Review & Outlook

Bursa Malaysia shares ended softer on range bound trade Monday, with mild bargain hunting interest on key telco, property and banking stocks cushioning profit-taking activities, while key regional markets rose as investors await further details of the support measures from China. The FBM KLCI gained 2.99 points to settle at 1,636.54, off an early high of 1,642.56 and low of 1,632.37, as losers edged gainers 654 to 341 on total turnover of 2.24bn shares worth RM2.09bn.

The local market should extend sideways trade as investors cautiously await the tabling of Budget 2025 for clues on the economic direction and the corresponding impact on corporates. 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.

Ekovest shares are poised for recovery, with a confirmed breakout above the 100-day ma (42sen) to enhance upside momentum towards the 50%FR (47sen) and 61.8%FR (51sen) ahead, while crucial supports cushioning downside is capped at the 18/9/24 low (34sen) and the pivot low of 11/9/24 low (32sen). IWCity shares need breakout confirmation above the 100-day ma (66sen) to boost upside momentum and target the 38.2%FR (69sen) and 50%FR (76sen) going forward, while crucial support from the lower Bollinger band (52sen) and 25/8/23 low (49sen) limits downside risk.

News Bites

• Minister of Economy Rafizi Ramli said Malaysia's better-than-expected economic growth and the strengthening of the ringgit has given more flexibility for the government to achieve its fiscal consolidation targets, which may delay the implementation of RON95 subsidy rationalisation.

• RAV Bahamas Ltd is seeking for damages in excess of USD600mn from Genting Malaysia Bhd's wholly-owned subsidiary, Genting Americas Inc., which involves the operations of Resorts World Bimini in Bahamas. RAV.

• Capital A Bhd has received shareholders' approval on proposed disposal of the company's aviation business to AirAsia X at its extraordinary general meeting.

• Mr DIY Group (M) Bhd's largest shareholder, Bee Family Ltd, offloaded 71.7mn shares, representing a 0.8% stake in the home improvement retailer, for a total of RM149.4mn.

• Critical Holdings Bhd has secured a contract worth RM62.5mn from IJM Corporation Bhd to undertake mechanical and electrical services for a new semiconductor plant at the Bandar Cassia Technology Park, Penang.

• Pan Malaysia Holdings Bhd has accepted a contract worth RM47.4mn from Discovery Media Sdn Bhd for the development of four office levels and other facilities in Damansara Perdana, Petaling Jaya.

• BCB Bhd has signed the sales and purchase agreement to acquire four pieces of freehold vacant land in Kluang, Johor measuring 22.1 hectares from Country Green Realty Sdn Bhd for RM31.0mn.

• EA Technique (M) Bhd is on track to exit its PN17 status by 1Q2025 due to the implementation of its regularisation plan in 2024 and consistent improvements in revenue and profitability.

• Vizione Holdings Bhd said the group is being sued for RM3.3mn by a firm for alleged breach of a consultancy agreement signed in 2018 relating to a land sale.

• Tanco Holdings Bhd and Menteri Besar Negri Sembilan Incorporated have agreed to set up a JV to develop a 574.7 hectare land area in Port Dickson into an industrial park to be known as the "Port Dickson Free Zone".

• UCrest Bhd said it has entered into a deal to provide artificial intelligencepowered digital transformation for a Singapore-listed healthcare group.

• Fajarbaru Builder Group Bhd has accepted a letter of offer from Penang Development Corporation for the proposed development of MediCity in Batu Kawan, covering approximately 235.8 acres.

• Ho Hup Construction Company Bhd announced that its 52.5% indirect subsidiary, Golden Wave Sdn Bhd, has been served with a winding-up petition by Eko Bina Sdn Bhd over a payment dispute of approximately RM23.2mn.

• Sungei Bagan Rubber Co (Malaya) Bhd announced the emergence of Kuchai Development Bhd as a substantial shareholder, signifying that they have completed the earlier proposed asset and liability acquisition deal between the companies.

• China's export growth unexpectedly slowed to 2.4% in September, the lowest level since May, curbing a trade rebound that has been a bright spot for a weakening economy.

• Singapore's economic growth accelerated by 2.1% QoQ in the 3Q24, suggesting the recovery is gaining momentum in the face of tight monetary settings and intensifying geopolitical tensions.

Source: TA Research - 15 Oct 2024