Review & Outlook

Stocks gave back earlier gains to end lower on late profit-taking Wednesday, as weak follow-through window-dressing support capped bargain hunting activities. The FBM KLCI eased 1.11 points to close near session lows at 1,464.56, off an intra-day high of 1,470.79, as losers edged gainers 465 to 411 on steady trade totalling 3.84bn shares worth RM2.67bn.

In the absence of more significant window-dressing activity, the local market is likely to extend profit-taking consolidation, with buying momentum stalling on dwindling optimism over potential for interest rate cuts next year. The index will need breakout confirmation above 1,470 immediate resistance to fuel further upside towards 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.

Further pullbacks on Supermax should attract buyers again, with key chart supports at 90sen and the 200-day moving average (85sen) cushioning downside, for recovery upside towards resistance from RM1.10 and RM1.20 ahead. Top Glove should also see buyers capping downside closer to support from the 100-day moving average (80sen), with stronger support seen at 70sen, while key upside hurdles will be at RM1.10 and the May 2023 high (RM1.25).

News Bites

• Maxis Bhd has signed an amendment agreement with Telekom Malaysia Bhd to extend the high-speed broadband premium service agreement until 30 Jun 2029.

• The Armed Forces Fund Board is extending the closing date for its RM1.55 per share offer to take Boustead Plantations Bhd private to 5 Jan 2024, two weeks later than the original deadline of 22 Dec 2023.

• DRB-Hicom Bhd's 50.1%-owned Proton Holdings Bhd has received over 4k bookings for its S70 compact sedan newly launched on 28 Nov 2023.

• AMMB Holdings Bhd has denied any affiliation or association between its chairman emeritus and honorary adviser Tan Sri Azman Hashim and ARJ Group Management & Services Asia.

• Sunzen Biotech Bhd has entered into 2 conditional share sale agreements to acquire the remaining 30% stakes in each of its subsidiaries for RM24mn.

• Ecobuilt Holdings Bhd's wholly owned subsidiary Eko Bina Sdn Bhd has been awarded RM23.2mn after it obtained an adjudication decision in its favour in its case against Golden Wave Sdn Bhd.

• Willowglen MSC Bhd via its wholly-owned subsidiary Willowglen Services Pte Ltd has secured a RM10.3mn contract from Singapore's PowerGas Ltd for the supply of pipeline and CCTV system renewal.

• LKL International Bhd is selling a piece of freehold land measuring approximately 972.9 square metres together with a unit of three storey semi-detached factory erected in Seri Kembangan, Selangor, to 8 Food Avenue Sdn Bhd for RM6.9mn.

• Mlabs Systems Bhd has inked a master sales agreement with LG Electronics (M) Sdn Bhd to distribute the latter's products in Malaysia.

• VS Industry Bhd's net profit fell 19.3% YoY to RM49.0mn for 1QFY24 due to lower orders from key customers in Malaysia, China and Indonesia.

• Top Glove Corp Bhd's net loss in 1QFY24 narrowed to RM57.7mn from a net loss of RM168.2mn a year earlier, on the back of improved operational, quality and cost optimisation efforts.

• China left its one-year and five-year loan prime rate unchanged at 3.45% and 4.20% respectively.

• Japan's exports in November fell 0.2% YoY, for the first time in three months, dragged down by China-bound chip shipments.

• The US home sales climbed by 0.8% to an annual rate of 3.82mn in November after plunging by 4.1 % to a rate of 3.79mn in October.

Source: TA Research - 21 Dec 2023