Review & Outlook

Stocks traded sideways on Monday, as lack of positive catalysts in the local front and concerns over the Israel-Hamas conflict in the Middle East continued to weigh on investor appetite. The FBM KLCI fell 2.92 points to settle at 1,438.12, after ranging between high of 1,443.86 and low of 1,435.05, as losers thrashed gainers 743 to 195 on total turnover of 3.37bn shares worth RM1.99bn.

The current cautious trading sentiment should persist as investors keep an eye on the ongoing geopolitical developments in the Middle East as well as the interest rate outlook from global central bankers. As for the index, immediate support remains at 1,400, with the 1,390, and the end June low of 1,370 acting as crucial supports. Immediate overhead resistance stays at 1,450, with 1,465/1,470, and the 1,490/1,500 area acting as tougher upside hurdles, going forward.

Dialog will need breakout confirmation above the 61.8%FR (RM2.40) to boost upside momentum towards the 76.4%FR (RM2.58), with next major resistance from the peak of 14/02/22 (RM2.85), and immediate supports at 23.6%FR (RM1.96) and 28/10/22 low (RM1.83). Hibiscus needs decisive breakout above the 61.8%FR (RM2.97) to enhance upside potential towards the 76.4%FR (RM3.22), with stronger upside hurdle coming at the peak of 18/05/22 (RM3.62). Crucial chart supports at 38.2%FR (RM2.56) and 23.6%FR (RM2.31) limits downside risk.

News Bites

• Raising the overnight policy rate may no longer be "relevant" given the decline of headline inflation to below 2% recently, said Malaysia's Deputy Finance Minister Datuk Seri Ahmad Maslan.

• Dayang Enterprise Holdings Bhd said the scope of its contract to provide Petronas Carigali Sdn Bhd offshore maintenance, construction and modification services has been expanded to cover the Sarawak Gas Area from June 22, 2023 till Dec 31, 2023.

• Revenue Group Bhd said its unit has received approval from the Local Government Development Ministry for an online money lending licence.

• Dagang NeXchange Bhd is partnering with Zhongheguoji Construction Group Co Ltd to access high tech IT solutions from China as well as to expand its geographical footprint into the Middle East and North Africa region.

• Yinson Holdings Bhd has inked a strategic partnership agreement with Selangor Information Technology and Digital Economy Corporation to implement and expand sustainable initiatives in Selangor.

• MGB Bhd, a construction and property development arm of LBS Bina Group Bhd, has signed a tripartite MoU with Saudi Arabia-based parties to explore cooperation and investment opportunities in Almadina Almonawara.

• Carlo Rino Group Bhd, which is in the process of transferring its listing from the LEAP Market to the ACE Market on Bursa Malaysia, has adjusted its exit offer price from 23 sen to 22.5 sen.

• Citaglobal Bhd has disclosed that Yang di-Pertuan Agong Al-Sultan Abdullah Ri'ayatuddin Al-Mustafa Billah Shah has increased his stake in the diversified group to 8.6%.

• Capital outflows from China rose sharply to US$75bn (RM357.5bn) in September, the biggest monthly figure since 2016, Goldman Sachs' preferred gauge of foreign exchange flows showed.

• Singapore's key consumer price gauge eased to 3.0% in September on a yearly basis, almost matching economists' forecasts, official data showed.

Source: TA Research - 24 Oct 2023