28 (-$1.08, -1.53%)
⬆️ Resistance: 72.90
⬇️ Support: 67.00
Gold: $2,888.71 (-$0.89, -0.03%)
⬆️ Resistance: 2990
⬇️ Support: 2830
Source: Bloomberg, M+
Dow Jones: 41,911.71 pts (-890.01pts, -2.08%)
⬆️ Resistance: 44000
⬇️ Support: 40800
FBM KLCI: 1,536.46 pts (-10.81pts, -0.70%)
⬆️ Resistance: 1610
⬇️ Support: 1510
HSI Index: 23,783.49 pts (-447.81pts, -1.85%)
⬆️ Resistance: 25200
⬇️ Support: 22100
Crude Palm Oil: RM4,499 (-RM11, -0.24%)
⬆️ Resistance: 4760
⬇️ Support: 4250
Brent Oil: $69.28 (-$1.08, -1.53%)
⬆️ Resistance: 72.90
⬇️ Support: 67.00
Gold: $2,888.71 (-$0.89, -0.03%)
⬆️ Resistance: 2990
⬇️ Support: 2830
Source: Bloomberg, M+
👍1
M+ Market Update – 11Mar25
Selling Pressure May Spillover To The Local Front
The local bourse began the week underwater, as sentiment was dampened by losses in Utilities and Telco & Media heavyweights. Similarly, Wall Street traded negatively as risk-off sentiment persisted. We opine that the new US trade policies could lead to increased retaliation from its trade partners, potentially slowing the global economy. This week, traders will closely monitor (i) US Inflation Data, (ii) U.S. Producer Price Index, and (iii) US Unemployment Claims to gauge the outlook for monetary policy and overall economic sentiment. On the commodities market, both Brent crude oil and Gold traded below USD69 per barrel and USD2,890 per ounce, respectively. Similarly, CPO prices hovered around RM4,488.
Sector Focus: In view of weaker sentiment abroad, selling pressure may persist on the local front. However, we expect traders to turn towards sector that are relatively stable and defensive at this juncture as a more conservative approach. We still favour the Banking sector, and we expect bargain hunting to emerge, given the sector is supported by stable loan growth and appealing dividends, while REITs could gain traction amid recovering footfall. Besides, we remain positive on ITMAX, as we see its venture into Penang driving stronger earnings growth moving forward.
Stocks to watch:
Technology: *ITMAX*, *MCLEAN*
Renewable Energy: PEKAT
Logistics: WPRTS
Financial: *OSK*
Telco: *TM*
Construction: *SUNCON*
Utility: YTL
REITs: IGBREIT
Source: M+
Selling Pressure May Spillover To The Local Front
The local bourse began the week underwater, as sentiment was dampened by losses in Utilities and Telco & Media heavyweights. Similarly, Wall Street traded negatively as risk-off sentiment persisted. We opine that the new US trade policies could lead to increased retaliation from its trade partners, potentially slowing the global economy. This week, traders will closely monitor (i) US Inflation Data, (ii) U.S. Producer Price Index, and (iii) US Unemployment Claims to gauge the outlook for monetary policy and overall economic sentiment. On the commodities market, both Brent crude oil and Gold traded below USD69 per barrel and USD2,890 per ounce, respectively. Similarly, CPO prices hovered around RM4,488.
Sector Focus: In view of weaker sentiment abroad, selling pressure may persist on the local front. However, we expect traders to turn towards sector that are relatively stable and defensive at this juncture as a more conservative approach. We still favour the Banking sector, and we expect bargain hunting to emerge, given the sector is supported by stable loan growth and appealing dividends, while REITs could gain traction amid recovering footfall. Besides, we remain positive on ITMAX, as we see its venture into Penang driving stronger earnings growth moving forward.
Stocks to watch:
Technology: *ITMAX*, *MCLEAN*
Renewable Energy: PEKAT
Logistics: WPRTS
Financial: *OSK*
Telco: *TM*
Construction: *SUNCON*
Utility: YTL
REITs: IGBREIT
Source: M+
👍5
Good Afternoon All,
Here’s our IPO note on Chemlite Innovation Bhd: Your Trusted Guide to Global Trading | Malacca Securities (mplusonline.com)
We assign a fair value of RM0.40 per share for Chemlite Innovation Berhad, representing a 60.0% upside from the IPO price of RM0.25. This valuation is based on a P/E ratio of 16.0x, pegged to FY27f EPS of 2.48 sen. We used FY27f EPS as the valuation anchor because the company’s growth potential will only be fully realised in FYE27 upon the commencement of its new manufacturing facility, a significant increase from its current facility setup.
Meanwhile, we believed that the ascribed P/E of 16x is fair, even though the average 12-month forward P/E and historical P/E among its peers stood at 9.4-12.4x, as the company enjoys a superior double-digit ROE and NP margin as compared to its peers, which have a negative average ROE and a marginal NP margin. Nevertheless, it is important to note that surface finishing treatments such as plating and anodizing are not the major revenue contributors for its peers. This distinction underscores CLITE’s niche position in the industry.
Investment highlights include:
(i) Continue to expand with new operating facility
(ii) Cleanroom services
(iii) Enhancing efficiency via automation
(iv) Benefiting from Malaysia’s semiconductor push
(v) Riding the China+1 and ESI wave
Research Team, M+
11 Mar 2025
Here’s our IPO note on Chemlite Innovation Bhd: Your Trusted Guide to Global Trading | Malacca Securities (mplusonline.com)
We assign a fair value of RM0.40 per share for Chemlite Innovation Berhad, representing a 60.0% upside from the IPO price of RM0.25. This valuation is based on a P/E ratio of 16.0x, pegged to FY27f EPS of 2.48 sen. We used FY27f EPS as the valuation anchor because the company’s growth potential will only be fully realised in FYE27 upon the commencement of its new manufacturing facility, a significant increase from its current facility setup.
