Review & Outlook

Bursa Malaysia shares tumbled on Monday in line with the region and Wall Street last Friday, as strong US jobs data raised worries over sustained inflation and lower expectations for interest rate cuts. The FBM KLCI slumped 16.82 points to close at 1,585.59, off an early high of 1,599.36 and low of 1,578.97, as losers trounced gainers 913 to 211 on total turnover of 2.85bn shares worth RM2.54bn.

Given the recent bearish technical momentum and external market tone sparked by concerns over rising US inflation and lower chances for rate cuts, there could be further downside volatility before buyers return to cushion downside. Stronger support is seen at 1,565, the 23.6%FR level, then 1,550, and next key support from the 6/8/24 low of 1,529. Immediate resistance is revised lower to 1,605, with the next hurdles at 1,630 and 1,648, followed by the September peak of 1,675.

Further weakness in Hartalega shares would be attractive to bargain for rebound upside towards the 19/12/24 high (RM4.00), with a breakout to aim for the 123.6%FP (RM4.27) and 138.2%FP (RM4.62) ahead, while key chart support is at the 76.4%FR (RM3.16) and 200-day ma (RM3.07). Likewise, Kossan should attract buyers looking for rebound upside towards recent high of RM2.87 (6/1/25), with breakout confirmation to target the 123.6%FP (RM3.09) and 138.2%FP (RM3.33) going forward. Key retracement supports from the 76.4%FR (RM2.33) and 61.8%FR (RM2.10) cushions downside risk.

News Bites

• Malaysia's wholesale and retail trade growth decelerated to 4.7% YoY in November, largely driven by sales in non-specialised and specialised stores.

• Gamuda Bhd said its consortium has been appointed as the main contractor to deliver the first civil works package worth over RM8bn for the Penang Light Rail Transit project.

• YTL Power International Bhd is in the process of establishing its own artificial intelligence data centres, using the latest chips from Nvidia Corp, and does not foresee being affected by proposed US regulations restricting advanced chip exports to countries such as Malaysia.

• Sapura Energy Bhd has received approval-in-principle for additional terms regarding its proposed restructuring scheme from MCF Financiers, following confirmation from the Corporate Debt Restructuring Committee.

• MNRB Holdings Bhd has appointed Wan Ahmad Najib Wan Ahmad Lotfi as the new president and CEO of its family takaful subsidiary, Takaful Ikhlas Family Bhd, effective January 14.

• Abu Dhabi Investment Authority, British Columbia Investment Management Corp and RRJ Capital will likely subscribe to US$1bn (RM4.51bn) in Yinson Holdings Bhd's redeemable convertible preference shares as soon as this week.

• Solarvest Holdings Bhd has finalized a deal to acquire three land parcels totaling 120.746 acres in Kuala Muda, Kedah from Aziho Trading Sdn Bhd for RM19.99mn.

• Eden Inc Bhd's subsidiary, Daya Cipta Sdn Bhd, has received a letter of notification from the Energy Commission for the development of a 29.99 MW large-scale solar photovoltaic plant in Gebeng, Kuantan, Pahang.

• Infomina Bhd has secured a purchase order worth approximately US$2.9mn in Hong Kong, marking the second contract it has secured in the region within a month.

• Apex Equity Holdings Bhd has announced that its executive chairman, Datuk Wira Farhash Wafa Salvador, is seeking a court order to replace the company's memorandum and articles of association with a new constitution.

• Berjaya Corporation Bhd has garnered interest from several companies looking to join its consortium, which has submitted a proposal for the multibillion-dollar high-speed rail project connecting Kuala Lumpur and Singapore.

• Kimlun Corp Bhd's subsidiary, Kitaran Lintas Sdn Bhd, has entered into a sale and purchase agreement with KT Techpark Sdn Bhd for the sale of 29 freehold land lots totaling 56.51 hectares in Kota Tinggi, Johor for RM55mn.

• Hextar Healthcare Bhd's indirect wholly-owned subsidiary, Rubberex Alliance Sdn Bhd, is disposing of two vacant industrial land parcels in Sungai Terap, Kinta, Perak, to Jutanaga Sdn Bhd for RM11.9mn.

• China's trade surplus soared to a record USD992bn in 2024, according to a statement from the customs administration on Monday, 21% higher than the previous year.

Source: TA Research - 14 Jan 2025