Review & Outlook

Blue chips were traded moderately higher on Thursday, supported by mild window-dressing interest as the broader market staged consolidation. The FBM KLCI added 3.19 points to close at 1,457.41, off an opening low of 1,453.06 and high of 1,459.1, as gainers led losers 486 to 404 on robust trade totalling 4.23bn shares worth RM2.39bn.

While the broader market should extend range bound trade, heavyweight blue chips, especially banks and telcos, should highlight with windowdressing seen to pick up momentum on the last trading day of the year. On the index, it will need to hold above the 1,450 immediate support level to prevent further dip toward 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.

Maybank needs to overcome the 138.2%FP (RM9.12) to fuel further upside momentum and aim for the 150%FP (RM9.32) and 161.8%FP (RM9.51) going forward, while the 200-day ma (RM8.65) provide key uptrend support. On RHBBank, the share price needs to rebound above the 100-day ma (RM5.53) to enhance upside potential towards the 123.6%FP (RM5.75) and 138.2%FP (RM5.90) ahead, with key retracement support from the 76.4%FR (RM5.27).

News Bites

• Malaysia's export prices rose by 2% to 149.3 points in November, up from 146.4 points in the previous month. Conversely, import prices fell by 0.8% from 131.3 points down to 130.2 points.

• Malayan Banking Bhd and Alliance Bank are offering a flood relief assistance programme to ease the financial burdens faced by customers and businesses impacted by the recent floods in several states nationwide.

• Nestle (Malaysia) Bhd is collaborating with Malaysian Red Crescent Society volunteers to distribute 4,000 essential food aid boxes in floodaffected regions.

• UMS Holdings Bhd has disposed of its entire 45.1% stake in oil and gas equipment supplier MKS Sdn Bhd to its major shareholder NGT Holdings Sdn Bhd for RM6.1mn.

• Datuk Seri Liew Kok Leong has stepped down as the executive chairman of ARB Bhd, less than three months after being redesignated to the position.

• Bursa Malaysia has announced the transfer of the securities of Teladan Group Bhd from the ACE Market to the property sector of the Main Market from Jan 2, 2024.

• Master Tec Group Bhd has set its initial public offering (IPO) price at 39.0sen/share. The wire and cable manufacturer intends to raise RM61.6mn from its IPO.

• Wentel Engineering Holdings Bhd, which is eyeing to list on the ACE Market of Bursa Malaysia, has entered into an underwriting agreement with TA Securities Holdings Bhd to underwrite a total of 57.5mn new shares.

• Lim Seong Hai Capital Bhd, which is seeking a transfer from the LEAP Market to the ACE Market of Bursa Malaysia, has obtained undertaking letters from its minority shareholders to waive their entitlement to an exit offer.

• Kim Loong Resources Bhd's net profit rose 30.6% YoY to RM48.0mn for 3QFY24, from RM36.7mn a year ago, driven by increased production of fresh fruit bunches and higher sales of crude palm oil.

• Analabs Resources Bhd's net profit doubled to RM13.0mn for 2QFY24, from RM5.5mn a year ago, mainly thanks to improved manufacturing business and better cost control.

• Crescendo Corporation Bhd saw its net profit for 3QFY24 rose by 270.0% YoY to RM18.0mn, underpinned by higher properties sales compounded with high-margin industrial land sale.

• The People's Bank of China vowed to implement a prudent monetary policy in targeted and effective manner, and reaffirmed its pledge to push consumer prices higher, according to a PBOC statement on Thursday.

• Singapore households are bracing for a sales tax hike that takes effect in the New Year as the government shores up coffers ahead of an expected surge in social spending in the rapidly ageing city-state in the years ahead.

• First-time claims for U.S. unemployment benefits rose by more than expected in the week ended December 23rd, according to a report released by the Labour Department on Thursday.

Source: TA Research - 29 Dec 2023