Meanwhile, we believed that the ascribed P/E of 16x is fair, even though the average 12-month forward P/E and historical P/E among its peers stood at 9.4-12.4x, as the company enjoys a superior double-digit ROE and NP margin as compared to its peers, which have a negative average ROE and a marginal NP margin. Nevertheless, it is important to note that surface finishing treatments such as plating and anodizing are not the major revenue contributors for its peers. This distinction underscores CLITE’s niche position in the industry.
Investment highlights include:
(i) Continue to expand with new operating facility
(ii) Cleanroom services
(iii) Enhancing efficiency via automation
(iv) Benefiting from Malaysia’s semiconductor push
(v) Riding the China+1 and ESI wave
Research Team, M+
11 Mar 2025
👍5🥰1
M+ Market Wrap - 11Mar25
FBM KLCI: 1,520.15 pts (-16.31pts, -1.06%)
In line with the weak regional peers’ performance, the FBMKLCI (-1.06%) slid to a 52-week low, as risk-off sentiment persisted amid concerns of potential retaliation and a global economic slowdown due to new U.S. trade policies. Market breadth was negative, with losers outpacing gainers by 910-to-200 stocks. In the broader market, all sectors traded negatively, with losses in KPJ (-17.0 sen) and IHH (-6.0 sen) dragging Healthcare (-2.49%) to decline the most.
Top 3 Active stocks:
NATGATE (0270): RM1.150 (+1.0 sen)
MYEG (0138): RM0.895 (-1.0 sen)
CIMB (1023): RM7.260 (-26.0 sen)
Volume: 3.72 bn (100-bar avg vol: 2.95 bn)
Value: RM3.30 bn (100-bar avg val: RM2.57 bn)
Market Breadth: ⬆️200⬇️910
Crude palm oil: RM4,475 (-RM24)
Dow Futures: 42,092 pts (+145 pts)
**Source: Bloomberg, M+**
FBM KLCI: 1,520.15 pts (-16.31pts, -1.06%)
In line with the weak regional peers’ performance, the FBMKLCI (-1.06%) slid to a 52-week low, as risk-off sentiment persisted amid concerns of potential retaliation and a global economic slowdown due to new U.S. trade policies. Market breadth was negative, with losers outpacing gainers by 910-to-200 stocks. In the broader market, all sectors traded negatively, with losses in KPJ (-17.0 sen) and IHH (-6.0 sen) dragging Healthcare (-2.49%) to decline the most.
Top 3 Active stocks:
NATGATE (0270): RM1.150 (+1.0 sen)
MYEG (0138): RM0.895 (-1.0 sen)
CIMB (1023): RM7.260 (-26.0 sen)
Volume: 3.72 bn (100-bar avg vol: 2.95 bn)
Value: RM3.30 bn (100-bar avg val: RM2.57 bn)
Market Breadth: ⬆️200⬇️910
Crude palm oil: RM4,475 (-RM24)
Dow Futures: 42,092 pts (+145 pts)
**Source: Bloomberg, M+**
👍3😁3
M+ Morning Market Buzz - 12Mar25
Dow Jones: 41,433.48 pts (-478.23pts, -1.14%)
⬆️ Resistance: 44000
⬇️ Support: 40400
FBM KLCI: 1,520.15 pts (-16.31pts, -1.06%)
⬆️ Resistance: 1610
⬇️ Support: 1490
HSI Index: 23,782.14 pts (-1.35pts, -0.01%)
⬆️ Resistance: 25200
⬇️ Support: 22700
Crude Palm Oil: RM4,488 (-RM20, -0.45%)
⬆️ Resistance: 4760
⬇️ Support: 4250
Brent Oil: $69.56 (+$0.28, +0.40%)
⬆️ Resistance: 72.90
⬇️ Support: 67.00
Gold: $2,915.90 (-$1.36, -0.05%)
⬆️ Resistance: 2990
⬇️ Support: 2830
Source: Bloomberg, M+
Dow Jones: 41,433.48 pts (-478.23pts, -1.14%)
⬆️ Resistance: 44000
⬇️ Support: 40400
FBM KLCI: 1,520.15 pts (-16.31pts, -1.06%)
⬆️ Resistance: 1610
⬇️ Support: 1490
HSI Index: 23,782.14 pts (-1.35pts, -0.01%)
⬆️ Resistance: 25200
⬇️ Support: 22700
Crude Palm Oil: RM4,488 (-RM20, -0.45%)
⬆️ Resistance: 4760
⬇️ Support: 4250
Brent Oil: $69.56 (+$0.28, +0.40%)
⬆️ Resistance: 72.90
⬇️ Support: 67.00
Gold: $2,915.90 (-$1.36, -0.05%)
⬆️ Resistance: 2990
⬇️ Support: 2830
Source: Bloomberg, M+
👍2
M+ Market Update – 12Mar25
Oversold Stocks Poised For A Rebound
The local bourse extended its losses as global economic uncertainties dampened sentiment, in line with regional markets. Following the recent announcement of an additional 25% tariff on steel and aluminium imports from Canada—albeit reversed—we believe Wall Street may have limited upside, as retaliatory actions by trading partners will negatively impact economic activity. All eyes are on the US inflation data tonight, we believe that a -5% deviation from the 2.9% forecast would weigh on sentiment. In the commodities market, Brent crude oil eased toward USD69 per barrel amid Ukraine-Russia peace talks. Meanwhile, gold traded higher toward USD2,917 an ounce, while CPO prices remained in a tight range at RM4,468.
