Market Review

Malaysia: The FBM KLCI (+0.9%) recorded its fourth consecutive session of gains as more than two-third of the key index components finished higher yesterday. The lower liners advanced, while all 13 major sectors on the broader market closed positive; we believe market players are shifting their funds to the recovery theme.

Global markets: The US stockmarkets edged mostly higher as the Dow jumped 1.5%, following the softer-than-expected February 2021 core inflation data (+0.1% MoM) against consensus estimates of 0.4% MoM rise, which eased the concerns over inflationary pressure. European stockmarkets ended mostly higher, while Asia stockmarkets finished mixed.

The Day Ahead

Taking cues from the overnight rally on Wall Street, where the Dow made a record closing, we believe the buying interest may pick up on the local front and the FBM KLCI may extend its gains today. Also, as the daily Covid-19 confirmed cases continues to dip below the 2,000 mark, market players are likely to favour on the reopening of business activities moving forward; we believe the domestic travel will kick start the tourism economy as of this juncture. However, the technology sector may see mild consolidation phase as Nasdaq took another round of breather. On commodities, the CPO has climbed higher to RM3,974 per tonne level, while the Brent oil price has seen some mild rebound.

Sector focus: We believe the recovery-theme sectors such as consumer, gaming, construction, transportation as well as expressway stocks may surface as the winner over the near term. Besides, the plantation and O&G sectors may continue its upward trending move in tandem with the firmer CPO and Brent oil prices.

The FBM KLCI climbed for the fourth straight session to close near the 1,640 level. The MACD Histogram extended another green bar, while the RSI is hovering above 50. We expect further upside to be seen on the key index with resistance envisaged around 1,650-1,660; while the support is pegged along 1,600-1,620.

Company Brief

Bermaz Auto Bhd’s 3QFY21 net profit rose 21.9% YoY to RM33.1m, on the aggressive promotions that lifted its sales and earnings. Revenue for the quarter gained 27.9% YoY to RM598.0m. A third interim dividend of 1.5 sen a share, payable on 6th May 2021 was declared. (The Star)

Vizione Holdings Bhd has secured three construction contracts with a cumulative value of RM801.0m. The first contract was secured from Esplanade Parkcity Sdn Bhd for design and building works in Puchong, Selangor valued at RM405.0m with construction period of 40 months. The second contract was secured from Greenwood Development Sdn Bhd for foundation and sub-structure works and main building works in Pekan Klebang, Melaka worth RM350.0m with duration of 31 months. The third contract, valued at RM46.0m, was from LCL M&E Engineering Sdn Bhd for the construction and completion of 1,107 units of single-storey terrace houses and other amenities in Batu Gajah, Perak will commences from the date of site possession with duration of 42 months to complete. (The Star)

Censof Holdings Bhd has secured a RM17.9m contract from the Transport Ministry. The contract is for a project to develop a licensing system for commercial vehicles (I-SPKP). The tenure of the contract is for a period of 36 months commencing from 1st April 2021 to 31st March 2024. (The Star)

Press Metal Aluminium Holdings Bhd has proposed to undertake a bonus issue of 4.04bn new ordinary shares on the basis of one bonus share for every one existing share held on an entitlement date to be announced later. The bonus issue is in line with the group's objective of rewarding its shareholders, apart from cash dividends. (The Edge)

MNC Wireless Bhd plans to raise about RM20.3m through a private placement to develop a lifestyle e-commerce platform and for working capital. The lifestyle e commerce platform will also be equipped with functions to facilitate sellers in securing orders directly from live-stream video viewers. (The Edge)

Genetec Technology Bhd has secured new orders worth approximately RM59.5m from new and existing customers. RM57.9m or 97.3% of the new orders secured came from customers in the electric vehicle and battery industry while the remaining RM1.6m came from the hard disk drive, electronics and semiconductor industries. (The Edge)

Hartalega Holdings Bhd will be investing RM7.00bn to build 16 new glove factories in Malaysia's northern region over the next 20 years. The rubber glove manufacturer's wholly-owned subsidiary inked a sale and purchase agreement with Northern Gateway Free Zone Sdn Bhd, a subsidiary of Minister of Finance Inc owned Northern Gateway Sdn Bhd for 250.0-ac. (101.2-ha.) of land in the Kota Perdana Special Border Economic Zone in Bukit Kayu Hitam, Kedah. (The Edge)

SEG International Bhd's (SEGi) 4QFY20 net profit fell 16.0% YoY to RM8.7m, partly due to the delayed new enrolments amid the Movement Control Orders and border control. Revenue for the quarter declined 11.0% YoY to RM52.3m. (The Edge)

UEM Sunrise Bhd has entered into a conditional sale and purchase agreement to buy a 9.9-ac. leasehold piece of factory land and the buildings thereon from Dutch Lady Milk Industries Bhd in Section 13, Petaling Jaya for RM200.0-m, with plans to build a RM1.30bn mixed-use development there. (The Edge)

Alcom Group Bhd's second-largest shareholder SCland Holdings Sdn Bhd has disposed of its 29.5% stake which it acquired from Towerpack Sdn Bhd in September 2017. Parts of the stake were disposed of by SCland to its controlling shareholders, namely Alcom managing director Datuk Lim Chee Khoon (8.9%), as well as Alcom executive directors Eng Kim Leong (8.9%) and Ang Loo Leong (3.9%). (The Edge)

UMW Holdings Bhd's vehicle sales rose 4.4% MoM in February 2021, as sales of UMW Toyota Motor (UMWT) jumped and supported a minor decline in Perodua sales. Toyota sales via UMWT rose 32.0% MoM to 5,074 units in February 2021 amid strong demand for Fortuner and Innova models launched in February 2021, and the Vios and Yaris models launched in December 2020. (The Edge)

Malaysia Airports Holdings Bhd (MAHB) aims to complete the implementation of the Automated Queue Management System (AQMS) at all critical touch points at KLIA, including check-in, immigration and customs by June 2021. The first phase of the AQMS has been completed for all security screening checkpoints including the boarding gates. (The Edge)

Chin Hin Group Property Bhd (CHGP) is looking to diversify its business to include construction through the acquisition of a 45.0% stake in Aima Construction Sdn Bhd for RM31.5m. The proposed acquisition will enable the group to tap into the construction industry, which is complementary to its existing property development business. (The Edge)

Source: Mplus Research - 11 Mar 2021