Review & Outlook

Stocks extended profit-taking consolidation on Thursday, as market players continued to take profits and consolidate trading positions. The FBM KLCI slid 3.86 points to close at the day's low of 1,483.00, off an early high of 1,492.44, as losers beat gainers 568 to 406 on lower trade totalling 4.64bn shares worth RM3bn.

The local market should stay range bound and attempt to rebuild support at current levels and further ease overbought momentum, while eyeing the upcoming US December consumer and producer inflation reports for leads. On the index, immediate resistance will be near the 1,500 level which capped upside in Jan 2023, with next hurdle at 1,520. Immediate chart supports are at 1,480, and 1,450, with better supports at 1,440 and 1,430.

AMBank will need to overcome the 123.6%FP (RM4.30) to sustain upside momentum towards the 138.2%FP (RM4.46) and 150%FP (RM4.60) ahead, with uptrend support from the rising 50-day ma (RM3.97) cushioning downside. CIMB needs successful breakout above the 138.2%FP (RM6.09) to extend uptrend and aim for the 150%FP (RM6.25) and 161.8%FP (RM6.40) going forward, while downside is similarly cushioned by the 50- day ma (RM5.80).

News Bites

• Malaysia's industrial production index registered a marginal increase of 0.6% YoY in November 2023.

• The Malaysian Palm Oil Council is forecasting average crude palm oil prices in 2024 to be at RM4,000 per tonne, driven by Indonesia's higher domestic consumption of biodiesel and food.

• Hume Cement Industries Bhd has accepted an offer to sell its plot of land in the Prai Industrial Estate in Penang for RM39.8mn cash that will bring it an estimated net gain of RM32.0mn.

• The value of Fajarbaru Builder Group Bhd's contract for the planning phase of the redevelopment of military facilities at the Royal Malaysian Air Force base in Butterworth, Penang has been revised to a higher sum of RM16.3mn, from RM7.4mn previously.

• JAG Capital Holdings Bhd's mandatory general offer for KUB Malaysia Bhd is not due to any valuation issues, according to Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.

• Borneo Oil Bhd has ended its gold-mining venture with Syarikat Ratna Pura Sdn Bhd and Ricco Mining Sdn Bhd as part of plans to downsize its mining operations in the state.

• NetX Holdings Bhd has proposed a bonus issue of 469.0mn free warrants on the basis of 1 warrant for every 2 shares held on an entitlement date to be determined later.

• EVD Bhd has announced the suspension of its executive director of operations Mah Seong Huak with immediate effect.

• Warisan TC Holdings Bhd has entered into an agreement of distribution and service with GAC AION New Energy Automobile Company Ltd in respect of the appointment of the group as sole exclusive distributor of latter's EV.

• OCBC Bank (Malaysia) Bhd said it will be developing forward-looking and convenient schemes to support corporates and small and medium enterprises based in Singapore to fulfill their banking needs in Johor.

• Measat Global Bhd has signed with Space Exploration Technologies Corp to become the Official Authorised Reseller for Starlink Hardware and Services in the markets that Measat serves.

• Sabah-based Life Water Bhd, which manufactures drinking water and carbonated drinks, has filed its prospectus exposure for its initial public offering with the Securities Commission Malaysia.

• The People's Bank of China set its daily reference rate for yuan at 7.1087 per US dollar on Thursday, 609 pips stronger than the average estimate in a Bloomberg survey.

• The US core CPI excluding food and energy rose 0.3% MoM and 3.9% YoY in December.

Source: TA Research - 12 Jan 2024