Sector Focus: While the local bourse is set to trade in a volatile session due to the tit-for-tat actions between the US and its trading partners, we think investors should focus on fundamentally-strong sectors like Banks and REITs, given their (i) positive trend formation, (ii) stable loan growth, and (iii) healthy dividend payouts. Also, we have noticed some buying interest on stocks which have been significantly oversold due to selling pressure over the past month, coupled with a rebound in selected tech stocks in the US, there might be opportunities within the Technology sector, at least for the rest of the week.
Stocks to watch:
Technology: *FRONTKN*, PIE
Utility: *MNHLDG*, *SCGBHD*
Construction: *SUNCON*
Logistics: *WPRTS*
Consumer: FFB
Plantation: HSPLANT
REIT: IGBREIT
Source: M+
Oversold Stocks Poised For A Rebound
The local bourse extended its losses as global economic uncertainties dampened sentiment, in line with regional markets. Following the recent announcement of an additional 25% tariff on steel and aluminium imports from Canada—albeit reversed—we believe Wall Street may have limited upside, as retaliatory actions by trading partners will negatively impact economic activity. All eyes are on the US inflation data tonight, we believe that a -5% deviation from the 2.9% forecast would weigh on sentiment. In the commodities market, Brent crude oil eased toward USD69 per barrel amid Ukraine-Russia peace talks. Meanwhile, gold traded higher toward USD2,917 an ounce, while CPO prices remained in a tight range at RM4,468.
Sector Focus: While the local bourse is set to trade in a volatile session due to the tit-for-tat actions between the US and its trading partners, we think investors should focus on fundamentally-strong sectors like Banks and REITs, given their (i) positive trend formation, (ii) stable loan growth, and (iii) healthy dividend payouts. Also, we have noticed some buying interest on stocks which have been significantly oversold due to selling pressure over the past month, coupled with a rebound in selected tech stocks in the US, there might be opportunities within the Technology sector, at least for the rest of the week.
Stocks to watch:
Technology: *FRONTKN*, PIE
Utility: *MNHLDG*, *SCGBHD*
Construction: *SUNCON*
Logistics: *WPRTS*
Consumer: FFB
Plantation: HSPLANT
REIT: IGBREIT
Source: M+
👍3
M+ Market Wrap - 12Mar25
FBM KLCI: 1,484.83 pts (-35.32pts, -2.32%)
The sell-off on FBMKLCI (-2.32%) persisted as ongoing retaliation and a the market could be pricing in potential global economic slowdown, driven by new U.S. trade policies, which dampened market sentiment. Market breadth was negative, with losers outnumbering gainers by 659-to-297 stocks. On the broader market, the Transportation & Logistics sector (+0.14%) outperformed, driven by gains in WPRTS (+4.0 sen) and HEXTECH (+1.0 sen), while the rest of the sectors traded negatively.
Top 3 Active stocks:
SAPNRG (5218): RM0.040 (+0.5 sen)
GAMUDA (5398): RM3.770 (-29.0 sen)
CIMB (1023): RM7.000 (-26.0 sen)
Volume: 3.10 bn (100-bar avg vol: 2.96 bn)
Value: RM3.37 bn (100-bar avg val: RM2.59 bn)
Market Breadth: ⬆️297⬇️659
Crude palm oil: RM4,505 (+RM17)
Dow Futures: 41,627 pts (+152 pts)
**Source: Bloomberg, M+**
FBM KLCI: 1,484.83 pts (-35.32pts, -2.32%)
The sell-off on FBMKLCI (-2.32%) persisted as ongoing retaliation and a the market could be pricing in potential global economic slowdown, driven by new U.S. trade policies, which dampened market sentiment. Market breadth was negative, with losers outnumbering gainers by 659-to-297 stocks. On the broader market, the Transportation & Logistics sector (+0.14%) outperformed, driven by gains in WPRTS (+4.0 sen) and HEXTECH (+1.0 sen), while the rest of the sectors traded negatively.
Top 3 Active stocks:
SAPNRG (5218): RM0.040 (+0.5 sen)
GAMUDA (5398): RM3.770 (-29.0 sen)
CIMB (1023): RM7.000 (-26.0 sen)
Volume: 3.10 bn (100-bar avg vol: 2.96 bn)
Value: RM3.37 bn (100-bar avg val: RM2.59 bn)
Market Breadth: ⬆️297⬇️659
Crude palm oil: RM4,505 (+RM17)
Dow Futures: 41,627 pts (+152 pts)
**Source: Bloomberg, M+**
👍3
M+ Morning Market Buzz - 13Mar25
Dow Jones: 41,350.93 pts (-82.55pts, -0.20%)
⬆️ Resistance: 43900
⬇️ Support: 40200
FBM KLCI: 1,484.83 pts (-35.32pts, -2.32%)
⬆️ Resistance: 1610
⬇️ Support: 1450
HSI Index: 23,600.31 pts (-181.83pts, -0.76%)
⬆️ Resistance: 25200
⬇️ Support: 22800
Crude Palm Oil: RM4,487 (RM0, 0.00%)
⬆️ Resistance: 4760
⬇️ Support: 4290
Brent Oil: $70.95 (+$1.39, +2.00%)
⬆️ Resistance: 72.90
⬇️ Support: 67.30
Gold: $2,934.77 (+$0.39, +0.01%)
⬆️ Resistance: 3000
⬇️ Support: 2830
Source: Bloomberg, M+
Dow Jones: 41,350.93 pts (-82.55pts, -0.20%)
⬆️ Resistance: 43900
⬇️ Support: 40200
FBM KLCI: 1,484.83 pts (-35.32pts, -2.32%)
⬆️ Resistance: 1610
⬇️ Support: 1450
HSI Index: 23,600.31 pts (-181.83pts, -0.76%)
⬆️ Resistance: 25200
⬇️ Support: 22800
Crude Palm Oil: RM4,487 (RM0, 0.00%)
⬆️ Resistance: 4760
⬇️ Support: 4290
Brent Oil: $70.95 (+$1.39, +2.00%)
⬆️ Resistance: 72.90
⬇️ Support: 67.30
Gold: $2,934.77 (+$0.39, +0.01%)
⬆️ Resistance: 3000
⬇️ Support: 2830
Source: Bloomberg, M+
👍2
M+ Market Update – 13Mar25
Market Breadth Turning More Positive
The sell-off in the local bourse persisted as ongoing retaliation and global economic uncertainties, driven by Trump’s trade policies, weighed on sentiment. Meanwhile, Canada’s response – by imposing 25% tariffs on USD 21bn worth of U.S. goods contrasted with Wall Street’s rebound, as slower-than-anticipated CPI inflation data (0.2% MoM and 2.8% YoY) calmed investors. This may affect the Fed’s interest rate outlook environment. Furthermore, traders will keep track of (i) PPI data, (ii) Unemployment Claims, and (iii) Preliminary UoM Consumer Sentiment. In the commodities market, Brent Crude and Gold edged higher towards USD70 and USD2,935 respectively while CPO traded in a tight range within RM4,487.
