Review & Outlook

While the upward trajectory on daily technical momentum indicators on the FBM KLCI signal further upside bias in the near term, bearish weekly momentum indicators and weak trend indicators suggest further rangebound with downward bias trade could persist, until more constructive leads emerge. On the external front, investor sentiment should stay cautious ahead, in anticipation of U.S. president-elect Donald Trump's resolve to force higher tariffs on its neighbors and Chinese exports, hence causing trade tensions to remain elevated.

As for 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 1,629, 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 gaming, construction, telco and semiconductor related players should see bargain hunting interest, following recent sharp profit-taking corrections which brought down share prices to lower and stronger support levels.

News Bites

• Credit to the private non-financial sector grew by 5.1% year-on-year in October compared with the 4.8% reported in the previous month, Bank Negara Malaysia said.

• Tenaga Nasional Bhd has signed the MY07 Electricity Supply Agreement with hyperscale data centre solutions platform and Bain Capital-backed Bridge Data Centres, according to w.media's report on Friday.

• Pharmaniaga Bhd announced that Bursa Malaysia has approved the group's regularisation plan, marking a significant milestone in Pharmaniaga's journey towards financial recovery and long-term business sustainability.

• Hextar Industries Bhd has signed an agreement to bring in Chinese coffee house chain Luckin Coffee to Malaysian shores.

• LBS Bina Group Bhd said that it is unlikely for the group to meet its internal sales target of RM1.8bn this year, due to deferred launches caused by a lengthy approval process.

• Tan Sri Joseph Lo, chairman of Azam Jaya Bhd, died aged 74 on Saturday at the Gleneagles Hospital, according to the Daily Express.

• Sapura Energy Bhd's chairman Datuk Mohammad Azlan Abdullah and chief executive officer Datuk Mohd Anuar Taib will step down their positions on Jan 31, 2025 and Dec 31, 2024, respectively.

• Public Bank Bhd posted a 12% increase in net profit to RM1.9bn for the 3QFY2024 from RM1.7bn a year ago, thanks to operating income growth.

• Kenanga Investment Bank Bhd's 3QFY24 net profit tumbled 38.1% to RM14.6mn from RM23.6mn in the year-ago quarter.

• RHB Bank Bhd's net profit grew 28% to RM833.2mn for the 3QFY2024, from RM650mn a year earlier, as the banking group booked sharp currency gains of RM659.9mn

• Padini Holdings Bhd's net profit for the 1QFY2025 fell to RM11.5mn from RM26.7mn a year earlier, on currency loss, higher staff costs and depreciation.

• Syarikat Takaful Malaysia Keluarga Bhd has posted a higher net profit of RM100.7mn in the 3QFY2024 compared to RM91.1mn in the same period last year.

• Press Metal Aluminium Holdings Bhd's net profit jumped 31.4% YoY to RM402.3mn in the 3QFY24 on higher profit contribution from its associated companies.

• AirAsia X Bhd's net profit jumped 22 times to RM121.6mn in 3QFY24, from RM5.6mn, as currency gains and higher revenue offset a jump in operating expenses.

• Velesto Energy Bhd made a net profit of RM42.9mn for 3QFY2024, over a 30-fold jump from RM1.2mn in 3QFY2023 due to higher utilisation and average daily charter rates.

• China's purchasing managers' index rose to a seven-month high of 50.3 in November, beating a median forecast of 50.2, versus 50.1 in October.

• Bank of Japan Governor Kazuo Ueda said the timing of the next interest rate hike was "approaching" as the economy was moving in line with the central bank's forecasts.

• US President-elect Donald Trump warned the so-called BRICS nations that he would require commitments that they would not move to create a new currency as an alternative to using the US dollar and repeated threats to levy a 100% tariff.

Source: TA Research - 2 Dec 2024