Review & Outlook

Stocks ended higher Tuesday on late buying interest in construction, property and utility counters, while the broader market extended sideways trade. The FBM KLCI ended flat at 1,635.62 (+0.33), after moving between early low of 1,629.22 and high of 1,638.87, as gainers led losers 567 to 486 on higher turnover of 3.25bn shares worth RM2.67bn.

The lack of new stimulus measures from China could dampen recent strong optimism in the region, but renewed buying interest in construction and property stocks ahead of Budget should highlight sentiment. Immediate index support will be the recent correction low of 1,625, with 1,620 and then 1,600 acting as stronger supports. Immediate resistance is set at 1,660, followed by the recent highs of 1,675 and 1,684, and then 1,695, the Dec 2020 high, as tougher resistance levels.

Any weakness on Gamuda shares towards the 76.4%FR (RM7.44) or the 100-day ma (RM7.19) should attract buyers looking for rebound upside towards the recent high of RM8.43, with next major hurdles seen from RM8.90 and the 123.6%FP (RM9.41). Dips on Maxis shares towards the 200-day ma (RM3.60) or the 38.2%FR (RM3.42) should encourage buying on weakness ahead of recovery upside towards the 76.4%FR (RM3.98) with next resistance coming from the 16/6/23 high (RM4.32) and the 123.6%FP (RM4.66).

News Bites

• The World Bank has raised its forecast for Malaysia's economic growth for 2024 to 4.9%, up 0.6 percentage points from its previous forecast of 4.3% in April 2024.

• Trading of Public Bank Bhd and LPI Capital Bhd shares will be suspended from 9 am on October 9, pending the release of a material announcement.

• Cisco, a global technology company, has signed collaboration agreements with Telekom Malaysia Bhd and Permodalan Nasional Bhd under its Country Digital Acceleration programme, aiming to drive artificial intelligence innovation in Malaysia.

• Media Prima Bhd has clarified that Tan Sri Syed Mokhtar Al-Bukhary remains a substantial shareholder in the company.

• Sime Darby Bhd is expanding its electric vehicle offerings as it is set to bring Denza, a premium sub-brand by BYD, into Malaysia.

• Ireka Corporation Bhd has won a RM1.1bn highway construction subcontract for road upgrade from Kampung Lomour Baru to Kampung Toupus (Work Package 33) as part of Phase 1B of the Pan Borneo Highway project in Sabah.

• BlackRock Inc and the hotel unit of Malaysian developer YTL Corporation Bhd are set to purchase a group of serviced apartments in a prime office building in Singapore's central business district, according to people familiar with the matter.

• Perdana Petroleum Bhd has accepted a work order award from Dayang Enterprise Holdings Bhd to charter two accommodation workboats.

• MClean Technologies Bhd has proposed several strategic moves aimed at solidifying its financial position and diversify its revenue stream, which includes an acquisition of a plastic injection moulding business from We Total Engineering Sdn Bhd at net book value of RM6.0mn.

• Saudee Group Bhd will change its name to Saudigold Group Bhd, effective Oct 9. Meanwhile, SGB's new stock short name will be quoted as "SG", replacing "Saudee". The company's stock code remains unchanged.

• Enest Group Bhd, which is seeking a transfer from the LEAP Market to the ACE Market of Bursa Malaysia, has received approval from the exchange to waive the requirement to extend the exit offer to shareholders.

• Seal Incorporated Bhd is proposing to diversify its existing principal activities to include investment in renewable energy and related activities.

• Sunsuria Bhd said it has won the exclusive rights to operate new British international schools in Malaysia, Singapore, Taiwan, Hong Kong, Japan, South Korea, India and other regions across Southeast and South Asia.

• China is investigating whether to raise tariffs on European large-engine vehicles and will start collecting levies on brandy, escalating a trade spat after the European Union decided to impose tariffs on Chinese electric vehicles.

• The US trade deficit narrowed in August, as the gap in goods and services trade shrank 10.8% from the prior month to US$70.4bn (RM301.03bn), the smallest in five months, helped by a larger services surplus and a pickup in merchandise exports.

• Germany's industrial production expanded 2.9% on month in August, more than expected after falling in the previous month, data from Destatis showed on Tuesday.

Source: TA Research - 9 Oct 2024