Review & Outlook

The local market drifted lower on Monday, easing in line with the region as investors digest weak economic data from China and looked ahead to several major central bank decisions due this week. The FBM KLCI dropped 1.90 points to close at 1,606.85, off an early high of 1,609.43 and low of 1,603.21, as losers edged gainers 656 to 424 on lower turnover of 3.16bn shares worth RM2.45bn.

Market sentiment is likely to remain cautious as the upcoming interest rate decisions by major central banks and weak economic data from China should keep investors sidelined. Immediate index resistance remains at 1,628, 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.

Axiata shares need a confirmed breakout above the 50%FR (RM2.53) to aim for the 61.8%FR (RM2.64) and the 76.4%FR (RM2.77) ahead, with key uptrend support from the 23.6%FR (RM2.29) capping downside risk. Meanwhile, CelcomDigi will be attractive to accumulate on weakness for recovery upside towards the upper Bollinger band (RM3.72), with stronger upside hurdles at the 61.8%FR (RM3.81) and the 76.4%FR (RM4.01), while key retracement supports are at the 38.2%FR (RM3.48) and 23.6%FR (RM3.28).

News Bites

• The International Monetary Fund has assessed Malaysia's current monetary policy stance as appropriate but emphasised that Bank Negara Malaysia has to be ready to tighten policy in 2025 amid inflation risks.

• Gamuda Bhd's Australian subsidiary, DT Infrastructure Pty Ltd, has secured a AUD625mn (RM1.8bn) engineering, procurement and construction contract for the 585MW Goulburn River Solar Farm in New South Wales.

• DRB-Hicom Bhd has signed a memorandum of understanding with the Malaysian Investment Development Authority and the Malaysia Automotive, Robotics and IoT Institute to enhance Malaysia's automotive industry through the Automotive Hi-Tech Valley project in Tanjung Malim, Perak.

• KKB Engineering Bhd has secured contracts from PETROSNiaga Sdn Bhd and Gamuda Bhd totalling RM89.0mn.

• George Kent (M) Bhd has won a RM45.5mn contract from Kwasa Land Sdn Bhd for the Kwasa Damansara township development in Sungai Buloh, Selangor.

• Infomina Bhd has secured a USD2.6mn (RM11.6mn) purchase order from Hong Kong Exchanges and Clearing Ltd for technology application, infrastructure operations and support services.

• Crest Group Bhd is acquiring a RM16.5mn industrial property in Puchong, Selangor, from Oasis Harvest Corp Bhd to establish its new headquarters and consolidate central region operations.

• Perdana Petroleum Bhd has secured a charter contract for an anchor handling tug and supply vessel from IPC Malaysia BV.

• Advancecon Holdings Bhd has secured a RM44.6mn main infrastructure contract from Sime Darby Property Bhd for the Elmina West development.

• MClean Technologies Bhd's shareholders have approved its plan to diversify into plastic injection moulding and undertake a private placement. The company will acquire We Total Engineering's plastic injection moulding business for RM6.0mn.

• Marine & General Bhd's net profit for 2QFY25 rose 46.7% YoY to RM12.1mn from RM8.2mn, driven by higher charter rates.

• Tissue paper manufacturer NTPM Holdings Bhd reported a net profit of RM162,000 for 2QFY25, compared to a RM4.0mn net loss a year earlier, supported by a RM5.9mn forex gain.

• Winstar Capital Bhd, set to debut on Bursa Malaysia's ACE Market on Dec 19, posted a 3QFY24 net profit of RM3.3mn on revenue of RM58.8mn.

• China's industrial output grew 5.4% YoY in November year-on-year, up from the 5.3% pace seen in October, but retail sales grew just 3.0% last month, much slower than a 4.8% rise seen in October.

• Incoming US President Donald Trump's transition team is recommending sweeping changes to cut off support for electric vehicles and charging stations and to strengthen measures blocking cars, components and battery materials from China, according to a document seen by Reuters.

Source: TA Research - 17 Dec 2024