Review & Outlook

The local benchmark index ended slightly higher on Monday, buoyed by bargain hunting interest in the plantation sector after a five-day rally in crude palm oil prices. The FBM KLCI rose 1.19 points to close at 1,595.48, off an early high of 1,603.94 and low of 1,593.37, but losers beat gainers 549 to 497 on total turnover of 2.83bn shares worth RM2.37bn.

The sideways trend on the local market should prevail pending fresh domestic catalysts to lift stocks from their current consolidation. Immediate index 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. Immediate resistance remains at 1,629, next 1,648, followed by the September peak of 1,675.

Globetronics looks attractive to bargain on dips for recovery to the 138.2%FP (65sen), with a confirmed breakout to target the 123.6%FP (77sen) and 100%FP (97sen) ahead, while key supports are at the 161.8%FP (45sen) and 176.4%FP (33sen). Any further weakness on Unisem towards the 31/10/23 low (RM2.81) should attract bargain hunters looking for rebound upside to the upper Bollinger band (RM3.10), with next major resistance coming from the 23.6%FR (RM3.25) and the 38.2%FR (RM3.47), going forward.

News Bites

• The S&P Global Malaysia Manufacturing PMI dipped slightly to 49.2 in November, from 49.5 the month prior, signalling a marginal moderation in the sector's health.

• A total of RM10.78bn had been withdrawn from the Employees Provident Fund's Flexible Account as of the end of September, according to the Finance Ministry.

• The tripartite consortium involving IJM Properties Sdn Bhd said it will continue to explore pathways forward with the Penang government to develop Batu Kawan Industrial Park 2 after its initial proposal was rejected.

• Sime Darby Property Bhd has signed an agreement for a 20-year lease of data centre facilities to Pearl Computing Malaysia Sdn Bhd for up to RM5.6bn, beginning as early as 2027.

• RHB Banking Group has launched its flood relief assistance programme, offering immediate financial relief and long-term recovery support to individuals, micro, small and medium enterprises, available from now until Jan 31, 2025.

• Yinson Production's joint venture with PeroVietnam Technical Services Corp has executed an US$416mn contract for the provision, charter, operation and maintenance of the FSO vessel for the Lac Da Vang project in Vietnam.

• Pesona Metro Holdings Bhd has secured a RM181.8mn contract for the construction of two blocks of 28-storey condominiums in Cyberjaya.

• Capitaland Malaysia Trust is acquiring a freehold automated logistics property in Elmina Business Park, Selangor, from PTT Logistics Hub 1 Sdn Bhd, for RM180mn.

• Joe Holding Bhd has proposed a share capital reduction to wipe out RM80.4mn of its accumulated losses.

• PN17 company Annum Bhd said it will work closely with its potential external auditor to resolve opening balance issues during the subsequent audit for the FY2024.

• T7 Global Bhd has won a contract from Jadestone Energy (M) Pte Ltd for the provision of Pan-Malaysia maintenance, construction, modification and hook-up and commissioning services for Package B3.

• Willowglen MSC Bhd's wholly-owned subsidiary Willowglen Services Pte Ltd has secured a contract valued at RM79.2mn from the Public Utilities Board, Singapore, for the installation of supervisory control and data acquisition and telemetry systems for construction works and maintenance services.

• George Kent (Malaysia) Bhd has bagged a RM26.7mn contract for the Sarawak water supply grid programme's Stressed Area project.

• Datasonic Group Bhd has secured two letters of extension from the Home Ministry, valued at RM81.4mn.

• Sunway Bhd founder and executive chairman Tan Sri Jeffrey Cheah Fook Ling, and his private vehicle Sungei Way Corp Sdn Bhd, have sold a combined total of 100mn shares in the diversified company for RM485mn or RM4.85 per share.

• The manufacturing sector in China continued to expand in November, and at a faster pace, the latest survey from Caixin revealed on Monday with a manufacturing PMI score of 51.5.

• The US unveiled new restrictions on China's access to vital components for chips and AI.

Source: TA Research - 3 Dec 2024