Review & Outlook

Bursa Malaysia shares ended softer on range bound trade Wednesday, with most investors sidelined and cautious ahead of the U.S Federal Reserve's latest meeting minutes for additional clues on the Fed's interest rate trajectory. The FBM KLCI ended 0.71 points down to settle at the day's low of 1,634.91, off a high of 1,642.29, as losers narrowly edged gainers 566 to 548 on total turnover of 3.22bn shares worth RM2.47bn.

The local market should continue to consolidate given the weak buying momentum and lack of domestic positive catalysts, while investors await key U.S inflation data and big banks earnings. Immediate index support stays at the low of 1,625, with 1,620 and then 1,600 acting as stronger supports. Immediate resistance remains 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.

Tenaga needs breakout confirmation above the above the upper Bollinger band (RM15.15) to enhance upside potential towards the 123.6%FP (RM15.76) and 138.2%FP (RM16.62) ahead, while key chart support cushioning downside is capped at 76.4%FR (RM12.98). Likewise, TM will need convincing breakout above the upper Bollinger band (RM6.79) to target the 123.6%FP (RM7.66) and 138.2%FP (RM8.03) ahead, while crucial support from the 61.8%FR (RM6.06) limits downside risks.

News Bites

• Tropicana Corporation Bhd has sold 38.5 acres of freehold land for RM240.0mn in Gelang Patah, Johor to Computility Technology (Malaysia) Sdn Bhd, which plans to use the land to establish a regional data centre hub in Johor. 

• LBS Bina Group Bhd's indirect subsidiary has awarded an engineering, procurement, construction and commissioning contract to a unit of Solarvest Holdings Bhd, to construct a 43MWP solar farm in Senawang, Negeri Sembilan, for RM104.0mn. 

• Kumpulan Kitacon Bhd has secured a RM64.1mn contract from S P Setia Eco-Projects Management Sdn Bhd for the construction and completion of 130 double-storey semi-detached houses and a substation in Setia Alam, Selangor. 

• Skyworld Development Bhd has entered into a joint development agreement with PR1MA Corporation Malaysia to build affordable homes. 

• Ecomate Holdings Bhd has proposed to acquire a single-storey factory in Muar, Johor, along with machinery and components, from SWS Capital Bhd for RM8.9mn. 

• Petron Malaysia Refining and Marketing Bhd's refinery at Port Dickson, Negeri Sembilan, will undergo a maintenance shutdown for eight weeks to facilitate repairs to its furnaces. 

• Sapura Resources Bhd is extending the leave of absence placed on its managing director Datuk Shahriman Shamsuddin for another month, according to sources. 

• Kuchai Development Bhd has proposed a dividend of 20.0sen/share for FY24. 

• Souqa Fintech Sdn Bhd is mulling to take legal action against HeiTech Padu Bhd, following HeiTech's decision to terminate a deal to subscribe to new shares in the fintech company. 

• Key Asic Bhd has signed a five-year collaboration agreement with NSW Inc, one of Japan's largest system solution developers, to develop the Application-Specific Integrated Circuit design business. 

• Guan Chong Bhd is seeking to take up a 25.0% stake in Ivory Coastbased cocoa manufacturing outfit Transcao Côte d'Ivoire. 

• 3REN Bhd, an automation solutions and engineering services company, has set its initial public offering price at 28.0sen/share to raise RM30.8mn at its upcoming ACE Market listing. 

• Berjaya Food Bhd said that it has signed a master franchise agreement that would allow the group to exclusively operate Paris Baguette stores in Brunei and Thailand. 

• China said it would hold a briefing on fiscal policy on Saturday as investors look for additional measures to stimulate the world's No. 2 economy. 

• According to the minutes of the Federal Open Market Committee's Sept. 17-18 meeting, chairman Jerome Powell received some pushback on a half-point interest-rate cut in September, as some officials preferred a smaller, quarter-point cut.

Source: TA Research - 10 Oct 2024