Review & Outlook

The local market drifted lower on Monday, copying regional weakness as the escalating situation in the Middle East influences investor sentiment. The FBM KLCI fell 5.18 points to close at 1,438.96, off an early high of 1,446.06 and low of 1,436.50, as losers beat gainers 597 to 284 on total turnover of 3.08bn shares worth RM1.92bn.

The overnight rebound on Wall Street should revive the local market today, but undertone remains cautious as Middle East concerns persist. On the index, immediate overhead resistance stays at 1,450, with 1,465/ 1,470, and the 1,490/1,500 area acting as tougher upside hurdles. Immediate support remains at 1,400, with 1,390 and the end June low of 1,370 acting as crucial supports.

Any further weakness on Aemulus towards 25sen would aggravate oversold condition and encourage technical rebound ahead, with resistance from the 61.8%FR (38sen) and 50%FR (50sen), going forward. Similarly, DNEX looks attractive to bargain on dips for recovery to the 09/05/23 high (53sen) with a confirmed breakout to target the 76.4%FR (59sen) ahead, while key supports are at the pivot low of 30/05/23 (37sen) and 30sen.

News Bites

• The government expects to raise an additional revenue of RM3bn through the increase in the sales and service tax to 8% next year, from 6% currently, according to Treasury secretary general.

• The progressive wage policy will complement the minimum wage policy and is not intended to replace it, said the Economy Ministry.

• CelcomDigi Bhd will work with Time dotCom Bhd to expand its CelcomDigi fibre services to a broader segment, with a particular focus on individuals living in condominiums and apartment complexes.

• Yinson Holdings Bhd together with its client Azule Energy, is going to pilot an offshore carbon capture and storage plant on the FPSO Agogo in Angola.

• PMB Technology Bhd had entered into a Sale and Purchase Agreement for the disposal of 56,656 square metre leasehold land in Klang for RM36.6mn.

• DXN Holdings Bhd had entered into a MoU with European Wellness Centers INC to jointly develop and explore collaboration opportunities in establishing wellness centres together.

• AME Real Estate Investment Trust has fully concluded its maiden postlisting acquisition exercise of 3 industrial properties in Iskandar Malaysia, Johor worth RM69.3mn.

• Swift Haulage Bhd is keen to be the first logistics player to transition its fleet to renewable-powered trucks, as it commits to procure only electric prime movers or trucks powered from 2030 onwards.

• Following KNM Group Bhd's extraordinary general meeting on 16 October 2023, the group's chairman, Tunku Datuk Yaacob Khyra, has won the majority support of shareholders.

• Straits Energy Resources Bhd had signed a MoU with Megah Port Management Sdn Bhd to transform the Port of Labuan into a smart port showcasing the latest network connectivity.

• Ni Hsin Group Bhd had signed a Collaboration Cum Donation Agreement with Universiti Sains Malaysia, Focus Applied Technologies Sdn Bhd and Dongguan Tailing Electric Vehicle Co. Ltd. with the aim to assist Malaysia to promote electric mobility.

• Malaysia Marine and Heavy Engineering Holding Bhd has appointed Mohammad Suhaimi Mohd Yasin as its new chairman effective 16 October 2023.

• Datuk Seri Dr Shahril Mokhtar has been appointed as the managing director of Green Packet Bhd effective immediately.

• The People's Bank of China added a net 289bn yuan (RM187.4bn) into the financial system via a one-year policy loan on Monday, the most since Dec 2020.

• The New York Fed said its general business conditions index fell to a negative 4.6 in October from a positive 1.9 in September.

Source: TA Research - 17 Oct 2023