Review & Outlook

Bursa Malaysia shares rose further Monday on optimism for an end to the global interest rate hike trend, but eased off highs as investors took some profits from the recent strong gains. The FBM KLCI added 2.83 points to close at 1,465.28, after moving between early low of 1,460.42 and high of 1,468.74, as losers beat gainers 504 to 419 on robust turnover of 4.81bn shares worth RM3.02bn.

Stocks should ease for near-term profit-taking consolidation as investor optimism for global interest rate cuts next year cools, but blue chips should find support on dips from window-dressing interest ahead of the year-end. The index will need breakout confirmation above the 1,465/ 1,470 immediate resistance area to promote further rise to the 1,490/ 1,500 next resistance area. Immediate support is at 1,450, with better chart supports at 1,430, and then 1,400/1,390.

Genting Berhad will need to overcome profit-taking resistance from the upper Bollinger band (RM4.81) and 76.4%FR (RM4.92) to enhance upside momentum towards tougher hurdles at RM5.10 and RM5.40, while the 200-day ma (RM4.36) and 100-day ma (RM4.31) cushion downside. Genting Malaysia need breakout confirmation above the 50%FR (RM2.76) to improve upside potential towards the 61.8%FR (RM2.84) and 76.4%FR (RM2.95) ahead, with the 200-day ma (RM2.57) and 100-day ma (RM2.55) capping downside risk.

News Bites

• Prime Minister Datuk Seri Anwar Ibrahim's working visit to Japan in conjunction with the Asean-Japan Commemorative Summit has managed to attract potential investments worth RM6.56bn.

• Sunway Real Estate Investment Trust's trustee RHB Trustees Bhd has inked a conditional sale and purchase agreement with Best Corridor Venture Sdn Bhd to acquire an industrial property in Prai, Penang for RM66.8mn.

• Keynote Capital Sdn Bhd, controlling shareholder of Apollo Food Holdings Bhd, is confirmed to be exiting the group after Scoop Capital Sdn Bhd, the franchisee of Baskin-Robbins, proposed to acquire Keynote's entire 51.3% stake in the confectionary maker for RM238.1mn in cash.

• APB Resources Bhd is acquiring 70mn shares in Globetronics Technology Bhd, representing a 10.4% stake in the Penang-based semiconductor manufacturer for RM140mn cash.

• PETRONAS Suriname E&P BV, a subsidiary of Petroliam Nasional Bhd, has signed production sharing contracts for Blocks 63 and 64 offshore Surinam with Staatsolie Maatschappij Suriname NV, a Surinamese oil and gold company.

• Majuperak Holdings Bhd is disposing of 2.0 acres of land in Ipoh to a wholly-owned unit of the Perak State Agriculture Development Corporation for RM18.4mn as part of its business regularization plan.

• Divfex Bhd's 51% owned subsidiary Excel Commerce Solutions Sdn Bhd has accepted an award from Extreme Broadband Sdn Bhd to supply and install data centre equipment system for a contract value of RM16.4mn.

• Silver Ridge Holdings Bhd is in talks to buy a substantial and controlling equity interest in Exarex Sdn Bhd.

• Supermax Corp Bhd has announced a new chief executive and senior executive director, Tan Chee Keong, also known as CK Tan, who is the nephew of both Supermax's co-founders Datuk Seri Stanley Thai Kim Sim and his wife Datuk Wira Cheryl Tan Bee Geok.

• UWC Bhd's net profit dropped 85.1% to RM4.4mn in the 1QFY24 from RM29.3mn a year earlier due to lower revenue.

• United Malacca Bhd's net profit in the 2QFY24 fell by 12.6% to RM13.7mn from RM15.7mn in the previous year, mainly due to higher expenses and investment losses.

• China's economy is expected to see more favourable conditions, and more opportunities than challenges in 2024, state media said citing officials of the Chinese Communist Party's finance and economy office.

Source: TA Research - 19 Dec 2023