Review & Outlook

Stocks rose on bargain hunting interest Tuesday, lifted by optimism further interest rate cuts by key global central bankers would encourage more foreign fund flows into the domestic market. The FBM KLCI gained 5.07 points to close at 1,670.37, off an early low of 1,665.51 and high of 1,671.47, as gainers edged losers 558 to 549 on improved turnover totalling 3.51bn shares worth RM3.1bn.

Optimism over China's fresh measures to cut interest rates to stimulate growth and cues for further significant rate cuts by US Federal Reserve officials should spillover to boost local market sentiment. Immediate index resistance will be at the recent high of 1,674, followed by the high of 1,684, then 1,695, the Dec 2020 high, as tougher resistance levels. Immediate support will be at 1,650, then the recent correction low of 1,633, with 1,620 and 1,600 acting as stronger supports.

Hibiscus will need to climb above the 38.2%FR (RM2.25) to expand recovery towards the 50%FR (RM2.37) and 61.8%FR (RM2.49) ahead, with the lower Bollinger band (RM1.97) seen to cushion downside. Wasco need breakout confirmation above the 61.8%FR (RM1.20) to boost upside momentum towards the 76.4%FR (RM1.35) and RM1.45 going forward, while the lower Bollinger band (RM1.05) and 38.2%FR (94sen) will provide key supports cushioning downside.

News Bites

• Tenaga Nasional Bhd has launched its inaugural Transition Finance Framework, outlining the utility giant's plan to engage in sustainable finance transactions in the form of loans or sukuk.

• Yinson Renewables, a subsidiary of Yinson Holdings Bhd, has fully launched its 97MWp Matarani Solar Plant in Peru.

• Harn Len Corporation Bhd has signed an agreement to sell a land parcel in Johor Bahru for RM55.0mn to Starsea Resources Sdn Bhd.

• Pesona Metro Holdings Bhd has secured a RM321.1mn contract from Sime Darby Property (Golfhome) Sdn Bhd, which is wholly owned by Sime Darby Property Bhd, to carry out superstructure works for 3 condominium blocks in Jalan Bukit Kiara, Kuala Lumpur.

• Magma Group Bhd is acquiring a 2.3-acre plot of land in the Persiaran Dutamas area of Kuala Lumpur from a company connected to its executive chairman and major shareholder Datuk Seri Lee Hock Seng, for RM80.0mn.

• Trading in Ecobuilt Holdings Bhd shares on Bursa Malaysia will resume at 9am today, following a Court of Appeal ruling in favour of the construction firm regarding a winding-up petition.

• Digistar Corporation Bhd is looking to raise up to RM9.0mn via a private placement of 30% of its share base to fund its new pay-TV venture and repay bank borrowings.

• Eonmetall Group Bhd is looking to raise RM8.6mn by placing out up to 10% of its share base to fund its working capital.

• Asia Poly Holdings Bhd has trimmed its shareholding in Dolphin International Bhd to 3.1% and ceased to become a substantial shareholder.

• Scientex Bhd net profit for 4QFY24 rose 18.2% YoY to RM135.9mn thanks to higher contributions from its packaging and property segments.

• UWC Bhd 4QFY24 net profit increased 6.1% YoY to RM2.0mn, following a recovery of the semiconductor sector, coupled with revenue contributions from its recently acquired subsidiaries.

• VS Industry Bhd 4QFY24 net profit surged 107% YoY to RM126.7mn due to a one-off gain of RM46.7mn arising from the partial disposal of its equity interest in a subsidiary and increased orders and a better product mix.

• Poh Kong Holdings Bhd 4QFY24 net profit surged more than four times YoY to RM22.0mn while quarterly revenue grew 8.5% YoY to RM342.5mn.

• MyNews Holdings Bhd reported a net profit of RM2.6mn for 3QFY24 reversing a net loss of RM2.2mn in the same period last year due to the increase in in-store sales brought about by better product mix and operational improvement.

• China's central bank unveiled a broad package of monetary stimulus measures to revive the world's second-largest economy.

• US Federal Reserve governor Michelle Bowman said on Tuesday key measures of inflation remain "uncomfortably above" the Fed's 2% target, warranting caution as the Fed proceeds with cutting interest rates.

• Governor Kazuo Ueda reinforced his message that while the Bank of Japan will raise its key interest rate again if data allows, authorities won't be in a hurry to do so.

• Germany's business outlook worsened again, reinforcing fears that Europe's biggest economy is in a recession with no quick rebound imminent.

Source: TA Research - 25 Sept 2024