Review & Outlook

The local blue-chip benchmark extended gains to end 2024 on a positive note Tuesday, spurred by late bargain-hunting on the last trading session of the year with the transport, property and consumer products sectors leading gains. The FBM KLCI added 4.65 points to settle at 1,642.33, off an early low of 1,632.85 and high of 1,644.54, but losers edged gainers 515 to 485 on lower turnover of 2.37bn shares worth RM2.06bn.

Market sentiment will likely stay cautious as trading began for the new year due to investors' uncertainty over the incoming Trump administration's policies and its potential inflationary impact. Immediate index resistance is upgraded to 1,648, followed by the September peak of 1,675 with tougher resistance seen at the 1,684 high (29 Aug). Immediate support is revised upwards to 1,620, with better supports at 1,600 and 1,588, which is the 38.2%FR level, with next crucial support at 1,565, the 23.6%FR level, followed by the key 1,550 support.

Dialog shares will need a confirmed breakout above the 38.2%FR (RM2.01) to extend uptrend momentum towards the 50%FR (RM2.13) and target the 61.8%FR (RM2.24) going forward. Uptrend support from the lower Bollinger band (RM1.76) and the 17/10/22 low (RM1.63) limits downside risk. Positive technical momentum should lift Hibiscus shares towards the 76.4%FR (RM2.07), with a convincing breakout to aim for the 61.8%FR (RM2.22), with next resistance seen at the 50%FR (RM2.33), while key chart supports at the 11/09/24 pivot low (RM1.84) and RM1.71 cap downside.

News Bites

• Gamuda Bhd is acquiring four plots of freehold agricultural land totaling 389 acres in Port Dickson, Negeri Sembilan, from West Synergy Sdn Bhd for RM424.4mn.

• Bintulu Port Holdings Bhd has secured approval to operate Bintulu Port for another 12 months, under a third interim agreement covering Jan 1 to Dec 31, 2025.

• Binasat Communications Bhd has signed an agreement to sell its 51% stake in Borderless Connection Sdn Bhd to Susjaya Sdn Bhd for RM5.9mn in cash.

• LYC Healthcare Bhd plans to list its subsidiaries, HC Orthopaedic Surgery Pte Ltd and T&T Medical Group Pte Ltd, on the Nasdaq Capital Markets via LYC Healthcare (Cayman) Ltd.

• Cahya Mata Sarawak Bhd has decided to abort its joint venture project to build a four-star hotel and serviced apartments in Kuching Isthmus, Kuching, Sarawak.

• Malaysia Airports Holdings Bhd's Network Development Programme aims to attract airlines to Melaka International Airport by offering incentives like landing charge rebates, passenger growth rewards, and marketing support.

• KLCC Property Holdings Bhd's wholly owned subsidiary, Suria KLCC Sdn Bhd, has increased the size of its sukuk murabahah programme to RM2bn, up from RM600mn.

• Permaju Industries Bhd has proposed to reduce its capital by up to RM258mn through the cancellation of issued share capital that is not supported by assets.

• MYMBN Bhd, a bird's nest processor, reports it cannot fulfill RM2.5mn in orders to China due to a temporary export suspension.

• Hextar Retail Bhd has canceled its agreement to acquire a 51% stake in Redina Malaysia Sdn Bhd, a shoes and clothing company, for RM35.7mn due to Redina reporting an unaudited loss after tax for the nine months ending Sept 30, 2024.

• Datuk Foong Wei Kuong, managing director and controlling shareholder of JF Technology Bhd, has become a substantial shareholder of Cosmos Technology International Bhd.

• KPJ Healthcare Berhad has named Prof Emeritus Datuk Dr Lokman Saim as its inaugural chief medical director.

• Cypark Resources Bhd reported a net profit of RM2.3mn in 2QFY25, up from RM1mn last year.

• China's official non-manufacturing purchasing managers index rose to 52.2 in December, significantly higher than forecast.

• Singapore's GDP expanded 4% in 2024, higher than the trade ministry's November forecast for an expansion of around 3.5%.

• Russia stopped sending gas to Europe via Ukraine, shutting off a route that's operated for five decades after Kyiv refused to allow any transit that funds Moscow's war machine.

Source: TA Research - 2 Jan 2025