Review & Outlook

Blue chips held steady on Monday, as the year-end window dressing activities on selective key index heavyweights contributing to overall market gains, while regional markets traded mixed following declines on Wall Street last Friday. The FBM KLCI went up 9.54 points to close at 1,637.68, off an early low of 1,624.92 and high of 1,638.56, as gainers led losers 614 to 452 on total turnover of 2.55bn shares worth RM2.09bn.

While the positive technical momentum should lift market sentiment on the last trading day of the year, stronger buying momentum and a liquidity boost are crucial to sustain the local benchmark's rise to higher ground. Immediate index resistance is upgraded to 1,648, followed by the September peak of 1,675 with tougher resistance seen at the 1,684 high (29 Aug). Immediate support is revised upwards to 1,620, with better supports at 1,600 and 1,588, which is the 38.2%FR level, with next crucial support at 1,565, the 23.6%FR level, followed by the key 1,550 support.

Gamuda shares need sustained strength above the 20/12/24 high (RM4.90) to enhance upward momentum towards the 123.6%FP (RM5.48), with next resistance seen at the 138.2%FP (RM5.84) ahead, while support from the 76.4%FR (RM4.31) and 61.8%FR (RM3.95) limits downside risk. Likewise, UEM Sunrise needs to climb above the 12/04/24 high (RM1.17) convincingly to aim for the 20/05/24 peak (RM1.28) and 123.6%FP (RM1.52) going forward. Key uptrend support from 61.8%FR (88sen) and 50%FR (76sen) cushions downside.

News Bites

• Fitch Ratings has revised its 2025 price forecast for Malaysian crude palm oil spot benchmark to US$800 (RM3,576) per tonne, while projecting a decline to US$700 per tonne thereafter, according to its note dated Dec 27.

• Gadang Holdings Bhd and its joint venture partners have successfully won a bid to develop a 15-megawatt alternating current large-scale solar photovoltaic plant in Tawau, Sabah.

• Gamuda Bhd is acquiring 389.7 acres of land in the Springhill Industrial Park, Port Dickson for RM424.4mn, cash, from a joint venture between MUI Properties Bhd and Chin Teck Plantations Bhd.

• Apex Equity Holdings Bhd is acquiring a boutique office building in The Horizon, Bangsar South for RM50mn to house its operations.

• Samaiden Group Bhd announced its selection to develop a 99.99- megawatt large-scale solar photovoltaic plant in Pasir Mas, Kelantan.

• YNH Property Bhd's subsidiaries have finalized RM63.5mn worth of land disposals in Perak over the past year through five sale and purchase agreements involving tracts in Lumut and Sayung.

• Yinson Production, the offshore arm of Yinson Holdings Bhd, has secured an 18-month extension for the bareboat charter of its floating production storage and offloading unit, PTSC Lam Son, operating offshore Vietnam.

• EA Technique (M) Bhd has proposed renaming itself Avangaad Bhd as part of its efforts to exit Practice Note 17 status by 1Q25.

• Well Chip Group Bhd is acquiring three pawnbroking companies in Perak for RM63.4mn cash.

• TT Vision Holdings Bhd's wholly-owned unit, TT Vision Technologies Sdn Bhd, has secured a US$1.95mn (approximately RM8.74mn) purchase order for its machine vision equipment from a major customer.

• Sunway Bhd has appointed independent director Datuk Mohd Anuar Taib as deputy president, effective Jan 2, 2025.

• The final au Jibun Bank Japan manufacturing purchasing managers' index rose to 49.6 in December, indicating the softest contraction in three months.

• The Chinese government urged local officials to provide more financial relief or step up one-time allowances to people in need ahead of major holidays over the next month, as China's economic difficulties are set to extend into 2025.

Source: TA Research - 31 Dec 2024

Source: TA Research - 31 Dec 2024