Review & Outlook

Blue chips began the new year with a profit-taking pullback on Thursday, as market sentiment was dampened by weak economic data from China and major economies within the region. The FBM KLCI dropped 9.46 points to close at 1,632.87, off an opening high of 1,641.32 and low of 1,629.23, as losers edged gainers 580 to 449 on total turnover of 2.64bn shares worth RM1.97bn.

Uncertainties surrounding the inflationary impact of Donald Trump's impending return to the White House and China's weaker economic outlook will likely continue to weigh on local investor sentiment. Immediate index resistance remains at 1,648, followed by the September peak of 1,675 with tougher resistance seen at the 1,684 high (29 Aug). Immediate support is retained at 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.

Ekovest needs a convincing breakout above the 23.6%FR (39sen) to enhance upward momentum towards the 38.2%FR (43sen), with the next key upside hurdle at the 50%FR (47sen), while the 11/09/24 low (32sen) caps downside risk. Similarly, WCT Holdings shares need sustained strength above the 61.8%FR (RM1.01) to enhance upward momentum towards the 76.4%FR (RM1.14), with next resistance seen at RM1.25 ahead, while the 50%FR (90sen) limits downside risk.

News Bites

• Malaysia's manufacturing sector experienced muted trends at the end of 2024, as indicated by a decline in the Purchasing Managers' Index to 48.6 in December, according to S&P Global.

• Maxis Bhd has partnered with Universiti Tunku Abdul Rahman to explore commercial opportunities for deploying 5G solutions.

• Pentamaster Corp Bhd is being sued by Ocado Innovation Ltd, a subsidiary of the UK-based Ocado Group, for alleged patent infringement involving warehouse automation and robotics technologies.

• Awanbiru Technology Bhd has secured a one-year extension of its Cloud Framework Agreement 1.0 with the government for managing and delivering Google cloud services.

• KNM Group Berhad's subsidiary, Borsig Group, secured a facility agreement with Landesbank Baden-Württemberg and other institutions to ensure business continuity.

• Sunway Real Estate Investment Trust has completed its RM158mn acquisition of Kluang Mall in Johor, rebranded as Sunway Kluang Mall.

• Peterlabs Holdings Bhd is acquiring 2.7 acres of land in Seremban, Negeri Sembilan, for RM7.4mn from N9 Matrix Development Sdn Bhd.

• Malaysian Banking Bhd has launched Money Lock, a counter-fraud feature on its MAE app.

• Ecobuilt Holdings Bhd has until Jan 8 to submit its FY24 annual report or face a trading suspension on Jan 9.

• YX Precious Metals Bhd has restructured its governance framework by splitting its Audit and Risk Management Committee into two separate committees Audit Committee and Risk Management & Sustainability Committee effective Dec 31, 2024.

• MMC Corporation Bhd's 70%-owned unit, Port of Tanjung Pelepas, achieved a record as Malaysia's first container terminal to handle over 12.25mn TEUs in 2024, exceeding its 2021 record of 11.2mn TEUs.

• Ocean Vantage Holdings Berhad has announced that Puan Ilham Fadilah Binti Sunhaji resigned as a member of the Sustainability Committee on 2 January 2025 following her resignation as a director on the same date.

• Karex Bhd has redesignated Datuk Dr Adeeba Kamarulzaman as chairperson, effective immediately, following the resignation of Datuk Dr Ong Eng Long on Jan 2 due to personal commitments.

• Velocity Capital Partners Bhd has a new majority shareholder, with Datuk Fam Chee Way acquiring a 28.8% stake.

• Singapore's economy grew 4.0% in 2024, accelerating from 1.1% growth in 2023, preliminary government data showed on Thursday.

• Initial claims for state unemployment benefits in the US dropped 9,000 to a seasonally adjusted 211,000 for the week ended Dec 28.

• The seasonally adjusted S&P Global US Manufacturing Purchasing Managers' Index posted 49.4 in December, down from 49.7 in November but up from the 'flash' reading of 48.3.

• The European Central Bank's 2% inflation target is in sight, according to President Christine Lagarde.

Source: TA Research - 3 Jan 2025