Market Review

Malaysia: The FBM KLCI (-0.3%) erased most of its previous session gains, dragged down by selling pressure in selected plantation heavyweights yesterday. The lower liners were mostly downbeat, while the Telecommunications & media sector (+1.7%) outperformed the mixed broader market, snapping a five-day losing streak.

Global markets: The US stockmarkets rebounded as the Dow added 0.6%, boosted by the positive progress of Covid-19 delivery, coupled with the better-than-expected initial jobless claim data that fell to 684,000 last week; the lowest since March 2020. Elsewhere, both the European and Asia stockmarkets ended mixed.

The Day Ahead

The FBM KLCI surrendered its early gains yesterday weighed by the losses in index linked plantation counters, while technology stocks went lower as investors took cue from the sell down in Chinese technology stocks. As trading volume and value has declined over the past 3 days, we expect the local bourse to trade in a consolidation mode as market sentiment remained cautious due to the absence of fresh catalysts amid lower oil and CPO price. Given the subdued trading interest on the market, traders will be selective in looking out for trading opportunities.

Sector focus: Sectors that could be focus today could be in the construction, building materials and property as Penang Transport Master Plan news surfaced in the media yesterday. Meanwhile, recovery-theme sectors such as consumer will still be on the lookout, while technology stocks may rebound on the back of the positive overnight performance on Nasdaq.

The FBM KLCI failed to hold on to its early gains, closing below the 1,600 psychological level. Technical indicators turned negative as the MACD Histogram has extended another red bar, while the RSI was hovering below the 50 level. Support is set around 1,600, followed by 1,580. If the key index managed to find its support above 1,600, the next resistance will be located at 1,625-1,645.

Company Brief

Spritzer Bhd's wholly-owned subsidiary, Chuan Sin Sdn Bhd is proposing to acquire eight agricultural land lots from Trong Oil Palm Estate Sdn Bhd for RM76.1m. The parties have entered into a sale and purchase agreement for the proposed acquisition of the land lots, measuring about 496.8-ha. The land lots are currently planted with oil palm trees, aged between 7 and 32 years. The acquisition will be funded by internally generated funds. (The Star)

Gamuda Bhd will soon kick start the reclamation and development of an island, which forms part of the Penang Transportation Master Plan (PTMP). It has formed a joint venture with the Penang State government for the development of the reclaimed land. In addition, Gamuda will be tasked to carry out the reclamation works. (The Edge)

Green Packet Bhd has made RM48.6m gain from the disposal of 41.4m shares in G3 Global Bhd on the open market for RM63.2m in recent days. The disposal of its shares in G3 Global was an opportunity for it to monetise a portion of its shareholdings in an associate. (The Edge)

Astro Malaysia Holdings Bhd's 4QFY21 net profit rose 20.8% YoY to RM167.8m, on lower net financing costs and tax expenses. Revenue for the quarter, however, fell 9.5% YoY to RM1.11bn. A fourth interim dividend of 1.5 sen per share, payable on 23rd April 2021 was declared. (The Edge)

Eco World Development Group Bhd’s (Eco World) 1QFY21 net profit jumped 71.0% YoY to RM62.4m, as its international property arm. Revenue for the quarter, however, slipped 5.7% YoY to RM507.4m. (The Edge)

Eco World International Bhd’s (EWI) 1QFY21 net profit soared 979.6% YoY to RM56.0m, mainly thanks to profit recognition of the group’s Melbourne project. Revenue for the quarter swelled to RM303.3m, from RM51,000 recorded in the previous corresponding quarter. An interim dividend of one sen, payable on 28th April 2021 was declared. (The Edge)

Tropicana Corp Bhd’s 4QFY20 net profit surged 231.4% YoY to RM48.1m, on higher sales recognition. Revenue for the quarter rose 59.3% YoY to RM356.7m. (The Edge)

Yinson Holdings Bhd’s 4QFY20 net profit grew 3.1% YoY to RM67.0m, on the back of higher EPCIC (Engineering, Procurement, Construction, Installation & Commissioning) business activities contribution. Revenue for the quarter, however, declined 32.8% YoY to RM1.25bn. A final dividend of 2.0 sen dividend per share, payable on 30th August 2021 was declared. (The Edge)

MyNews Holdings Bhd’s 1QFY21 net loss stood at RM8.9m vs. a net profit of RM4.4m reported in the previous corresponding quarter, as its business was impacted by movement restrictions implemented by the Government to curb the spread of Covid-19. Revenue for the quarter fell 29.8% YoY to RM98.7m. (The Edge)

Source: Mplus Research - 26 Mar 2021