Review & Outlook

The local market fell but ended off lows on Tuesday, mirroring weaker regional markets on economic growth worries as regional inflation data slumped. The FBM KLCI eased 1.56 points to settle at 1,449.46, off an opening high of 1,451.59 and low of 1,444.58, as losers beat gainers 492 to 369 on higher turnover of 3.54bn shares worth RM2bn.

Better Support at 1,430/1,400; Resistance at 1,465/1,470

Stocks should continue to trend sideways with downward bias as investors remain sidelined pending more economic clues from the region, and ahead of the closely watched US jobs data later this week. Better index chart supports are at 1,430, and 1,400/1,390, while the end June low of 1,370 will act as crucial support. Immediate resistance is still at 1,465/1,470, with the 1,490/1,500 area acting as tougher upside hurdle.

Bargain Maybank & RHB Bank

Maybank will be attractive to bargain for recovery to the upper Bollinger band (RM9.18), with next upside hurdles from the 150%FP (RM9.32) and 161.8%FP (RM9.51) ahead, while uptrend support from the rising 100- day ma (RM8.86) cushions downside. RHB Bank is attractive to bargain at current levels for rebound upside to the 6/11/23 high (RM5.65), with a breakout to aim for the 123.6%FP (RM5.75) and 138.2%FP (RM5.90), while the 200-day ma (RM5.39) cushions downside.

News Bites

• Fitch Ratings has affirmed Malaysia's long-term foreign-currency issuer default rating (IDR) at BBB+ with a stable outlook.

• Retail Group Malaysia has raised its growth forecast for the retail industry in 2023 to 2.8% from the previously projected 2.7% in September.

• Malayan Banking Bhd and Kuala Lumpur Kepong Bhd have set up KLK's first sustainability-linked loan of RM500mn for the group's general working capital requirements.

• DRB-Hicom Bhd's 50.1%-owned Proton Holdings Bhd recorded 12,296 vehicle sales in November 2023.

• Carlsberg Brewery Malaysia Bhd has inked a deal with Japan's Sapporo Breweries Ltd to produce the Sapporo Premium Beer for distribution in Malaysia and Singapore.

• Sunway Bhd has bought back and cancelled RM200mn in perpetual sukuk issued under the sixth series of its RM5bn Perpetual Islamic Medium Term Note Programme.

• Haily Group Bhd has secured a RM64.0mn construction contract from Mah Sing Group Bhd.

• Advancecon Holdings Bhd has secured a RM35.6mn contract from Sime Darby Property (Bukit Raja) Sdn Bhd for earthworks and auxiliary works at its township project in Bandar Bukit Raja Stage 3 in Klang, Selangor.

• Kinergy Advancement Bhd has won a RM31.0mn contract to undertake electrical works for Mah Sing Group Bhd's multistorey M Nova residential development in Kepong, Kuala Lumpur.

• AirAsia X Bhd has inked a lease agreement with Asia Aviation Capital Ltd for the lease of an aircraft bearing MSN1596 for one year, with an estimated value of RM30.5mn, inclusive of lease rental and maintenance reserves.

• Reach Energy Holdings Sdn Bhd has ceased to be a substantial shareholder of Reach Energy Bhd after disposing of a 3.6% stake in the oil and gas services group via a direct business transaction.

• Building support services provider KJTS Group Bhd has inked an underwriting agreement with Hong Leong Investment Bank Bhd for its upcoming initial public offering on the ACE Market of Bursa Malaysia.

• Affin Bank Bhd has appointed Mohammad Fairuz Mohd Radi as its Executive Director of Group Community Banking.

• Malaysia Building Society Bhd has appointed Malaysian Industrial Development Finance Bhd Chairman Tan Sri Abd Rahman Mamat and Director Datuk Dr Yasmin Mahmood to the group's board.

• Axiata Group Bhd has appointed Nik Rizal Kamil Nik Ibrahim Kamil as its Group Chief Financial Officer with effect from 1 January 2024.

• The Securities Commission Malaysia has approved ACE Market-listed Cnergenz Bhd's proposed transfer to the Main Market.

• Magni-Tech Industries Bhd's 2QFY24 net profit declined 12.8% YoY to RM21.8mn on the back of lower revenue and other income from both its garments and packaging business segments.

• China's Caixin/S&P Global services purchasing managers index rose to a three-month high of 51.5 in November from October's 50.4.

• The Institute for Supply Management's non-manufacturing PMI rose to 52.7 in November from 51.8.

Source: TA Research - 6 Dec 2023