Comprehensive Analysis of Malaysian Stocks

Date: December 2, 2024

Broker: CGS International

Sealink International (5145) – Technical Buy

Sealink International, through its subsidiaries, offers an extensive range of shipping services, including ship chartering, shipbuilding and repair, and property letting. The company’s stock has shown an upward bias with a recent strong performance. Closing at a 1.5-month high, the bullish gap up in mid-November indicates a promising future. Analysts recommend aggressive traders consider buying, setting a stop-loss at RM0.295. Expected resistance levels are RM0.36 and RM0.38, suggesting a potential for further gains.

Kelington Group (0151) – Technical Buy

Kelington Group specializes in designing, fabricating, and installing ultra-high purity gas and chemical delivery systems. The stock recently formed a bullish engulfing pattern, supported by a rising 20-day EMA. This formation indicates a potential breakout and new highs, supported by increased trading volume. Analysts suggest a buy with a stop-loss at RM3.19, targeting resistance levels at RM3.70 and RM3.90. The positive momentum is affirmed by both MACD and RSI indicators.

Public Bank Bhd – Maintain Add

Public Bank Bhd has shown strong financial performance with a 9M24 net profit meeting expectations. The bank’s write-back of RM80 million in management overlay has strengthened its net interest margin outlook. Analysts maintain an ‘Add’ recommendation with an increased target price of RM5.57, underpinned by further write-backs and an optimistic long-term outlook.

Velesto Energy Berhad – Downgrade to Reduce

Velesto Energy Berhad faces negative newsflow, leading to a downgrade to ‘Reduce’ with a lower target price of RM0.145. The company’s stock has experienced significant downturns, and the outlook remains cautious amidst ongoing challenges.

Genetec Technology Bhd – Maintain Add

Genetec Technology Bhd is experiencing a resumption in orders, which is reflected in a maintained ‘Add’ recommendation. The target price, however, has been lowered to RM1.80, indicating a tempered optimism about the company’s recovery and growth prospects.

IHH Healthcare Bhd – Downgrade to Hold

IHH Healthcare Bhd’s expansion plans are projected to impact its FY25F financials. Consequently, the stock is downgraded to ‘Hold’ with a lower target price of RM7.75. The strategic expansion is expected to weigh on short-term financial performance, necessitating a cautious approach.

Market Overview

The Malaysian stock market, represented by the FBMKLCI index, is showing signs of a triple bottom formation. The index recently declined, impacted by telecommunications, utilities, and energy sectors. However, gains in plantation, property, and financial services sectors provided some support. Trading volume and value have increased, indicating active market participation. The index is facing resistance at the 1,614-1,624 level, while support is seen at 1,574-1,581. It is advised to maintain a cautious stance given the current market dynamics.

Index and Commodity Performance

Global indices have shown mixed performances, with notable gains in the S&P 500 and Nasdaq, driven by tech sector optimism. Commodities have experienced significant movements, with gold and silver showing strong gains year-to-date. Meanwhile, crude oil prices have declined, reflecting broader market uncertainties.