Sector Focus: Given Wall Street’s rebound, we see trading opportunities in oversold Technology stocks, coupled with the recent collaboration with Arm Holdings. Secondly, we remain positive on the Banking sector, despite increased selling pressure post-dividend ex-date, as growing income and dividends should cushion downside risk. Meanwhile, we favour REITs due to recovering footfall in major malls. Lastly, ITMAX’s Penang venture could offer new business opportunities, mirroring its success in Johor, while PECCA stands out for its strong net cash position and superior profitability.
Stocks to watch:
Technology: *GREATEC*, *NATGATE*, *PIE*, UNISEM
Telco: *TIMECOM*
Logistics: *WPRTS*
Consumer: KOPI
Automotive: PECCA
Source: M+
Market Breadth Turning More Positive
The sell-off in the local bourse persisted as ongoing retaliation and global economic uncertainties, driven by Trump’s trade policies, weighed on sentiment. Meanwhile, Canada’s response – by imposing 25% tariffs on USD 21bn worth of U.S. goods contrasted with Wall Street’s rebound, as slower-than-anticipated CPI inflation data (0.2% MoM and 2.8% YoY) calmed investors. This may affect the Fed’s interest rate outlook environment. Furthermore, traders will keep track of (i) PPI data, (ii) Unemployment Claims, and (iii) Preliminary UoM Consumer Sentiment. In the commodities market, Brent Crude and Gold edged higher towards USD70 and USD2,935 respectively while CPO traded in a tight range within RM4,487.
Sector Focus: Given Wall Street’s rebound, we see trading opportunities in oversold Technology stocks, coupled with the recent collaboration with Arm Holdings. Secondly, we remain positive on the Banking sector, despite increased selling pressure post-dividend ex-date, as growing income and dividends should cushion downside risk. Meanwhile, we favour REITs due to recovering footfall in major malls. Lastly, ITMAX’s Penang venture could offer new business opportunities, mirroring its success in Johor, while PECCA stands out for its strong net cash position and superior profitability.
Stocks to watch:
Technology: *GREATEC*, *NATGATE*, *PIE*, UNISEM
Telco: *TIMECOM*
Logistics: *WPRTS*
Consumer: KOPI
Automotive: PECCA
Source: M+
👍5
Good Morning All, Here’s our IPO note on HI Mobility Bhd: Your Trusted Guide to Global Trading | Malacca Securities (https://r.mplusglobal.com.my/public/website/file/2025/03/13/20250313103141942.pdf)
We assign a fair value of RM1.57 per share for HI Mobility Berhad, representing an 28.7% upside from the IPO price of RM1.22. This valuation is based on a P/E ratio of 15.0x, pegged to mid-FY27f EPS of 10.49 sen. Despite the 12-months average forward P/E and historical average P/E for its peers stood at 10.3-11.6x, we believe that the ascribed P/E is fair as HI Mobility operates predominantly in Johor, securing government contracts like SBST and ‘Bas Muafakat Johor’ for intracity services while also maintaining a strong presence in Johor-Singapore cross-border transportation. This strategic positioning provides the group with an added advantage, particularly with the anticipated boost from the JSSEZ initiative.
Meanwhile, its recent commencement of the BAS.MY services in Melaka in May 2024 and contract win with Rapid KL in June 2024 marks a key milestone in expanding into the Klang Valley, which we believe will unlock further growth opportunities in the near future. It is also important to note that HI Mobility’s peers have a negative average ROE and NP margin, unlike the group, which is demonstrating a double-digit ROE and NP margin.
Investment highlights include:
(i) Bus fleet expansion and electrification
(ii) Expanding current digital infrastructure
(iii) Enhancing depot facilities for EV transition
(iv) Strengthening market share through route expansion
(v) Sustainable order book visibility
(vi) Decent market share
(vii) Benefiting from the Johor-Singapore Special Economic Zone
(viii) RTS Link to complement HI’s operations
(ix) Positioned for growth in Klang Valley through Rapid Bus
Please let me know if you have any questions. Have a nice day!
