Sustained rebound

Market Review

Malaysia:. The FBM KLCI (+0.3%) recorded its third day of winning run, driven by optimism over the Prime Minister’s visit to China. The lower liners, however, ended mixed, while the industrial products and services (+1.7%) sector outperformed the mixed sectorial peers.

Global markets:. Wall Street marched higher as the Dow (+0.4%) advanced, driven by gains in technology giants that offset the hawkish comments from the US Federal Reserve officials on the backing of further monetary tightening. The European stockmarkets extended their gains, but Asia stockmarkets ended mixed.

The Day Ahead

The FBM KLCI notched a three-day winning streak, taking cue from the positive environment across regional markets. On the global front, stocks were on track to book further gains amid the quarter-end rebalancing period with easing fears over the global banking crisis. We believe the local bourse will see further upside, supported by the China visit by our 10th Prime Minister, which may anticipate further investments to emerge going forward. Commodities wise, the Brent crude oil traded above USD79 per barrel, while the CPO price hovered above RM3,750; Gold price remained solid above USD1,980.

Sector focus:. The technology sector may be the top performing sector in view of the extended rallies on Wall Street. Meanwhile, investors may look for trading opportunities in the energy counters as crude oil price inched higher. For the quarter-end window dressing activities, we expect traders to focus on banking, properties as well as O&G heavyweights.

FBMKLCI Technical Outlook

The FBM KLCI marked a 3-day winning streak. Technical indicators remained positive with the MACD Histogram extended a positive bar, while the RSI is approaching 50. Resistance is set along 1,445-1,450, while the support is located at 1,400-1,410.

Company Brief

Sapura Energy Bhd’s 4QFY23 net loss narrowed to -RM3.30bn, from a net loss of RM6.77bn recorded in the previous corresponding quarter, on higher topline growth. Revenue for the quarter jumped 186.0% YoY to RM1.22bn. (The Star)

MyEG Services Bhd (MyEG) has signed a partnership agreement with the General Administration of Customs of China (GACC) to jointly provide a full suite of crossborder trade facilitation services that include certificates of origin on MyEG's blockchain platform, Zetrix. The scope of the agreement covers international exports going into China, and MyEG will, via Zetrix, provide the digital service to connect to China's blockchain platform. (The Edge)

Long-time investor of MR DIY Group (M) Bhd, Creador, is to offload its entire 4.9% equity interest in the home improvement retailer for RM664.2m. Currently, Creador holds 464.6m shares in MR DIY via Hyptis Ltd, Andira Cordata Sdn Bhd and Amanita Regalis Sdn Bhd. The private equity firm is looking to dispose of 322.0m MR DIY shares at RM1.43 apiece, a 6.5% discount to the counter’s last close of RM1.53. The remaining 142.6m shares are to be made available for Creador’s management and select employees for subscription at the same price point of RM1.43 per share. (The Edge)

Pentamaster Corp Bhd has reported that its subsidiary Pentamaster Technology (M) Sdn Bhd (PTSB) has established a wholly foreign-owned limited liability company in Germany named Pentamaster Automation (Germany) GmbH (PAG). The group already has distributors and customers in Europe. This marks Pentamaster's fifth international setup, after the US, China, Japan and Singapore, based on its latest annual report. (The Edge)

Tanco Holdings Bhd secured a RM43.4m contract from China Communications Construction (ECRL) Sdn Bhd (CCCESB) in relation to the construction of the East Coast Rail Link Project (ECRL). It will undertake the construction and completion of subgrade works from C2CH34+499.980 to C2CH40+256.140, Section 9 of the project. (The Edge)

MyNews Holdings Bhd’s 1QFY23 net loss narrowed to -RM3.2m, from a net loss of -RM7.9m recorded in the previous corresponding quarter, on higher revenue due to contributions from new outlets, longer business hours, and higher in-store sales. Revenue for the quarter rose 32.0% YoY to RM184.1m. (The Edge)

ManagePay Systems Bhd has entered into a term sheet with Hong Kong-based Eddid Financial Holdings Ltd to form a joint venture (JV) to apply for a capital market services licence (CMSL), as well as to launch and market the trading app Eddid ONE. The parties will enter into a definitive JV agreement within 3 months. (The Edge)

PTT Synergy Group Bhd is acquiring construction firm Pembinaan Tetap Teguh Sdn Bhd (PTTSB) from its major shareholders and directors for RM152.0m, to grow its construction business. PTT Synergy has inked a share sale agreement with its deputy chairman Teo Swee Leng, its managing director Teo Swee Phin and Faddly Nordin to purchase the entire equity interest in PTTSB. It is deemed a related party transaction as Swee Leng and Swee Phin have substantial stakes in Aim Tetap Teguh Group Sdn Bhd (ATTG), which controls a 52.6% stake in PTT Synergy. (The Edge)

Former Maybank Investment Banking Group CEO Datuk Hamidah Moris (better known as Ami Moris) has been appointed to the board of Cypark Resources Bhd as an independent and non-executive director, effective 30th March 2023. This confirmed a report by The Edge, which citing sources, stated that Ami would be joining the renewable and solid waste management company's board. (The Edge)

Crescendo Corp Bhd’s 4QFY23 net loss stood at -RM3.6m vs. a net profit of RM4.6m recorded in the previous corresponding quarter, due to lower sales of properties. Revenue for the quarter fell 28.0% YoY to RM39.3m. A final dividend of 2.0 sen per share, payable on 29th August 2023 was declared. (The Edge)

Source: Mplus Research - 31 Mar 2023