Review & Outlook

Bursa Malaysia shares fell into profit-taking correction mode on Monday as escalating geopolitical tensions in the Middle East overshadowed the strong gains in China and Hong Kong following China's stimulus measures. The FBM KLCI shed 11.18 points to close at 1,648.91, off an opening high of 1,661.89 and low of 1,647.28, as losers beat gainers 652 to 488 on total turnover of 4.06bn shares worth RM3.22bn.

The local market should stay in sideways consolidation, with optimism over the strong ringgit and further interest rate cuts by key global central banks overshadowed by rising geopolitical tensions in the Middle East. Immediate index support is revised lower to the recent correction low of 1,633, with 1,620 and then 1,600 acting as stronger supports. Immediate resistance will be at the recent high of 1,675, with the next high of 1,684, then 1,695, the Dec 2020 high, as tougher resistance levels.

Genting will need breakout momentum to overcome the 38.2%FR (RM4.32) and extend rise towards the 50%FR (RM4.45) and 61.8%FR (RM4.59) ahead, while the lower Bollinger band (RM4.05) cushions downside risk. Similarly, GENM need decisive breakout above the 38.2%FR (RM2.46) to target the 50%FR (RM2.52) and 61.8%FR (RM2.58) going forward, with the lower Bollinger band (RM2.31) cushioning downside risk.

News Bites

• Hong Leong Bank Bhd has issued RM500.0mn worth of green senior MTNs under its RM10.0bn multi-currency programme.

• CelcomDigi Bhd and South Korea's leading wireless telecommunications operator SK Telecom Co Ltd have inked a MOU to collaborate on artificial intelligence initiatives.

• RHB Bank Bhd has proposed the establishment of a note programme of up to RM10.0bn partly to refinance outstanding borrowings.

• AMMB Holdings Bhd has granted financing facilities totalling RM115.0mn to Senibong Cove Development Sdn Bhd and RM78.0mn to JBB Builders (M) Sdn Bhd.

• Dagang NeXchange Bhd and Google Cloud have formed a multi-year partnership to provide next-generation sovereign cloud services in Malaysia.

• AME Elite Consortium Bhd is planning to establish a sukuk wakalah programme, with a total value of up to RM1.8bn.

• Kawan Food Bhd is closing its manufacturing facility in China, due to the impact of US tariffs and limited room for expansion.

• Samaiden Group Bhd has secured a RM52.0mn main contract from Legasi Green Power Sdn Bhd to develop a 14-megawatt large-scale solar photovoltaic power plant in Sungai Petani, Kedah.

• Critical Holdings Bhd's has secured an RM82.0mn contract from a multinational company headquartered in the US for interior work for a 3-storey office building, and a 1-storey production and warehouse at Pasir Gudang, Johor Bahru.

• Datuk Seri Wong Sze Chien and Seah Ley Hong have emerged as substantial shareholders of property developer Magna Prima Bhd through their private vehicle, Edxus Solutions Sdn Bhd.

• Aizo Group Bhd has received a contract worth RM14.6mn from Richmont Estate Sdn Bhd to undertake external infrastructure works for a project in Serendah, Selangor.

• Jati Tinggi Group Bhd has accepted a letter of award from Worktime Engineering Sdn Bhd to install 132 kilovolts of underground single circuit cables in Cyberjaya for RM50.9mn.

• Solid Automotive Bhd is acquiring a piece of leasehold land measuring 43,487sf. in Batu Caves, Selangor, from South East Asia Plastic Industries Sdn Bhd for RM18.9mn.

• TCS Group Holdings Bhd has secured a contract worth RM116.6mn from a subsidiary of S P Setia Bhd.

• Zecon Bhd has entered into an RM852.0mn Tawarruq asset financing facility agreement with Bank Pembangunan Malaysia Bhd for the development of Hospital Pakar Kanak-Kanak Universiti Kebangsaan Malaysia in Kuala Lumpur.

• Tenaga Nasional Bhd has named former MMC Corp Bhd group CFO Badrulhisyam Fauzi as its new CFO with effect from 1 January 2025.

• Plenitude Bhd said its chief executive officer Lee Wee Kee has stepped down from his position effective immediately, due to personal reasons

• Cape EMS Bhd's executive director Lim Chue Wan has stepped down due to health reasons.

• China's official manufacturing purchasing managers' index rose to 49.8 in September versus 49.1 in August.

• US trade officials may this week impose new tariffs on solar panels from four Southeast Asian nations, including Malaysia, that American manufacturers have complained employ unfair subsidies that make US products uncompetitive.

Source: TA Research - 1 Oct 2024