Finding a footing

Market Review

Malaysia:. The FBM KLCI was traded mostly in the negative territory before finishing 0.2% lower and the key index recorded 0.8% WoW decline. The lower liners, however, rebounded but all the 13 major sectors on the broader market ended mixed with the energy sector (+1.0%) leading the winners list on higher crude oil prices.

Global markets:. The US stockmarkets extended their losses as the Dow slipped 0.8% as uncertainties reign from the slowing economic growth, rising inflation, increasing Covid-19 cases and timing of Fed tapering. European stockmarkets finished mostly lower, while Asia stockmarkets rebounded to close mostly upbeat.

The Day Ahead

The FBM KLCI extended its decline with marginal losses on Friday, after erasing most of the earlier gains and the sentiment remained mixed. Nevertheless, the local bourse continued to see buying support from foreign and retail investors on the back of brighter economic recovery prospects driven by positive developments in NRP and vaccination rate. Meanwhile, aluminium price remained elevated, surging above USD2,900 level as market digested the predictions from the Harbor Aluminum Summit attendees that supply shortage is unlikely to be alleviated in the short term. Crude oil price reversed and closed above USD72 per barrel level, while CPO dropped below RM4300.

Sector focus:. As the commodities price remained elevated, we reckon the steel and metal related counters may continue to outperform. We believe technology will be decent to buy on dips for short term trades, while investors may accumulate stocks in the recovery theme sectors such as banking, consumer, and tourism.

FBMKLCI Technical Outlook

The FBM KLCI continued to hover below the daily EMA9 level after losing its grips on the 1,580 level. Technical indicators remained mildly negative as the MACD Histogram has extended a red bar, while the RSI continued to drift lower below 70. The key index may find its support around 1,560, while the resistance is at 1,600.

Company Brief

Top Glove Corp Bhd has been cleared and is now allowed to resume exporting and selling gloves to the US after the US Customs and Border Protection (CBP) lifted its ban against disposable gloves made by the world's largest medical glove manufacturer, effective on 10th September 2021. The CBP affirmed that based upon additional information, products by Top Glove are no longer in violation of its laws. (The Edge)

Khazanah Nasional Bhd has successfully completed a placement of 138.4m shares in CIMB Group Holdings Bhd at RM4.80 per share, raising gross proceeds of RM664.5m. The placement price represents a 2.8% discount to CIMB Group's closing market price of RM4.94 on 8th September 2021. (The Edge)

Sarawak Consolidated Industries Bhd (SCIB) has clinched an engineering, procurement, construction and commissioning contract worth RM16.3m from Satria Kasturi (M) Sdn Bhd. The contract spans 96 weeks from October 2021 to August 2023 and it entails the development of a solid waste transfer station in Pontian, Johor. (The Edge)

Ibraco Bhd has proposed to undertake a private placement of up to 10.0% of its issued shares to part finance an existing property development project. A maximum number of 49.6m new shares will be placed out to third party investors at an issue price to be determined later. However, based on an illustrative issue price of 47.0sen per placement share, the exercise is expected to raise gross proceeds of up to RM23.3m. (The Edge)

Bintai Kinden Corp Bhd has clarified that its unit Bintai Healthcare Sdn Bhd and NGT Solutions (M) Sdn Bhd are not appointed as Duopharma Biotech Bhd's distributor for the distribution of Sinopharm's COVILO Covid-19 vaccine. (The Edge)

Malaysia Airports Holdings Bhd's (MAHB) Istanbul Sabiha Gokcen International Airport in Turkey has implemented a new passenger flow management system to heighten passenger safety and operational efficiency. The system, known as Xovis PTS, is part of the group-wide Airports 4.0 digital initiative aimed at improving travelling experience at airports within the new norms. (The Edge)

Greatech Technology Bhd is buying a plot of leasehold land worth RM16.8m in Penang as part of its capacity expansion plan. The purchase is being undertaken via its wholly owned Greatech Integration (M) Sdn Bhd, who inked a sale and purchase agreement with Penang Development Corp. The land, which is presently vested in the State Authority of Penang, measures about 7.0-ac and located in Batu Kawan Industrial Park. (The Edge)

Hextar Global Bhd has secured RM45.0m additional Islamic financing facility from Al-Rajhi Banking and Investment Corp (Malaysia) Bhd. The additional facility in the form of Structured Commodity Financing-i would be utilised as the capital requirement of its shariah-compliant business. (The Edge)

Fintec Global Bhd, which just made its third placement in less than two years to raise funds to build its glove factory in Perak, has bought into loss-making NetX Holdings Bhd. The group emerged as NetX's substantial shareholder via its wholly owned Fintec Global Ltd after the latter acquired 53.2m shares or a 6.4% stake in the group from the open market, between 26th August 2021 and 9th September 2021. (The Edge)

Source: Mplus Research - 13 Sept 2021