Review & Outlook

The local benchmark index gained a third day on Wednesday on positive market breadth and improved trading volume with utility and property sectors leading gains. The FBM KLCI rose 1.1 points to 1,604.25, off an early low of 1,600.83 and high of 1,609.41, as gainers led losers 590 to 480 on higher turnover of 3.19bn shares worth RM2.96bn.

Market sentiment may be temporarily lifted by easing tensions in the Middle East following the announcement of a ceasefire deal between Israel and the Lebanese militia, Hezbollah. 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.

A confirmed breakout on AMMB above the 161.8%FP (RM5.45) would enhance upside momentum for share price to target the 176.4%FP (RM5.66), with the next significant hurdle being the 200%FP (RM5.99). Key uptrend supports come from the respective 50-day ma (RM5.16) and 100-day ma (RM4.95). Public Bank is currently rebuilding support near the 100%FP (RM4.32) and requires breakout from consolidation above the 138.2%FP (RM4.62) to fuel further upside towards the 150%FP (RM4.71) and 161.8%FP (RM4.80) ahead, while stronger support from the 200-day ma (RM4.25) cushions downside.

News Bites

• Malaysia's producer price index fell by 2.4% YoY in October.

• Binastra Corporation Bhd's unit Binastra Builders Sdn Bhd has secured a RM67.6mn contract to redevelop a sewage treatment plant in Taman Bukit Cheras, Kuala Lumpur.

• Catcha Digital Bhd said that it will continue to focus on organic expansion and strategic mergers and acquisitions to sustain its earnings growth.

• IJM Land Bhd, through its subsidiary RMS (England) Ltd, held a groundbreaking ceremony for the second phase of Royal Mint Gardens in London.

• Air fragrance maker Vanzo Holdings Bhd has launched the prospectus for its ACE Market IPO that may raise up to RM21mn to expand retail presence and marketing activities.

• JF Technology Bhd plans to raise RM46.35mn via a private placement to fund its new investment and ongoing business expansion.

• Boustead Heavy Industries Corp is selling its 51% stake in Contraves Advanced Devices Sdn Bhd to its joint venture partner in the firm, German arms maker Rheinmetall AG for RM54mn cash.

• Sarawak's state government has become the largest shareholder of banking group Affin Bank Bhd, after the completion of a deal with Lembaga Tabung Angkatan Tentera for the acquisition of 165.05mn shares or 6.87% in the bank.

• LGMS Bhd, bolstered by the rising demand for cybersecurity services and solutions, has increased its workforce substantially and plans to more than double its number of skilled professionals by mid-2025.

• Inari Amertron Bhd reported a 71.6% YoY drop to RM24.12mn in net profit for 1QFY25 following a steep drop in the US dollar against the ringgit.

• TIME dotCom Bhd has reported a 44.93% decline in third-quarter net profit to RM58.71mn, from RM106.60mn a year earlier, due mainly to a foreign exchange loss.

• IJM Corp Bhd's net profit for the 2QFY25 fell 20.8% to RM74.21mn from RM93.69mn a year earlier, due to higher unrealised forex losses.

• FGV Holdings Bhd's recorded a net profit of RM87.16mn in 3QFY24, up from RM31.98mn in the year-ago quarter, boosted by plantations division with improvements in FFB production and yield.

• Malaysian Resources Corp Bhd recorded a net profit of RM8.86mn in 3QFY24, up from RM1.46mn in the year-ago quarter and said it continues to prioritise enhancing its cash low by monetising its unsold completed stock of RM352.8mn GDV in Malaysia.

• Media Prima Bhd has recorded a revenue of RM194.9mn and a net profit of RM1.4mn in the 1QFY25, demonstrating resilience in a challenging market environment.

• Hengyuan Refining Co Bhd incurred a net loss of RM165.1mn for 3QFY2024, as opposed to a net profit of RM2.1mn for 3QFY2023, due to weakening of its cracking or refining margin and high stockholding losses.

• Industrial profits at large Chinese companies fell 10% YoY last month, following a sharper 27.1% decline in September.

• The US headline PCE rose 2.3% YoY in October from 2.1% YoY in September while the core PCE increased to 2.8% YoY from 2.7% YoY, respectively.

Source: TA Research - 28 Nov 2024

Source: TA Research - 28 Nov 2024