Overview of the Market and Key Trends

The January 6, 2025 report by CGS International highlights key trends in the global and Malaysian markets. Wall Street recently rebounded after a five-day dip that wiped out over a trillion dollars in share prices. The Nasdaq 100 climbed 1.7%, while the S&P 500 rose by 1.3%, driven by renewed investor interest in tech stocks, particularly Nvidia Corp. Asian markets, including Malaysia, also witnessed positive momentum, with equity futures in Australia, Hong Kong, Taiwan, and Singapore edging higher. However, Japan’s market fell slightly, reflecting a stronger yen.

Steel Hawk Berhad (0320): Technical Buy

Last Price: RM0.485

Steel Hawk Berhad, a company specializing in technical and engineering support services for the oil and gas industry, has been highlighted as a “Technical Buy” in this report. The stock has shown a bullish momentum following its recent triangle breakout rally.

Key Insights:

• Entry Price: RM0.47-0.485
• Support Levels: RM0.44, RM0.375
• Stop Loss: RM0.435
• Resistance Levels: RM0.52, RM0.575
• Targets: RM0.52, RM0.575

The stock has been climbing steadily since its September lows, forming higher highs and higher lows. Analysts point to the Moving Average Convergence Divergence (MACD), which has confirmed a golden cross, and a strengthening Relative Strength Index (RSI), signaling growing buyer strength. Aggressive traders are advised to consider buying, with a stop-loss set just below the 20-day EMA at RM0.435. The stock is expected to test its historical resistance at RM0.52 and the Fibonacci target of RM0.575 in the near term.

Autocount Dotcom Berhad (0276): Technical Buy

Last Price: RM1.26

Autocount Dotcom Berhad, a leading technology solutions provider specializing in accounting software, point-of-sale systems, and cloud payroll solutions, is another “Technical Buy” recommendation. The stock has shown positive momentum, breaking out of its 5-month-long consolidation phase.

Key Insights:

• Entry Price: RM1.20-1.26
• Support Levels: RM1.17, RM1.06
• Stop Loss: RM1.11
• Resistance Levels: RM1.40, RM1.46
• Targets: RM1.40, RM1.46

The breakout above the downtrend line from RM1.29, accompanied by higher trading volumes, indicates that the stock’s consolidation phase has likely ended. Rising EMAs provide additional support for a potential upward trajectory. The MACD and RSI both show strengthening bullish momentum, encouraging aggressive traders to consider going long, with a stop-loss at RM1.11. The stock is expected to test Fibonacci targets of RM1.40 and RM1.46 in the coming days.

Performance of 2024 IPOs

Bursa Malaysia recorded 55 IPOs in 2024, a significant increase from 32 in 2023. The IPOs spanned multiple sectors, with Industrial Products and Services leading at 45%, followed by Consumer Products at 20%. Key performers include:

• KJTS Group: +207.4% (Industrial Products & Services, ACE Market)
• Master Tec Group: +212.8% (Industrial Products & Services, ACE Market)
• UUE Holdings: +260.4% (Industrial Products & Services, ACE Market)
• Steel Hawk Holdings: +203.3% (Energy, ACE Market)

These companies demonstrated strong returns, reflecting robust investor interest in the Industrial Products and Services sector.

Market Outlook: FBMKLCI Index

The FBMKLCI Index closed at 1,629.46, marking a 0.2% decline. While healthcare, technology, and plantation sectors underperformed, energy, property, and construction sectors showed gains. Analysts anticipate a near-term breather for the bulls but remain optimistic about long-term growth, supported by the golden cross of the 20-day EMA over the 50-day EMA. Key levels to watch include:

• Support Levels: 1,615, 1,590
• Resistance Levels: 1,644, 1,675

Conclusion

CGS International’s January 6, 2025 report provides actionable insights into market trends and stock opportunities. Steel Hawk Berhad and Autocount Dotcom Berhad stand out as strong technical buys, while the performance of 2024 IPOs highlights significant investor interest in the Industrial Products and Services sector. Traders and investors are encouraged to stay vigilant and leverage these insights to make informed decisions in the coming months.