Review & Outlook

Blue chips were range bound Tuesday, but late bargain hunting interest in key banking, plantation and telco heavyweights lifted the index for a firm close. The FBM KLCI rose 4.27 points to end at the day's high of 1,620.70, off an early low of 1,613.91, as gainers edged losers 512 to 476 on moderate turnover of 2.59bn shares worth RM2.47bn.

The overnight rally on Wall Street should cushion the lacklustre local market today, but the undertone remains cautious as investors refrain from trading commitments amid clueless market direction on the local front. Immediate index resistance remains at last week's high of 1,630, then 1,648, with the next upside hurdles at 1,660 and 1,675. Immediate support stays at the 1,600 psychological level, with next crucial support coming in at the 200-day moving average level of 1,592, and next at 1,575, the 76.4%FR level.

Hartalega needs breakout confirmation above the 123.6%FP (RM3.44) to boost upside momentum towards the 138.2%FP (RM3.68) and 150%FP (RM3.87), while downside risk is restricted by the 100%FP (RM3.05) and 50-day moving average (RM2.86). Meanwhile, Kossan will need to surpass the 76.4%FR (RM2.41) to fuel further upside towards RM2.60, and the 100%FP (RM2.80) ahead, with the 50-day moving average (RM1.99) and 38.2%FR (RM1.78) acting as important chart supports.

News Bites

• The federal government will incorporate policies for the adoption of nuclear energy in the nation's energy mix under the upcoming 13th Malaysia Plan, as partt of its goal to achieve net zero carbon emissions by 2050.

• Malaysia's rubber glove export is expected to climb 16% to a new record of RM13.7bn in 2024, following the historic high of RM11.8bn achieved in 2023, said Deputy Plantation and Commodities Minister Datuk Chan Foong Hin.

• IOI Corporation Bhd has allocated part of its aged plantation landbank in Johor to build a solar power plant, in a move to venture into the renewable energy sector, according to its managing director and CEO Datuk Lee Yeow Chor.

• Gagasan Nadi Cergas Bhd will be enhancing its concession and facility management operations while further strengthening its student hostel asset management through a proposed strategic acquisition of a concession valued at RM185mn.

• Xin Hwa Holdings Bhd has announced that its cargo transport unit has had its goods vehicle operator licence suspended by the Johor Baru Land Public Transport Agency for non-full compliance with the industrial safety code of practice.

• T7 Global Bhd has secured a contract from ExxonMobil Exploration and Production Malaysia Inc for the provision of pan-Malaysia offshore maintenance, construction, modification and hook-up commissioning services.

• TCS Group Holdings Bhd has secured a RM86.4mn contract from Sime Darby Property Bhd for the construction of 60 units of two-storey semi-detached factories at the Elmina Business Park in Sungai Buloh.

• Aneka Jaringan Holdings Bhd has secured a RM39.0mn contract to undertake earthwork, piling, pile caps and contiguous bored piling works in Jalan Pantai Sentral, Kuala Lumpur.

• HE Group Bhd announced that its major shareholders plan to sell a 4.5% stake to meet a Bumiputera equity requirement set by authorities.

• Ann Joo Resources Bhd said its rights issue of 140.4mn shares with free detachable warrants has been oversubscribed by 31.4%.

• Aimflex Bhd has filed a lawsuit against Kong Yeng Kein, seeking an outstanding RM3.95mn payment related to a 9.99 MW solar project in Manjung, Perak.

• Fraser & Neave Holdings Bhd's net profit for the 4QFY24 dropped 38.2% YoY to RM85.0mn from RM137.6mn, impacted by higher tax expenses and increased withholding taxes on dividends repatriated from its Thailand operations.

• Chinese Premier Li Qiang said the nation has ample space for fiscal policy and monetary policy and reiterated that China would hit its economic growth target of around 5%.

• The Caixin China services purchasing managers' index rose to 52 in October from 50.3 the previous month.

• The US Services PMI registered 56%, which is the highest reading since July 2022 and indicates sector expansion for the 50th time in 53 months.

Source: TA Research - 6 Nov 2024