Review & Outlook

Stocks fell for profit-taking correction on Tuesday as limit-down losses on selected lower liners due to forced selling activities damaged trading sentiment. The FBM KLCI shed 7.24 points to settle at 1,493.87, off an early high of 1,503.73 and low of 1,492.4, as losers trashed gainers 775 to 324 on higher turnover of 5.84bn shares worth RM3.59bn.

With retail sentiment dented by the heavy losses seen on selected lower liners, a profit-taking consolidation spell should follow, pending return of more stability and positive market news flow. Immediate index support remains at 1,480, with better supports at 1,450/1,440 and 1,430. The immediate overhead resistance will be at 1,510, which restricted upside in Jan 2023, with next key hurdles seen at 1,520 and 1,550.

Further weakness on Dialog shares should attract bargain hunters looking for rebound upside towards the 100-day ma (RM2.07) and 200-day ma (RM2.13), with tougher hurdle from the 50%FR (RM2.25), while key chart supports are at RM1.84 and the 17/10/22 low (RM1.66). DNEX remains in base building mode, with crucial support from the 30/5/23 low (37sen) cushioning downside, while a breakout confirmation above the 200-day ma (45sen) should aim for 53sen and the 76.4%FR (59sen) going forward.

News Bites

• Malaysia's new motor vehicle sales are expected to decline by 7.5% in 2024, said the Malaysian Automotive Association, following record sales of 799,731 units in 2023.

• The government has agreed to exempt the imposition of capital gains tax as well as taxes on foreign-sourced income on unit trusts, according to Finance Minister II Datuk Seri Amir Hamzah Azizan.

• Kerjaya Prospek Group Bhd via its wholly-owned subsidiary Kerjaya Prospek (M) Sdn Bhd has accepted a letter of award from Kerjaya Property Sdn Bhd for building works in Setapak, Kuala Lumpur valued at RM111.8mn.

• Kanger International Bhd has cancelled a March 2021 proposal to award a RM478mn contract to Vegetta Champion Sdn Bhd to undertake the foundation and main building works of a serviced apartment project in Genting Highlands, Pahang.

• Chin Hin Group Property Bhd is buying six parcels of land measuring approximately 838,736 sq ft in Melaka for RM41.9mn to develop a residential project with an expected gross development value of RM1.0bn.

• Sarawak Consolidated Industries Bhd subsidiary has accepted an EPCC contract worth RM97.7mn awarded by Landasan Kapital (M) Sdn Bhd, is for the construction of a residential college at Universiti Malaysia Kelantan's Bachok campus.

• MN Holdings Bhd plans a private placement of up to 10% of its total issued ordinary shares, equivalent to 73.6mn new shares.

• BLD Plantation Bhd has acquired two properties in Bintulu, Sarawak, for RM24mn for business expansion. The Sunview Group Bhd has announced a strategic business alliance agreement between its subsidiary, Fabulous Sunview Sdn Bhd, and Cambodia's Kun Production Trading Export Co Ltd to focus on renewable energy and green energy projects in Cambodia.

• Ageson Bhd has appointed Virdos Lima Consultancy (M) Sdn Bhd to look into audit issues and matters raised by its external auditor Messrs Jamal, Amin & Partners, and their basis for expressing a disclaimer of opinion on the company's audited financial statements for the 18 months ended Dec 31, 2022.

• The emergence of Abang Abdillah Izzarim Abang Abdul Rahman Zohari, son of Sarawak premier Tan Sri Abang Abdul Rahman Zohari Abang Openg, as the largest shareholder of Minetech Resources Bhd has been followed by boardroom changes at the group.

• Bina Darulaman Bhd plans to form a joint venture with privately-held Enfiniti Escapes (M) Sdn Bhd to collaborate in the business of ecotourism development.

• MSM Sugar Refinery (Johor) Sdn Bhd has achieved a breakeven utilisation rate of 40% in 2023 and aims to hit a utilisation factor of 50% by year-end after its second boiler rectification work has been completed.

• The public portion of KJTS Group Bhd's IPO has been oversubscribed by 30.9 times.

• ACE Market-bound freight forwarding and aerospace logistics provider AGX Bhd has set its IPO price at 35 sen per share, and remains confident about the outlook of the logistics service industry in 2024.

• China's economy grew around 5.2% in 2023, surpassing the government's official growth target of 5% for the year.

• The New York Federal Reserve's Empire State business conditions index, a gauge of manufacturing activity in the state, plunged 29.2 points in January to negative 43.7.

Source: TA Research - 17 Jan 2024