Tipped lower

Market Review

Malaysia:. The FBM KLCI (-0.2%) staged a mild pullback, dragged by weakness in Petronas-related and selected telco heavyweights yesterday. The lower liners also retreated, while the utilities sector (-1.2%) emerged as the worst performer amongst the sectorial peers.

Global markets:. The US stockmarkets rebounded as the Dow jumped 1.6% to reclaim the 34,000 psychological level ahead of the release of key inflation data that will provide further guidance over the upcoming US Fed interest rate decision. Both the European and Asia stockmarkets, however, closed mostly negative.

The Day Ahead

The FBM KLCI dipped alongside with the regional markets as traders were cautious ahead of the monetary policy meetings across the globe this week. Given that the Wall Street gained momentum overnight in the anticipation of a declining US CPI data, we expect buying interest may set in for the local exchange. Nevertheless, the FOMC meeting outcome on the 14th of Dec will be crucial for the overall stock markets’ direction. At this stage, the market is expecting a softer CPI and the Fed may turn dovish. The Brent crude oil surged above USD77 per barrel mark as a key pipeline in the US remained closed, while Russia threatened a potential production cut. Meanwhile, the CPO price hovered above RM3,800.

Sector focus:. The surge in crude oil price may draw investors’ attention towards the oil & gas sector. Besides, the construction sector may gain traction ahead of the revision of Budget 2023. The technology sector should track the rebound in Nasdaq and regain its strength for the session.

FBMKLCI Technical Outlook

The FBM KLCI ended marginally lower but managed to hold above its daily EMA9 level. Technical indicators remained mixed as the MACD Histogram extended a negative bar, while the RSI is hovering above 50. Resistance is set around 1,500- 1,510, while the support is located around 1,450-1,460.

Company Brief

Public Bank Bhd's founder and chairman emeritus, director and adviser Tan Sri Teh Hong Piow has passed away peacefully at 10.20 am yesterday at the age of 92. Teh began his banking career in the year 1950 and has 72 years of experience in the banking and finance industry. Public Bank was listed on the Kuala Lumpur Stock Exchange (now Bursa Malaysia) on 6th April 1967. (The Star)

UMW Holdings Bhd delivered 39,034 units in November 2022, (+11.1% MoM), bringing year-to-date total of 341,390 units (+48.2% YoY). UMW Toyota Motor registered its highest sales for 2022 with the delivery of 10,442 units in November 2022, with Toyota Vios, Hilux and Corolla Cross being its bestselling models for the year. (The Edge)

Syarikat Takaful Malaysia Keluarga Bhd announced an interim dividend of 13.5 sen per share for FY22. The payment date for the dividend will be 16th January 2023. (The Edge)

Capital A Bhd's chief executive office Tan Sri Tony Fernandes has announced that the group is poised to see earnings turnaround in 2023, and said he foresees 3 tailwinds including the fall of oil price, the strengthening of the Asean currencies against the greenback, and China's border reopening. He projected that the group will have 140 operational aircraft by the end 2022, with the remaining 65 aircraft to be repaired and deployed in 2023. (The Edge)

Magni-Tech Industries Bhd’s 2QFY23 net profit rose 46.3% YoY to RM25.0m, due to a gain of RM16.9m for the disposal of property. Revenue for the quarter surged 205.6% YoY to RM343.0m. A second interim dividend of 2.3 sen, payable on 11th January 2023 was declared. (The Edge)

Source: Mplus Research - 13 Dec 2022