Review & Outlook

Bursa Malaysia shares rebounded on Tuesday, following the formalization of the Johor-Singapore Special Economic Zone (JS-SEZ) agreement resulting in key index heavyweights in the construction and technology sectors leading gains. The FBM KLCI added 4.32 points to close at 1,629.79, off an opening low of 1,624.50 and high of 1,634.27, but losers edged gainers 614 to 490 on improved trade totaling 3.91bn shares worth RM3.29bn.

Investors might be reluctant to make more significant bets ahead of key U.S. employment data due to be released later this week and uncertainty on whether incoming President Donald Trump will adopt a looser tariff policy. 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.

Hiap Teck needs a decisive breakout above the 61.8%FR (38sen) to extend uptrend momentum towards the 76.4%FR (43sen), with a stronger upside hurdle coming at the 11/07/24 peak (50sen). The crucial chart supports at the 38.2%FR (31sen) and the 23.6%FR (26sen) cap downside risk. SunCon will need breakout confirmation above RM5.50 to enhance potential upside and target the 123.6%FP (RM5.92) followed by the 138.2%FP (RM6.42) ahead, while downside is cushioned by the 10-day ma (RM4.74) and 76.4%FR (RM4.32).

News Bites

• The leaders of Malaysia and Singapore formalised an agreement establishing a special economic zone linking their two nations' border region, with the aim of attracting 50 projects in the first five years of its establishment.

• The government has decided that the Kuala Lumpur-Singapore highspeed rail project can be revived if there is full participation from the private sector, with minimal government involvement, said Prime Minister Datuk Seri Anwar Ibrahim.

• Alliance Bank Malaysia Bhd is optimistic of achieving a loan growth of 10% and a ROE of more than 10% in FY2025 on the back of a stable net interest margin.

• UUE Holdings Bhd's wholly owned subsidiary has secured contract extensions and renewals worth a total of about RM36.5mn from Komasi Engineering Sdn Bhd.

• Paragon Globe Bhd has entered into three development rights agreements with Iskandar Capital Sdn Bhd for the proposed development rights of three parcels of freehold lands in Johor Baru, totalling 63.6 acres that would contribute an estimated profits of RM188.1mn upon the completion of the development.

• Nestcon Bhd's wholly owned subsidiary Nestcon Infra Sdn Bhd has secured a RM25.0mn contract for earthworks and erosion control in Johor's Senai Airport City.

• Infomina Bhd has secured a three-year contract worth RM22.4mn from the Road Transport Department to provide maintenance and support for the Automated Awareness Safety System.

• Cypark Resources's Danau Tok Uban project has officially achieved its commercial operational date for one of the water bodies known as DTU2 with a generation capacity of 30MWac.

• ITMAX System Bhd said on Tuesday that it has secured a second contract worth RM11.8mn from the Penang Island City Council to deliver video surveillance services.

• Swift Haulage Bhd has formed a joint venture with JWD Asia Holding Pte Ltd with a proposed name of Swift Cold Chain Sdn Bhd to operate a cold chain warehouse and transport business in Peninsular Malaysia.

• KUB Malaysia Bhd is acquiring a building materials company from CI Holdings Bhd in a related party transaction deal for RM20mn cash, as part of the group's strategy to broaden its revenue base.

• MN Holdings Bhd's managing director Datuk Toh Eng Keat, plus two executive directors Datuk Loy Siong Hay and Datuk Dang Siong Diang, have collectively sold 18mn shares, equivalent to a 3.7% stake, to institutional funds via a direct business deal.

• Coastal Contracts Bhd said it has formed a 60%-owned subsidiary, Coastal Watt Energy Pte Ltd, as part of a strategic collaboration to expand into renewable energy projects in the Asia-Pacific region.

• Sentoria Group Bhd said its former chief executive officer Datuk Loh Yuen Tuck has initiated legal proceedings against the company in the Industrial Court.

• EA Technique (M) Bhd said on Tuesday that it will get an undisclosed payoff as part of an amicable settlement with national oil-and-gas company Petronas over the lease of a floating storage unit vessel.

• Indonesia has become the newest full member of the BRICS group of developing nations.

Source: TA Research - 8 Jan 2025