Review & Outlook

Stocks fell into profit-taking correction mode on Thursday, mirroring regional weakness after U.S. data showed a lack of progress towards the Fed's 2% inflation rate target, raising concerns over its future policy decisions. The FBM KLCI slid 6.76 points to end at the day's low of 1,597.49, off an early high of 1,608.01, as losers beat gainers 604 to 415 on lower turnover of 2.79bn shares worth RM2.9bn.

The local market should trend sideways ahead of the weekend, as the lack of local buying catalysts and US markets being closed for the Thanksgiving holiday will keep investors sidelined. Immediate index 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. Immediate resistance remains at 1,630, next 1,648, followed by the September peak of 1,675.

Any price dips in SunCon shares should attract bargain hunters looking for a rebound upside to RM4.73, with next major resistance coming from the 100%FP (RM5.12) and RM5.50 going forward. Immediate support comes from the lower Bollinger band (RM4.21) with stronger support at the 61.8%FR (RM3.83). Similarly, WCT Holdings looks attractive to bargain on dips for recovery to the 50%FR (90sen), with a confirmed breakout to target the 61.8%FR (RM1.00) and RM1.08 ahead, while key supports are at the 38.2%FR (80sen) and the 23.6%FR (66sen).

News Bites

• The review of the Johor-Singapore Special Economic Zone draft agreement between the Malaysian and Singaporean governments is in the final stage and is expected to be finalised by December

• Globetronics Technology Bhd is partnering Canada-headquartered POET Technologies Inc on advanced manufacturing and testing of optical engines, designed for applications such as data centres and telecommunications.

• Eco World Development Group Bhd's wholly-owned subsidiary, Eco World Capital Bhd, has issued a RM300mn sukuk wakalah for working capital requirements and capital expenditures.

• Yinson Holdings Bhd's renewables business unit, Yinson Renewables, has secured a US$59mn senior secured green financing facility for the Matarani solar project in Peru from IDB Invest and Natixis Corporate & Investment Banking.

• Catcha Digital Bhd is to purchase a 51% stake in software-as-a-service provider Nexible Solutions Sdn Bhd for RM11.4mn, cash.

• Top Glove Corp Bhd has lodged with the Securities Commission of Malaysia the establishment of an Islamic notes issuance programme with an aggregate nominal value of RM3bn.

• Colform Group Bhd, the East Malaysia steel and building material specialist, has received the green light from Bursa Securities to list on the ACE Market, with an initial public offering that comprises 114.4mn shares and offer for sale of 54mn shares.

• IHH Healthcare Bhd's net profit for 3QFY2024 was flat at RM534mn as it needed to adjust its financial statements to account for the decreasing purchasing power of the Turkish lira due to the high inflation.

• Genting Bhd's net profit fell 57% year-on-year to RM223.8mn in 3QFY2024 from RM520.5mn as it was hit by higher property, plant and equipment write-off totalling RM207.3mn, as opposed to RM1.3mn last year.

• Genting Malaysia Bhd's reported a net profit of RM569.2mn, representing a near six-year high and an over threefold jump from RM177.4mn, as it recognised net unrealised forex gains of RM601.8mn on its US-dollar denominated borrowings.

• PPB Group Bhd's net profit fell 44.1% to RM208.1mn in 3QFY2024 from RM372.6mn a year earlier, largely due to lower contribution from its 18.8%-owned associate Wilmar International Ltd, as well as lower profit from its core business segments.

• After four consecutive quarters of losses, Capital A Bhd posted a recordhigh net profit of RM1.6bn for 3QFY2024, as opposed to a net loss of RM102.8mn a year ago, as the group recognised RM2.3bn in foreign exchange gains.

• Supermax Corp Bhd extended its streak of losses to seven quarters with a net loss of RM64.6mn in 1QFY2025, compared with RM2.1mn a year ago as a surge in operating expenses sank the glovemaker into the red, compounded by currency losses.

• Farm Fresh Bhd's net profit more than doubled to RM26.2mn in the 2QFY2025 from RM12.8mn a year ago, on decreased dairy raw material costs.

• The Eurozone economic confidence index rose slightly to 95.8 in November from revised 95.7 in the previous month.

Source: TA Research - 29 Nov 2024