Market Review

Malaysia:. The FBM KLCI (-0.2%) continues to trade on a cautious tone with half of the key index components in the red prior to the two-day US FOMC policy meeting. The lower liners closed in the red, while the utilities sector (+0.3%) was the sole outperformer on the negative broader market.

Global markets:. The US stockmarkets extended their losses as the Dow declined 0.8% after the US Federal Reserve is in plan to scale back the bond purchases and anticipates two interest rate hikes by end-2023. European stockmarkets ended mildly higher, but Asia stockmarkets closed mostly downbeat.

The Day Ahead

The FBM KLCI sank into the negative territory as investors were concern on the outcome of the FOMC meeting. Despite the tepid sentiment, downside risks on the local bourse might be capped by declining Covid-19 cases trend, coupled the acceleration in vaccination rate following the implementation of Public-Private Partnership Industrial Covid-19 Immunisation Programme (PIKAS) yesterday. Meanwhile, selected commodities prices dropped following China’s announcement on its campaign to control raw material prices by expanding its oversight of commodities trading and pledging to release the nation’s reserves of base metals.

Sector focus:. Following a pullback in commodities prices, investors may refocus on the sectors such as essential consumer stocks and packaging counters. In the meantime, traders may look out for recovery theme play on the back of the clearer National Recovery Plan unveiled by our PM; recovery theme sectors include consumer, property and construction.

The FBM KLCI extended losses for the second session as the key index struggled to rebound. Technical indicators is slightly negative as the MACD Histogram has turned into a red bar, while the RSI is still below 50. The key index may continue to trade below the resistance level at 1,600, while the support level is envisaged around 1,555-1,565.

Company Brief

Yinson Holdings Bhd's green technologies division has invested in Singapore startup Oyika Pte Ltd to accelerate the adoption of electric vehicles (EV) in Southeast Asia. The investment, together with its recent investment into autonomous driverless solution company MooVita represents the group's first step towards building an integrated green logistics solution. Oyika is a provider of a battery swap service bundled with an electric motorbike, made available through affordable subscription plans. (The Star)

Cypark Resources Bhd has proposed to undertake a private placement of up to 105.0m new ordinary shares, representing up to 20.0% of the total number of issued share in the company. The issue price would be determined and announced later. The proceeds will be used to complete the construction of the solar PV (photovoltaic) energy generating facility with 173 MWp (megawatt peak) LSS3 project in Marang, Terengganu. (The Star)

Euro Holdings Bhd was not aware of the reasons behind a sharp drop in the share price of the office furniture manufacturer and property developer even as the stock hit limit down for the second consecutive day yesterday. Bursa Malaysia Securities Bhd has frozen the lower limit price for the stock at RM1.21. (The Edge)

Pharmaniaga Bhd is expected to complete its contractual obligation of supplying 12.0m Sinovac Covid-19 vaccine doses to the Federal Government by next month, sufficient to cover some 18.0% of Malaysia’s population. The vaccine had been approved by the World Health Organization (WHO) and the recognition is a boost of confidence in the battle against the pandemic. (The Edge)

Dutch Lady Milk Industries Bhd (DLMI) has announced the appointment of Ramjeet Kaur Virik as its managing director effective 2nd July 2021. She will succeed Tarang Gupta, who will be appointed managing director for Alaska Milk Corp in the Philippines, which like DLMI is a subsidiary of Dutch multinational Royal FrieslandCampina NV. (The Edge)

CAB Cakaran Corp Bhd has suspended operations at one of its wholly-owned subsidiary's factories after 162 Covid-19 infections were found among its workers. The Covid-19-positive cases were confirmed between 10th & 11th June 2021. Subsequently, the affected factory received a notice from the Ministry of Health, with instructions to suspend its operations from 11th June 2021 until further notice. (The Edge)

MSM Malaysia Holdings Bhd has received the nod from the Ministry of Health to resume its Penang operations on 15th June 2021 after a temporary shutdown from 8th June 2021 due to Covid-19 cases recorded on-site. The suspension involving its unit MSM Prai Bhd was lifted two days early from the initial date of 17th June 2021. (The Edge)

NPC Resources Bhd faces a suspension of the trading of its shares on Bursa Malaysia with effect from 23rd June 2021 if it is unable to submit its 2020 annual report by 22nd June 2021. The Sabah-based oil palm plantation company had failed to issue the annual report by the extended deadline of 15th June 2021. (The Edge)

Source: Mplus Research - 17 Jun 2021