Review & Outlook

The local blue-chip benchmark index recovered from early losses on Wednesday, as falls on core plantation stocks were offset by gains in utility and technology heavyweights. The FBM KLCI gained 3.07 points to settle at 1,611.50, off an early low of 1,602.71 and high of 1,611.54, but losers beat gainers 566 to 435 on cautious turnover of 2.83bn shares worth RM2.22bn.

The local market should trade sideways amid caution over China growth and US-China trade tensions and as investors assess key US inflation data for leads. Immediate index support stays at the 1,600 psychological level, with next crucial support coming in at the 200-day moving average level of 1,596, and next at 1,575, the 76.4%FR level. Immediate resistance is at the recent high of 1,648, with next upside hurdles seen at 1,660 and 1,675.

Any further dip on Aemulus should increase potential for oversold rebound going forward, with the 01/12/23 low (23sen) and 20sen acting as stronger support, and resistance coming from the 23.6%FR (30sen) and 38.2%FR (34sen) followed by stronger upside hurdle at 50%FR (38sen). Inari will need a convincing breakout above the 61.8%FR (RM3.27) to reinforce upside momentum towards the 76.4%FR (RM3.56) and RM3.80 ahead, while key support at the 38.2%FR (RM2.81) and lower Bollinger band (RM2.68) cushions downside risk.

News Bites

• Total new vehicle sales in Malaysia, dropped 8% in October to 69,859 units from 76,173 units sold in the same month last year, according to the Malaysian Automotive Association.

• Scientex Bhd is proposing to establish a Sukuk Wakalah Programme, under which it will issue multi-currency Islamic medium-term notes of up to RM1.5bn in nominal value.

• Bumi Armada Bhd is considering buying MISC Bhd's offshore energy business, according to people with knowledge of the matter.

• Pasdec Holdings Bhd is disposing of an industrial piece of land measuring 59.2 acres in Kuantan, Pahang to Petroluxe Refinery (M) Sdn Bhd for RM73.5mn.

• Aizo Group Bhd has received a RM24.1mn contract from China State Construction Engineering (M) Sdn Bhd for external infrastructure work in Pantai Dalam, Kuala Lumpur.

• Dayang Enterprise Holdings Bhd has been awarded two contracts from Petronas Carigali Sdn Bhd for the provision of Pan-Malaysia offshore maintenance, construction, modification, and hook-up services.

• MClean Technologies Bhd has obtained approval from Bursa Malaysia Securities Bhd for the listing of up to 49.3mn placement shares to be issued under its proposed private placement. The proposed private placement is set to raise up to RM12.3mn.

• Tan Sri Wan Zaki Wan Muda, the founder of Ahmad Zaki Sdn Bhd and group adviser to Ahmad Zaki Resources Bhd, passed away on Tuesday evening at the age of 75.

• Uzma Bhd has accepted an award from Petroliam Nasional Bhd for the provision of Pan Malaysia integrated well continuity services.

• AGX Group Bhd said it entered into a deal to provide freight forwarding and customs brokerage services to Capital A Bhd's maintenance, repair and overhaul unit.

• PUC Bhd said its external auditor Messrs UHY had expressed a qualified opinion on its audited financial statements for the 18 months ended June 30, 2024.

• Johor Plantations Group Bhd's net profit jumped 12.9% YoY to RM77.1mn in 3QFY24, from RM68.3mn a year earlier, driven by higher sales volume and prices.

• VSTECS Bhd's net profit jumped 53.8% YoY to RM19.6mn in 3QFY24, supported by a recovery in both consumer and enterprise products as well as new product launches.

• Swift Haulage Bhd's net profit down nearly 80.0% YoY to RM5.8mn in 3QFY24, due to one-off gain from bargain purchase that inflated the previous year's corresponding period.

• United Plantations Bhd's net profit dropped 8.8% YoY to RM215.0mn for 3QFY24, from RM235.7mn a year ago, due to higher operating expenses.

• China unveiled tax incentives on home and land transactions on Wednesday, aiming to support the crisis-hit property market by increasing demand and easing developers' financial difficulties.

• Australian wages rose at the slowest annual pace since late 2022 in the third quarter (3Q2024), amid an influx of new workers and an easing in inflation, adding marginally to the case for an eventual cut in interest rates.

• Consumer prices rose 0.2% for the fourth straight month in October, the U.S. Labor Department said on Wednesday, which could result in fewer interest rate cuts from the Federal Reserve next year.

Source: TA Research - 14 Nov 2024