Review & Outlook

Blue chips surged on Thursday, led by the utility, construction and property sectors, on investor optimism over domestic infrastructure spending to fuel economic growth. The FBM KLCI surged 14.89 points, or 1.02 percent, to end at a fresh 11-month high of 1,477.26, off an early low of 1,461.03, as gainers led losers 630 to 424 on robust turnover of 6.37bn shares worth RM3.82bn.

Resurgent buying interest in sectors deemed to benefit from infrastructure spending to boost domestic economic growth should continue to fuel momentum plays. The index will need to decisively overcome the 1,490/ 1,500 resistance which capped upside in Jan 2023, to aim for next hurdles at 1,520 and 1,550. Immediate support remains at 1,450, with better supports at 1,440 and 1,430.

Genting Berhad need sustained strength above the upper Bollinger band (RM4.71) to enable challenge of the 19/3/21 high (RM5.13), with a breakout to aim for RM5.40 and the 123.6%FP (RM5.71) ahead, while the 200-day ma (RM4.32) cushions downside. Genting Malaysia will need decisive breakout above the 19/3/21 peak (RM2.96) to fuel further upside momentum towards RM3.10 and the 123.6%FP (RM3.26) going forward, with the 200-day ma (RM2.54) also capping downside risk.

News Bites

• Malaysia is set to achieve its 2023 GDP growth target of 4%-5%, based on the good economic momentum seen so far, the Department of Statistics Malaysia said.

• Dayang Enterprise Holdings Bhd via its wholly-owned subsidiary Dayang Enterprise Sdn Bhd has secured a contract from PETRONAS Carigali for rectification works and associated services for asset integrity findings of Package A of Sarawak Oil Asset.

• LBS Bina Group Bhd has aimed to secure RM1.8bn in property sales for 2024 based on a positive outlook for the property market.

• Pharmaniaga Bhd has entered into a 7-year concession agreement with the Ministry of Health to undertake the procurement, storage, supply and delivery of medical products to MOH-operated offices and facilities.

• Ibraco Bhd's wholly-owned subsidiary has partnered with two units of China Railway Group Ltd to incorporate Ibraco CREC JV Sdn Bhd, a joint venture company to undertake infrastructure works for the Kuching Urban Transportation System.

• MN Holdings Bhd wholly-owned subsidiary has received a RM98mn contract from an undisclosed customer in relation to a high voltage horizontal directional drilling and cable bridge works project for a data centre.

• AmanahRaya Real Estate Investment Trust has completed the disposal of its 4-star Holiday Villa Beach Resort and Spa Langkawi with 238 rooms in Langkawi, Kedah to property developer Plenitude Bhd for RM145mn cash.

• Sinaran Advance Group Bhd, formerly known as K-Star Sports Ltd, has proposed to undertake a RM68mn capital reduction via cancellation of its issued share capital to eliminate its accumulated losses.

• RHB Banking Group has appointed Datuk Fad'l Mohamed as its new managing director of group wholesale banking, effective from Feb 2.

• China's Caixin/S&P Global services purchasing managers' index rose to 52.9 in December from November's 51.5.

• China's government spending will rise this year, the nation's minister of finance said, as authorities look for ways to bolster domestic demand and help the world's second-largest economy regain momentum.

• The initial claims for state unemployment benefits in the US dropped 18,000 to a seasonally adjusted 202,000 for the week ended Dec 30.

Source: TA Research - 5 Jan 2024