Market Review 

Malaysia: The FBM KLCI (+0.6%) ended the week on a positive tone, spurred by bargain hunting in gloves heavyweights, coupled with the gains in plantation giants as CPO prices remain upbeat. The lower liners rebounded, while the broader market ended mostly higher, led by the Healthcare sector (+2.3%).

Global markets: The US stockmarkets extended their gains as the Dow (+0.7%) rallied for the fifth session as the weaker-than-expected jobs data provided some alleviation towards the inflationary pressure. European stockmarkets also extended their gains, but Asia stockmarkets finished mixed.

The Day Ahead

The FBM KLCI finished the Friday’s session on a positive note on the back of bargain hunting activities in glove and plantation heavyweights. However, market sentiment may remain cautious throughout the holiday-shortened trading week while focusing on Malaysia’s 1Q2021 GDP growth rate, which might still be weak on the back of Covid-19 affected environment. Nevertheless, traders may focus on commodities that are on a rising tone such as CPO, which has jumped more than 5.0% last week as well as Brent oil price that has a slight uptick as of this juncture.

Sector focus: Plantation and O&G sector may be under the limelight today amid firmer CPO and Brent oil price. Also, under the MCO3.0, we might anticipate stronger demand in packaging and media-related stocks amid the stay home mode. Besides, the technology sector may see some technical rebound following the overnight gains in Nasdaq.

The FBM KLCI extended its gains last Friday after erasing the morning losses. Technical indicators turned mixed as the MACD Histogram has turned into a green bar, while the RSI was hovering below the 50 level. The key index may trade within a tight range with support pegged around 1,555-1,565, while the resistance is set along 1,600-1,620.

Company Brief

Malaysia Smelting Corp Bhd’s (MSC) 1QFY21 net profit stood at RM22.1m vs. a net loss of RM13.2m recorded in the previous corresponding quarter, as tin prices surged to 10-year high in March 2021. Revenue for the quarter grew 34.4% YoY to RM275.9m. (The Star)

Bursa Malaysia Securities has imposed a cap on the upper limit price of Widetech (Malaysia) Bhd at RM2.15 for today. The freezing of the price was due to the counter trading at the static limit-up prices for two straight days. Its share price closed 49 sen higher at RM2.15 with 587,500 shares. (The Star)

Genting Bhd-owned Resorts World Las Vegas has announced a partnership with cryptocurrency exchange Gemini to explore future opportunities that will allow Gemini crypto wallet users to use the cryptocurrency facility for payments in the US-based casino and hotel entity. The partnership aims to make Resorts World Las Vegas one of the most crypto-friendly resorts on the Las Vegas Strip. (The Edge)

S P Setia Bhd is selling eight parcels of plantation land in Johor to Scientex Bhd for RM518.1m. The freehold plot of about 960.0-ac is in Tebrau, Johor Bahru, and is registered for agricultural use. (The Edge)

Marine and General Bhd (M&G) has secured a RM13.0m work order award from PETRONAS Carigali Sdn Bhd for the provision of an anchor handling tug and supply vessel. The job is effective from June 2021 for a primary duration of 315 days from the commencement date. (The Edge)

Major shareholders of Amcorp Properties Bhd (Amprop) have proposed to take the company private via selective capital reduction (SCR) and repayment exercise of 90 sen per share. The repayment of 90 sen per share is at a 65.1% premium over its last traded price of 54.5 sen. The shareholders comprise Amcorp Group Bhd, Clear Goal Sdn Bhd and banker Tan Sri Azman Hashim together with Amprop Trust in which Azman has deemed interest. (The Edge)

WCT Holdings Bhd has clarified that its wholly-owned unit, Subang Skypark Sdn Bhd (SSSB), has proposed to re-concession and not to acquire the Sultan Abdul Aziz Shah Airport (formerly known as Subang Airport) as reported by several media organisations. The company plans to operate the airport the same way under a lease whereby the government would continue to own the land and Subang Airport. (The Edge)

EP Manufacturing Bhd (EPMB) has proposed a private placement of up to 31.6m new shares in EPMB, representing up to 20.0% of its total shares, to third party investors to be identified later. It expects to raise gross proceeds of up to RM13.1m, based on an illustrative issue price of RM0.42 per placement share and proceeds are mainly to use as working capital. (The Edge)

Careplus Group Bhd’s 1QFY21 net profit soared 108.3x YoY to RM123.5m on higher sales and average selling prices. Revenue for the quarter jumped 130.5% YoY to RM241.3m. An interim dividend of two sen per share, payable on 16th June 2021 was declared. (The Edge)

Pharmaniaga Bhd has proposed a bonus issue of 1.06bn shares on the basis of four bonus shares for every share held on an entitlement date to be announced later, to reward its shareholders. (The Edge)

Source: Mplus Research - 10 May 2021