Review & Outlook

Bursa Malaysia shares rebounded on Tuesday as investors reacted positively to U.S. President Donald Trump's latest decision to pause imposing tariffs on Mexico and Canada for 30 days after successful negotiations with their respective leaders. The FBM KLCI rose 10.93 points to end near session highs at 1,564.56, off an early low of 1,554.59, as gainers led losers 544 to 415 on improved trade totaling 2.23bn, worth RM2.05bn.

Persisting concerns over escalating US-China trade tensions sparked by the current tit-for-tat tariffs being announced may restrict further rebound upside for the local benchmark. 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 maintained at 1,605, with next upside hurdles at 1,630, followed by 1648.

CIMB shares remain in base building mode pending recovery to the 161.8%FP (RM8.34), with a confirmed breakout to aim for 176.4%FP (RM8.70) and RM9.00 ahead, while immediate chart supports are from the 138.2%FP (RM7.75) and 123.6%FP (RM7.39). RHB Bank need to climb above the 123.6%FP (RM6.66) convincingly, to target the 138.2%FP (RM6.85), with next resistance at the 150%FP (RM7.01), while key chart support from the lower Bollinger band (RM6.29) and the 76.4%FR (RM6.03) cushions downside.

News Bites

• The electricity tariff hike, which is set to be implemented from July 1, will not affect 85% of the country's households, said Prime Minister Datuk Seri Anwar Ibrahim.

• Bina Puri Holdings Bhd has received a winding-up petition from ExportImport Bank of Malaysia Bhd over outstanding payments of US$4.9mn and RM17,253. The company is in discussions with EXIM Bank to resolve the matter.

• Fajarbaru Builder Group Bhd's wholly owned subsidiary and Avionics Pty Ltd have been awarded the Delivery Phase of the Head Contract (International) Two Phase contract worth RM131.6mn by the Australian Department of Defence.

• Ge-Shen Corp Bhd has agreed to sell 4.61 acres of land in Johor Bahrucomprising an office, warehouse, and factory-to Plastico Sdn Bhd for RM35mn in cash.

• Keyfield International Bhd's wholly owned unit has secured two vessel charter contracts worth a total of RM59.6mn.

• Ann Joo Resources Bhd is acquiring the remaining 45% equity interest in Konsortia Etiqa Sdn Bhd, which owns 437 acres of industrial land in Kedah, from Datuk Ong Tee Thong for RM96mn.

• Senheng New Retail Bhd is disposing of a 1.04-hectare vacant freehold industrial land in Johor Bahru to Mactree Sdn Bhd for RM11.21mn.

• Target 1 Sdn Bhd, one of the parties acting in concert to take over South Malaysia Industries Bhd, has been granted another extension to deliver the offer document to shareholders, with the deadline now set for Feb 11.

• Pos Malaysia Bhd has appointed Sid Hart as the new head of Redly Express, its international courier services, effective Feb 3, 2025.

• RHB Banking Group has launched RHB PayLater, Malaysia's first Buy Now, Pay Later solution linked directly to debit cards, aiming to enhance financial flexibility and promote responsible spending habits.

• SPB Development Bhd has received approval from the Securities Commission Malaysia for its Main Market listing.

• Richtech Digital Bhd's initial public offering has been oversubscribed by 245.42 times ahead of its ACE Market listing on Feb 17, reflecting robust investor confidence in its growth prospects and the expanding electronic reload and bill payment industry.

• China announced a wide range of measures on Tuesday targeting US products such as coal, oil, LNG and some autos, and US businesses including Google, farm equipment makers and the owner of fashion brand Calvin Klein.

• US job openings fell to 7.6mn in December, a three-month low, consistent with a gradual slowdown in the labour market.

Source: TA Research - 5 Feb 2025