Review & Outlook

Blue chips drifted lower on Thursday, as the minutes from the latest U.S. Federal Reserve meeting indicated it could slow the pace of policy easing this year over inflation concerns from the planned policies of the incoming Trump administration. The FBM KLCI lost 14.02 points to end near session lows at 1,600.81, off an opening high of 1,618.17, as losers bashed gainers 900 to 231 on total turnover of 3.49bn shares worth RM2.93bn.

Investors should remain cautious ahead of the weekend, as they look towards U.S. employment data this week for further cues on the trajectory of U.S interest rates. Immediate index support is at 1,600, with better supports at 1,588, which is the 38.2%FR level, followed by 1,565, the 23.6%FR level, with next crucial support at 1,550. Immediate resistance remains at 1,648, followed by the September peak of 1,675 with tougher resistance seen at the 1,684 high (29 Aug).

Globetronics looks attractive to bargain at current levels for rebound upside towards the 138.2%FP (65sen), while a confirmed breakout should aim for the 123.6%FP (77sen) and 100%FP (97sen) ahead. Support from the 161.8%FP (45sen) and 176.4%FP (33sen) limits downside risk. Likewise, SKP Resources is attractive to bargain for recovery upside towards the 38.2%FR (RM1.23), with a convincing breakout above the 23.6%FR (RM1.37) to target RM1.50 going forward. Crucial support comes from the 61.8%FR (RM1.01) and 76.4%FR (87sen).

News Bites

• Malaysia wants to leverage its location to become an energy and chip manufacturing hub this year says the Prime Minister Datuk Seri Anwar Ibrahim.

• Malaysia's growth is set to sustain last year's pace and exceed 5% in 2025, driven by foreign investments and government initiatives that can help shield the economy from global risks, says Second Finance Minister Datuk Seri Amir Hamzah.

• Public Bank Bhd's conditional mandatory takeover offer for the remaining shares of insurer LPI Capital Bhd that it does not own has lapsed, after it failed to secure sufficient acceptances by the close of the offer on Thursday.

• Gamuda Land, the property arm of Gamuda Bhd, plans to invest RM7.1bn over the next five years in Vietnam, with a targeted gross development value of RM14.3bn.

• SWA Shipping Sdn Bhd is facing a deadline of February 25, as Pos Logistics Bhd is considering terminating the RM123.2mn deal for the acquisition of PNSL Bhd.

• Dialog Group Bhd has secured the final investment decision for the field development and abandonment plan under the Baram Junior Cluster Small Field Asset Production Sharing Contract, amounting to US$235mn.

• Parkson Holdings Bhd's unit, Liupanshui Parkson Retail Co Ltd, has signed a 10-year tenancy agreement for its department store operations in the city of Liupanshui, Guizhou province, China.

• Yinson Holdings Bhd's third floating production storage and offloading vessel in Brazil - FPSO Atlanta, which holds a 15-year firm charter with an estimated contract value of US$2bn, has achieved first oil.

• Green Packet Bhd's wholly-owned subsidiary, Packet Interactive Sdn Bhd has secured a digital lending license from the Ministry of Housing and Local Government.

• Oil-and-gas services firm T7 Global Bhd said on Thursday it has been awarded a six-month contract with undisclosed value by Hibiscus Petroleum Bhd.

• MPHB Capital Bhd's shares will be suspended, effective Jan 22, to facilitate the company's selective capital reduction before it is taken private.

• Major shareholders of NPC Resources Bhd are currently in exploratory discussions regarding a proposal that could result in the company being taken private at RM2.82 per share.

• Target 1 Sdn Bhd, South Malaysia Industries Bhd's largest shareholder with a 30.7% stake, announced on Thursday that the company's extraordinary general meeting proceeded as scheduled with the resolutions to appoint six new directors being passed.

• China's CPI crept up 0.1% YoY in December, slowing from November's 0.2% increase and the weakest pace since April.

Source: TA Research - 10 Jan 2025