Market Review 

Malaysia: The FBM KLCI (-0.7%) extended its’ losses after hovering largely in the negative territory with more than two-third of the key index components closed in the red. The lower liners were also downbeat, while, the Technology (+0.2%) and Construction (+0.1%) sectors outperformed the negative broader market.

Global markets: The US stockmarkets ended on a mixed note as the Dow (-0.2%) extended its losses after Johnson & Johnson agreed to temporary pause vaccine developments that may link to severe blood clots, but the S&P 500 (+0.3%) and Nasdaq (+1.1%) marched higher. European stockmarkets crept mildly higher, while and Asia stockmarkets ended mixed.

The Day Ahead

Again, the extended selling pressure dragged the FBM KLCI below the critical 1,600 level amid the cautious market sentiment as Covid-19 cases remained obstinately high. We believe local bourse may continue to trade sideways with negative-bias mode in view of the lack of fresh catalyst. In the US, the Nasdaq outperformed other major indexes with more than 1% gains. Commodities wise, the CPO price may continue to face downside pressure as inventory level continues to build-up.

Sector focus: Tracking the overnight gains in Nasdaq, we reckon the technology counters may mirror the upward move. Besides, the packaging sector may continue to see an uptrend move, while the construction sector may also be buoyed by the acceleration of MRT3 tenders.

The FBM KLCI extended its losing streak and slipped below the 1,600 psychological level accompanied by lower trading volume, closing below the daily EMA 60 level. Technical indicators turned negative as the MACD Histogram has turned red, while the RSI was hovering below the 50 level. The key index may trade sideways and should it climb above the 1,600 level, the resistances are pegged along 1,615-1,635, while the support level is set at 1,575.

Company Brief

Tan Sri Lim Wee Chai, founder and executive chairman of the world’s largest rubber glove producer Top Glove Corp Bhd., has emerged as a minority shareholder in Malaysian private education group Minda Global Bhd. Lim bought the shares in a recent placement and holds less than 5.0% of the Cyberjaya-based company. Minda runs institutions including the University of Cyberjaya, Asia Metropolitan University and Asia Metropolitan International School. (The Star)

XOX Bhd aims to increase its number of dealers to 100,000 in the next three to five years from the current 30,000; aiming to empower Malaysians to kickstart a career in the telecommunications industry. The number of dealers in its mobile business and ePartnership Programme Platform increased during the Movement Control Order, as retrenched workers looked for opportunities to earn a living. (The Star)

BIMB Holdings Bhd has set the issue price of its private placement shares at RM3.58 apiece, which will raise RM795.6m. The placement has been oversubscribed with demand from both existing shareholders and new investors. The group will be issuing 222.2m new shares, representing approximately 12.0% of the issued share capital of BIMB as at 12th April 2021. (The Edge)

Genting Malaysia Bhd's (GenM) wholly-owned unit GENM Capital Labuan Ltd has priced its offering of US$1.00bn of 3.9% senior unsecured notes due 2031. The notes will be fully and unconditionally guaranteed by the group. The net proceeds from this offering will be used by the company and/or its subsidiaries to refinance existing borrowings and for capital, including investment, and working capital requirements, it said. (The Edge)

UWC Bhd has been engaged by a key customer to develop a tester to develop and manufacture the world's highest frequency 5G OTA (over-the-air) chamber. The 5G tester will provide a measurement environment for characterising wireless and antenna system performance of devices at millimetre-wave frequencies. (The Edge)

ConnectCounty Holdings Bhd has proposed to diversify its business to include the undertaking of construction, project management and related activities. The lossmaking cable and connector manufacturer is looking for opportunities that will broaden its earnings base, while reducing its operational costs in order to improve its financial performance. The group expects the new construction business to contribute to more than 25.0% of its net profit or a diversion of more than 25.0% of its net assets. (The Edge)

Jade Marvel Group Bhd has proposed to undertake a private placement of not more than 10.0% of its issued share capital to raise up to RM13.2m, which will be utilised for property development and repayment of bank borrowings. The issue price of the placement shares to third-party investors will be determined at a later date. For illustrative purposes, the indicative issue price of the placement shares is assumed at RM1.04 per share. (The Edge)

Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) has reported that its unit has secured a contract to undertake the engineering, procurement, construction, transportation and installation, and hook-up and commissioning services for the Jerun gas field, located offshore Sarawak. MHB's wholly-owned unit Malaysia Marine and Heavy Engineering Sdn Bhd bagged the contract from SapuraOMV Upstream Inc. (The Edge)

Source: Mplus Research - 14 Apr 2021