Review & Outlook

Bursa Malaysia shares eased in line with softer regional markets on Monday as investors await key inflation and interest rate decisions from major regional economies. The FBM KLCI slid 5.36 points to close at 1,451.02, off an early high of 1,457.02 and low of 1,448.17, as losers beat gainers 591 to 306 on total turnover of 3.16bn shares worth RM1.87bn.

The local market should remain in sideways consolidation with most investors sidelined as they await more cues from inflation and interest rate direction from key regional economies. On the index, better chart supports are at 1,430, and then 1,400/1,390, while the end June low of 1,370 will act as crucial support. Immediate resistance is still at 1,465/1,470, with the 1,490/1,500 area acting as tougher upside hurdle.

Axiata will need confimed breakout above the 100-day ma (RM2.45) to enhance upside potential towards the 23.6%FR (RM2.58) and RM2.70, with tougher hurdle coming from the 38.2%FR (RM2.82), while crucial support at the 31/10/21 low (RM2.16) limits downside risk. CelcomDigi's downside should be cushioned by recent low of RM4.06 and June low of RM3.98, while a decisive breach above the 123.6%FP (RM4.35) should aim for the 138.2%FP (RM4.51) and 150%FP (RM4.65) ahead.

News Bites

• Bursa Carbon Exchange has signed a memorandum of collaboration with Sarawak Energy Bhd, Hydropower Sustainability Alliance and the I-REC Standard Foundation to pave the way for the offering of renewable energy certificates on the voluntary carbon market exchange.

• UMW Holdings Bhd has proposed to dispose of a 22.22-acre industrial leasehold land within the UMW High Value Manufacturing Park in Serendah, Selangor to Perusahaan Otomobil Kedua Sdn Bhd (Perodua) for RM52.3mn, cash.

• Malakoff Corporation Bhd has teamed up with Abu Dhabi Future Energy Company PJSC to identify potential business opportunities through investment and development of solar photovoltaic power plant project development.

• Guan Chong Bhd's industrial chocolate factory in the UK has commenced operations and set its sights on the country's £2.2bn (RM13.0bn) chocolate market.

• UEM Edgenta Bhd's had entered into a sale and purchase agreement and shareholders' agreement with NW Kaizen Holding Limited to acquire 60.0% equity interest in Kaizen Owner Association Management Services LLC and Kaizen AMS Property Super vision LLC for AED43.2mn(RM55.1mn) in cash.

• Cypark Resources Bhd has inked a MOU with Abu Dhabi Future Energy Company PJSC to explore various renewable energy-related projects in Malaysia.

• Citaglobal Bhd has received an expression of interest from Tenaga Nasional Bhd, to participate in the development of renewable energy projects in Malaysia.

• Sarawak Consolidated Industries Bhd has accepted a letter of award and acceptance worth RM16.8mn for substantial contract works from S & I Urban Designers Sdn Bhd.

• The High Court here has granted both CSC Steel Holdings Bhd and Mycron Steel Bhd leave to commence judicial review against the government's decision in June this year to remove anti-dumping duties on cold-rolled coils of iron or non-alloy steel of more than 1,300mm from Korea and Vietnam.

• EITA Resources Bhd's 60.0% owned subsidiary, TransSystem Continental Sdn Bhd, has bagged a RM56.3mn contract from Tenaga Nasional Bhd for the rehabilitation of PMU 132/11 kilovolts in Gurun, Kedah.

• Bioalpha Holdings Bhd has entered into a manage and operate agreement with the Langkawi Development Authority to develop, manage, and operate an agro park in Langkawi, Kedah.

• HB Global Ltd's proposed acquisition of frozen meat and poultry products trader KK Fresh Frozen Sdn Bhd for RM30.0mn has collapsed.

• Kanger International Bhd's largest shareholder and executive director Kuah Choon Ching has disposed of his entire 12.3% stake in the company.

• Morgan Stanley & Co International plc has ceased to be a substantial shareholder in information technology service provider Lambo Group Bhd.

• Orders for manufactured goods in the US fell 3.6 % in October, pulled down by the transportation sector.

Source: TA Research - 5 Dec 2023