Market Review

Malaysia:. The FBM KLCI (-0.1%) remained in the red for the fourth straight session, dragged by weakness in selected banking heavyweights ahead of Bank Negara’s Overnight Policy Rate (OPR) decision today. The lower liners closed mixed, while the broader market ended mostly lower.

Global markets:. The US stockmarkets rebounded as the Dow gained 0.3% as the US Federal Reserve suggests that the threshold for tapering has yet to be met and the rise in inflation largely reflects temporary factors. European stockmarkets were upbeat, but Asia stockmarkets finished mostly lower.

The Day Ahead

The FBM KLCI sank for another session despite final hour bargain hunting activities as investors mulled the high number of Covid-19 confirmed cases while awaiting Bank Negara’s interest rate decision today. Meanwhile, there are several developments in the political scene, which may contribute to volatility in the markets. Also, we expect the ongoing lockdown in several localities, coupled with the Covid-19 status in Malaysia will continue to weigh on the local bourse. Commodities wise, both the CPO and oil prices extended their pullback.

Sector focus:. The technology sector may extend its upward trend in line with the positive performance on Nasdaq. Besides, investors may lookout for glove stocks for shorter term trade given the Covid-19 confirmed cases remained elevated.

The FBM KLCI closed mildly lower, forming a hammer candle after erasing most of its intraday losses. Technical indicators remained mixed as the MACD Histogram has extended a green bar, while the RSI hovered below the 50 level. Investors are likely to stay sidelines over the near term. Resistance is set at 1,560-1,580 for the key index, while the support level is envisaged around 1,500-1,520.

Company Brief

Serba Dinamik Holdings Bhd has appointed Siti Zaleha Sulaiman, former head corporate risk management at Bursa Malaysia as an independent director and nonexecutive board member. She is joined by former director of the Special Branch Datuk Seri Mohamed Farid Abu Hassan whom was also appointed to the board yesterday. (The Star)

Sunway Bhd has announced an upward revision of its property sales target to RM2.20bn, from its previously set target of RM1.60bn in January 2021, following higher contribution from its overseas projects. In Malaysia, the developer has brought forward the launch of Sunway Belfield’s second tower, which has a gross development value of RM360.0m, due to strong interest. (The Edge)

Seni Jaya Corp Bhd has proposed to undertake a private placement of up to 20.0% of its total number of issued shares to raise RM18.1m for business expansion. 8.1m new shares will be issued pursuant to the private placement, to third party investors to be identified later at an issue price to be determined later. (The Edge)

AirAsia Group Bhd digital unit, AirAsia Digital has acquired Gojek’s operations in Thailand and plans to launch its super app in early August 2021. Gojek’s investment is valued at US$40.0m while GoPay’s is at US$10.0m, and these will be transferred into shares for the AirAsia Super App, which is valued at US$1.00bn. (The Edge)

Kawan Food Bhd has invested RM7.3m in a solar photovoltaic installation at its headquarters in Pulau Indah Selangor Halal Hub. The amount covers an energy performance management system developed by Plus Xnergy Holdings Sdn Bhd called SOURCE that uses the artificial intelligence of things. One of the company's key moves is to invest in a solar solution, which was recently completed in the 1Q21, with projected savings worth RM1.0m annually. (The Edge)

Yong Tai Bhd, which has partnered China-based Shenzhen Kangtai Biological Products Co Ltd (SZKT) to supply Chinese-produced Covid-19 vaccines in Malaysia, is targeting to offer its vaccines to the private sector by September 2021 or October 2021. The group has an agreement with SZKT to supply 10.0m doses per year with an additional option of 10.0m if required, has commenced its trial vaccination. (The Edge)

Source: Mplus Research - 8 Jul 2021