Review & Outlook

The local benchmark index rose for a third straight session on Wednesday, led by bargain hunting interest in technology stocks after the US implemented a new round of semiconductor export restrictions on 136 Chinese companies, potentially benefiting local chip exporters. The FBM KLCI added 7.13 points to close at 1,614.09, off an opening low of 1,606.53 and high of 1,616.03, as gainers led losers 727 to 381 on improved trade totaling 3.6bn shares worth RM3.3bn.

Blue chips should stay range bound with upward bias as investors are optimistic for potential economic stimulus measures in China's upcoming Central Economic Work Conference next week. Immediate index resistance remains at 1,629, 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.

Gadang will be attractive to accumulate on weakness for recovery upside towards the 23.6%FR (33sen), with stronger upside hurdles at 38.2%FR (37sen) and the 50%FR (40sen), while key chart supports are at the 14/ 03/23 low (28sen) and 25sen. Hiap Teck need to climb above the 50%FR (35sen) convincingly to aim for the 61.8%FR (39sen), and 76.4%FR (43sen) going forward, while crucial support from the 38.2%FR (31sen) and 23.6%FR (27sen) cushions downside.

News Bites

• Malaysia and Singapore will postpone to January next week's signing to formalize a special economic zone in Johor, Malaysia Prime Minister Anwar Ibrahim said on Wednesday.

• The list of services included in the expanded scope of the service tax will be announced early next year ahead of its implementation on May 1, Deputy Finance Minister Lim Hui Ying told Dewan Rakyat on Wednesday.

• Public Bank Bhd has completed the acquisition of 175.9mn shares, representing a 44.2% stake in insurer LPI Capital Bhd on Wednesday.

• TMC Life Sciences Bhd said its suspended CEO, Wan Nadiah Wan Mohd Abdullah Yaakob, has been found guilty of misconduct following a domestic inquiry.

• Mulpha International Bhd has proposed to buy a 6.46-hectare land in New South Wales state for A$68.1mn and intends to develop the property into 63 residential land lots with a projected gross development value of A$150.0mn.

• Geneva Insurance Group (Barbados) Inc has ceased to be a substantial shareholder in construction and manufacturing company Central Global Bhd after disposing of 35.0mn shares, representing a 5.0% stake.

• Uzma Bhd has accepted a contract from Enquest Petroleum Production Malaysia Ltd for the provision of a hydraulic workover unit for Raya A.

• Binasat Communications Bhd has proposed to undertake a private placement to finance the acquisition of several properties.

• Focus Dynamics Group Bhd has proposed a share capital reduction to wipe out up to RM126.8mn of the company's accumulated losses.

• UEM Sunrise Bhd has announced the resignation of its chief executive officer, Sufian Abdullah, which will take effect from 28 February 2025.

• The Employees Provident Fund has emerged as a substantial shareholder in Mega First Corporation Bhd, after raising its direct stake in the utility conglomerate company to 5.99%, comprising 56.5mn shares.

• Sentoria Group Bhd has triggered Bursa Malaysia's PN17 criteria after its shareholders' equity fell to 33% of its issued and paid-up capital, based on its just released financial statement for the year ended 30 September 2024.

• Terengganu-based mechanical and engineering services provider Enproserve Group Bhd has filed for an initial public offering on Bursa Malaysia's ACE Market to raise funds for its business expansion.

• Apollo Food Holdings Bhd 2QFY25 net profit grew 6.7% YoY to RM10.6mn supported by higher domestic and export sales.

• The services sector in China continued to expand in November, with a services PMI score of 51.5 versus 52.0 in October.

• Economic activity increased slightly in November after little change in preceding months, and US businesses grew more upbeat about demand prospects, the Federal Reserve said in its latest Beige Book survey.

Source: TA Research - 5 Dec 2024