Market Overview and Trends

On Tuesday, stocks climbed while Treasuries showed mixed results and the dollar fell in the trading session preceding the US presidential election. Tech giants led the gains, with the S&P 500 rising by 1.2% and the “Magnificent Seven” megacaps climbing by 1.8%. Nvidia Corp. became the largest company in the world, surpassing Apple Inc. Meanwhile, Asian stocks saw a higher open following these gains, with futures rising in Japan and Australia.

KLCI Index – Technical View

The FBMKLCI Index closed at 1,620.70, edging up by 4.27 points or 0.26%. Healthcare, financial services, and plantation sectors led the gainers. Despite the upward trend, a possible hanging-man candle warns that buying momentum may be slowing.

Company Analysis

MKH Oil Palm (East Kalimantan) (5319) – Technical Buy

MKH Oil Palm has risen to form its fourth consecutive white candle, closing at an all-time high. The stock shows a bullish flag breakout with improving EMAs, suggesting further upside potential. The MACD has confirmed its golden cross, and the RSI indicates strengthened buying momentum. Aggressive traders may consider going long with a stop-loss set at RM0.59. Targets are set at RM0.675 and RM0.70.

• Entry Price: 0.62-0.64
• Support Levels: 0.595, 0.535
• Stop Loss: 0.59
• Resistance Levels: 0.675, 0.700
• Target: 0.675, 0.70

Solarvest Holdings (0215) – Technical Buy

Solarvest Holdings closed firmly at the high of the day, indicating a possible new uptrend. The stock shows a higher high and higher low structure from the RM1.44 low. The MACD continued to climb, and the RSI shows rising buying momentum. Aggressive traders may consider going long with a stop-loss set at RM1.51. Targets are set at RM1.75 and RM1.83.

• Entry Price: 1.63-1.67
• Support Levels: 1.52, 1.44
• Stop Loss: 1.51
• Resistance Levels: 1.75, 1.83
• Target: 1.75, 1.83

Dayang Enterprise (Maintain Add with a TP of RM4.00)

Dayang Enterprise secured Sarawak Shell’s package for the Pan-Malaysia MCM and HUC tender, estimated to be worth about RM1 billion. This win strengthens its orderbook and enhances earnings visibility. More contract wins are expected, and the recommendation to “Add” is reiterated with a GGM-based target price of RM4.00.

Unisem (Maintain Reduce with a lower TP of RM1.60)

Unisem’s earnings trend remains patchy, leading to a maintained recommendation to “Reduce” with a lower target price of RM1.60.

Actively Managed Portfolio

The Actively Managed Portfolio focuses on medium-term investments selected based on technical analysis. The portfolio aims to let profits run and cut losses short, with a maximum trading period of 1 to 6 months. This week, the portfolio stayed in risk-off mode. New additions include MKH Oil Palm, while Gamuda was sold after surpassing the second target.

• Karex: -1.2% loss
• ITMAX System: -3.1% loss
• Ta Ann Holdings: +4.3% gain
• Binastra Corp: -0.7% loss
• Top Glove Corp: +2.9% gain
• PGF Capital: +5.2% gain
• Optimax Holdings: -7.9% loss
• Innoprise Plantations: +4.5% gain
• AirAsia X: -4.0% loss
• MKH Oil Palm: 0.0% (new addition)
• Gamuda: +10.4% gain (sold)

IPO Tracker

The 2024 IPO Tracker provides insights into the performance of newly listed companies. Notable entries include:

• KJTS Group: +153.7% YTD
• Master Tec Group: +200.0% YTD
• HE Group: +98.2% YTD
• TSA Group: +44.5% YTD
• Wentel Engineering Holdings: +9.6% YTD
• AGX Group: +48.6% YTD
• Alpha IVF Group: +9.4% YTD
• Prolintas Infra Business Trust: -1.1% YTD
• Zantat Holdings: +34.0% YTD
• SBH Marine Holdings: +11.4% YTD
• Keyfield International: +134.4% YTD
• Topmix: +61.3% YTD
• MKH Oil Palm: +3.2% YTD
• Farm Price Holdings: +120.8% YTD
• Sin-Kung Logistics: +34.6% YTD
• Feytech Holdings: -16.3% YTD
• Smart Asia Chemical: -36.3% YTD
• Kawan Renergy: +78.3% YTD
• KTI Landmark: +3.3% YTD
• Agricore CS Holdings: 0.0% YTD
• UUE Holdings: +195.8% YTD
• Go Hub Capital: +177.1% YTD
• Ocean Fresh: +12.5% YTD
• Johor Plantations Group: +46.4% YTD
• BWYS Group: +15.9% YTD
• Well Chip Group: +20.9% YTD
• Kucingko: +10.0% YTD
• Sik Cheong: -14.8% YTD
• Elridge Energy Holdings: +51.7% YTD
• EPB Group: +2.7% YTD
• VETECE Holdings: +52.0% YTD
• Steel Hawk Holdings: +143.3% YTD
• 99 Speed Mart Retail Holdings: +37.0% YTD
• Solar District Cooling Group: +43.4% YTD
• KHPT Holdings: 0.0% YTD
• Crest Group: -2.9% YTD
• Northeast Group: +41.0% YTD
• Sorento Capital: +14.9% YTD
• OB Holdings: +13.0% YTD

Global Commodities and Indices

Global commodities and indices showed varied performance:

• Dow Jones: +1.0%
• S&P 500 Index: +1.2%
• Nasdaq Index: +1.4%
• Euro Stoxx 50: +0.4%
• Germany’s DAX: +0.6%
• UK’s FTSE 100: -0.1%
• Japan’s Nikkei-225: +1.1%
• Shanghai SE Composite Index: +2.3%
• Hong Kong’s Hang Seng Index: +2.1%
• Australia’s ASX 200 Index: -0.4%
• India’s BSE Sensex 30: +0.9%
• Singapore’s Straits Times Index: +0.3%
• Taiwan TAIEX: +0.6%
• Korea’s KOSPI: -0.5%
• Malaysia’s FBMKLCI: +0.3%
• Indonesia’s JCI: +0.2%
• Thailand’s SET: +1.3%
• Philippines’ PCOMP: +1.7%

Additionally, major currencies like the US Dollar Index, Australian Dollar, and Euro showed varied movements, reflecting changes in the global economic landscape.

Conclusion

The analysis provided a comprehensive overview of the Malaysian stock market, covering key companies like MKH Oil Palm, Solarvest Holdings, Dayang Enterprise, and Unisem. With detailed insights into their performance and future prospects, investors are well-equipped to make informed decisions. The IPO Tracker and commodities indices further enrich the understanding of the market dynamics.