Review & Outlook

Blue chips ended lower on Thursday, mirroring declines on Wall Street and the region as US treasury yields spike on concerns interest rate cuts may be more measured. The FBM KLCI fell 9.3 points to close at the day's low of 1,632.23, off an early high of 1,643.08, as losers swarmed gainers 712 to 312 on lower turnover of 2.65bn shares worth RM2.28bn.

The local stock market may stay under pressure ahead of the weekend, given the weaker regional sentiment amidst the stronger US currency as markets speculate on an increasingly likely return of Donald Trump to the White House. 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 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.

Genting Bhd. will need to overcome the 23.6%FR (RM4.15) to sustain further upside momentum towards the 38.2%FR (RM4.32) and 200-day ma (RM4.50), while important chart support is at RM3.80. Genting Malaysia need confirmed breakout above the 23.6%FR (RM2.38) to extend further recovery towards the 38.2%FR (RM2.46) and 50%FR (RM2.52) ahead, with support at RM2.20 capping downside risk.

News Bites

• Malaysia's inflation decelerated to 1.8% YoY in September and was a tad slower than expected 1.9% YoY, as prices of key food items and utilities remained steady while transport costs eased.

• Malaysia has been recognised as one of 13 nations officially added to BRICS as a partner country, a bloc that collectively accounts for onefifth of global trade.

• Perak Transit Bhd has received a letter of award and approval from the Kelantan state secretary's office to develop the Kota Bharu Sentral terminal.

• Datuk Seow Gim Shen and Kong Chien Hoi, two major shareholders of Rexit Bhd, were sentenced to jail in a Singaporean court for participating in a conspiracy to illegally obtain data of over 9,000 people.

• AWC Bhd's wholly-owned subsidiary has secured a RM9.43mil contract from Melaka's Public Works Department for the provision of facilities management and maintenance service for immigration, customs, quarantine and security complex at Sungai Melaka.

• SC Estate Builder Bhd said the termination of a contract worth RM4.3mn to build affordable houses with solar power on the roofs by Merchant Esteem Sdn Bhd was due to a decision by the latter's new management.

• AirAsia X Bhd achieved a passenger load factor of 84% in the 3Q24, an increase of four percentage points from the previous year.

• Evergreen Max Cash Capital is looking to raise about RM35.7mn via a private placement to repay credit facilities.

• Nestlé (Malaysia) Bhd's net profit fell 36.1% to RM85.4mn for the 3QFY2024, from RM133.7mn a year earlier, due to lower revenue caused by a drop in domestic sales.

• ViTrox Corp Bhd saw its net profit for the 3QFY2024 fall 32.5% to RM22.5mn from RM33.3mn a year earlier amid a weak US dollar, which led to a notable unfavourable foreign exchange loss.

• Pavilion Real Estate Investment Trust saw its net property income rise 8.7% to RM131.9mn for the 3QFY2024, from RM121.4mn a year ago, due to lower property operating expenses, primarily driven by the reversal of doubtful debts provision.

• Texchem Resources Bhd is confident that the group will remain resilient and sustain its performance in the coming quarter after reporting a net profit of RM1.1mn in the 3QFY24.

• CapitaLand Malaysia Trust posted a 6.3% YoY increase to RM62mn in its 3QFY2024 net property income, underpinned by better NPI from Gurney Plaza, Queensbay Mall, East Coast Mall and Valdor Logistics Hub.

• DXN Holdings Bhd reported a 13.2% drop in net profit for the 2QFY2025 to RM66mn, from RM76mn a year ago, hurt by foreign exchange losses, as well as higher employee benefit costs and shipping costs.

• Luxchem Corp Bhd's net profit for the 3QFY2024 fell by more than 26% YoY to RM6.7mn mainly due to higher administrative expenses.

• Initial claims for state unemployment benefits dropped 15,000 to a seasonally adjusted 227,000 for the week ended Oct 19.

Source: TA Research - 25 Oct 2024