Review & Outlook

Stocks edged higher on Wednesday, lifted by optimism for an interest cut by the US Federal Reserve. The FBM KLCI went up 2.25 points to close at 1,599.58, off an early low of 1,594.75 and high of 1,602.38, but losers edged gainers 501 to 480 on total turnover of 2.55bn shares worth RM2.29bn.

The overnight correction in the U.S markets should filter through to drag the local market lower today after the Federal Reserve reduced its forecast for further rate cuts in 2025. 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 1,628, next 1,648, followed by the September peak of 1,675.

Tenaga needs to overcome the 04/09/24 peak (RM14.99) to boost upside momentum towards the 123.6%FP (RM16.30) followed by the 138.2%FP (RM17.11) ahead, while uptrend supports from the lower Bollinger band (RM13.36) and 61.8%FR (RM12.87) cushion downside. Similarly, DNEX shares will need sustained strength above the 61.8%FR (45sen) to challenge the 50%FR (50sen), with next upside hurdle from the 38.2%FR (54sen), while crucial support cushioning downside comes from the 50-day ma (36sen) and the 18/01/24 low (31sen).

News Bites

• SD Guthrie Bhd, together with Eco World Development Group Bhd and Negeri Sembilan Corporation, have unveiled plans to jointly develop a 471.8-hectare industrial park in Bukit Pelandok, Negeri Sembilan.

• YTL Power International Bhd's 60.0%-owned subsidiary, YTL Communications Sdn Bhd, has been cleared of any wrongdoing in BestariNet Internet project. by the Malaysian Anti-Corruption Commission.

• Malaysia Airports Holdings Bhd reported a 16.1% YoY increase in passenger traffic across its Malaysian and Turkish airport networks in November, reaching 11.2mn passengers compared to 9.6mn a year ago, which represents 96.7% of pre-pandemic levels.

• RHB Bank Bhd has filed an appeal against the High Court's ruling last month that Tokio Marine Life Insurance Malaysia Bhd's right to first refusal is still in effect until the expiry of the bancassurance agreement on Dec 31, 2024.

• Supermax Corporation Bhd is planning a bonus share issue on the basis of one share for every five existing shares held, along with the issuance of bonus warrants on the basis of one free warrant for every 20 existing shares held, to reward shareholders.

• Aeon Co (M) Bhd plans to appeal the High Court's ruling that the department store and mall operator had breached a tenancy agreement it had entered into with Betanaz Properties Sdn Bhd, a 51.0%-owned subsidiary of Ahmad Zaki Resources Bhd.

• Advancecon Holdings Bhd has secured a RM417.7mn contract as the main contractor for the development of the Silver Valley Technology Park in Perak.

• The Berjaya-led consortium vying for the Kuala Lumpur-Singapore HighSpeed Rail project announced that Malaysian Resources Corporation Bhd had withdrawn from the consortium to pursue other strategic opportunities.

• Quality Concrete Holdings Bhd has secured a RM75mn contract from LCDA Real Estate Sdn Bhd for the proposed alienation, amalgamation, application for a variation of title condition and subdivision of several lots of land in Kuching, Sarawak.

• WTK Holdings Bhd has proposed to acquire a 15.0% stake in Durafarm Sdn Bhd for RM28.3mn cash.

• PTT Synergy Group Bhd is divesting its 70.0% stake in sanitary wares and tapware manufacturer Heap Wah Barakah Sdn Bhd for RM15.0mn.

• T7 Global Bhd has been appointed by Petronas as a panel contractor to provide integrated well continuity services for a five-year term.

• Solar renewable energy specialist Northern Solar Holdings Bhd has set its IPO price at 63.0sen/share to raise RM42.4mn at its upcoming ACE Market listing.

• Pestech International Bhd has appointed former chief secretary Tan Sri Mohd Zuki Ali as its new non-independent, non-executive chairman and Datuk Mohamed Razeek Md Hussain Maricar as its new group managing director.

• YNH Property Bhd has redesignated its managing director Datuk Yu Kuan Huat as its chairman, replacing his brother Datuk Dr Yu Kuan Chon.

• The US Federal Reserve lowers the target range for the federal funds rate by 25 basis points to 4.25%-4.50%, matching expectations, but projected only two rate cuts next year compared to the four previously

Source: TA Research - 19 Dec 2024