Review & Outlook

Bursa Malaysia shares were stuck in range bound trade on Monday before late buying in plantation and utility blue chips lifted the blue-chip benchmark index to end at the session's high. The FBM KLCI closed up 4.42 points at 1,446.39, off an intra-day low of 1,440.4, as gainers led losers 483 to 397 on total turnover of 3.81bn shares worth RM2.47bn.

The local market should rise in line with the region ahead of the closely watched US inflation data and FOMC meeting, amid increasing optimism the US Federal Reserve may eventually pivot towards rate cuts sometime next year. On the index, immediate resistance remains at 1,465/1,470, with the 1,490/1,500 area acting as tougher upside hurdle. Better chart supports are at 1,430, and then 1,400/1,390, while the end June low of 1,370 will act as crucial support.

MRCB will need to overcome strong profit-taking resistance at the upper Bollinger band (46sen) and 123.6%FP (48sen) before aiming for the 138.2%FP (51sen) and 150%FP (53sen) going forward, while retracement supports from the 76.4%FR (40sen) and 61.8%FR (38sen) cushion downside. UEM Sunrise need decisive breakout above the 50-day ma (78sen) to target immediate upside hurdles at 80sen/85sen and the 123.6%FP (89sen) ahead, while the lower Bollinger band (66sen) and 76.4%FR (64sen) limits downside risk.

News Bites

• Malaysia's industrial production index recovered to expand by 2.7% in October 2023.

• Malaysia's unemployment rate is targeted to drop to 3% next year, compared to the 3.4% recorded this year, said Human Resources Minister V Sivakumar.

• DRB-Hicom Bhd and Zhejiang Geely Holding Group Co Ltd have signed a joint venture agreement for the development of the Automotive HiTech Valley in Tanjong Malim, Perak.

• Sime Darby Bhd's wholly owned subsidiary Sime Darby Enterprise Sdn Bhd has issued Tranche 1 of its Sukuk Murabahah Programme at an issue size of RM3.0bn in nominal value.

• Moody's Investors Service has affirmed Axiata Group Bhd's Baa2 issuer rating, Baa3 baseline credit assessment and has also maintained the stable outlook on all ratings.

• Independent advisor Malacca Securities said the takeover offer price of RM1.55 for Boustead Plantation Bhd by Lembaga Tabung Angkatan Tentera is 'not fair' but 'reasonable' and recommended that shareholders accept the offer.

• Malaysia Airports Holdings Bhd has appointed Datuk Seri Koe Peng Kang as its Independent and Non-Executive Director, effective 12 December 2023.

• Sentral Real Estate Investment Trust has completed the acquisition of Menara CelcomDigi in Petaling Jaya from Malaysian Resources Corporation Bhd for RM450.0mn.

• Hong Leong Industries Bhd is disposing of its entire equity interest in HLI Trading Ltd to Guoline International Ltd for RM36.2mn.

• Censof Holdings Bhd has bagged a RM9.5mn contract from Jabatan Pengangkutan Jalan Malaysia for the maintenance, verification, and calibration services for 48 weighing instruments at the latter's enforcement stations.

• Straits Energy Resources Bhd's subsidiary, Benua Hijau Sdn Bhd has signed a Memorandum of Understanding with the Management Council of Terengganu State Parks and the Setiu Land Office for a multi-year reforestation project.

• Jentayu Sustainables Bhd's second generator of its 40MW Telekosang run-of-river hydropower plant in Tenom, Sabah, has achieved its initial operation date on 9 December 2023, with the feed-in-tariff commencement date targeted in the next 30 days.

• Germany's housing crisis risks intensifying as nearly half of the country's builders complain of insufficient orders and more than one in 10 report financial difficulties.

Source: TA Research - 12 Dec 2023