Market Review

Malaysia:. The FBM KLCI (-1.0%) was beset by another round of selling pressure as the key index hovered largely in the negative zone following extended Phase 1 of MCO3.0. The lower liners also took a dive, while all 13 major sectors on the broader market ended in red with the energy sector (-2.2%) taking the biggest downfall.

Global markets:. The US stockmarkets ended on a mixed note as the Dow fell 0.4% but the S&P 500 (+0.2%) and Nasdaq (+1.0%) was boosted by the gains in technology shares. European stockmarkets retreated, while Asia stockmarkets closed mostly lower.

The Day Ahead

The FBM KLCI plummeted to hit the lowest level in 2021, while the broader market saw more than 900 stocks closing in the red as investors sentiment was further dampened by the extension of the full lockdown which may derail the economic recovery pace. However, we believe bargain hunting activities should emerge after the heavy selldown, following the Prime Minister’s announcement on the PEMULIH stimulus package amounted to RM150bn to assist households and businesses affected by the pandemic. Commodities wise, both the CPO and oil prices experienced a pullback.

Sector focus:. Bargain hunting activities should emerge on the local bourse especially on sectors such as essential consumer stocks and utilities counters. Besides, the technology sector may bode well following the rally in Nasdaq overnight.

The FBM KLCI retreated and fell beyond the immediate support level at 1,555. Technical indicators remained negative as the MACD Histogram extended another red bar, while the RSI is hovering below 50. We expect to see some bargain hunting activities following the heavy selldown, with resistance set at 1,570-1,590, while the support level is envisaged around 1,530.

Company Brief

Axiata Group Bhd (Axiata) has conducted Open Radio Access Networks (Open RAN) commercial field pilots at selected sites in Malaysia, Indonesia, and Sri Lanka as it targets large-scale commercial deployments by end-2021. The commercial pilots were deployed through strategic partnerships with leading global network solutions providers; Mavenir and Parallel Wireless, which was supported by Infosys as systems integrator. (The Star)

Ernst & Young Consulting Sdn Bhd (EY) has accepted its appointment as Serba Dinamik Holdings Bhd's independent reviewer to assess the veracity and accuracy of matters highlighted by the oil and gas services provider's former external auditor KPMG PLT. Its co-founder Datuk Awang Daud Awang Putera sold 8.0m Serba Dinamik shares in the open market on 25th June 2021, reducing his stake to 52.4m shares or 1.4%, while the Employees Provident Fund disposed of 2.0m shares on 23rd June 2021, further trimming its stake to 281.1m shares or 7.6%. (The Edge)

Cahya Mata Sarawak Bhd (CMSB), which has hired KPMG Management & Risk Consulting Sdn Bhd to conduct an independent review of its financial management of certain investments and contracts, has reshuffled members of its audit committee, as well as its nomination and remuneration committee. Its independent non-executive director Jeyabalan SK Parasingam has been appointed as chairman of audit committee, as well as its nomination and remuneration committee. (The Edge)

Malayan Banking Bhd (Maybank) has announced that its group chief financial officer Datuk Amirul Feisal Wan Zahir has tendered his resignation from the group, and that his resignation will take effect on 15th July 2021. Amirul Feisal has conveyed that he is resigning to take up the position of managing director of a government-linked company. (The Edge)

Ralco Corp Bhd is implementing a temporary stoppage for its manufacturing facility in Nilai, Negeri Sembilan until 3rd July 2021, after the company discovered several positive cases of Covid-19 infection among its factory workers. (The Edge)

CB Industrial Product Holding Bhd (CBIP) is implementing a second temporary stoppage of its manufacturing facility in Telok Panglima Garang, Selangor from 21st June 2021 to 4th July 2021, after 26 workers tested positive for Covid-19. This comes after its wholly-owned unit PalmitEco Engineering Sdn Bhd, which operates the plant, conducted screening tests for its local and foreign employees. (The Edge)

Carlsberg Brewery Malaysia Bhd, which has temporarily suspended operations of its brewery in Shah Alam from 2nd June 2021, will continue to close the brewery until further notice, following the government’s announcement that Phase One of the National Recovery Plan will be extended. (The Edge)

Cypark Resources Bhd has been appointed by International Islamic University Malaysia (IIUM) to construct and operate its solar photovoltaic (PV) system. The project is under net energy metering scheme 3.0. (The Edge)

Source: Mplus Research - 29 Jun 2021