Review & Outlook

Following the drift-down on blue chips the previous week, short-term technical momentum indicators on the FBM KLCI remain bearish, while longer-term trend indicators imply more profit-taking consolidation ahead. Market sentiment is expected to remain subdued as investors await the final leg of corporate earnings scheduled to be released until the end of the month. Also, uncertainty surrounding escalation of the Ukraine-Russia conflict and President-elect Trump's tariff policies will keep investors cautious and sidelined, leading to a shift to safer assets.

On the index, immediate chart support remains at 1,588, which is the 38.2%FR of the rally from 1,529 low (6 Aug) to 1,684 high (29 Aug), with next crucial support at 1,565, the 23.6%FR level, followed by the key 1,550 support. On the upside, immediate resistance stays at the overhead 100-day moving average at 1,630, next will be at 1,648, the 76.4%FR level, followed by the September peak of 1,675.

On stock picks for this week, selective banking, construction and oil & gas players should attract renewed bargain hunting interest, given the recent sharp profit-taking corrections which have brought down their share prices to substantially cheaper levels.

News Bites

• Inflation in Malaysia picked up slightly to 1.9% YoY in October as prices of food and personal care products, including jewellery, rose.

• Malaysia's latest international reserves totalled US$118bn as at Nov 15, 2024, sufficient to finance 4.6 months of imports of goods and services and is 0.9 times the total short-term external debt.

• SkyWorld Development Bhd completed due diligence for its proposed joint development in Vietnam's Binh Duong province, marking its second venture in the country.

• Icon Offshore Bhd has entered into four conditional share sale and purchase agreements with various vendors for proposed acquisitions and the first agreement involves acquiring 100 ordinary shares in Liannex Fleet Pte Ltd from Liannex Corp (S) Pte Ltd for RM182mn.

• Top Glove Corp Bhd announced a JV through its unit Top Quality Glove Sdn Bhd for high-density polyethylene glove production with Tronex (Asia) Ltd and Polywel International Trade Co Ltd.

• Chin Hin Group Property Bhd established a RM500mn perpetual notes programme to fund capital expenditures, refinance borrowings, support working capital, and other corporate purposes.

• Progressive Impact Corp Bhd's wholly-owned subsidiary, Alam Sekitar Malaysia Sdn Bhd, has secured a RM14.7mn contract from Pengurusan Air Selangor Sdn Bhd.

• South Malaysia Industries Bhd will hold an EGM on Jan 9, 2025, called by its largest shareholder, Target 1 Sdn Bhd, to appoint six new directors, including former Perak police chief Datuk Pahlawan Mior Faridalathrash Wahid.

• Solarvest Holdings Bhd, via its wholly-owned subsidiary Atlantic Blue Sdn Bhd, has secured a RM142mn contract from SM01 Sdn Bhd for an engineering, procurement, construction, and commissioning contract.

• Lagenda Properties Bhd's indirect wholly owned subsidiary, Opti Vega Sdn Bhd, has entered into a development rights agreement with Intact Corporate Approach Sdn Bhd for the development of 56.3ha in Kota Tinggi, Johor, for an adjustable cash consideration of up to RM99.6mn.

• MNRB Holdings Bhd has appointed Datuk Rudy @ Rodzila Che Lamin as its interim president and group CEO following the expiration of Zaharudin Daud's employment contract on Nov 22, 2024.

• Bumi Armada Bhd registered a net profit of RM211.3mn in 3QFY24, a 19% YoY increase from RM177.77mn in 3QFY23.

• Bintulu Port Holdings Bhd recorded a 13.7% drop in net profit to RM28.1mn for 3QFY24 from RM32.5mn YoY, impacted by increased operating costs related to service contracts, repairs, and maintenance.

• Favelle Favco Bhd posted its first-ever quarterly loss since listing in 2006, with a net loss of RM7.6mn for 3QFY24 compared to a net profit of RM12.1mn in the same period last year, due to a foreign exchange loss.

• Singapore's 3Q24 GDP rose 5.4% YoY, faster than the 4.1% official advance estimate released last month and a median forecast of 4.6% in a Reuters poll of economists.

• The University of Michigan said its consumer sentiment index for November was downwardly revised to 71.8 from the preliminary reading of 73.0.

Source: TA Research - 25 Nov 2024

Source: TA Research - 25 Nov 2024