Research Team, M+
13 Mar 2025
We assign a fair value of RM1.57 per share for HI Mobility Berhad, representing an 28.7% upside from the IPO price of RM1.22. This valuation is based on a P/E ratio of 15.0x, pegged to mid-FY27f EPS of 10.49 sen. Despite the 12-months average forward P/E and historical average P/E for its peers stood at 10.3-11.6x, we believe that the ascribed P/E is fair as HI Mobility operates predominantly in Johor, securing government contracts like SBST and ‘Bas Muafakat Johor’ for intracity services while also maintaining a strong presence in Johor-Singapore cross-border transportation. This strategic positioning provides the group with an added advantage, particularly with the anticipated boost from the JSSEZ initiative.
Meanwhile, its recent commencement of the BAS.MY services in Melaka in May 2024 and contract win with Rapid KL in June 2024 marks a key milestone in expanding into the Klang Valley, which we believe will unlock further growth opportunities in the near future. It is also important to note that HI Mobility’s peers have a negative average ROE and NP margin, unlike the group, which is demonstrating a double-digit ROE and NP margin.
Investment highlights include:
(i) Bus fleet expansion and electrification
(ii) Expanding current digital infrastructure
(iii) Enhancing depot facilities for EV transition
(iv) Strengthening market share through route expansion
(v) Sustainable order book visibility
(vi) Decent market share
(vii) Benefiting from the Johor-Singapore Special Economic Zone
(viii) RTS Link to complement HI’s operations
(ix) Positioned for growth in Klang Valley through Rapid Bus
Please let me know if you have any questions. Have a nice day!
Research Team, M+
13 Mar 2025
👍4
M+ Market Wrap - 13Mar25
FBM KLCI: 1,510.03 pts (+25.20pts, +1.70%)
The FBMKLCI (+1.70%) rebounded off its 52-week low after RSI showing oversold signal as Banking heavyweights lifted sentiment on the local bourse, tracking the U.S. market’s rebound after posting slower-than-anticipated inflation data. Market breadth turned positive, with gainers outpacing losers by 728 to 268 stocks. All sectors traded positively, with strong buying interest was seen in oversold Technology (+3.70%) stocks, led by gains in FRONTKN (+36.0 sen) and INARI (+7.0 sen).
Top 3 Active stocks:
SAPNRG (5218): RM0.045 (+0.5 sen)
BORNOIL (7036): RM0.010 (unch)
SALIRAN (0346): RM0.210 (-6.0 sen)
Volume: 3.25 bn (100-bar avg vol: 2.96 bn)
Value: RM2.91 bn (100-bar avg val: RM2.59 bn)
Market Breadth: ⬆️728⬇️268
Crude palm oil: RM4,522 (+RM35)
Dow Futures: 41,260 pts (-135 pts)
**Source: Bloomberg, M+**
FBM KLCI: 1,510.03 pts (+25.20pts, +1.70%)
The FBMKLCI (+1.70%) rebounded off its 52-week low after RSI showing oversold signal as Banking heavyweights lifted sentiment on the local bourse, tracking the U.S. market’s rebound after posting slower-than-anticipated inflation data. Market breadth turned positive, with gainers outpacing losers by 728 to 268 stocks. All sectors traded positively, with strong buying interest was seen in oversold Technology (+3.70%) stocks, led by gains in FRONTKN (+36.0 sen) and INARI (+7.0 sen).
Top 3 Active stocks:
SAPNRG (5218): RM0.045 (+0.5 sen)
BORNOIL (7036): RM0.010 (unch)
SALIRAN (0346): RM0.210 (-6.0 sen)
Volume: 3.25 bn (100-bar avg vol: 2.96 bn)
Value: RM2.91 bn (100-bar avg val: RM2.59 bn)
Market Breadth: ⬆️728⬇️268
Crude palm oil: RM4,522 (+RM35)
Dow Futures: 41,260 pts (-135 pts)
**Source: Bloomberg, M+**
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M+ Morning Market Buzz - 14Mar25
Dow Jones: 40,813.57 pts (-537.36pts, -1.30%)
⬆️ Resistance: 43800
⬇️ Support: 39900
FBM KLCI: 1,510.03 pts (+25.20pts, +1.70%)
⬆️ Resistance: 1590
⬇️ Support: 1450
HSI Index: 23,462.65 pts (-137.66pts, -0.58%)
⬆️ Resistance: 25200
⬇️ Support: 22800
Crude Palm Oil: RM4,539 (-RM10, -0.22%)
⬆️ Resistance: 4760
⬇️ Support: 4350
Brent Oil: $69.88 (-$1.07, -1.51%)
⬆️ Resistance: 72.90
⬇️ Support: 67.30
Gold: $2,989.18 (-$5.10, -0.17%)
⬆️ Resistance: 3050
⬇️ Support: 2830
Source: Bloomberg, M+
Dow Jones: 40,813.57 pts (-537.36pts, -1.30%)
⬆️ Resistance: 43800
⬇️ Support: 39900
FBM KLCI: 1,510.03 pts (+25.20pts, +1.70%)
⬆️ Resistance: 1590
⬇️ Support: 1450
HSI Index: 23,462.65 pts (-137.66pts, -0.58%)
⬆️ Resistance: 25200
⬇️ Support: 22800
Crude Palm Oil: RM4,539 (-RM10, -0.22%)
⬆️ Resistance: 4760
⬇️ Support: 4350
Brent Oil: $69.88 (-$1.07, -1.51%)
⬆️ Resistance: 72.90
⬇️ Support: 67.30
Gold: $2,989.18 (-$5.10, -0.17%)
⬆️ Resistance: 3050
⬇️ Support: 2830
Source: Bloomberg, M+
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M+ Market Update – 14Mar25
Wall Street In Correction Territory
The local bourse traded positively after the US posted slower-than-anticipated inflation data, despite President Trump’s new trade policies. However, we believe traders have started pricing in Canada’s retaliation measure with 25% tariffs on USD21bn worth of US goods, along with potential tit-for-tat actions by other trading partners, thus we expect further downside risk for Wall Street. The recent flattish and marginal decline in PPI (Core PPI: -0.1%, PPI: 0.0%) data may influence the Fed’s interest rate outlook. In the commodities market, ongoing Ukraine-Russia peace talks continued to weigh on Brent oil, which hovers around USD70. Gold prices surged to an all-time high near USD2,990, while CPO hovered around RM4,500.
