Review & Outlook

The local market drifted lower on Thursday, with worries over weaker oil prices and China's slowing economy due to the fragile property market dampening market tone. The FBM KLCI lost another 2.97 points to close at 1,442.85, off an early high of 1,447.66 and low of 1,441.02, as losers swarmed gainers 603 to 322 on higher trade totalling 3.01bn shares worth RM1.98bn.

Stocks should extend drift-down ahead of the weekend on lack of positive domestic market leads, and as investors brace themselves for the closely watched US jobs data for clues on the US inflation trend. 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.

AMBank need breakout confirmation above the 28/11/23 high (RM4.10) to fuel further upside momentum towards the 123.6%FP (RM4.36) and 138.2%FP (RM4.53) ahead, while downside is cushioned by the 100-day ma (RM3.80). CIMB will be attractive to bargain on weakness for eventual breach above the 123.6%FP (RM5.90) to aim for 138.2%FP (RM6.09) and 150%FP (RM6.24) going forward, while uptrend support from the rising 100-day ma (RM5.55) cushions downside.

News Bites

• Malayan Banking Bhd won top awards at The Banker's Bank of the Year Award 2023, securing 2 prestigious awards as Bank of the Year in Asia Pacific and Singapore respectively.

• CIMB Bank Bhd has launched a new online personal loan scheme called the Cash Plus Personal Loan Account 2 Support Facility for eligible members of the Employee Provident Fund), with a low introductory interest rate of 4.5% per annum.

• Asia Digital Engineering, a wholly owned subsidiary of Capital A Bhd specialising in aircraft maintenance, repair, and overhaul, has successfully completed its 100th C-Check in just two and a half years, setting a record since its establishment in September 2020.

• Red Sea Gateway Terminal, a Saudi Arabia-based port operator and an associate company of MMC Corporation Bhd in Malaysia, will operate Bangladesh's newly built Patenga Container Terminal.

• Chin Hin Group Bhd has filed its establishment of a perpetual medium-term note, in a bid to raise up to RM500mn, with the Securities Commission Malaysia.

• Vizione Holdings Bhd has won a RM490.0mn turnkey contractor job from Hardie Development Sdn Bhd to design, build, and deliver 3 apartment blocks in Sabah.

• Jentayu Sustainables Bhd is planning another placement to raise up to RM63.0mn to fund its pre-development expenditures, new projects, and working capital.

• Paragon Union Bhd is acquiring carpet manufacturer Carpet Art Manufacturing Sdn Bhd for RM2.5mn.

• The public portion of ACE Market-bound Critical Holdings Bhd's initial public offering has been oversubscribed by 88.1 times.

• China's exports grew 0.5% YoY in November compared with a 6.4% fall in October and beating the 1.1% drop expected in a Reuters poll.

• Unemployment benefits claims in the US rose by 1,000 to 220,000 for the week ending Dec. 2.

• Industrial production in Germany and Italy began the final quarter of the year with a stumble after France and Spain reported similar outcomes, pointing to a possible recession in the region.

Source: TA Research - 8 Dec 2023