Review & Outlook

Stocks recovered on mild bargain hunting Wednesday, as more investors returned to nibble with most markets in the region resuming trade after the long Christmas and Boxing Day holiday break. The FBM KLCI gained 3.44 points to close at 1,454.22, after moving between early low of 1,452.08 and high of 1,455.44, as gainers led losers 468 to 380 on improving turnover of 3.29bn shares worth RM2.06bn.

While the broader market may stay range bound, heavyweight blue chips, especially the banks and telcos, should highlight gains as window-dressing picks up momentum ahead of the year-end. On the index, it will need to hold above the 1,450 immediate support level to prevent further dip towards better supports at 1,440 and 1,430, while 1,400/1,390 should act as stronger support. A convincing breakout above 1,470 will encourage further gain towards the 1,490/1,500 level, where it may end the year as window-dressing activity returns.

AMBank will need sustained strength above the upper Bollinger band (RM4.08) to promote further uptrend towards the 123.6%FP (RM4.30) and 138.2%FP (RM4.46) ahead, while uptrend support from the 100-day ma (RM3.79) cushion downside. CIMB needs a convincing breakout above its 19/12/23 peak (RM5.99) to enhance upside momentum and aim for the 138.2%FP (RM6.09) and 150%FP (RM6.24) going forward, with the 100-day ma (RM5.62) providing uptrend support.

News Bites

• Malaysia's producer price index has slipped further to 1.5% YoY in November 2023, after a marginal decrease of 0.3% in October 2023.

• Tenaga Nasional Bhd's wholly-owned subsidiary, GSPARX Sdn Bhd, entered into a strategic alliance with Trina Solar, a global photovoltaic and smart energy total solutions provider, to capture business opportunities across rooftop, floating and ground-mounted solar systems in Malaysia.

• Sime Darby Bhd's takeover bid to acquire the remaining 38.8% stake it does not own in UMW Holdings Bhd at RM5.00/share has become unconditional, after it received more than 50% of the voting shares.

• Capitaland Malaysia Trust has received the Green Mark Platinum certification from the Building and Construction Authority of Singapore for its Queensbay Mall while The Mines has obtained a Green Mark GoldPLUS (Provisional) certification.

• Several Petronas stations nationwide are currently experiencing a shortage of diesel supplies, which is expected to persist until Dec 31, according to Petronas Dagangan Bhd.

• Sime Darby Property Bhd's Sukuk Musharakah programme has been accorded the AA+ rating with a stable outlook by MARC Rating Bhd for the third consecutive year.

• Ekovest Bhd has teamed up with Universal Cosmos Co Ltd, a unit of Zhejiang Communications Investment Group Co Ltd, for the joint exploration and development of infrastructure and other projects in Malaysia.

• Jentayu Sustainables Bhd said the Telekosang Hydro 2 hydropower plant in Sabah, with a capacity of 16MW, has achieved its feed-in-tariff commencement date as of Dec 25, 2023.

• TSA Group Bhd has set its initial public offering price at 55.0sen/share.

• AwanBiru Technology Bhd has secured a three-year contract worth RM4.9mn from the Ministry of Education for the procurement of Learning Management System licence subscription services.

• Steel Hawk Bhd has received a contract extension for 1 year and 20 days to Dec 31, 2024 from Petronas Carigali Sdn Bhd for the provision of onshore facilities maintenance, construction and modification services.

• China's industrial profits soared 29.5% YoY in November, helped by favourable year-ago comparisons and a raft of stimulus measures aimed at reinvigorating an economy that has struggled with deflationary concerns.

• US employers expect to hire less in 2024, according to several regional Federal Reserve bank surveys, a trend that's set to limit wage gains and cool inflation pressures.

Source: TA Research - 28 Dec 2023