Review & Outlook

Bursa Malaysia shares ended lower on Thursday, as the impending Trump presidency raised concerns over more protectionist trade policies coming from the US among investors in the region. The FBM KLCI dipped 10.89 points to close at 1,623.28, off an early high of 1,639.55 and low of 1,622.75, as losers beat gainers 641 to 466 on higher trade totaling 3.78bn shares worth RM3.42bn.

Market sentiment should be buoyed by the dovish guidance from the US Federal Reserve on lowering interest rates and more pro-business policies under a Trump presidency. Immediate index resistance is set at the recent high of 1,648, with the next upside hurdles seen at 1,660 and 1,675. Immediate support stays at the 1,600 psychological level, with the next crucial support coming in at the 200-day moving average level of 1,593, and next at 1,575, the 76.4%FR level.

AMMB would need to overcome the 161.8%FP (RM5.45) to extend upside momentum towards the 176.4%FP (RM5.66), with stronger resistance seen at the 200%FP (RM5.99), and key chart supports coming from the lower Bollinger band (RM5.04) and 123.6%FP (RM4.91). RHB Bank needs sustained breakout above the 123.6%FP (RM6.66) to boost uptrend momentum towards the 138.2%FP (RM6.85), with next hurdle at the 150%FP (RM7.01), while uptrend support from the 50-day ma (RM6.23) and 76.4%FR (RM6.03) cushion downside.

News Bites

• Malaysia's wholesale and retail trade sector recorded a 3.8% YoY growth in September 2024, achieving total sales of RM148.2bn.

• Services sector revenue in Malaysia grew by 5.9% YoY in the 3Q24, reaching RM618.5bn.

• Tan Sri Lim Kang Hoo is exploring selling his toll road business in a deal that could value the assets at as much as RM5bn, according to sources.

• Eco World Development Group Bhd, via its 81%-owned subsidiary Mutiara Balau Sdn Bhd, is buying 10 parcels of land measuring 847.3 acres in Semenyih, Selangor for RM742.4mn, cash.

• Mah Sing Group Bhd has acquired a 5.24-acre freehold parcel in Old Klang Road for approximately RM113mn from Team Keris Bhd to develop a new transit-oriented development named M Aurora.

• KKB Engineering Bhd has secured contracts worth a combined RM93.0mn from several companies with key projects in the industrial and infrastructure sectors.

• Microlink Solutions Bhd has secured a RM83.5mn contract from the Ministry of Home Affairs to develop and supply an advanced passenger screening system for the Immigration Department.

• FGV Holdings Bhd's indirect subsidiary FGV Bulkers Sdn Bhd is being sued for allegedly breaching an agreement for the supply of palm kernel shells by South Asian International Distribution Sdn Bhd, which is seeking damages totalling RM90.8mn.

• Southern Steel Bhd has settled its legal dispute over the construction of a hot-rolled coil plant with Italian plant builder Danieli & C Officine Meccaniche SpA, which agreed to pay Southern Steel's wholly owned Southern HRC Sdn Bhd EUR42.5mn.

• T7 Global Bhd has received its drilling jack-up rig, which will be mobilised to support PETRONAS Carigali Sdn Bhd's plug and abandonment programme for 53 wells across Peninsular Malaysia, Sabah and Sarawak.

• Metro Healthcare Bhd's initial public offering, which involved 156.6mn shares offered to the Malaysian public at an issue price of 25 sen, has been oversubscribed 38.60 times.

• Sentral REIT net property income rose 25% YoY to RM37.6mn in the 3QFY24, boosted by revenue from a newly acquired property.

• Pentamaster Corporation Bhd said its net profit fell 49.9% to RM11.8mn in 3QFY24, from RM23.5mn a year ago, dragged down by lower automated test equipment sales performance and foreign exchange losses.

• Road infrastructure construction firm Azam Jaya Holdings Bhd, set to list on the Main Market of Bursa Malaysia next Monday (Nov 11), reported a net profit of RM4.7mn for its 2QFY24.

• China's exports rose 12.7% YoY to US$309bn in October, its fastest growth since July 2022.

• The US Federal Reserve shrugged off concerns about the impact of Donald Trump's election victory on interest rates and moved ahead with a quarter point cut to between 4.50% to 4.75% on Nov 7.

Source: TA Research - 8 Nov 2024