No sight of rebound yet

Market Review

Malaysia:. The FBM KLCI (-0.4%) remained downbeat with two-thirds of the key index components closed in the red as the local bourse fell -1.0% WoW. Both the lower liners and the broader market ended in the negative zone as the latter saw the plantation sector (-1.3%) underperformed.

Global markets:. Both the US and European stock markets were closed in conjunction with the Good Friday public holiday. Meanwhile, Asia stock markets ended mostly lower after China unexpectedly opted against cutting interest rate to support the economy that is currently beset by lockdowns.

The Day Ahead

The FBM KLCI ended the week on a negative note in a subdued market environment, in line with the regional downtrend move. While external risks remained in place, the border reopening should continue to bode well for the local economy especially the aviation and consumer sectors. Meanwhile, investors should monitor China’s key economic data which will be released today and Malaysia’s inflation rate later this week to gauge the BNM’s interest rate directions moving forward. On the commodity markets, the crude oil traded above USD110 per barrel mark while the CPO price was well supported above RM6,300.

Sector focus:. Still, we believe the energy and plantation stocks will continue to outperform on the back of elevated commodity prices amid the unresolved Ukraine-Russia tension. Meanwhile, we opine that the aviation and consumer sectors will be on traders’ radar in line with the recovery of the economic activities.

FBMKLCI Technical Outlook

The FBM KLCI extended losses, falling below the daily EMA20 level amid lacklustre trading. Technical indicators turned negative as Histogram fell below the zero line, while the RSI crossed below 50. Resistance is set at 1,600-1,620, while the support is envisaged around 1,580.

Company Brief

Opcom Holdings Bhd’s 60.0%-owned subsidiary has accepted a RM25.0m contract from VC Telecoms Sdn Bhd for design and consultation for a data centre. The contract was for the period commencing 12th April 2022 to 11th April 2023. (The Star)

Econpile Holdings Bhd's wholly owned subsidiary Econpile (M) Sdn Bhd has secured a RM23.0m contract from CJ Synergy Solutions Sdn Bhd to undertake the foundation and basement works for an industrial building in Section 20, Petaling Jaya. The development is a 5-storey industrial building with single-storey M&E at roof level and a 3-storey basement carpark. The duration of the project will be nine months from 18th April 2022. (The Star)

Sime Darby Plantation Bhd (SDP) has reported that Italian confectionery firm Ferrero, which is reportedly planning to stop sourcing palm oil from it, is not its customer and has not been for a while. Neither are General Mills and The Hershey Company, which are also mentioned in the Reuters news report published earlier on last Friday However, SDP confirmed that direct customer Cargill has decided to suspend all new sourcing of palm oil and derivative products from it, effective 25th February 2022. (The Edge)

Khazanah Nasional Bhd has completed a placement of 105.0m shares representing 1.0% in CIMB Group Holdings Bhd at RM5.10 per share, which raised RM535.5m in gross proceeds. The placement represents a 3.4% discount to the banking group's closing market price of RM5.28 on 13th April 2022.

Separately, CIMB reported that its foreign shareholding fell to 24.7% in March 2022 from 25.1% in the previous month to mark the financial services provider's first monthly foreign shareholding drop since May 2021. (The Edge)

Khee San Bhd has appointed Khairul Azwan Harun, chairman of VSolar Group Bhd and mTouche Technology Bhd, to helm its board of directors, effective 15th April 2022. Khairul, 46, was a former senator as well as former deputy chief of UMNO Youth, is also currently the chairman of Malaysia Debt Ventures Bhd, a Minister of Finance Inc subsidiary that provides flexible financing facilities to help develop the information and communications technology sector. (The Edge)

Malaysia Pacific Corp Bhd’s indirect wholly-owned subsidiary Taman Bandar Baru Masai Sdn Bhd (TBBM) has teamed up with privately held company Chesland Sdn Bhd to jointly develop a 5.7-ha piece of land in Johor Bahru. No other details on the proposed development were shared, other than that TBBM will apply to convert the land use from agriculture to commercial. (The Edge)

FSBM Holdings Bhd, via Malacca Securities Sdn Bhd has submitted its proposed plan to Bursa Malaysia on 15th April 2022 to regularise the group's status as an affected listed issuer under PN17. The group plan includes a proposed issuance of 60.0m new shares, a rights issue with free warrants, disposal of two subsidiaries, namely FSBM CTech Sdn Bhd and Unos Sdn Bhd for RM2.0m, and a capital reduction to trim its share capital. (The Edge)

The Ministry of Health's National Pharmaceutical Regulatory Agency (NPRA) has rejected INIX Technologies Holdings Bhd's application for registration with the former to source vaccine for Covid-19 from China. INIX has no intention to reapply for said application. (The Edge)

Pekat Group Bhd has appointed its managing director (MD) Chin Soo Mau to the newly created role of chief executive officer. Chin, 49, was appointed as MD of Pekat in September 2020, prior to the company being listing on the ACE Market of Bursa Malaysia. The company also announced the appointment of Tai Yee Chee as its chief operating officer and Wee Chek Aik as its chief commercial officer, effective immediately. (The Edge)

Source: Mplus Research - 18 Apr 2022