Bursa Malaysia Midday Recap: Cautious Optimism

The FBM KLCI continued its downtrend after US jobs data indicated a cooling labor market, suggesting the Fed might pause rate cuts in January. Losses in GAMUDA and YTL stocks further weighed down the index. Market sentiment remained weak, with most constituents trading in the red. The construction sector declined due to profit-taking, and tech stocks slipped, likely due to reports of new US export restrictions on AI chips targeting China and Russia. On the bright side, REIT share price gains prompt selective picking, seeing opportunities in targeted market segments.

As telco & media rebound from yesterday’s losses, investors anticipating further gains may consider CDB (Target Price: MYR 4.50) and TM (Target Price: MYR 7.50) as potential trade ideas. For more insights, check the full report in the Insights tab on your Maybank Trade MY app today.

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#Middayrecap

M+ Morning Market Buzz - 10Jan25

Dow Jones: 42,635.20 pts (+106.84pts, +0.25%)
⬆️ Resistance: 44000
⬇️ Support: 41500

FBM KLCI: 1,600.81 pts (-14.02pts, -0.87%)
⬆️ Resistance: 1670
⬇️ Support: 1570

HSI Index: 19,240.89 pts (-38.95pts, -0.20%)
⬆️ Resistance: 20300
⬇️ Support: 18800

Crude Palm Oil: RM4,296 (-RM5, -0.12%)
⬆️ Resistance: 4540
⬇️ Support: 4150

Brent Oil: $76.92 (+$0.76, +1.00%)
⬆️ Resistance: 79.50
⬇️ Support: 74.10

Gold: $2,667.25 (+$3.59, +0.13%)
⬆️ Resistance: 2740
⬇️ Support: 2570

Source: Bloomberg, M+

M+ Market update – 10Jan25
State-Specific Thematic Focus

The local front continued to close on a negative tone, with YTL-related counters dragging the key index lower. Meanwhile, equity markets in the US were closed in observance of the passing of former US President Jimmy Carter. As the time of writing, Wall Street futures are down, and traders are shifting their attention to the December nonfarm payrolls due later today. In the commodities market, Brent crude oil traded above USD77 level amid declining US inventories. Gold prices are hovering along the USD2670 level, while CPO prices have fallen below RM4,300.

Sector Focus: As Wall Street futures slides, this could spillover to stocks on the local front. However, we believe the market will focus on state-specific thematic plays; (i) Sarawak - PM Anwar’s proposal to position Sarawak as Malaysia’s energy hub is expected to drive further developments in the state, benefiting East Malaysia-related counters, (ii) Penang - the commencement of six water projects in Penang, worth over RM1.8bn, alongside the start of the Penang LRT project, is expected to boost the Penang-related counters and (iii) Johor - the formalisation of the JSSEZ, coupled with ongoing FDI inflows and data center investments in Johor, is anticipated to benefit the Johor-related counters.

Stocks to watch:

Consumer: *DXN*, *FFB*
O&G: *YINSON*
Property: *ECOWLD*
Utility: MALAKOF

Source: M+

10-January-2025

Web Page (https://ceomorningbrief.theedgemalaysia.com/2025/0894)
PDF (https://ceomorningbrief.theedgemalaysia.com/pdf/2025/20250110_CMB_0894/250110r08gy4.pdf)

Public Bank Eyes Higher Dividends from Merger Synergies

Public Bank (PBBANK) is positioned to increase its dividend payouts beyond the usual biannual schedule, driven by potential product cross-selling opportunities following its acquisition of LPI Capital (LPI), as reported by TheEdge according to a local research house.

Additionally, PBBANK plans to gradually reduce its loan loss coverage (LLC), targeting credit costs under 10 basis points long-term, supported by disciplined asset quality management.

Investors seeking leveraged exposure on PBBANK may consider PBBANK-C1L, which recorded a traded volume of close to 30 million yesterday.

#DailyHighlights

Maybank IBG Traders’ Almanac
(10 Jan 2025) - Market struggles to find a moment of rebound

Technical Trading Ideas💡for today:
1️⃣ ECO WORLD DEVELOPMENT – 8206 (S)
2️⃣ SUCCESS TRASNFORMER CORP – 7207 (S)
3️⃣ SOLAR DISTRICT COOLING GROUP – 0321 (S)
4️⃣ CPO FUTURES (CP: MYR 4,286)
5️⃣ KLCI INDEX FUTURES (CP: 1,599.00)

Note: S - Shariah Compliant

For the full report, stock ideas, and market flows, access Market Insight on Maybank Trade on Apple Store and Google Play.

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#MaybankIBGTA

UOBKH Retail Market Monitor
10 January 2025

FBMKLCI: 1,601.76 (-13.07)
Support: 1,600, 1,589
Resistance: 1,630, 1,648

Bursa Top Gainers:
MAXIS (+1.4%), CDB (+1.4%), PPB (+0.49%)

Bursa Top Losers:
YTL (-8.2%), YTLPOWR (-6.9%), GAMUDA (-3.9%)

Bursa Trade Statistics
Local Institutions (42.60%): RM121.76m
Local Retail (20.22%): RM12.69m
Foreign (37.18%): -RM134.45m

Global Equity Indexes
MSCI Asia : 179.44 (-1.29, -0.71%)
NASDAQ : 19,478.88 (-10.80, -0.06%)
S&P500 : 5,918.25 (+9.22, +0.16%)
DJIA : 42,635.20 (+106.84, +0.25%)

USD/MYR : 4.5030 (-0.011)
SGD/MYR : 3.2885 (-0.7025)

Crude Oil : 74.23 (+0.31)
Gold : 2,693.40 (+2.60)

US market closed for public holidays.
Stocks To Watch:

