Review & Outlook

Stocks rebounded to close off lows Thursday, as energy stocks rose due to surge in oil prices amid growing fears widening geopolitical tensions in the Middle East will lead to supply disruptions from the region. The FBM KLCI gained 2.24 points to close at 1641.55, off an early high of 1643.82 and low of 1630.45, but losers edged out gainers 504 to 473 on moderate turnover of 3.29bn shares worth RM2.52bn.

Market sentiment will remain cautious given worries over escalating tensions in the Middle East, and ahead of the closely watched US September unemployment data due Friday night. Immediate index support will be the recent correction low of 1,630, with 1,620 and then 1,600 acting as stronger supports. Immediate resistance is set at 1,660, followed by the recent highs of 1,675 and 1,684, and then 1,695, the Dec 2020 high, as tougher resistance levels.

Public Bank will need to climb above the 30-day ma (RM4.64) to enhance upside momentum towards the 161.8%FP (RM4.80) and 176.4%FP (RM4.92), while uptrend support from the rising 50-day ma (RM4.46) cushions downside. RHB Bank need breakout momentum to overcome the 123.6%FP (RM6.39) and aim for the 138.2%FP (RM6.55) and 150%FP (RM6.68) going forward, with the rising 50-day ma (RM5.87) acting as key uptrend support.

News Bites

• Malaysia's Budget 2025 will prioritise the economic sector by continuing with the structural reform agenda, said Finance Minister II Datuk Seri Amir Hamzah Azizan.

• The privatisation of MPHB Capital Bhd has been met with a stumbling block put up by ISM Sdn Bhd, which is the company's minority partner in six joint-venture companies.

• The total sum for the proposed disposal of Kuchai Development Bhd's assets and liabilities to Sungei Bagan Rubber Company (M) Bhd has been revised lower to RM267.8mn from RM275.5mn following the exclusion of an agricultural land parcel in Semenyih, Selangor.

• Velesto Energy Bhd has completed its mandatory five yearly special periodical survey for its Naga 6 back-up rig on schedule.

• NH Foods Ltd, a joint venture partner of egg producer Lay Hong Bhd, has ceased to be the latter's substantial shareholder after disposing of 62.3mn shares, or an 8.2% stake.

• Atlan Holdings Bhd indirectly owned units, Cergasjaya Sdn Bhd and Cergasjaya Properties Sdn Bhd have received notices for the compulsory acquisition of their lands in Bukit Kayu Hitam, Kedah, for a road construction project.

• Techna-X Bhd has called off its plans to develop an 85-acre microalgae farm and produce algae biofuel following the mutual termination of a tripartite agreement.

• MyEG Services Bhd blockchain developer, Zetrix, has come out with a digital identification verification service for Chinese nationals on the ZCert service.

• Harrisons Holdings (Malaysia) Bhd has proposed to split each of its shares into five shares in a move to improve the trading liquidity of the shares.

• Malayan Banking Bhd has signed a memorandum of understanding with China's Bank of Hangzhou to work together on enhancing crossborder business and advancing digital innovation.

• Varia Bhd, formerly known as Stella Holdings Bhd, has appointed Datuk Seri Mohd Nizom Sairi, the former chief executive officer and director general of the Inland Revenue Board, as its new independent and nonexecutive chairman.

• DS Sigma Holdings Bhd has obtained approval from the Securities Commission for its transfer to the Main Market of Bursa Malaysia.

• Pertama Digital Bhd is unaware of the reasons behind the recent dip in its stock price but has assured stakeholders that it remains strong and well-positioned for sustainable growth, according to executive director Sabri Abdul Rahman.

• The Institute for Supply Management said on Thursday that its nonmanufacturing purchasing managers index accelerated to 54.9 last month, the highest level since February 2023, from 51.5 in August.

• Global demand for natural gas will hit an all-time high next year as competition for seaborne fuel intensifies between Asia and Europe, according to the International Energy Agency.

Source: TA Research - 4 Oct 2024