Review & Outlook

Bursa Malaysia shares sank on Monday, dragged by regional falls after China's softer inflation data and weaker-than-expected stimulus package disappointed investors. The FBM KLCI fell 11.98 points to end near session lows at 1,609.26, off an early high of 1,627.23, as losers beat gainers 685 to 357 on total turnover of 2.68bn shares worth RM2.03bn.

The local market should drift lower near-term as worries over China's economic growth momentum amid potential worsening US-China trade tensions dampen sentiment. Immediate index support stays at the 1,600 psychological level, with the next crucial support coming in at the 200-day moving average level of 1,595, and next at 1,575, the 76.4%FR level. Immediate resistance is at the recent high of 1,648, with the next upside hurdles seen at 1,660 and 1,675.

DNEX remains in base building mode, with the lower Bollinger band (34sen) and 18/1/24 low (31.5sen) acting as key chart supports, while a breakout above the 200-day ma (39sen) is crucial to fuel further upside towards the 61.8%FR (45sen) and 50%FR (50sen) ahead. Tenaga is rebuilding a stronger support platform above the 76.4%FR (RM13.68), while a confirmed breakout above the 4/9/24 high (RM14.98) should target the 123.6%FP (RM16.30) and 138.2%FP (RM17.11) going forward.

News Bites

• Malaysia's palm oil stocks at the end of October this year fell 6.32% from the previous month to 1.88mn metric tonnes, the first decline in inventory in three months, data from the Malaysian Palm Oil Board showed.

• Kerjaya Prospek Group Bhd's subsidiary, Futuprop Sdn Bhd, has partnered with Aspen Vision Development Sdn Bhd for a mixed development on 36 acres in Seberang Perai Tengah, Penang.

• TCS Group Holdings Bhd is working with the developer and consultants to investigate cracks at the J Satine mixed development project after the Kuala Lumpur City Hall has ordered a halt in all construction activities at the condominium project in Wangsa Maju.

• DXN Holdings Bhd's substantial shareholder Gano Global Supplements Pte Ltd has trimmed its stake in the direct selling company to 8.8% after disposing of a 4.5% stake in a direct business deal.

• TMC Life Sciences Bhd has received special notices from major shareholders, Sasteria (M) Pte Ltd and Tunku Ismail Ibni Sultan Ibrahim, to requisition an EGM for the immediate removal of Wan Nadiah Wan Mohd Abdullah Yaakob.

• Ecoscience International Bhd has bagged a RM200mn construction job to undertake a TG2 pellet plant in the Gebeng industrial area in Kuantan, Pahang.

• KTI Landmark Bhd has won a sub-contract under the Armed Forces Family Housing construction project at the Labuan Air Base, worth RM50mn.

• Destini Bhd has secured a contract worth RM33.1mn from the Ministry of Defence for comprehensive maintenance services for airborne safety and survival equipment.

• Azam Jaya Bhd aims to expand beyond Sabah, identifying Sarawak and Kalimantan as key growth markets, and is planning to tender for more phases of the RM29bn Pan Borneo Highway project.

• Xin Hwa Holdings Bhd said a three-month suspension of its cargo transport unit's licence is expected to impact about 4% to 5% of the group's annual revenue, with losses estimated at around 21% - being the gross profit that it would have made from the affected revenue.

• Mega Fortris Bhd anticipates minimal impact from a potential 10% tariff on its products in the US, its second-largest market.

• Loss-making group Carzo Holdings Bhd has announced the immediate cessation of its core business of distributing fresh fruits and fruit products amid consecutive net losses and a negative cash flow position.

• CTOS Digital Bhd's net profit gained 13% YoY to RM27.6mn for the 3QFY24, thanks to higher sales and better tax incentives.

• Southern Steel Bhd's net loss narrowed to RM25.7mn for the 1QFY25, from RM39.6mn a year earlier, thanks to improved margins from favourable input cost.

• Bank of Japan board members discussed the need for caution on raising its benchmark rate and offered no clear hint of a move next month, a summary of opinions from its October policy meeting showed.

Source: TA Research - 12 Nov 2024