Review & Outlook

The local benchmark rose on Monday, buoyed by reports of a positive phone call between incoming US President Donald Trump and Chinese President Xi Jinping as well as the release of China's fourth-quarter GDP growth data, which beat market expectations. The FBM KLCI added 5.62 points to close at 1,572.34, off an early low of 1,563.48 and high of 1,575.11, as gainers edged losers 628 to 397 on total turnover of 2.95bn shares worth RM2.45bn.

Investors should be sidelined as they await key interest rate decisions both locally and from within the region along with greater clarity on the policy direction of the Donald Trump administration. Immediate index support remains at 1,550, with stronger supports at the 6/8/24 low of 1,529 and 1,500 psychological level. Immediate resistance is maintained at 1,580, with the next hurdles at 1,605 and 1,630, followed by 1648.

Gamuda is attractive to bargain for recovery upside towards the 50-day ma (RM4.63), with a convincing breakout above the 100%FP (RM4.89) to target the 08/01/25 high (RM5.38) going forward. Key retracement support is from the 61.8%FR (RM3.95) and the 50%FR (RM3.66). Likewise, SunCon shares are set for a potential oversold rebound towards the 61.8%FR (RM3.83), with tougher upside hurdles at the 76.4%FR (RM4.32) and RM4.71 ahead, with crucial chart supports at the 50%FR (RM3.43) and the 38.2%FR (RM3.02) cushioning downside.

News Bites

• Malaysia's December exports rose 16.9% YoY to RM138.52bn, while imports grew by 11.9% to RM119.34bn.

• A consortium led by Khazanah Nasional Bhd is revising the terms for its takeover offer for Malaysia Airports Holdings Bhd to lower the acceptance conditions to at least 85%.

• 7-Eleven Malaysia Holdings Bhd, 28.1%-owned by Berjaya Group founder Tan Sri Vincent Tan, is installing 100 cash recycling machines across its outlets nationwide.

• Fajarbaru Builder Group Bhd has signed an agreement with Penang Development Corp for the first phase of the Penang Medi-City project in Batu Kawan where it will acquire a 51.2-acre Parcel 1 for RM111.5mn, funded via borrowings and internal funds.

• SkyWorld Development Bhd plans to diversify into manufacturing prefabricated and prefinished modular systems through a collaboration with Singapore's Teambuild Holdings (S) Pte Ltd.

• Datasonic Group Bhd has received one-year extensions for its contracts to supply Malaysian passports and polycarbonate biodata pages to the Immigration Department of Malaysia that amounted to RM57.2mn and RM93.3mn, respectively.

• Mighty Alliance Sdn Bhd, linked to Scanwolf Corp Bhd managing director Eddy Seah Ley Hong, has launched a mandatory takeover offer at 54 sen per share after acquiring a 34.4% stake in the plastic extrusion maker.

• WTK Holdings Bhd said a fire broke out at its unit's tape manufacturing factory in Perai, Penang, on Jan 17 and preliminary estimate points to the impact on its earnings not being substantial and will be mitigated by adequate insurance coverage.

• TDM Bhd has engaged Tawau Healthcare Sdn Bhd in a RM72.0mn contract to build and renovate a specialist hospital in Tawau, Sabah.

• UUE Holdings Bhd has secured two contract renewals worth a total of RM27.5mn from Sutera Utama Sdn Bhd.

• Mieco Chipboard Bhd is selling two leasehold industrial lands in Kawasan Perindustrian Gebeng, Kuantan, totaling 17.6 hectares with 638,767 sq ft of built-up area, to G-Force Sdn Bhd for RM40mn.

• Maxland Bhd's wholly owned units, Maxland Energy Sdn Bhd and Maxland Real Sdn Bhd, have partnered with GDC Data Sdn Bhd to develop a data centre in Kulim High-Tech Park, Kedah.

• Chin Teck Plantations Bhd 1QFY25 net profit rose 56.7% YoY to RM32.6mn, lifted by higher prices and share of results of associates and joint ventures.

• The People's Bank of China maintained its one-year loan prime rate at 3.10% for the third straight session as policymakers await the stance of new US administration.

• President Donald Trump held off unveiling China-specific tariffs on his first day on office, instead ordering his administration to address unfair trade practices globally and investigate whether Beijing had complied with a deal signed during his first term.

Source: TA Research - 21 Jan 2025