Review & Outlook

Stocks extended profit-taking consolidation on Wednesday and ahead of the City Day holiday, with most investors sidelined while awaiting the outcome of the US central bank's first monetary policy meeting of the year. The FBM KLCI ended flat at 1,512.98 (+0.23), after swinging between low of 1,509.55 and high of 1,516.4, as losers beat gainers 635 to 401 on cautious trade totalling 3.67bn shares worth RM2.86bn.

The local market should stay range bound ahead of the weekend break, as investors pore over the US Federal Reserve's monetary policy stance, and await further domestic market leads. Immediate overhead resistance for the index stays at 1,520, with stronger hurdles coming at 1,550 and 1,580. Key chart supports cushioning downside will be at 1,486, 1,476 and 1,462, the respective 30-day, 50-day and 100-day moving averages.

Hartalega needs confirmed breakout above the upper Bollinger band (RM3.00) to enhance upside momentum towards RM3.20 and the 123.6%FP (RM3.44) going forward, while the 50-day ma (RM2.66) and 61.8%FR (RM2.42) cushions downside. Kossan Rubber will require convincing breakout above the recent high of RM2.17 to sustain further uptrend and aim for the 138.2%FP (RM2.31) and 150%FP (RM2.43) ahead, with the rising 50-day ma (RM1.85) providing uptrend support.

News Bites

• The seasonally adjusted S&P Global Malaysia Manufacturing Purchasing Managers' Index posted 49.0 in January, up from 47.9 in December and the highest since September 2022.

• Shares of UMW Holdings Bhd will be suspended by Bursa Securities on Feb 9, 2024, following the expiry of 5 market days from the extended closing date of the takeover offer by Sime Darby Bhd on Jan 31.

• Malaysia Airports Holdings Bhd said its total passenger movement surpassed the 100mn mark in 2023, reaching an impressive 120mn passengers. This represents a substantial recovery rate of 84.6% against 2019 levels.

• Mah Sing Group Bhd plans to purchase 185 acres of land in Sepang for RM100.7mn as it looks to develop an industrial development called the Mah Sing Business Park, with an estimated gross development value of RM728.0mn.

• Minetech Resources Bhd has secured a renewed contract from Able Return Sdn Bhd and Damar Consolidated Exploration Sdn Bhd for waste removal, ore delivery, and associated works for the Selinsing Gold Mine project worth RM230.0mn.

• GDB Holdings Bhd has clinched a RM306.0mn project to develop a private hospital at Bukit Jalil, Kuala Lumpur. The construction of the hospital will be carried out over a period of 25 months, commencing on March 16.

• Kimlun Corporation Bhd has accepted a construction contract from Sunway Parkview Sdn Bhd for main building works for houses, ancillary buildings and amenities in its development in Johor Baru, Johor, for RM133.6mn.

• Haily Group Bhd has accepted a letter of award worth RM45.8mn from RDC Arkitek Sdn Bhd on behalf of Property Village Bhd, for the construction and completion of 120 units of double storey cluster houses in Kulai, Johor.

• Yinson Holdings Bhd's green technologies arm is to expand use of its smart electric vehicle charging infrastructure application chargEV into Brunei. The app is set raise the number of chargers offered to motorists on the platform across Brunei, Malaysia and Singapore to over 1,000.

• Yong Tai Bhd has reinstated Datuk Wira Boo Kuang Loon as its chief executive officer, nearly 9 months after his initial resignation on May 10, 2023, effective immediately.

• Lambo Group Bhd's auditor Messrs ChengCo PLT expressed a qualified opinion on its audited financial statements for FY23.

• Fintec Global Bhd is planning to consolidate every 30 of its shares into one share, on a date to be decided later.

• One of Tong Herr Resources Bhd's co-founders, Tsai Ching-Tung, has ceased to be a substantial shareholder in the stainless steel fastener manufacturer following the restructuring of his investment vehicle Allrich Corp.

• U.S. nonfarm productivity, which measures hourly output per worker, increased at a 3.2% annualised rate last quarter, the Labor Department's Bureau of Labor Statistics said on Thursday.

• The Federal Reserve held interest rates steady for a fourth straight meeting and signalled an openness to cutting them, though Fed chair Jerome Powell threw cold water on investors' hopes that reductions would begin in March.

• The Bank of England opened the door for interest rate cuts this year after holding the policy rate steady for four straight meetings, and lowered its inflation projections.

Source: TA Research - 2 Feb 2024