Market Review

Malaysia:. The FBM KLCI (-0.3%) recorded its third straight losing streak after lingering mostly in the negative territory as the key index erased all its weekly gains to close -0.2% WoW lower. The lower liners closed mostly lower, while the broader market ended mixed.

Global markets:. The US stockmarkets extended their gains as the Dow climbed 0.04%, boosted by gains in technology shares amid the return of risk appetite after the 10Y treasury yields tumbled. European stockmarkets advanced ahead of the G7 summit meeting in UK, while Asia stockmarkets ended mixed.

The Day Ahead

The FBM KLCI retreated for the third straight session amid mixed regional sentiment as the key index succumbed to the extended profit taking activities. We reckon that sentiment to remain tilted towards the downside following the extension of Full Movement Control Order (FMCO) until 28th June 2021 as new daily Covid-19 cases stayed above the 5,000 level. Meanwhile, investors may focus on the upcoming Federal Open Market Committee (FOMC) meeting, as well as the daily number of vaccination doses administered in the country. Commodities wise, the CPO price may see some buying interest following recent pullback.

Sector focus:. Investors may focus on the oil & gas counters with the firmer oil prices above USD 72. Besides, positive sentiment on Nasdaq overnight may spill over to the technology stocks on the local front. The building-materials sector may also come into picture following the rising material prices.

The FBM KLCI finished the week lower as the key index closed below the SMA200 level. Technical indicators remained negative as the MACD Histogram has extended a red bar, while the RSI hovered marginally below the 50 level. The key index may be subject to downside risks, with support set at 1,555-1,565, while the resistance is envisaged around 1,600-1,620.

Company Brief

Sime Darby Property Bhd has secured outstanding total sales bookings totalling RM572.0m for 662 units of residential property across 14 townships. The sales were recorded during its recently-concluded “Siap, Sedia, Raya” campaign from 15th April 2021 to 31st May 2021. The campaign benefitted from its tactical launches as well as the government’s ongoing Home Ownership Campaign (HOC) 2021 incentives. (The Star)

Uzma Bhd has won a US$3.0m (RM12.3m) job to supply chemicals and services in Thailand. The contract is for a period of three years was for the supply of production chemicals and oilfield chemicals, including technical services for the chemical management program for the Bualuang Field in the Gulf of Thailand. (The Star)

IJM Corp Bhd has agreed to sell its entire 56.2% stake in subsidiary IJM Plantation Bhd to Kuala Lumpur Kepong Bhd (KLK) for RM1.53bn cash, or RM3.10 per share. The disposal is expected to reap the group a disposal gain of RM700.0m. On completion of the transaction, it is still subject to approval of shareholders and lenders at an extraordinary general meeting to be convened at a date that has yet to be determined. (The Edge)

Serba Dinamik Holdings Bhd co-founder Datuk Awang Daud Awang Putera, who stressed he is confident in the company’s prospects, has sold more of its shares. Awang Daud on 10th June 2021 sold 4.3m more shares in Serba Dinamik, which was in the limelight after its external auditor KPMG raised audit discrepancies to the tune of RM4.54bn in late May 2021. With the latest disposal, Awang Daud is left with 62.5m shares or 1.7% in the company. (The Edge)

Tan Sri Ramlan Mohamed Ali has resigned as non-independent and non-executive chairman of Boustead Heavy Industries Corp Bhd (BHIC), effective 11th June 2021. Ramlan, 68, resigned to focus on doing his filial duties towards his 95-yearold father who is hospitalised in Singapore. (The Edge)

Yong Tai Bhd has announced that its subsidiary YTB Healthcare Sdn Bhd (YTBH) has received the first batch of an inactivated Covid-19 vaccine developed by Chinabased Shenzhen Kangtai Biological Products Co Ltd (SZKT). The arrival of the vaccine followed the National Pharmaceutical Regulatory Agency granting its approval for the Clinical Trial Import License (CTIL) on 3rd June 2021. (The Edge)

Reservoir Link Energy Bhd is looking to diversify its business and enter the solar energy business. The group has signed a share sale agreement with Lee Seng Chi to acquire a 51.0% stake in Founder Synergy Sdn Bhd (FESB) for RM21.2m. This purchase consideration will be funded via RM8.5m in cash, and the allotment of 18.2m new shares in Reservoir Link at 70 sen a piece to Lee. (The Edge)

Sern Kou Resources Bhd has announced that 90 employees in its wholly-owned subsidiary Sern Kou Furniture Industries Sdn Bhd have been tested as Covid-19 positive. All foreign employees are currently placed under quarantine and isolation. The group is expected to resume its operations in stages, after the end of the Full Movement Control Order period. (The Edge)

Source: Mplus Research - 14 Jun 2021