Sector Focus: We see trading opportunities in gold-related counters, given the recent surge in gold prices, compounded by ongoing global economic uncertainties. Secondly, despite the recent rebound in the oversold Technology sector, we believe continuous foreign outflows amid US trade policies may limit its upside. Traders may instead focus on sectors like Healthcare, specifically hospital operators. We remain positive on Banking and REIT heavyweights due to their defensive characteristics during economic slowdown, as well as on ITMAX and PECCA, given their robust outlook and strong financial position.
Stocks to watch:
Financial: *OSK*, PBBANK
Utility: *MNHLDG*, UUE
Technology: *OPPSTAR*
Construction: *SUNCON*
Healthcare: *KPJ*
Automotive: PECCA
REIT: IGBREIT
Source: M+
Wall Street In Correction Territory
The local bourse traded positively after the US posted slower-than-anticipated inflation data, despite President Trump’s new trade policies. However, we believe traders have started pricing in Canada’s retaliation measure with 25% tariffs on USD21bn worth of US goods, along with potential tit-for-tat actions by other trading partners, thus we expect further downside risk for Wall Street. The recent flattish and marginal decline in PPI (Core PPI: -0.1%, PPI: 0.0%) data may influence the Fed’s interest rate outlook. In the commodities market, ongoing Ukraine-Russia peace talks continued to weigh on Brent oil, which hovers around USD70. Gold prices surged to an all-time high near USD2,990, while CPO hovered around RM4,500.
Sector Focus: We see trading opportunities in gold-related counters, given the recent surge in gold prices, compounded by ongoing global economic uncertainties. Secondly, despite the recent rebound in the oversold Technology sector, we believe continuous foreign outflows amid US trade policies may limit its upside. Traders may instead focus on sectors like Healthcare, specifically hospital operators. We remain positive on Banking and REIT heavyweights due to their defensive characteristics during economic slowdown, as well as on ITMAX and PECCA, given their robust outlook and strong financial position.
Stocks to watch:
Financial: *OSK*, PBBANK
Utility: *MNHLDG*, UUE
Technology: *OPPSTAR*
Construction: *SUNCON*
Healthcare: *KPJ*
Automotive: PECCA
REIT: IGBREIT
Source: M+
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M+ Market Wrap - 14Mar25
FBM KLCI: 1,512.15 pts (+2.12pts, +0.14%)
The FBMKLCI (+0.14%) traded higher after hitting an intraday low of 1,493, as buying interest in YTL-related counters boosted sentiment on the local bourse. Market breadth was positive, with gainers outpacing losers by 680-to-292 stocks. On the broader market, the Construction sector (+2.55%) outperformed, driven by GAMUDA (+14.0 sen) and IJM (+10.0 sen), while Telco & Media (-0.50%) saw the largest decline.
Top 3 Active stocks:
NATGATE (0270): RM1.360 (+5.0 sen)
KNM (7164): RM0.045 (+0.5 sen)
NEXG (5216): RM0.255 (unch)
Volume: 3.24 bn (100-bar avg vol: 2.97 bn)
Value: RM2.50 bn (100-bar avg val: RM2.59 bn)
Market Breadth: ⬆️680⬇️292
Crude palm oil: RM4,578 (+RM39)
Dow Futures: 41,073 pts (+210 pts)
**Source: Bloomberg, M+**
FBM KLCI: 1,512.15 pts (+2.12pts, +0.14%)
The FBMKLCI (+0.14%) traded higher after hitting an intraday low of 1,493, as buying interest in YTL-related counters boosted sentiment on the local bourse. Market breadth was positive, with gainers outpacing losers by 680-to-292 stocks. On the broader market, the Construction sector (+2.55%) outperformed, driven by GAMUDA (+14.0 sen) and IJM (+10.0 sen), while Telco & Media (-0.50%) saw the largest decline.
