Re-capturing 1,500

Market Review

Malaysia:. The FBM KLCI (+0.5%) spurt higher in the final trading hour yesterday and ended above the 1,500 level with two-thirds of the key index components traded in the positive territories. The lower liners ended mixed, while broader market closed mostly higher with the plantation sector (+1.0%) leading the pack.

Global markets:. US stockmarkets endured a choppy trading session as the Dow closed on a flat note, on concern over tighter restriction measures to contain the spread of Omicron variant could dent the progress of economic recovery. European stockmarkets extended their losses, while Asia stockmarkets ended mixed.

The Day Ahead

The FBM KLCI posted marginal gains on the back of softer trading activities; the daily trading value stood at RM1.59bn. Although the local bourse performance was in line with the regional stock markets yesterday, we believe selling pressure could emerge tracking the negative sentiment from the Wall Street. Fresh concerns over the Omicron variant still persist as UK implemented new Covid-19 restrictions to prevent a spike in Covid-19 cases. Nevertheless, we believe window-dressing activities may emerge in the near future on heavyweights. On the commodity markets, the crude oil price fell 1.85%, but hovering above USD74, while the CPO price extended losses.

Sector focus:. We believe the transportation sector may capture traders’ attention on the back of recovering market demand, in line with the increasing tone on Baltic Exchange Dry Index.

FBMKLCI Technical Outlook

The FBM KLCI rebounded to close above the key 1,500 level, flirting around the daily EMA9 level. Technical indicators have turned slightly positive as the MACD Histogram has turned higher, while the RSI is climbing upwards from the oversold region towards 50. The support level is located at 1,485, while the next resistance is pegged along 1,520-1,535.

Company Brief

Astro Malaysia Holdings Bhd’s 3QFY22 net profit fell 21.6% YoY to RM105.9m, on lower revenue. Revenue for the quarter dipped 7.6% YoY to RM1.02bn. A third interim dividend of 1.5 sen per share, payable on 7th January 2022 was declared. (The Star)

Konsortium Transnasional Bhd’s (KTB) wholly owned subsidiary, Transnational Builder Sdn Bhd has secured a RM26.4m contract from United Allied Development Sdn Bhd. The contract was for the piling, building works, internal infrastructure, and external infrastructure works of 59 units of shophouses at Perak. The contract period is 24 months from 9th December 2021 to 8th December 2023. (The Star)

My E.G. Services Bhd (MYEG) has received the green light from the Health Ministry (MOH) to deploy Breathonix's BreFence Go Covid-19 Breath Test System (BreFence Go) as an alternative Covid-19 screening method at the country's entry points, including international airports. BreFence Go will be used for mass screening, from which any positive COVID-19 results detected will be required subsequently to undergo a reverse transcription polymerase chain reaction (RT-PCR) test as further validation. (The Star)

The High Court has dismissed Serba Dinamik Holdings Bhd’s application to recuse the presiding judge in the company's lawsuit against Bursa Malaysia Securities Bhd. Justice Ahmad Fairuz ordered Serba Dinamik to pay costs of RM20,000 to Bursa, and set 17th January 2021 to hear the company’s interim injunction application to block the release of the factual findings update on its financials by special independent reviewer E&Y Consulting Sdn Bhd. (The Edge)

UEM Edgenta Bhd has reported that its indirect wholly-owned Edgenta Healthtronics Sdn Bhd has inked a Memorandum of Understanding (MoU) with Universiti Teknologi MARA (UiTM) to explore potential collaboration and opportunities in the digital healthcare space. UEM Edgenta will primarily work with the medical education centre that comprises private specialist centres and Pusat Pakar Perubatan UiTM (semi-government hospital) across UiTM's three campuses in Sungai Buloh, Selayang and Puncak Alam. (The Edge)

Swift Haulage Bhd’s initial public offering (IPO) to the public has been oversubscribed by 18.9x. A total of 13,536 applications seeking 353.3m shares were received for the 17.8m shares made available for application by the Malaysian public. Swift Haulage is slated to list on Bursa Malaysia’s Main Market on 21st December 2021. (The Edge)

CB Industrial Product Holding Bhd has decided to dispose of its 70.0% stake in biodiesel producer Gulf Lubes Malaysia Sdn Bhd (GLM) for RM55.0m to resolve GLM's management deadlock. The group is selling the stake to India-based Kaashi Visweshwara Minerals Pvt Ltd, which is principally engaged in mining of iron ores. (The Edge)

Milux Corporation Bhd is not aware of any reasons for the sharp fall in its share price, except for its planned disposal of a piece of land in Penang state. This is in reply to an unusual market activity (UMA) query by Bursa Malaysia, after the share price hit limit down when it dropped to 87.5 sen yesterday. (The Edge)

Source: Mplus Research - 10 Dec 2021