Review & Outlook

Rubber glove stocks spiked up on Tuesday, sparked by expectations the US will soon finalize high import tariff hikes on China's medical gloves, hence sharply closing the price gap with local exporters. The FBM KLCI climbed 12.13 points to close at 1,664.28, off an early low of 1,651.55 and high of 1,664.99, as gainers led losers 658 to 433 on total turnover of 3.18bn shares worth RM3.35bn.

While local rubber glove stocks continue to attract bargain hunters on hopes for renewed export demand due to the potential US tariff hikes on China's exports, the broader market should stay range bound as investors await the highly anticipated US interest rate cut. Immediate index resistance remains at 1,670, with the recent high of 1,684, then 1,695, the Dec 2020 high, as tougher resistance levels. Immediate support will be at the recent correction low of 1,633, with 1,620 and 1,600 acting as stronger supports.

Bumi Armada need to overcome the 50%FR (52sen) to enhance recovery potential towards the 61.8%FR (57sen) and 76.4%FR (63sen) ahead, while the recent correction low (44sen) and 23.6%FR (41sen) should cap downside risk. Dialog will need persistent strength above the 61.8%FR (RM2.28) to boost upside momentum towards the 76.4%FR (RM2.43), with tougher resistance seen at the upper Bollinger band (RM2.55), while the lower band (RM2.11) and 38.2%FR (RM2.04) should cushion downside.

News Bites

• Supermax Corporation Bhd's subsidiary, Maxter Healthcare Inc, will begin commercialising glove production at its first United States manufacturing facility in Texas by January next year.

• Genting Malaysia Bhd's subsidiaries, Genting New York LLC and Genny Capital Inc have priced an additional USD100mn of 7.25% senior unsecured notes, due 2029.

• MyEG Services Bhd has partnered with the Federation of Malaysian Freight Forwarders to promote ZTrade as Malaysia's National Single Window for cross-border trade facilitation.

• Resintech Bhd plans to expand its footprint in Sarawak's industrial plastics sector by setting up a joint venture with state enterprise SEDC Energy Sdn. Bhd.

• Samaiden Group Bhd has entered a joint venture and shareholders' agreement with PT MCS Bina Energi to establish a JV company in Indonesia.

• Debt-ridden Perak Corporation Bhd has been given another six-month extension by Bursa Malaysia to submit its regularisation plan, with the deadline now being postponed to Feb 9, 2025.

• PUC Bhd has appointed Wayne Lim Beng Chai as group chief commercial officer effective immediately.

• Uzma Bhd has entered into an agreement with Helsinki-based ReOrbit, a leading provider of software-enabled satellites, for a Geostationary Earth Orbit communications satellite project.

• Medical eyecare company TopVision Eye Specialist Bhd has secured Bursa Malaysia's approval for its proposed transfer from LEAP Market to the ACE Market.

• Alliance Bank Malaysia Bhd's chairman Tan Sri Ahmad Mohd Don, 77, passed away on yesterday.

• Singapore's non-oil domestic exports rose 10.7% YoY in August buoyed by a rise in both electronic and non-electronic products.

• Thailand's cabinet approved a cash handout plan totalling THB145.6bn (RM18.74bn) that will benefit millions of the poor and help stimulate Southeast Asia's second-largest economy.

• US retail sales unexpectedly rose 2.1% YoY in August as a decline in receipts at auto dealerships was more than offset by strength in online purchases, suggesting that the economy remained on solid footing through much of the third quarter.

• The US NAHB/Wells Fargo Housing Market Index rose to 41 in September from 39 in August.

Source: TA Research - 18 Sept 2024