Review & Outlook

The local market drifted lower on subdued trade Monday, as sentiment on the local front remain negative amid lack of positive catalysts, ignoring the firmer regional markets as traders awaits key economic data from U.S that may determine how deeply the US will cut interest rates. The FBM KLCI fell 7.83 points to close at 1,610.47, off an early high of 1,630.39 and low of 1,609.87, as losers thrashed gainers 782 to 294 on turnover of 2.45bn shares worth RM2.21bn.

Given the weak market undertone and buying momentum, the local stock market should stay in downward bias with most investor's sidelined pending improvement in sentiment. Immediate index support will be at 1,600 psychological level, with next crucial support coming in at the 200-day moving average level of 1,588, and next at 1,575, the 76.4%FR level. Immediate overhead resistance stays at last week's high of 1,648, with next upside hurdles at 1,660, and recent highs of 1,675 and 1,684.

SunCon needs a convincing breakout above its upper Bollinger band (RM4.75) to enhance upside potential towards the 100%FP (RM5.13) and RM5.50 going forward, while the 100-day ma (RM4.27) and 61.8%FR (RM3.85) provide crucial support. WCT Holdings needs to rebuild support at current levels to enhance recovery upside towards the 61.8%FR (RM1.00), with stronger upside hurdle coming at the 76.4%FR (RM1.14), while downside is cushioned by the 50%FR (90sen) and 38.2%FR (80sen).

News Bites

• Malaysia's producer price index fell by 2.1% YoY in September after seven consecutive months of growth.
• Genting Bhd's 95%-owned subsidiary, PT Layar Nusantara Gas, has signed a definitive agreement worth US$182.9mn with China National Machinery Import & Export Corporation and Shandong Kerui Energy Development Co. Ltd. for its floating liquefied natural gas project in West Papua, Indonesia.
• Pintaras Jaya Bhd is acquiring 11 pieces of freehold land totalling 33 acres in Kapar for RM22.9mn cash.
• Barakah Offshore Petroleum Bhd has proposed the disposal of the Kota Laksamana 101 Barge to PT Wintermar Rajawali Asia for US$9.7mn in cash.
• Maxis Bhd has signed a MoU with AmBank Group to accelerate digital transformation in Malaysia's healthcare sector.
• Mah Sing Group Bhd has signed a second collaboration agreement with Bridge Data Centres, backed by Bain Capital, to expand the development at Mah Sing DC Hub@Southville City.
• Suling Hill Development Sdn Bhd, a joint venture between AME Elite Consortium Bhd and Majestic Gen Sdn Bhd, officially launched Northern TechValley @ BKE in Seberang Jaya, Penang on Monday.
• KLCCP Stapled Group has appointed Datuk Mohd Salem Kailany as the chief executive officer of KLCC Property Holdings Bhd and KLCC REIT Management Sdn Bhd, effective from Nov 1, succeeding Datuk Md Shah Mahmood.
• Azam Jaya Bhd, a road infrastructure construction firm based in Sabah, announced that its IPO was oversubscribed by 23 times for the 25mn new shares offered to the Malaysian public.
• ICT Zone Asia Bhd has filed for an IPO as part of the information and communications technology solutions provider's listing transfer to the ACE Market from the LEAP Market.
• Carlo Rino Group Bhd has signed an underwriting agreement with TA Securities Holdings Bhd to transition to the ACE Market from the LEAP Market.
• IGB Real Estate Investment Trust net property income for the 3QFY2024 rose 2.5% YoY to RM114.1mn from RM111.3mn due to higher rentals.
• PGF Capital Bhd's 2QFY2025 net profit more than doubled to RM7mn from RM2.9mn a year ago, primarily attributed to its insulation segment, driven by strong demand from the Oceania market.
• Oriental Interest Bhd's net profit for the FY2024 increased to RM85.2mn from RM78.7mn a year ago, driven by strong demand for the group's new and ongoing development projects.
• Axis Real Estate Investment Trust's net trust income fell to RM37.8mn in the 3QFY2024 from RM42.5mn in the same period a year earlier, influenced by a RM4.7mn unrealised fair value loss on derivatives.
• Singapore's industrial production expanded 9.8% YoY in September, much slower than the 22.0% surge in August.