Review & Outlook

The local blue-chip benchmark extended losses on Wednesday, dampened by the Biden administration's decision to impose new restrictions on the exports of AI chips to China and the adverse economic impact of rising US-China trade tensions. The FBM KLCI lost 14.34 points to end at 1,562.12, off an early high of 1,586.21 and low of 1,558.60, as losers crowded gainers 964 to 193 on total turnover of 3.41bn shares worth RM3.08bn.

The overnight rally on Wall Street should cushion the lacklustre local market today, but undertone remains cautious as uncertainties surrounding the incoming Donald Trump administration persists. Immediate index support is revised downwards to 1,550, with stronger supports at the 6/ 8/24 low of 1,529 and the 1,500 psychological level. Immediate resistance is also revised lower to 1,580, with the next hurdles at 1,605 and 1,630, followed by 1648.

Maybank needs a convincing breakout above the 123.6%FP (RM10.38) to target the 138.2%FP (RM10.62) and 150%FP (RM10.82) ahead, while key retracement supports are from the 100%FP (RM9.99) and RM9.79. Meanwhile, Public Bank looks attractive to bargain at current levels for recovery upside to the 123.6%FP (RM4.51), while a confirmed breakout should aim for the 138.2%FP (RM4.62) and 150%FP (RM4.71) ahead. Crucial support from the 100%FP (RM4.32) and RM4.23 cushion downside.

News Bites

• The Malaysian Aviation Commission forecasts that Malaysia's air passenger traffic will reach between 105.8mn and 112.9mn passengers this year, according to Transport Minister Anthony Loke.

• Consortium Gateway Development Alliance has extended the closing date for its takeover offer for Malaysia Airports Holdings Bhd to Jan 24 from Jan 17 after garnering 86.18% of the total issued shares of MAHB, still short of the 90% acceptance rate condition.

• Gamuda Bhd and its London-based joint venture partner, real estate investor Castleforge, broke ground for 75 London Wall - a GBP1.2bn redevelopment project - in the City of London on Wednesday.

• Southern Score Builders Bhd has secured a RM78mn contract from Seribu Megah Sdn Bhd, a wholly owned subsidiary of Radium Development Bhd, for detention pond upgrading works in Kuala Lumpur.

• SC Estate Builder Bhd announced that its joint venture with Anjung Meriah Sdn Bhd has been shortlisted by the Energy Commission to develop a four-megawatt large-scale solar photovoltaic project in Arau, Perlis.

• KJTS Group Bhd is planning to operate two businesses in Singapore, involving cooling services and mobile facility maintenance services.

• Sunview Group Bhd's 60%-owned indirect subsidiary Sirage Energy Sdn Bhd has partnered with Sirage Skyvast Holdings Sdn Bhd to explore collaboration to undertake a solar power generation plant for Perlis Advance Tech Park located in Chuping, Perlis.

• Colform Group Bhd aims to raise RM41.2mn from its initial public offering on the ACE Market of Bursa Malaysia to expand its steel manufacturing and installation operations.

• Poh Kong Holdings Bhd is expecting improved sales in 2025, driven by a positive retail environment in Malaysia and a strong domestic economy.

• VS Industry Bhd announced that the High Court has ruled in its favour in a minority shareholder oppression suit against NEP Holdings (Malaysia) Bhd and its directors.

• Ahmad Zaki Resources Bhd has redesignated group managing director Datuk Seri Wan Zakariah Wan Muda as its executive vice-chairman, effective immediately.

• Rexit Bhd, which provides software as a service, has appointed Tengku Tan Sri Mohamad Rizam Tengku Abdul Aziz, a member of the Kelantan royal family, as its new independent and non-executive chairman.

• The Bank of Japan will debate whether to raise interest rates next week, Governor Kazuo Ueda said, reiterating the bank's resolve to push up borrowing costs if the economy continues to improve.

• Indonesia's central bank unexpectedly cut policy rates by 25 basis points to 5.75% on Wednesday.

• The annual rate of growth of US core consumer prices slowed to 3.2% in December from 3.3% in November.

Source: TA Research - 16 Jan 2025