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Pullback still in place
Tue, 12-Nov-2024 06:19 am
by Research Team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. FBM KLCI tumbled 0.7% on Monday as profit-taking activities were in tune with the weakness across regional markets. The market broadly declined, with lower liners ending the day in the red. Most indices ended lower with the top decliner being Technology (-1.8%), while the top gainer was Plantation (+1.7%).

     

  • Global Markets Review. The US stock market extended its post-election rally on Monday on rotational play into smaller cap stocks. Asian market performance was mixed as China’s support plan fell flat. Japan’s Nikkei 225 rose 0.1%, while the SSE rose 0.5%. The HSI and KOSPI moved in a negative direction. Disappointment on the Chinese end was largely due to the lack of growth-boosting measures for the stuttering economy.

     

  • Market Outlook. Despite the disappointing regional performance, we believe the FBM KLCI is poised for a rebound, as bargain hunting activities may emerge bolstered by rate cuts by the US Fed and Bank of England and the continual promising support from the recent Republican election victory. We expect the FBM KLCI to float above 1,600 psychological level over time. Still, the weakness in trading liquidity may cap any potential gains over the lower liners. We continue to favour the Plantation sector that is riding onto the uninterrupted rally in CPO prices which steadied above RM5,000/MT. Meanwhile, the Energy sector may stage further pullback in tandem with the weakness across crude oil prices. 

 

FBM KLCI Technical Review & Outlook

  • Technical Commentary: The FBM KLCI trended lower for the third straight session as the key index approaches the 1,600 level. Indicators remained negative as MACD Line hovered below the Signal Line, while the RSI lingered below 50. Immediate resistance is located at 1,645. Support is envisaged around 1,600.

 

Company News 

  • TMC Life Sciences Bhd has received special notices requisitioning for an extraordinary general meeting to immediately remove its group chief executive officer Wan Nadiah Wan Mohd Abdullah Yaakob as a director of the company from its two largest shareholders.

     

  • Palm oil milling services provider Ecoscience International Bhd has bagged a RM200 million construction job to undertake a TG2 pellet plant in the Gebeng industrial area in Kuantan, Pahang. 

     

  • Newly listed KTI Landmark Bhd said it has won a sub-contract under the Armed Forces Family Housing (RKAT) construction project at the Labuan Air Base, worth RM49.99 million.

     

  • Sabah-based Azam Jaya Bhd ended its debut on the Main Market of Bursa Malaysia on Monday with a closing price of RM1.09, a 39.74% or 31 sen rise from its initial public offering price (IPO) of 78 sen.

     

  • Mega Fortris Bhd made a lacklustre debut on Bursa Malaysia on Monday, becoming the fourth company so far this year to close below the initial public offering (IPO) price on the first trading day.

     

  • CTOS Digital Bhd’s net profit gained 13% to RM27.55 million for the third quarter ended Sept 30, 2024 (3QFY2024), from RM24.39 million a year ago, thanks to higher sales and better tax incentives.

     

  • Xin Hwa Holdings Bhd said a three-month suspension of its cargo transport unit's licence is expected to impact about 4% to 5% of the group's annual revenue, with losses estimated at around 21% — being the gross profit that it would have made from the affected revenue.

     

  • Construction firm Azam Jaya Bhd, which debuted on the Main Market of Bursa Malaysia on Monday, said it is eyeing growth beyond its home base, naming Sarawak and Kalimantan as potential markets.

Sentiment: Negative
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Market Mover
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Currency Buy Rates (RM) Sell Rates (RM)
USD 4.431349 4.466109
EUR 4.725230 4.729698
CNY 0.615997 0.616606
HKD 0.569934 0.573901
SGD 3.315285 3.338615