Eking out last-minute gains

Market Review

Malaysia:. The FBM KLCI (+0.4%) nudged higher by the eleventh-hour buying support in selected banking and oil & gas index heavyweights. The lower liners advanced, while the healthcare (-0.7%) and property (-0.1%) sectors underperformed the positive broader market.

Global markets:. The US stockmarkets ended mostly lower as the Dow slipped 0.2% as the weaker-than-expected jobs data with only 235,000 additions in August 2021 suggests the economic recovery is still at uneven grounds. European stockmarkets were downbeat, while Asia stockmarkets ended mostly higher.

The Day Ahead

The FBM KLCI finished on a positive note after a volatile session with selected banking, plantation and shipping counters taking the lead, despite mixed performances in the regional markets. Investors may look ahead to Malaysia’s unemployment rate and the Bank Negara’s decision on interest rate which will be released on Thursday. Meanwhile, the CPO price extended its gain to close above RM4,300, the gold price rose, while the crude oil price retreated. Still, we expect the recovery tone for the economic activities to pick up once with the decent vaccination rate at this juncture.

Sector focus:. With the CPO price continue sustaining above the RM4,300 level, investors may position in plantation counters. Besides, trading interest in the recovery theme sectors such as banking, construction, building material, and consumer as well as transportation and logistics are likely to remain in tandem with the ongoing vaccination progress.

FBMKLCI Technical Outlook

The FBM KLCI climbed back above the SMA200 level as the key index surged in the final trading hour. Technical indicators remained mildly negative as the MACD Histogram has extended a red bar, while the RSI continued hovering below the 70 level. Resistance is located at 1,600, while the support is pegged along 1,580.

Company Brief

Handal Energy Bhd’s (Handal) wholly-owned subsidiary Handal Cranes Sdn Bhd has bagged an extended contract from SEA Hibiscus Sdn Bhd for the provision of offshore crane maintenance services. The new agreement extends Handal Cranes’ contract from 31st October 2021 to 30th October 2022. (The Star)

XL Holdings Bhd is buying Ergobumi Sdn Bhd, principally involved in planting, growing, cultivating, producing, and raising plantations of pineapple plants as well as to buy, sell, export and distribute pineapples for RM40.0m. The acquisition proposed represents an opportunity to pursue its diversification strategy with profitable fruits and vegetables plantation. (The Star)

Heineken Malaysia Bhd has bagged the Green Leadership Award at the Asia Responsible Enterprise Awards (AREA) 2021, underlining its water stewardship efforts that culminated in the brewer balancing more than 100% of the water used in its products in 2020. (The Edge)

IGB Commercial Real Estate Investment Trust (REIT) has fixed 71.0 sen as the price for the institutional portion of its initial public offering (IPO), notably lower than the indicative price of 83.0 sen apiece set for its book-building exercise. IGB Commercial REIT units were also offered to shareholders of IGB Bhd via a restricted offer for sale (ROFS). IGB Bhd shareholders were entitled to subscribe to two ROFS units at RM1.00 each for every five shares held. In addition, shareholders who subscribed to the ROFS were entitled to distribution in specie (DIS) on the basis of three DIS units for every two ROFS units subscribed. (The Edge)

Apex Healthcare Bhd has inked an agreement with Innova Bio-Medical Pte Ltd to supply the Sinopharm Covid-19 vaccine to private healthcare practitioners in Singapore. Under the deal, Innova will supply the Chinese-made vaccine to Apex’s wholly-owned unit in Singapore, Apex Pharma Marketing Pte Ltd, for onward sale and distribution to hospitals and private clinics within the city state. (The Edge)

Berjaya Assets Bhd via its wholly-owned subsidiary Berjaya Bright Sdn Bhd disposed of a total of 6.0m shares or a 0.5% stake in its sister company 7-Eleven Malaysia Holdings Bhd (SEM) on 2nd September 2021. Following the disposal, Berjaya Assets is left with 8.2m SEM Shares, representing a 0.7% stake in the convenience store operator. (The Edge)

Bioalpha Holdings Bhd's wholly-owned subsidiary Bioalpha International Sdn Bhd (BISB) has called off a deal it entered into in January 2021 to distribute Covid-19 vaccines in Malaysia. The group has mutually agreed to terminate the agreement with Shanghai Bukun Trading Co Ltd (SBTC) with immediate effect. (The Edge)

Source: Mplus Research - 6 Sept 2021