Top 3 Active stocks:
NATGATE (0270): RM1.360 (+5.0 sen)
KNM (7164): RM0.045 (+0.5 sen)
NEXG (5216): RM0.255 (unch)
Volume: 3.24 bn (100-bar avg vol: 2.97 bn)
Value: RM2.50 bn (100-bar avg val: RM2.59 bn)
Market Breadth: ⬆️680⬇️292
Crude palm oil: RM4,578 (+RM39)
Dow Futures: 41,073 pts (+210 pts)
**Source: Bloomberg, M+**
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M+ Morning Market Buzz - 17Mar25
Dow Jones: 41,488.19 pts (+674.62pts, +1.65%)
⬆️ Resistance: 43400
⬇️ Support: 39900
FBM KLCI: 1,512.15 pts (+2.12pts, +0.14%)
⬆️ Resistance: 1590
⬇️ Support: 1450
HSI Index: 23,959.98 pts (+497.33pts, +2.12%)
⬆️ Resistance: 24800
⬇️ Support: 22800
Crude Palm Oil: RM4,474 (+RM39, +0.88%)
⬆️ Resistance: 4760
⬇️ Support: 4350
Brent Oil: $70.58 (+$0.56, +0.79%)
⬆️ Resistance: 72.70
⬇️ Support: 67.30
Gold: $2,984.16 (+$4.10, +0.14%)
⬆️ Resistance: 3070
⬇️ Support: 2830
Source: Bloomberg, M+
Dow Jones: 41,488.19 pts (+674.62pts, +1.65%)
⬆️ Resistance: 43400
⬇️ Support: 39900
FBM KLCI: 1,512.15 pts (+2.12pts, +0.14%)
⬆️ Resistance: 1590
⬇️ Support: 1450
HSI Index: 23,959.98 pts (+497.33pts, +2.12%)
⬆️ Resistance: 24800
⬇️ Support: 22800
Crude Palm Oil: RM4,474 (+RM39, +0.88%)
⬆️ Resistance: 4760
⬇️ Support: 4350
Brent Oil: $70.58 (+$0.56, +0.79%)
⬆️ Resistance: 72.70
⬇️ Support: 67.30
Gold: $2,984.16 (+$4.10, +0.14%)
⬆️ Resistance: 3070
⬇️ Support: 2830
Source: Bloomberg, M+
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M+ Market Update – 17Mar25
Local Bourse Rises, Wall Street Rebounds
The local bourse traded higher, buoyed by gains in YTL-related counters. Meanwhile, Wall Street rebounded significantly on Friday as investors shrugged off tariff-related headlines. Nevertheless, Friday’s rallies could not spare the indices from their weekly losses, with the Dow posting its worst week since March 2023, while the S&P 500 and Nasdaq both fell more than 2%, marking their fourth consecutive losing week. Investors will also be watching the US retail and core retail sales, as well as Chinese industrial production and unemployment rate today. In the commodities market, Brent oil remained above USD70/barrel, while gold prices traded near their all-time high above USD3,000 Meanwhile, CPO continued to hover around RM4,500/tonne.
Sector Focus: Following last Friday’s positive closing, we observed rebounds in certain DC-related counters, including SCGBHD and MNHLDG. Meanwhile, gold-related counter AUMAS showed bullish momentum amid surging gold prices. Lastly, investors can look into the upcoming IPO, HI Mobility Bhd (M+ fair value: RM1.57), which is set to benefit from JSSEZ initiatives, the commencement of BAS.MY services in Melaka (May 2024) and the Rapid KL contract win (June 2024). Its closing of applications is on 19th March 2025.
Stocks to watch:
Utility: *GASMSIA*, *HEGROUP*, SCGBHD, *UUE*
Construction: *SUNCON*
Logistics: *WPRTS*
Financial: KENANGA
Consumer: SPRITZER
Gaming: GENM
Source: M+
Local Bourse Rises, Wall Street Rebounds
The local bourse traded higher, buoyed by gains in YTL-related counters. Meanwhile, Wall Street rebounded significantly on Friday as investors shrugged off tariff-related headlines. Nevertheless, Friday’s rallies could not spare the indices from their weekly losses, with the Dow posting its worst week since March 2023, while the S&P 500 and Nasdaq both fell more than 2%, marking their fourth consecutive losing week. Investors will also be watching the US retail and core retail sales, as well as Chinese industrial production and unemployment rate today. In the commodities market, Brent oil remained above USD70/barrel, while gold prices traded near their all-time high above USD3,000 Meanwhile, CPO continued to hover around RM4,500/tonne.
Sector Focus: Following last Friday’s positive closing, we observed rebounds in certain DC-related counters, including SCGBHD and MNHLDG. Meanwhile, gold-related counter AUMAS showed bullish momentum amid surging gold prices. Lastly, investors can look into the upcoming IPO, HI Mobility Bhd (M+ fair value: RM1.57), which is set to benefit from JSSEZ initiatives, the commencement of BAS.MY services in Melaka (May 2024) and the Rapid KL contract win (June 2024). Its closing of applications is on 19th March 2025.
Stocks to watch:
Utility: *GASMSIA*, *HEGROUP*, SCGBHD, *UUE*
Construction: *SUNCON*
Logistics: *WPRTS*
Financial: KENANGA
Consumer: SPRITZER
Gaming: GENM
Source: M+
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M+ Market Wrap - 17Mar25
FBM KLCI: 1,527.81 pts (+15.66pts, +1.04%)
Mirroring the positive overnight performance in the US, the FBMKLCI (+1.04%) extended its gains and closed higher at 1527.81 pts, with gains in banking heavyweights like CIMB (+18.0 sen) and MAYBANK (+10.0 sen) leading the key index. This followed after fresh stimulus measures announced by China, Malaysia’s largest trading partner, on Sunday to boost domestic consumption, including income hikes and childcare subsidies. The market breadth was positive, with 708 gainers against 297 losers. In the broader market, all thirteen sectors closed in the positive territory, with the Energy sector (+2.31%) gaining the most.
Top 3 Active stocks:
SAPNRG (5218): RM0.045 (-0.5 sen)
PERTAMA (8532): RM0.110 (+5.5 sen)
SRIDGE (0129): RM0.245 (+2.0 sen)
Volume: 3.28 bn (100-bar avg vol: 2.97 bn)
Value: RM2.40 bn (100-bar avg val: RM2.59 bn)
Market Breadth: ⬆️708⬇️297
Crude palm oil: RM4,389 (-RM85)
Dow Futures: 41,638 pts (-212 pts)
**Source: Bloomberg, M+**
FBM KLCI: 1,527.81 pts (+15.66pts, +1.04%)
Mirroring the positive overnight performance in the US, the FBMKLCI (+1.04%) extended its gains and closed higher at 1527.81 pts, with gains in banking heavyweights like CIMB (+18.0 sen) and MAYBANK (+10.0 sen) leading the key index. This followed after fresh stimulus measures announced by China, Malaysia’s largest trading partner, on Sunday to boost domestic consumption, including income hikes and childcare subsidies. The market breadth was positive, with 708 gainers against 297 losers. In the broader market, all thirteen sectors closed in the positive territory, with the Energy sector (+2.31%) gaining the most.
