Review & Outlook

Blue chips were range bound on Tuesday, as early gains gave way to profittaking amid prevailing worries over China's economic growth momentum and potential rise in US-China trade tensions. The FBM KLCI slipped 0.83 to close at 1,608.43, after ranging within early high of 1,615.96 and low of 1,605.43, as losers beat gainers 602 to 413 on improved trade totaling 2.99bn shares worth RM2.54bn.

Stocks should extend drift down amid lingering concerns over China's growth potential given the absence of significant stimulus to boost the economy. Immediate index support stays at the 1,600 psychological level, with the next crucial support coming in at the 200-day moving average level of 1,595, and next at 1,575, the 76.4%FR level. Immediate resistance is at the recent high of 1,648, with the next upside hurdles seen at 1,660 and 1,675.

CIMB would need to overcome the 20/09/24 high (RM8.50) to extend upside momentum towards the 176.4%FP (RM8.70), with stronger resistance seen at the 200%FP (RM9.28), and crucial support coming from the 150%FP (RM8.05) and 138.2%FP (RM7.75). Maybank shares need sustained breakout above the 138.2%FP (RM10.58) to boost potential upside towards the upper Bollinger band (RM10.74), with next hurdle at the 150%FP (RM10.83), while support at the lower Bollinger band (RM10.35) the 123.6%FP (RM10.28) cushion downside.

News Bites

• The Dewan Rakyat passed the Supply Bill 2025, or Budget 2025, at the policy stage on Tuesday through a majority voice vote.

• Malayan Banking Bhd is considering options including buying out Ageas SA's 31.0% minority stake in Etiqa, as Malaysia's biggest lender seeks to boost the value of the Southeast Asian insurer, according to people with knowledge of the matter.

• Asia Digital Engineering, Capital A Bhd's maintenance, repair, and overhaul arm, is expanding into Vietnam after receiving Vietnam's Civil Aviation Authority's approved maintenance organisation certification.

• Sapura Energy Bhd said it has accepted the terms and conditions set forth by its multi-currency financing creditors for the proposed disposal of its 50.0% stake in SapuraOMV Upstream Sdn Bhd to TotalEnergies Holdings SAS for USD705.3mn.

• Paragon Globe Bhd has secured the rights to develop 67.4 acres of land in Iskandar Puteri, Johor, for a residential project with an estimated GDV of RM733.1mn.

• Atlan Holdings Bhd's 75.5%-owned subsidiary Duty Free International Ltd said it is not satisfied with the RM69.9mn compensation for two pieces of land in Bukit Kayu Hitam, Kedah, which Malaysia's Ministry of Home Affairs has compulsorily acquired.

• Fajarbaru Builder Group Bhd explained that it withdrew from the Residensi Cemara affordable housing development in Putrajaya due to a change in requirements by Perbadanan Putrajaya.

• Tiong Nam Logistics Holdings Bhd announces a share dividend to reward its shareholders, on the basis of 1 treasury share for every 40 existing shares held.

• PMB Investment Bhd and Bank Islam Malaysia Bhd signed a MoU to establish a strategic collaboration aimed at expanding Shariah-compliant investment opportunities.

• Solarvest Holdings Bhd said its 30.0%-owned unit Selarong Pertama Energy Sdn Bhd has received approval from Tenaga Nasional Bhd to operate as a merchant generator to sell energy to the single buyer from a 30.0MW facility to be built in Kulim, Kedah.

• Seremban Engineering Bhd said it has been served with a counterclaim for RM24.9mn in a lawsuit related to a manufacturing plant project in Bandar Enstek, Negeri Sembilan.

• T7 Global Bhd has received a letter of award from IPC Malaysia BV for the provision of maintenance, construction, modification, and hook-up & commissioning services under the B3 Package across Pan-Malaysia.

• The JV between Carimin Petroleum Bhd's wholly owned subsidiary and Evolusi Bersatu Sdn Bhd has bagged a contract to provide Pan-Malaysia maintenance, construction, modification and hook-up commissioning services for Package B9 from Kebabangan Petroleum Operating Co Sdn Bhd.

• Jati Tinggi Group Bhd has proposed to raise RM14.1mn via a private placement to fund new projects.

• MCE Holdings Bhd plans to raise up to RM26.5mn via a private placement of shares to partly finance a new manufacturing factory in Serendah and projects it has secured.

• Protectionist policies from the incoming US administration will hamper global growth and Europe must be better prepared than in 2018, European Central Bank policymakers warned on Tuesday.

• In a monthly report on Tuesday, OPEC said world oil demand will rise by 1.82mn barrels per day in 2024, down from a growth of 1.93mn bpd forecast last month.

Source: TA Research - 13 Nov 2024