Market Review

Malaysia: The FBM KLCI (+0.2%) extended its gains after hovering in the positive territory for the entire trading session, mirroring the positive performance across regional peers. The lower liners, however, ended mixed, while the broader market closed mostly higher, led by the Technology sector (+2.4%).

Global markets: Both the US and European stockmarkets were closed in conjunction with the Good Friday public holiday. Asia stockmarkets, meanwhile, ended mostly positive.

The Day Ahead

The FBM KLCI finished the week on a softer note after a sharp sell down last Wednesday and we expect the market to remain on the cautious tone. However, we opine that investors are likely to remain optimistic on the technology stocks given the positive close last week on Wall Street. As some of the global markets are still off for public holiday, we expect the trading activities may tone down for the day and the FBM KLCI should hover below 1,600 psychological level for the time being.

Sector focus: Technology stocks are likely to be under the limelight for today. Meanwhile, we expect the laggard counters in the property and construction sectors may gain traction as they are perceived to be recovering with the broader market. Besides, the recovery-theme sector may see some buying interest amid the smooth ongoing vaccination programme.

The FBM KLCI extended its gains but stayed below the 1,600 psychological level. Technical indicators turned mixed as the MACD Histogram has turned into a green bar, while the RSI was hovering below the 50 level. With bargain hunting continued, we believe the FBM KLCI may continue to trade sideways with resistance pegged at 1,600-1,625; while support is set along 1,550-1,560.

Company Brief

Nexgram Holdings Bhd’s indirect wholly-owned subsidiary, Nexgram Biomedic Sdn Bhd, plans to develop a medical complex with a gross development value of RM1.60bn in Melaka. It signed a memorandum of understanding with the Melaka State Development Corp yesterday to acquire 10.0-ha. in Bukit Baru, which has been earmarked for the development of the Melaka Lifecare Specialist. (The Star)

Dutch Lady Milk Industries Bhd has inked a Memorandum of Collaboration (MoC) with the Department of Veterinary Services Malaysia (DVS) to implement sustainable dairy farming practices. The strategic partnership involves the participation of local dairy farmers in its Dairy Development Programme (DDP) and Farmer2Farmer (F2F) Programme. (The Edge)

IHH Healthcare Bhd’s Turkey-based Acibadem Healthcare Group is acquiring a 70.0% stake in Bel Medic Group, a leading private healthcare operator in Serbia. Definitive agreements have been signed for the acquisition, but the purchase price was not disclosed. Post-acquisition, the group will operate under the name Acibadem Bel Medic. (The Edge)

EA Technique (M) Bhd expects to lose revenue of RM79.8m following the termination of one of its contracts for the provision of time charter coastal vessel services. The group had entered into an agreement with Petco Trading Labuan Company Ltd for the mutual termination of the five-year contract for Vessel 3, which was awarded in May 2019. (The Edge)

WCE Holdings Bhd has been granted an RM301.0m contract by way of direct award for the construction of the final section of the West Coast Expressway project. WCE Holdings wholly-owned construction arm KEB Builders Sdn Bhd was awarded the contract by the IJM Construction Sdn Bhd-Kumpulan Europlus Bhd (IJMC-KEB) joint-venture. (The Edge)

Symphony Life Bhd’s chairman Tan Sri Mohamed Azman Yahya has retired from his position in the group effective 2nd April 2021. Non-executive director Datuk Jasmy Ismail is re-designated as the new chairman. (The Edge)

The mandatory general offer by Pitahaya (M) Sdn Bhd for shares in Pimpinan Ehsan Bhd (PEB) has concluded, with acceptance of only 1,840 shares or 0.003%. Pitahaya had proposed to acquire the shares in PEB at RM1.07 apiece. (The Edge)

An arbitrator has ordered WCT Holdings Bhd's subsidiary to pay RM73.8m to Malaysia Airports Holdings Bhd (MAHB), after hearing their dispute relating to the klia2 Integrated Complex cooling system project. Segi Astana Sdn Bhd, owned 70.0% by WCT, was ordered to pay the amount, based on the fixed monthly charges for chilled water for the cooling system of RM1.0m from May 2014 until September 2020. (The Edge)

Source: Mplus Research - 5 Apr 2021