Review & Outlook

Profit-taking pressure on key construction, healthcare and plantation heavyweights dragged the local blue-chip benchmark to end at session lows on Tuesday. The FBM KLCI fell 9.13 points to settle at the day's low of 1,576.46, off an early high of 1,599.43, as losers beat gainers 588 to 400 on higher turnover of 3.45bn shares worth RM2.72bn.

Market sentiment will likely remain cautious as investors await the release of key U.S. inflation data later this week. Stronger supports are 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.

Aemulus shares should attract bargain hunting interest ahead of recovery upside towards the 23.6%FR (30sen), with breakout confirmation to target the 38.2%FR (35sen) and 50%FR (38sen) going forward. Key chart supports are from the 01/12/23 pivot low (23sen) and 20sen to cushion downside risk. Any further dip in Inari shares toward better supports from 23.6%FR (RM2.53) and RM2.40 should attract buyers looking for oversold rebound towards the 50%FR (RM3.04), with tougher hurdles seen at 61.8%FR (RM3.27) and 76.4%FR (RM3.55) capping upside.

News Bites

• Malaysia and the United Arab Emirates signed the Malaysia-UAE Comprehensive Economic Partnership Agreement on Tuesday to unlock new opportunities in trade, investment and economic cooperation between both countries.

• Malaysian products, particularly palm oil, are expected to benefit from tariff-free access in the UK under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, said Malaysian High Commissioner to the UK and Northern Ireland Datuk Zakri Jaafar.

• Malaysia will review its nuclear energy undertakings as a potential power source, said Deputy Prime Minister Datuk Seri Fadillah Yusof.

• Yinson Production, an indirect subsidiary of Yinson Holdings Bhd, has secured USD1.0bn worth of funding from a consortium of international investors, led by a wholly owned subsidiary of Abu Dhabi Investment Authority, for expansion.

• Mah Sing Group Bhd said it is confident that its data centre projects will pass through the proposed US restrictions on the export of artificial intelligence chips.

• The digital bank jointly-owned by YTL Power International Bhd and Singapore-based Sea Ltd has received approval from the Ministry of Finance to commence operations, effective Dec 20, 2024.

• Kawan Food Bhd's plan to set up an information technology equipment joint venture with several individuals, including its founder cum major shareholder, and current chairman, has fallen through.

• Theta Edge Bhd said its subsidiary's JV deal with iStream360 Sdn Bhd, a data science company, to develop artificial intelligence and blockchain solutions has been terminated.

• Target 1 Sdn Bhd announced that the Securities Commission Malaysia has given another seven days' extension for the company to deliver the mandatory takeover offer documentation to South Malaysia Industries Bhd's shareholders.

• Chiew Ho (L) Foundation has emerged as a substantial shareholder in AYS Ventures Bhd, acquiring 239.6mn shares, or 57.3% stake, in the company.

• Atlan Holdings Bhd is paying an interim dividend of eight sen per share after its 3QFY25 net profit jumped over four-fold to RM29.9mn, lifted by proceeds from the compulsory disposal of a subsidiary's land in Kedah to the Malaysian government.

• Sunway Property, the property arm of Sunway Bhd, announced the appointment of Chung Soo Kiong as its new managing director.

• CapitaLand Malaysia Trust has appointed Yong Su-Lin as its new chief executive officer, effective Feb 1.

• Oriental Kopi Holdings Bhd's initial public offering was oversubscribed by 59.96 times ahead of its upcoming listing on the ACE Market of Bursa Malaysia, slated for Jan 23.

• Members of US President-elect Donald Trump's incoming economic team are discussing slowly ramping up tariffs month by month, a gradual approach aimed at boosting negotiating leverage while helping avoid a spike in inflation, according to people familiar with the matter.

• US wholesale inflation unexpectedly cooled to 0.2% MoM in December, helped by a drop in food costs and flat services prices that may help temper concerns of lingering price pressures.

• The Bank of Japan will debate whether to raise interest rates next week as prospects of sustained wage gains heighten and the US policy outlook becomes clearer.

Source: TA Research - 15 Jan 2025