Still directionless

Market Review

Malaysia:. The FBM KLCI (+0.04%) managed to eke out minor gains ahead of the extended weekend break, boosted by performance in selected plantation and oil & gas heavyweights. The lower liners closed mixed, while the industrial products & services sector (+0.8%) emerged as the biggest winner among the sectorial peers.

Global markets:. The US stockmarkets retreated as the Dow (-0.1%) slipped on concerns over the prospects of further rate hikes in March and June, while megacap technology stocks retreated from their overbought levels. Both the European and Asia stockmarkets closed mostly negative.

The Day Ahead

The FBM KLCI eked out small gains on the back of final hour buying interest. However, the global sentiment remained uncertain in view of the Nasdaq-led decline on Wall Street following the robust January employment figures which has raised concerns over potential more hawkish tone from the US Fed. Meanwhile, on the local front, investors could be focusing on the upcoming earning season and the re-tabling of Budget 2023 on the 24th of February. Commodities wise, the Brent crude oil traded above USD81, while the CPO price hovered above RM3,850.

Sector focus:. Given the pullback on Wall Street, coupled with the rising bond yield, the technology sector may see further pullback. Meanwhile, with the traders’ focus shifting towards the earnings season and re-tabling of Budget 2023, the industrial products & services, construction, O&G as well as selected consumer stocks may be under the limelight.

FBMKLCI Technical Outlook

The FBM KLCI ended marginally higher after shaking off losses in the afternoon session. Technical indicators as the MACD Histogram extended a negative bar, while the RSI is hovering above 50. Resistance is monitored at 1,525-1,540, while support is set along 1,450-1,460.

Company Brief

Sime Darby Plantation Bhd (SDP) has been given the nod by the US Customs and Border Protection (USCBP) to resume its exports of palm oil products to the United States, following a more than 2-year ban on allegations of forced labour. A modified finding by the USCBP cleared the plantation giant of forced labour allegations, specifically involving palm oil and derivative products. (The Star)

Fraser & Neave Holdings Bhd’s (F&N) 1QFY23 net profit jumped 113.9% YoY to RM198.8m, boosted by higher non-taxable income. Revenue for the quarter increased 10.1% YoY to RM1.22bn. (The Edge)

Former Armed Forces Fund Board (LTAT) chairman Tan Sri Mohd Anwar Mohd Nor has been appointed chairman of Country Heights Holdings Bhd with immediate effect, succeeding tycoon Tan Sri Lee Kim Yew. (The Edge)

IJM Corp Bhd has appointed Lee Chun Fai as its group chief executive officer and managing director with effect from 1st April 2023. Lee has been serving as IJM's deputy CEO and deputy MD since April 2015. (The Edge)

Tropicana Corp Bhd is selling a 10.9-ac piece of land in Pontian, Johor, to KSL Holdings Bhd for RM21.3m. The latest sale comes after 2 previous disposals to KSL by Tropicana last year. (The Edge)

Cypark Resources Bhd will operate a solid waste modular advanced recovery and treatment waste-to-energy (SMART WTE) plant at Ladang Tanah Merah in Port Dickson. Its wholly-owned Cypark Smart Technology Sdn Bhd received the confirmation of feed-in-tariff commencement on 3rd February 2023 from Sustainable Energy Development Authority. (The Edge)

China Automobile Parts Holdings Ltd will be delisted from Bursa Malaysia on 9th February 2023 after the ailing company failed to submit its regularisation plan to the relevant authorities over the past 5 years. The company first triggered the criteria to be classified as a Practice Note 17 firm in January 2018 after its auditors expressed a disclaimer of opinion on the group’s financial statement for the fiscal year ended 31st December 2015. (The Edge)

Topvision Eye Specialist Bhd’s directors and major shareholders Datuk Kenny Liew Hock Nean and Dr Peter Chong Kuok Siong have proposed to voluntarily withdraw the company from Bursa Malaysia's LEAP Market, to facilitate the company's listing on the ACE Market. Liew and Chong, who collectively own a 67.0% stake in the company, made the proposal on 3rd February 2023 and it requires shareholders’ approval. (The Edge)

Source: Mplus Research - 7 Feb 2023