Market Review

Malaysia:. The FBM KLCI (+0.8%) ended the week on a brighter note, lifted by gains in banking and gloves heavyweights. The lower liners were boosted by bargain hunting activities, while the construction (-0.4%) and property (-0.3%) sectors underperformed the positive broader market.

Global markets:. The US stockmarkets marched higher as the Dow climbed 1.3% in anticipation of the strong 2Q21 corporate earnings to be release starting this week. European stockmarkets also advanced, but Asia stockmarkets ended mostly lower.

The Day Ahead

The FBM KLCI finished the week on a positive note as the key index rebounded from the previous five consecutive losses on the back of bargain hunting activities. However, investors are likely to remain cautious due to dearth of fresh leads and the concerns over the ongoing political developments as well as the high Covid-19 infection rates which may overshadow the improvements on vaccination rates. Meanwhile, market may watch the Malaysia’s industrial production and retails sales data which will be released today. Commodities wise, both the CPO and oil prices have seen a surge.

Sector focus:. Given the positive overnight performance on the Wall Street, we believe the technology sector is likely to gain traction today. We believe the lockdown situation in Malaysia is gradually easing and that may bode well for the recovery theme stocks within the tourism, aviation, property and construction sector. Besides, the energy and plantation counters may trend mildly higher in line with the commodities prices.

The FBM KLCI snapped the five-day losses to close the week higher, rebounding from the year-to-date low. Technical indicators are looking slightly positive with the MACD Histogram turning green, and the RSI crossed above 30. Resistance will be pegged around 1,525-1,548, while 1,500 could be a line of support to watch.

Company Brief

Boustead Plantations Bhd (BPB) has appointed Zainal Abidin Shariff as its new CEO effective 12th July 2021. BPB chairman Datuk Ismail Lasim has reported that Zainal would lead its reinvented plantation business as he brings a wealth of experience to the group. (The Star)

Naim Holdings Bhd has announced an interim dividend of 7.9 sen per share for FY21, to be paid on 6th August 2021. The dividend payment amounts to RM40.0m, marks the second consecutive year the group has announced dividends for its shareholders, after the total RM47.6m paid out in FY20. (The Edge)

Ibraco Bhd has secured a turnkey engineering, construction and commissioning contract, worth RM169.0m, for houses under the Rumah Pertiwi Scheme in Kuching, Sarawak. The five-year job was awarded by Bumia Sdn Bhd. (The Edge)

AwanBiru Technology Bhd (Awantec) has secured a RM22.8m contract from the Ministry of Education (MOE) to supply G Suite Enterprise for Education software to public schools in Malaysia. The three-year contract is effective 9th July 2021. (The Edge)

Gas Malaysia Bhd has raised the average natural gas selling price for the distribution segment of its unit Gas Malaysia Energy and Services Sdn Bhd to RM30.03/metric m British thermal unit (MMBtu) for 3Q21 compared with RM26.85/MMBtu in 2Q21. (The Edge)

Kumpulan H&L High-Tech Bhd, whose share price hit limit up after jumping 30.0% on 9th July 2021, has received an unusual market activity (UMA) query from Bursa Malaysia over recent spike in its share price and volume. Over the past week and a half, H&L’s share price has more than doubled since its closing of RM2.00 on 28th June 2021. The counter gained RM1.30 to settle at RM5.64, giving it a market capitalisation of RM206.3m, with 17.9m shares traded on last Friday. (The Edge)

Source: Mplus Research - 12 Jul 2021