Review & Outlook

The local blue-chip benchmark ended firm on Tuesday, lifted by modest bargain hunting in key energy and utility heavyweights while the broader market consolidated ahead of the Christmas holiday break. The FBM KLCI added 6.79 points to close at 1,602.99, off an opening low of 1,596.64 and high of 1,603.89, as losers edged gainers 500 to 427 on muted trade totaling 2.01bn shares worth RM1.54bn.

Most stocks should stay range bound broadly while mild window dressing interest lift selective key index heavyweights ahead of the year-end holidays. Immediate index resistance remains at 1,626, 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.

Gadang is in base building mode, with key chart supports from the lower Bollinger band (30sen) and 26/5/23 low (28sen) cushioning downside, while a breakout from consolidation above the 23.6%FR (34sen) should aim for the 38.2%FR (37sen) and 50%FR (40sen) ahead. Similarly, IWCity has key supports at the lower Bolinger band (54sen) and 11/9/24 low (47sen) restricting downside, with a confirmed breakout above the 76.4%FR (60sen) to target the 61.8%FR (68sen) and 50%FR (75sen) going forward.

News Bites

• Malaysia's producer price index declined by 0.4% in November 2024, a slower decrease compared to the 2.4% drop in October 2024, mainly due to the continued contraction in the mining sector.

• Boustead Heavy Industries Corp Bhd shareholders have approved the sale of a 51% equity stake in littoral combat ship subcontractor Contraves Advanced Devices Sdn Bhd to German defense firm Rheinmetall AG for RM54mn.

• KKB Engineering Bhd has initiated adjudication proceedings under the Construction Industry Payment and Adjudication Act against a contractor over unpaid claims totaling RM10.1mn.

• Prolintas Infra Business Trust has resolved its dispute with KL-Kuala Selangor Expressway Bhd over a cost-sharing agreement.

• CIMB Group Holdings Bhd and Gentari Sdn Bhd have formed a partnership to promote green mobility and drive decarbonisation across the ASEAN value chain.

• Malaysia Airports Holdings Bhd will upgrade infrastructure, operational management systems, and security measures at its airports in preparation for Malaysia's Asean Chairmanship 2025.

• Nestcon Bhd has received two letters of notification from the Energy Commission of Sabah for the development of large-scale solar photovoltaic plants in Sabah.

• DC Healthcare Holdings Bhd has incorporated a wholly owned subsidiary, DC Lasers (Eastern) Sdn. Bhd., to facilitate its expansion and establish a new aesthetic medical clinic in Kuching, Sarawak.

• MMAG Holdings Bhd has acquired its seventh aircraft, a Boeing B737- 400SF converted freighter, for RM20.76 million.

• Pharmaniaga Bhd has seen East Navigators Capital Ltd exit as a substantial shareholder after disposing of 25.35mn shares (1.8% stake) for RM5.3mn.

• Datasonic Group Bhd has reported that Azlan Abdul Kadir is no longer a substantial shareholder following the disposal of 20mn shares by Demi Mekar Sdn Bhd. Azlan's stake has decreased from 5.5% to 4.8% after the sale.

• PUC Bhd group managing director Cheong Chia Chou has reduced his stake in the digital payment solutions provider to 6.6% after selling 40mn shares (1.4% stake) for RM2mn.

• Parlo Bhd plans to issue 300.6mn rights shares with free detachable warrants after a capital reduction of RM42mn and share consolidation.

• Bahvest Resources Berhad has changed its name to AUMAS Resources Berhad, effective 9:00 a.m., Friday, 27 December 2024.

• iCents Group Holdings Bhd has submitted its draft prospectus for listing on the ACE Market of Bursa Malaysia.

• Pan Merchant Bhd has submitted its draft prospectus for listing on the ACE Market of Bursa Malaysia.

• China's finance ministry reaffirmed it will increase public spending with a greater focus on boosting consumption to support the eco

Source: TA Research - 26 Dec 2024