1) ANCOMNY (KLSE: 4758)
Technical BUY with +13.7% potential return
* Last: RM1.02 TP: RM1.11, RM1.16 SL: RM0.97
* Timeframe: 2 weeks to 2 months
* Shariah: YES

2) MHC (KLSE: 5026)
Technical BUY on breakout (1.03) with +19.4% potential return
* Last: RM1.02 TP: RM1.17, RM1.23 SL: RM0.975
* Timeframe: 2 weeks to 2 months
* Shariah: YES

3) VTC (KLSE: 0319)
Technical BUY with +32.4% potential return
* Last: RM0.525 TP: RM0.63, RM0.695 SL: RM0.445
* Timeframe: 2 weeks to 2 months
* Shariah: YES

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Disclaimer:
This material is a service for investors and does not represent a buy or sell call. Usage of this information is at your own risk. You are advised to conduct your own independent evaluation, due diligence and risk assessment before investing. We accept no liability whatsoever for any direct or consequential loss arising from any use of this information.

For the full research report, please log in to www.utrade.com.my

*Trading Stocks today:*

For *Trendspotter*, please click on this link: < https://tinyurl.com/yttk45d9 > to view the report.

Or please logon to your account on http://www.cgsi.com.my/ and click on <Research> Tab.

*Malaysia*:
*Salcon (8567)* (RM0.265): Technical Sell
Targets: RM0.25, RM0.225
Stop: RM0.295

*Seng Fong Holdings (5308)* (RM0.96): Technical Sell
Targets: RM0.91, RM0.835
Stop: RM1.05


*Fundamental Report(s):*

*Gamuda* - Orderbook targets looking conservative (Maintain Add with a higher TP of RM6.45) https://tinyurl.com/2rtbwwuz

*Bursa Malaysia* - Robust IPO trend in the stock market (Maintain Add with a higher TP of RM11.30) https://tinyurl.com/nxt8p6za


Join CGS International Securities Malaysia's Official Telegram Channel https://t.me/cgsi_my

*10th Jan 2025*

Disclaimers: This distribution is by CGS International Securities Malaysia Sdn. Bhd. (“CGS MY”) in Malaysia only. The views are our own as of this date and subject to change. No further distribution is allowed without our prior written consent. CGS MY, its related corporations, affiliates and business partners make no recommendation, offer or invitation to transact in any securities, futures contracts or other instruments. Please make your independent evaluation, consider your own investment objectives and financial situation and consult your own professional advisers before participating in any transaction.

*Corporate news*

*Dialog Group Bhd* announced on Thursday 9 Jan that it 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 US$235m (RM1.0bn). (The Edge Malaysia)

Yinson Production, the offshore business arm of *Yinson Holdings Bhd*, said on Thursday 9 Jan that its FPSO vessel, FPSO Atlanta, has achieved first oil in Brazil. (The Edge Malaysia)

*Public Bank Bhd*'s conditional mandatory takeover offer for the remaining shares of insurer *LPI Capital Bhd* that it does not own has lapsed, as it did not secure sufficient acceptances by the close of the offer on Thursday 9 Jan. (The Edge Malaysia)

Oil-and-gas services firm *T7 Global Bhd* said on Thursday 9 Jan it has been awarded a six-month contract with undisclosed value. (The Edge Malaysia)

*Parkson Holdings Bhd* announced that its unit, Liupanshui Parkson Retail Co Ltd, has signed a 10-year tenancy agreement for its department store operations in the city of Liupanshui, Guizhou province, China. (The Edge Malaysia)

Major shareholders of *NPC Resources Bhd* are in talks for a proposal that could lead to the Sabah-based palm oil producer being taken private at RM2.82 per share. (The Edge Malaysia)

SWA Shipping Sdn Bhd is facing a deadline of 25 February as *Pos Logistics Bhd* is considering terminating the RM123.2m deal for the acquisition of PNSL Bhd. (The Edge Malaysia)

Technology company *Green Packet Bhd* said its wholly owned Packet Interactive Sdn Bhd (PISB) has obtained a digital lending licence from the Ministry of Housing and Local Government. (The Edge Malaysia)

*MPHB Capital Bhd*, which is involved in the credit services and property businesses, said that its shares will be suspended, effective from 22 Jan, to facilitate the company’s selective capital reduction before it is taken private. (The Edge Malaysia)

Target 1 Sdn Bhd, *South Malaysia Industries Bhd*’s largest shareholder with a 30.7% stake, announced on Thursday that the company’s EGM proceeded as scheduled on Thursday, with the resolutions to appoint six new directors, including former Perak police chief Datuk Pahlawan Mior Faridalathrash Wahid, being passed. (The Edge Malaysia)

*The unit price index of steel recorded a decrease of between 0.1% and 4.6% across most parts of Malaysia in Dec 2024* compared with the previous month, said the Department of Statistics Malaysia (DOSM).

*The ringgit is heading in the right direction, reflecting the country's strong economic fundamentals and growth prospects for the next couple of years, according to BNM*. Governor Datuk Seri Abdul Rasheed Ghaffour said he believes the ringgit will continue to remain supported by the further narrowing of interest rate differentials with the United States and other countries, as well as the growing investor optimism. (Bernama)


*10th Jan 2025*

Disclaimers: This distribution is by CGS International Securities Malaysia Sdn. Bhd. (“CGS MY”) in Malaysia only. The views are our own as of this date and subject to change. No further distribution is allowed without our prior written consent. CGS MY, its related corporations, affiliates and business partners make no recommendation, offer or invitation to transact in any securities, futures contracts or other instruments. Please make your independent evaluation, consider your own investment objectives and financial situation and consult your own professional advisers before participating in any transaction.