Review & Outlook

Blue chips rose on Monday, mirroring the optimism on Wall Street for more business-friendly policies following president-elect Donald Trump's nomination of prominent hedge fund executive Scott Bessent as U.S. Treasury secretary. The FBM KLCI gained 7.67 points to close at 1,597.45, off an early low of 1,588.46 and high of 1,609.229, but losers edged gainers 540 to 501 on total turnover of 3bn shares worth RM5.39bn.

Stocks should stay range bound after yesterday's strong rebound, as investors await the release of key economic data from the region this coming week. Immediate index resistance remains at 1,630, next 1,648, followed by the September peak of 1,675. Immediate support stays at 1,588, the 38.2%FR of the 1,529 low (6 Aug) to 1,684 high (29 Aug) rally, with stronger key supports at 1,565, the 23.6%FR level, and then 1,550.

Further strength on Bumi Armada towards resistance at the 76.4%FR (63sen) should meet strong profit-taking interest, with overbought technical momentum to limit upside potential, while downside should be cushioned by the 50%FR (52sen) and 38.2%FR (48sen) levels. Meanwhile, Hibiscus will need decisive breakout above the 76.4%FR (RM2.10) to fuel further upside towards the 61.8%FR (RM2.25) and 50%FR (RM2.37) ahead, with key chart supports from the 09/11/24 low (RM1.87) and RM1.80 cushioning downside.

News Bites

• IJM Corp Bhd is acquiring a 50% stake in UK-based construction firm JRL Group Holdings Ltd for £50mn to expand into the UK and enhance its core construction capabilities.

• RHB Investment Bank Bhd is exiting Thailand's stockbroking and securities market with plans to divest 99.95% of its stake in RHB Securities (Thailand).

• Affin Bank Bhd saw 647.13mn shares (26.96% stake) traded off-market on Monday for RM1.78bn, at prices between RM2.46 and RM2.84 per share, reflecting a 17%-4.05% discount to its last closing price of RM2.96.

• The Indonesian affiliate of Mr DIY Group (M) Bhd is set to list in Jakarta through an IPO aimed at raising up to IDR4.7tn (US$297mn or RM1.3bn), marking Indonesia's largest IPO in over a year.

• Haily Group Bhd has received a letter of award from Permas Jaya Sdn Bhd for the construction and completion of two phases of a residential project in Johor Baru, Johor, valued at RM115.1mn.

• Infomina Bhd secured a purchase order worth RM27.3mn in the Philippines to provide technology application and infrastructure operations, maintenance, and support services to Land Bank of the Philippines until Nov 30, 2027.

• Radium Development Bhd, through its indirect wholly-owned subsidiary Radium J Velodrome Sdn Bhd, entered into a conditional sale and purchase agreement to acquire three parcels of leasehold land in Cheras for RM458mn.

• Key Asic Bhd has secured a major application-specific integrated circuit design service contract with R Company, valued at over RM10mn for a duration of three years.

• TMK Chemical Bhd has launched its prospectus for its Main Market initial public offering, targeting to raise RM385mn.

• TopVision Eye Specialist Bhd plans to raise RM17.9mn through its IPO, priced at 33 sen per share, as it transitions from the LEAP Market to the ACE Market of Bursa Malaysia.

• KLCCP Stapled Group posted a higher net profit of RM206.5mn in 3QFY24, up from RM185.3mn in the same period last year.

• Lay Hong Bhd reported a more than sevenfold YoY increase in net profit for 2QFY25, rising to RM29.8mn from RM4.0mn previously, driven by higher earnings across all segments.

• Hong Leong Industries Bhd recorded a 60.3% YoY rise in 1QFY25 net profit to RM140.6mn, supported by higher motorcycle sales and a RM12.6mn land disposal gain.

• Deleum Berhad achieved its highest quarterly net profit since listing, with 3QFY24 earnings more than doubling to RM25.1mn.

• Solarvest Holdings Bhd reported a 28.1% YoY increase in 2QFY25 net profit to RM9.2mn, supported by improved margins in its commercial and industrial segments due to reduced solar panel costs.

• Gas Malaysia Bhd posted a higher net profit of RM115.99mn for 3QFY24, compared to RM86.16mn in the same quarter last year.

• China's central bank kept a policy loan rate unchanged at 2% after last cutting it in September, as the authorities stay patient in ramping up monetary stimulus.

• Singapore's core inflation in October slowed to 2.1% YoY, the weakest pace since December 2021, as healthcare and recreation price gains eased.

Source: TA Research - 26 Nov 2024