Top 3 Active stocks:
SAPNRG (5218): RM0.045 (-0.5 sen)
PERTAMA (8532): RM0.110 (+5.5 sen)
SRIDGE (0129): RM0.245 (+2.0 sen)
Volume: 3.28 bn (100-bar avg vol: 2.97 bn)
Value: RM2.40 bn (100-bar avg val: RM2.59 bn)
Market Breadth: ⬆️708⬇️297
Crude palm oil: RM4,389 (-RM85)
Dow Futures: 41,638 pts (-212 pts)
**Source: Bloomberg, M+**
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M+ Morning Market Buzz - 19Mar25
Dow Jones: 41,581.31 pts (-260.32pts, -0.62%)
⬆️ Resistance: 42900
⬇️ Support: 39900
FBM KLCI: 1,527.81 pts (+15.66pts, +1.04%)
⬆️ Resistance: 1570
⬇️ Support: 1450
HSI Index: 24,740.57 pts (+595.00pts, +2.46%)
⬆️ Resistance: 25300
⬇️ Support: 22800
Crude Palm Oil: RM4,366 (-RM108, -2.41%)
⬆️ Resistance: 4680
⬇️ Support: 4280
Brent Oil: $70.56 (-$0.51, -0.72%)
⬆️ Resistance: 73.70
⬇️ Support: 68.10
Gold: $3,034.73 (-$1.27, -0.04%)
⬆️ Resistance: 3100
⬇️ Support: 2850
Source: Bloomberg, M+
Dow Jones: 41,581.31 pts (-260.32pts, -0.62%)
⬆️ Resistance: 42900
⬇️ Support: 39900
FBM KLCI: 1,527.81 pts (+15.66pts, +1.04%)
⬆️ Resistance: 1570
⬇️ Support: 1450
HSI Index: 24,740.57 pts (+595.00pts, +2.46%)
⬆️ Resistance: 25300
⬇️ Support: 22800
Crude Palm Oil: RM4,366 (-RM108, -2.41%)
⬆️ Resistance: 4680
⬇️ Support: 4280
Brent Oil: $70.56 (-$0.51, -0.72%)
⬆️ Resistance: 73.70
⬇️ Support: 68.10
Gold: $3,034.73 (-$1.27, -0.04%)
⬆️ Resistance: 3100
⬇️ Support: 2850
Source: Bloomberg, M+
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M+ Market Update – 19Mar25
Selling Pressure Returns
The local bourse traded higher, with banking heavyweights leading the key index. In the US, all three indices traded lower, dragged down by technology giants including Tesla, Palantir and Nvidia; despite the latter announced new chips in its GTC conference. Meanwhile, the White House stated that President Trump and President Putin had agreed to seek a limited ceasefire on Ukraine’s energy and infrastructure for 30 days. All eyes are now on the two-day FOMC meeting, although the Fed is widely expected to maintain its interest rate. Additionally, the BoJ will also be announcing its interest rate decision for Japan today. In the commodities market, Brent oil continued to hover above USD70/barrel, while gold prices remained flat above the USD3,000 range. Meanwhile, CPO fell below the RM4,400 level.
Sector Focus: Given the weakness in the US, we expect selling interest to spillover to local tech stocks, limiting the upside potential of the recent rebound. Besides, investors may consider on the upcoming IPO, HI Mobility Bhd (M+ fair value: RM1.57), which is set to benefit from JSSEZ initiatives, the commencement of BAS.MY services in Melaka and the Rapid KL contract last year. Meanwhile, traders can look into the gold-mining counter AUMAS as gold prices trade above USD3,000. Lastly, we favour JTIASA for its positive cash flow and attractive dividends.
Stocks to watch:
Financial: *KENANGA*, *OSK*
Consumer: KOPI, SPRITZER
Utility: *KJTS*
Healthcare: *KPJ*
Construction: *SUNCON*
REIT: IGBREIT
Source: M+
Selling Pressure Returns
The local bourse traded higher, with banking heavyweights leading the key index. In the US, all three indices traded lower, dragged down by technology giants including Tesla, Palantir and Nvidia; despite the latter announced new chips in its GTC conference. Meanwhile, the White House stated that President Trump and President Putin had agreed to seek a limited ceasefire on Ukraine’s energy and infrastructure for 30 days. All eyes are now on the two-day FOMC meeting, although the Fed is widely expected to maintain its interest rate. Additionally, the BoJ will also be announcing its interest rate decision for Japan today. In the commodities market, Brent oil continued to hover above USD70/barrel, while gold prices remained flat above the USD3,000 range. Meanwhile, CPO fell below the RM4,400 level.
Sector Focus: Given the weakness in the US, we expect selling interest to spillover to local tech stocks, limiting the upside potential of the recent rebound. Besides, investors may consider on the upcoming IPO, HI Mobility Bhd (M+ fair value: RM1.57), which is set to benefit from JSSEZ initiatives, the commencement of BAS.MY services in Melaka and the Rapid KL contract last year. Meanwhile, traders can look into the gold-mining counter AUMAS as gold prices trade above USD3,000. Lastly, we favour JTIASA for its positive cash flow and attractive dividends.
Stocks to watch:
Financial: *KENANGA*, *OSK*
Consumer: KOPI, SPRITZER
Utility: *KJTS*
Healthcare: *KPJ*
Construction: *SUNCON*
REIT: IGBREIT
Source: M+
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