Review & Outlook

Bursa Malaysia shares stayed in consolidation mode on Monday, as the lack of market boosting measures in Budget 2025 kept investors sidelined. The FBM KLCI ended flat at 1,645.68 (-0.31) after moving between an early low of 1,642.52 and high of 1,648.05, as losers beat gainers 645 to 395 on total turnover of 3.02bn shares worth RM2.19bn.

Stocks should extend sideways trade as investors search for more catalysts to lift the market from current consolidation. Immediate index 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. Immediate support will be the recent correction low of 1,625, with 1,620 and then 1,600 acting as stronger supports.

Velesto is in base building mode, with key chart supports at the lower Bollinger band (19sen) and 38.2%FR (16sen) cushioning downside, while a breakout above the 61.8%FR (22sen) should target the 76.4%FR (25sen) and 29sen ahead. Wasco remains in consolidation to reinforce support above the lower Bollinger band (RM1.06), while a decisive breakout above the 61.8%FR (RM1.19) should aim for the 76.4%FR (RM1.35) and RM1.45 going forward.

News Bites

• Malaysia's economy may have expanded faster than expected rate of 5.3% YoY in 3Q24, thanks to growth in the services, manufacturing and construction sectors, according to the Department of Statistics Malaysia's advance estimates.

• The Ministry of Economy has initiated work on the 13th Malaysia Plan, which is expected to be tabled in Parliament in the third quarter of 2025.

• PTT Synergy Group Bhd has signed a 10-year build-and-lease contract worth RM399.7mn with a multinational semiconductor company based in Penang.

• AWC Bhd has secured a RM30.5mn contract from KCJ Engineering to provide housekeeping services for JB Sentral in Johor Bahru.

• Yinson Holdings Bhd has announced that its Maria Quiteria floating production storage and offloading vessel achieved first oil on Oct 15, 2024, followed by a successful 72-hour test, marking the commencement of its firm charter.

• PUC Bhd's subsidiary Presto Technology Sdn Bhd has secured a RM10mn contract from non-profit organisation Green Growth Asia Foundation to develop a cutting-edge customer relationship management system.

• MyEG Services Bhd and HeiTech Padu Bhd have officially commenced their collaboration on current and future e-government projects in Malaysia, following a teaming agreement signed in April.

• Samaiden Group Bhd's wholly-owned subsidiary Samaiden Capital Management Sdn Bhd and Chudenko (Malaysia) Sdn Bhd have entered into a shareholders agreement with their JV company to undertake a joint investment in solar PV facilities and related services.

• EP Manufacturing Bhd has proposed to diversify its existing principal activities to include the assembly of vehicles as it aims to strengthen its existing automotive business.

• Khee San Bhd has gained shareholder approval for its regularisation plan to exit PN17 status.

• Dagang NeXchange Bhd has appointed Faizal Sham Abu Mansor as its group CEO effective Nov 1, 2024, replacing executive chairman Tan Sri Syed Zainal Abidin.

• KIP Real Estate Investment Trust reported a 3.0% decline in net profit to RM10.0mn for 1QFY2025, primarily due to higher operating costs and management fees.

• CIMB Thai Bank PCL, an indirectly held subsidiary of CIMB Group Holdings Bhd, recorded an 8.9% YoY increase in net profit to THB1.89bn (RM244.36mn) in the 9MFY24.

• Alpha IVF Group Bhd recorded a 2.7% QoQ increase in net profit to RM14.4mn for 1QFY2024, as lower administrative expenses offset a decline in revenue, which fell 8.0% to RM43.0mn.

• China lowered the one-year loan prime rate by 25 basis points to 3.10% from 3.35%, while the five-year LPR was cut by the same margin to 3.6% from 3.85% previously.

• The US leading economic index slid by 0.5% in September after falling by a revised 0.3% in August.

Source: TA Research - 22 Oct 2024