Review & Outlook

Bursa Malaysia shares eked out slight gains on Wednesday, as mild buying interest in selected blue-chip heavyweights offered support amidst the more cautious broader market, while key regional markets finished mixed after weak economic data in China and Europe heightened concerns over global growth. The FBM KLCI inched higher by 5.79 points to settle at 1,460.62, off a high of 1,463.04 and low of 1,454.25, as gainers led losers 531 to 380 on trade totaling 4.17bn shares worth RM2.12bn.

Trading is expected to stay choppy on concerns over the path of interest rates and a lack of new stimulus from Beijing to keep investors on edge. Immediate index support cushioning downside will be at 1,440, then 1,433, with stronger subsequent support at 1420/1,400, while overhead resistance stays at 1,464/1,470, with next tougher resistance seen at the 1,490/ 1,500 level.

Further weakness on Duopharma shares would aggravate oversold technical momentum and call for rebound upside towards the 38.2%FR (RM1.27), with tougher hurdle from the 50%FR (RM1.35), while crucial support from the 23/6/22 low (RM1.04) cushions downside. Pharmaniaga will need convincing breakout above the 50%FR (46sen) to fuel further upside towards the 61.8%FR (51sen), with next hurdle at 76.4%FR (58sen), and downside cushioned by the 23.6%FR (33sen).

News Bites

• Pelikan International Corp Bhd is to hold its extraordinary general meeting on Sept 20 for shareholders to vote on the disposal of the company's stake in Pelikan Group GmbH to Holdham SAS for EUR136mn cash, as well as the distribution of part of the disposal consideration to its shareholders via capital reduction and repayment.

• Eco World Development Group Bhd is acquiring 403.8 acres of land in Senai, Johor, to develop a business park to be known as Eco Business Park VI, for RM211.1mn cash.

• YTL Hospitality Real Estate Investment Trust is acquiring Hotel Stripes Kuala Lumpur, Autograph Collection for RM138mn cash, in a related party transaction.

• Systech Bhd has received a notice of an unconditional mandatory takeover offer for the company at 22 sen per share.

• Khazanah Nasional Bhd has disposed of RM444.3mn worth of shares in CIMB Group Holdings Bhd and Tenaga Nasional Bhd.

• Perak Corp Bhd has denied the allegations of fraud and non-disclosure of land assets made by Paramount Grace Sdn Bhd director Paramjit Singh Gurbachan Singh, calling them malicious and unsubstantiated.

• Edaran Bhd has secured a contract worth RM44.0mn from the Prime Minister's Department, to undertake comprehensive maintenance and support services for infrastructure equipment.

• Seal Incorporated Bhd is subscribing for RM15mn worth of shares in two Perak-based companies, in a move to diversify into the renewable energy business.

• Aneka Jaringan Holdings Bhd has proposed to undertake another cash call to raise RM15.5mn to fund its ongoing construction projects.

• Stella Holdings Bhd has secured loan facilities of up to RM101mn from AmBank (M) Bhd, which includes a term loan of up to RM100mn to partially finance the group's acquisition of construction firm Pembinaan Teguh Maju Sdn Bhd for RM380mn.

• Ancom Nylex Bhd is teaming up with MIMOS Bhd and German crop protection and fertiliser group HELM AG to apply digital agriculture solutions through SKYFLD, a digital agriculture platform.

• HSS Engineers Bhd and ProPick Digital Solutions & Consulting Sdn Bhd will form a 70;30 joint-venture company offering cutting-edge artificial intelligence-empowered drone technology to the engineering sector.

• Powerwell Holdings Bhd's wholly-owned subsidiary, Powerwell International Sdn Bhd, is set to buy a 55% stake in M Electrical & Engineering for RM8.3mn to complement its offerings.

• Impiana Hotels Bhd has appointed Datuk Seri Lee Hock Seng as its executive director effective Wednesday, and will subsequently designate Lee as its deputy executive chairman.

• The Institute for Supply Management said its non-manufacturing PMI rose to 54.5 last month, the highest reading since February and up from 52.7 in July.

• German factory orders fell a calendar-and-seasonally adjusted 11.7% in July, which added fuel to worries that the biggest euro area economy may be headed for a recession.

Source: TA Research - 7 Sept 2023