Review & Outlook

Bursa Malaysia shares extended gains for a third straight session on Tuesday, on optimism new U.S. President Donald Trump may adopt a more measured tariff policy after he refrained from imposing new tariffs on China in his inauguration speech. The FBM KLCI rose 8.12 points to settle at 1,580.46, off an early low of 1,570.97 and high of 1,582.32, as gainers led losers 665 to 372 on higher turnover of 3.43bn shares worth RM2.61bn.

The local market is expected to be stuck in choppy trade near term as investors respond to upcoming policy announcements and executive orders by the new Trump administration. Immediate index support remains at 1,550, with stronger supports at the 6/8/24 low of 1,529 and 1,500 psychological level. Immediate resistance is revised upwards to 1,605, with next upside hurdles at 1,630, followed by 1648.

Gadang looks attractive to bargain on dips for recovery to the 38.2%FR (37sen), with a confirmed breakout to target the 50%FR (40sen) and 61.8%FR (43sen) ahead, while key supports at the lower Bollinger band (31sen) and the 26/05/23 pivot low (28sen) limit downside risk. MRCB looks attractive to bargain for rebound upside towards the 61.8%FR (56sen), with a sustained breakout to aim for the 76.4%FR (63sen) and 69sen going forward. Crucial support capping downside is from the 38.2%FR (46sen) and the 23.6%FR (39sen).

News Bites

• Malaysia's automotive sector total industry volume is expected to normalise to a three-year low of 780,000 units this year, according to the Malaysian Automotive Association's projection, having hit a record 816,747 units in 2024.

• Mah Sing Group Bhd is purchasing a 2.78-acre prime land in Sentul here for RM32.0mn, where it plans to develop its new RM283.0mn residential development project dubbed M Aria.

• Malaysian Resources Corporation Bhd is said to have won the bid for the Ipoh Railway Station Integrated Development Plan project, which will be inked on Thursday (23 January 2025) in Ipoh, Perak, according to sources.

• Keyfield International Bhd has completed its pilot solar photovoltaic project onboard its largest vessel, Keyfield Wisdom. Malaysia Book of Records has also certified Keyfield Wisdom for having the most solar panels with battery storage onboard an offshore vessel.

• Ann Joo Resources Bhd has been ordered by the High Court to pay Amsteel Mills Sdn Bhd RM12.0mn in general damages over a supply contract dispute.

• Pansar Bhd has secured a RM477.7mn highway construction job from the Sarawak Public Works Department.

• Taghill Holdings Bhd's has accepted a letter of award from One Roof Development Sdn Bhd for the development of an 18-storey commercial complex in Ipoh, Perak, worth RM58.0mn.

• A three-member Court of Appeal bench on Tuesday dismissed an appeal by SHH Resources Holdings Bhd founder and managing director Datuk Teo Wee Cheng, who is facing nine counts of graft charges in relation to the Jana Wibawa project.

• FSBM Holdings Bhd has entered into a strategic partnership with Synergies Intelligent Systems Inc and Zhong Yang Technology Co Ltd to launch a new platform aimed at "revolutionising procurement" in the fabricated metal industry.

• RichTech Digital Bhd, which distributes electronic reloads and provides bill payment services, has launched the prospectus for its ACE Market initial public offering to raise up to RM20.0mn.

• Oil and gas pipes supplier Saliran Group Bhd has entered into an underwriting agreement with Malacca Securities, in conjunction with its IPO on the ACE Market of Bursa Malaysia.

• Thailand's cabinet on Tuesday agreed to levy a carbon tax of 200 baht (US$5.88 or RM26.20) per tonne of carbon emissions, a deputy finance minister said, as part of the country's efforts to reduce greenhouse gas emissions.

• President Donald Trump launched a sweeping overhaul of US energy policy hours after taking office Monday, putting the weight of the federal government behind fossil-fuel production and pulling back from the fight against climate change. He also ordered his administration to consider eliminating subsidies and other policies that favour electric vehicles.

• European car sales barely grew last year as it edged up 0.9% to 13 million units from a year earlier due to persistent inflation, higher borrowing costs and apathy towards electric models, which led consumers to hold off on buying vehicles.

• UK employment plunged in the weeks after Labour increased payroll taxes in its first budget, reinforcing the case for the Bank of England to continue cutting interest rates.

Source: TA Research - 22 Jan 2025