Review & Outlook

Stocks remained in profit-taking correction mode on Monday, amid persistent foreign selling as the prospect of fewer rate cuts by the Federal Reserve is shoring up the dollar, encouraging capital inflows to the US. The FBM KLCI dipped 3.99 points to close at 1,625.47, off an early high of 1,631.71 and low of 1,623.64, as losers edged gainers 577 to 503 on higher turnover of 3.48bn shares worth RM2.66bn.

Looking ahead, local and regional markets should be buoyed by PBOC's announcement that it will implement a moderately loose monetary policy in 2025. 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.

CelcomDigi requires sustained strength above the 61.8%FR (RM3.81) to reinforce upside momentum and aim for the 76.4%FR (RM4.01) and RM4.20 ahead, with the 100-day ma (RM3.57) and 38.2%FR (RM3.48) to cushion downside. Maxis will need to climb above the 61.8%FR (RM3.72) to boost bullish momentum and target the 76.4%FR (RM3.93) and RM4.10 going forward, while the 50%FR (RM3.54) and 38.2%FR (RM3.38) provide crucial chart supports

News Bites

• The Visit Malaysia 2026 campaign, launched yesterday, is centred on two core pillars - high-yield and sustainable tourism, said Tourism, Arts and Culture Minister Datuk Seri Tiong King Sing.

• Rexit Bhd announced the successful completion of an independent cybersecurity audit, which found no data breaches within the company's systems.

• The acceptance period for the takeover offer of Malaysia Airports Holdings Bhd by the Gateway Development Alliance Sdn Bhd consortium has been extended to Jan 17, replacing the original Jan 8 deadline.

• Citaglobal Bhd has acquired a 55% stake in Germany's LAWI Engineering GmbH to deliver advanced waste-to-energy solutions.

• D&O Green Technologies Bhd's 93.2%-owned subsidiary, Dominant Electronics Sdn Bhd, has signed an MOU with Jing Wei Hirain Automotive Electronics Malaysia Sdn Bhd to establish a new company in Malaysia focused on engineering services and automotive module production.

• Oriental Kopi Holdings Bhd, a café chain operator, set its initial public offering price at 44 sen per share, aiming to raise RM184mn ahead of its ACE Market listing.

• TechStore Bhd has signed an agreement with M&A Securities Sdn Bhd, a unit of M&A Equity Holdings Bhd, to underwrite 50mn IPO shares allocated to the Malaysian public and eligible parties under pink form allocations.

• Kerjaya Prospek Group Bhd's subsidiary, Kerjaya Prospek (M) Sdn Bhd secured a RM256.4mn contract from Eastern & Oriental Express Sdn Bhd for a development in Elmina West, Shah Alam.

• Aizo Group Bhd has been awarded a contract to develop a 99.99MW large-scale solar photovoltaic plant in Kampar, Perak.

• XOX Networks Bhd plans to reduce its issued share capital by up to RM55mn to offset accumulated losses of RM47.3mn as of Sept 30, 2024.

• Kumpulan Kitacon Bhd secured a RM65.7mn residential construction contract in Sungai Buloh, Selangor.

• Ni Hsin Group Bhd's subsidiary, Ni Hsin EV Tech Sdn Bhd, has received conditional approval from Pitch Platforms Sdn Bhd to host its token crowdfunding campaign on pitchIN's TCF platform.

• Keyfield Offshore Sdn Bhd, part of Keyfield International Bhd, acquired a Dynamic Positioning 2 platform supply vessel for US$17.6mn (RM79.2mn).

• T7 Global Bhd's subsidiary, Tanjung Offshore Services, has secured a 3- year contract from Carigali Hess Operating Company Sdn Bhd for maintenance, construction, and modification services.

• China's services Purchasing Managers' Index rose to 52.2 in December, underpinned by greater business inflows, from 51.5 in November.

• Bank of Japan governor Kazuo Ueda sent a fresh reminder to bankers that he's going to raise the benchmark rate if the economy continues to improve this year.

• The seasonally adjusted S&P Global US Services PMI Business Activity Index rose for the second month running in December, reaching a 33- month high of 56.8.

• The euro area economy is in the danger of plunging even deeper into crisis and the room for the European Central Bank for manoeuvre is diminishing rapidly, the behavioural research institute Sentix said Monday.

Source: TA Research - 7 Jan 2025