Review & Outlook

The local blue-chip benchmark gained late Tuesday, lifted by banks and selected property stocks, on hopes for positive measures from Budget 2025 to stimulate the domestic property market. The FBM KLCI added 5.43 points to close at 1,641.97, off an early low of 1,636.89 and high of 1,643.64, but losers edged gainers 558 to 509 on modest turnover of 2.87bn shares worth RM2.78bn.

Resistance at 1,660/1675; Support at 1,625/1,620

The broader market should extend consolidation pending the tabling of Budget 2025 this Friday, with selective sectors anticipated to be impacted by the proposals to attract trading plays. Immediate index resistance remains 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. Immediate support will be the recent correction low of 1,625, with 1,620 and then 1,600 acting as stronger supports.

Bargain SKP Resources & VSI

SKP Resources need to increase breakout momentum above the 50%FR (RM1.12) to boost upside potential towards the 38.2%FR (RM1.23) and 23.6%FR (RM1.38) ahead, with the 200-day ma (97sen) to limit downside risk. VSI requires breakout from consolidation to enhance upside momentum towards the 61.8%FR (RM1.10), with next hurdle from the 76.4%FR (RM1.19), while the 200-day ma (96sen) and 38.2%FR (94sen) cushion downside.

News Bites

• Malaysian Automotive Association said the Total Industry Volume in September came in 15% lower at 58,032 units from 68,174 a year ago,

• Cypark Resources Bhd has formed a consortium to jointly explore and develop energy solutions for the 186ha German Technology Park in Ayer Keroh, Melaka that could cost RM4bn.

• Maxis Bhd has signed a MoU with the Malaysia Retail Chain Association, which represents 562 Malaysian retailers, to encourage the adoption of 5G technology solutions to strengthen the domestic retail sector.

• Perdana Petroleum Bhd secured a RM7.3mn contract to charter an anchor handling tug and supply vessel from RUHM Marine Sdn Bhd.

• Well Chip Group Bhd said it recently experienced a cybersecurity incident involving a malware attack on some of its information technology servers, which blocked off access to data contained within them.

• Malayan Flour Mills Bhd announced there will be no second earnout payment from Tyson Foods Inc. related to the RM289.9mn consideration for its 49% equity disposal in Dindings Tyson Group to Tyson Foods.

• Capital A Bhd is poised to be in a positive equity position and optimistic about exiting its PN17 status by the end of December this year.

• Dolphin International Bhd has changed its name to Oasis Harvest Corp Bhd, with the change taking effect at 9 am on Oct 17.

• Eurospan Holdings Bhd, which posted a fivefold surge in 1QFY2025 net profit to RM23.3mn due to gains from property and investment disposals, cautioned on a challenging outlook for FY2025.

• UUE Holdings Bhd saw its net profit increasing by 21.2% QoQ to RM6.7mn for its 2QFY25.

• Infomina Bhd reported a 10.25% growth to RM8.0mn in 1QFY25 net profit despite a revenue decline, driven by a higher gross profit margin.

• The New York Fed said its general business conditions index tumbled to a negative 11.9 in October from a positive 11.5 in September, with a negative reading indicating contraction.

• The world oil market is heading for a sizeable surplus in the new year, the International Energy Agency said on Tuesday as it reassured markets that the agency stood ready to act if needed to cover any supply disruption from Iran.

Source: TA Research - 16 Oct 2024