Review & Outlook

The local benchmark index extended gains on Tuesday spurred by bargain hunting interest in key utilities, health care, and consumer products heavyweights. The FBM KLCI added 5.7 points to settle at 1,603.15, off an early low of 1,596.03 and high of 1,607.76, but losers beat gainers 584 to 412 on slower trade of 2.54bn shares worth RM2.37bn.

Market sentiment could turn cautious in line with regional markets due to rising global trade tensions following Donald Trump's threat to impose tariffs on the United States' three largest trading partners Canada, Mexico and China. Immediate index resistance remains at 1,630, next 1,648, followed by the September peak of 1,675. Immediate support stays at 1,588, the 38.2%FR of the 1,529 low (6 Aug) to 1,684 high (29 Aug) rally, with stronger key supports at 1,565, the 23.6%FR level, and then 1,550.

Gamuda needs convincing strength above the 123.6%FP (RM9.41) to enhance upside momentum towards the 138.2%FP (RM10.02) and 150%FP (RM10.52) ahead, while key uptrend supports at the middle Bollinger band (RM8.81) and the 100%FP (RM8.42) cushions downside. Meanwhile, further dips on UEM Sunrise towards the 61.8%FR (88sen) would be attractive to bargain for potential rebound towards the 200-day ma (RM1.05), with next hurdle seen at RM1.20 and 20/05/24 high (RM1.28). A stronger retracement support level is seen at the 50%FR (76sen).

News Bites

• Penang Development Corporation has rejected an RM818mn bid by a tripartite consortium led by IJM Corporation Bhd to develop the Batu Kawan Industrial Park 2 in Penang, Free Malaysia Today reported.

• Hyundai Motor will start a strategic partnership with Inokom for the automotive assembly of several new models in Malaysia next year through an investment worth RM2.16bn.

• The government has targeted oil palm replanting on 77,000 hectares of land over the next five years (2025-2029) to ensure the palm sector remains sustainable and competitive.

• Maxland Bhd, formerly known as Priceworth International Bhd, is issuing new shares representing 20% of its current share base to two companies to raise funds for its new ventures into bus assembly and the development of district cooling systems for industrial buildings.

• Aluminium products manufacturer Winstar Capital Bhd, en route to a listing on Bursa Malaysia's Ace Market on Dec 19, 2024, aims to raise RM19.8mn through its initial public offering.

• Electronic reload and bill payment services provider RichTech Digital Bhd has inked an underwriting agreement with KAF Investment Bank in conjunction with its planned initial public offering exercise on the ACE Market of Bursa Malaysia.

• YTL Corp Bhd's net profit fell by more than a third to RM333.7mn in the 1QFY25 from RM521.7mn a year ago, as contributions from its utilities business, represented by its 55.6% stake in YTL Power International Bhd declined.

• Kuala Lumpur Kepong Bhd's net profit for the 4QFY2024 fell 94.2% to RM6.8mn from RM116.3mn in 4QFY2023, dragged by non-cash losses and an inventory write-down related to its investment in UK-listed speciality chemicals company.

• Malaysia Airports Holdings Bhd's net profit more than doubled to RM210.4mn in 3QFY2024, from RM94.8mn a year ago, fuelled by higher passenger volumes.

• Telekom Malaysia Bhd's net profit for the 3QFY2024 fell 13.6% yearon-year to RM465mn from RM538.2mn, following last year's recognition of tax credit from prior years' losses.

• Greatech Technology Bhd's net profit for 3QFY2024 halved on foreign exchange losses, as it recorded a net profit of RM23mn, down 50.8% from RM46.7mn last year.

• Pharmaniaga Bhd saw a turnaround in 3QFY2024 thanks to higher sales and the reversal of penalty charges from the government as it reported a net profit of RM101mn compared to a net loss of RM49.3mn over the same quarter last year.

• The Japanese government retained its economic assessment for the fourth straight time on Tuesday, saying the economy is recovering at a moderate pace, although it remains pausing in part.

• The US president-elect said he would sign an executive order imposing a 25% tariff on all goods coming from Mexico and Canada, and an additional of 10% on China after being inaugurated on 20 January 2025.

• Federal Reserve officials indicated broad support for a careful approach to future interest-rate cuts as the economy remains solid and inflation slowly cools, minutes from their latest policy meeting showed.

Source: TA Research - 27 Nov 2024