Review & Outlook

Sideways rangebound trade persisted on Wednesday amid a lack of positive catalysts in the local market, as well as caution over the US elections and its possible impact on the next Federal Reserve rate cut. The FBM KLCI ended down 1.01 points at the day's low of 1,641.53, off an early high of 1,645.90, but gainers led losers 563 to 471 on better turnover of 3.24bn shares worth RM2.64bn.

Local market undertone should remain cautious, with prevailing uncertainties over the potential impact from the upcoming key general elections in Japan and the US dampening investor sentiment. 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.

Any further dips on MRCB towards the 50.0%FR (51sen) chart support should attract bargain hunting interest for rebound upside towards the 76.4%FR (63sen), with tougher resistance coming from the 100%FP (74sen) and 123.6%FP (85sen). UEM Sunrise will need to climb above RM1.20 to reinforce upside momentum towards the 100%FP (RM1.28) and 123.6%FP (RM1.52) ahead, while the 61.8%FR (88sen) cushions downside risk.

News Bites

• TDM Bhd has proposed the issuance of a sukuk wakalah programme with a total programme limit of RM1.5bn.

• Kerjaya Prospek Group Bhd announced on Wednesday that its wholly owned subsidiary Kerjaya Prospek (M) Sdn Bhd had secured two new contracts from Pixel Valley Sdn Bhd and Greencove Sdn Bhd respectively, totalling RM34.4mn.

• Pantech Group Holdings Bhd said its 2QFY24 net profit fell 27% to RM20.7mn, from RM28.4mn a year earlier, hurt by lower sales delivery to local oil and gas projects at its trading division, and foreign exchange losses.

• Capitaland Malaysia Trust has secured RM752mn in sustainability-linked loans to date and the company stands to enjoy lower financing costs as it enhances the sustainability performance of its portfolio.

• Protasco Bhd said on Wednesday that an affordable housing project awarded by Perbadanan Putrajaya in 2022 has been revised with a new name and with a lower number of 654 units from 688 previously.

• MNRB Holdings Bhd's 2QFY24 net profit more than doubled to RM92.7mn, from RM41.6mn a year earlier, on the back of an RM85mn jump in the group's insurance service earnings amid improved claims.

• Master TEC Group Bhd has completed the share subscription of 1.0mn new ordinary shares in Sediacom Sdn Bhd, representing a 51% equity interest, for a total cash consideration of RM3.7mn.

• LFE Corp Bhd has accepted a letter of award worth RM81.71mil from Puncakcity Development Sdn Bhd to be the main contractor for main building works, for a period of approximately 32 months.

• Keyfield International Bhd has submitted the necessary information and relevant documents for its sukuk wakalah programme, with a nominal value of up to RM1bn, to the Securities Commission.

• TAS Offshore Bhd has secured shipbuilding contracts for eight units of tugboat with value of approximately RM49.1mn.

• Capital A Bhd has announced its proposed regularisation plan includes a capital reduction of up to RM6bn to set-off the accumulated losses of the group.

• U.S. existing home sales dropped 1.0% to a 14-year low of 3.84mn units in September.

Source: TA Research - 24 Oct 2024