Edging higher

Market Review

Malaysia:. The FBM KLCI (+0.9%) resumed trading on a buoyant manner, lifted by the more than two-thirds of the key index components that was traded higher. The lower liners advanced, but the technology (-0.1%) and healthcare (-0.02%) sectors underperformed the positive broader market.

Global markets:. Wall Street snapped a 4-day rally as the Dow (-1.5%) was dragged down by the volatility across technology shares, coupled with the sluggish Markit Services PMI data in January 2022 at 51.2; the weakest since July 2020. The European stockmarkets turned downbeat on the more hawkish tone from the European Central Bank, while Asia stockmarkets closed mostly negative.

The Day Ahead

The FBM KLCI roared back strongly on Thursday in the post-Chinese New Year trade, but trading remained thin as investors were cautious amid mixed sentiment across regional markets. Following another round of selloffs on Wall Street led by Meta on the back of poor earnings, we reckon regional stock markets to remain fragile, which eventually may spillover to stocks on the local front. Commodities wise, the crude oil stayed firm above USD91 per barrel mark, while the CPO price hovered above RM5,500.

Sector focus:. Investors may shift into risk-off mode moving forward to focus on banking and consumer stocks with solid fundamentals. Meanwhile, we remain positive on the energy and plantation counters given the firm uptrend in the respective commodity prices and may trade higher ahead of the reporting season.

FBMKLCI Technical Outlook

The FBM KLCI climbed steadily throughout the session yesterday, closing above the SMA50 and daily EMA9 level. Technical indicators are gradually improving; the MACD Histogram has turned flat, while RSI is heading towards 50. Resistance is pegged along 1,530-1,570, while the support is located at 1,505.

Company Brief

Top Glove Corp Bhd has announced its first ever inclusion with an Industry Mover distinction in The Sustainability Yearbook 2022 by S&P Global. The company is one of 53 Industry Movers in the 2022 Yearbook. The annual yearbook is one of the world’s most comprehensive publications providing in depth analysis on corporate sustainability. (The Star)

Mtouche Technology Bhd plans to further diversify its revenue streams by strengthening its wellness business by riding on technological advancements. This includes setting up and operating a one-stop health and wellness studio, a recovery studio and a fitness studio. This will be supported by the usage of a digital healthcare platform developed by the group. (The Star)

Sereen Teoh Hooi Ling has resigned as Green Packet Bhd's chief financial officer (CFO) to pursue her own interests. The resignation was effective 2nd February 2022. (The Edge)

NWP Holdings Bhd's managing director Datuk Seri Kee Soon Ling who is being sued by the company's new management over alleged fraudulent transactions has upped his stake in the company to 9.7% after acquiring 2.7m shares on 31st January 2022. The shares represent a 0.5% stake in the company and were transacted at 17.5 sen per share. Following the latest acquisition, Kee now has 51.3m shares in NWP. (The Edge)

Straits Energy Resources Bhd has appointed Sunny Ho Khin Choy as the chief executive officer of its indirect subsidiary Straits CommNet Solutions Sdn Bhd effective 3rd February 2022. Ho will lead Straits Energy's push into the 5G-driven digital space and the internet of things (IoT) transformation of the regional oil and gas (O&G) industry. (The Edge)

Source: Mplus Research - 4 Feb 2022