Review & Outlook

Property and construction stocks extended profit-taking consolidation on Tuesday, but were lifted off lows on bargain hunting interest, which spilled over to the oil & gas sector. The FBM KLCI slipped 1.65 points to close at 1,453.39, off the opening high of 1,454.32 and low of 1,447.96, as losers beat gainers 524 to 354 on total turnover of 2.88bn shares worth RM1.99bn.

Range bound trading should persist as profit-taking consolidation on the property and construction sectors prevail pending fresh leads, while oil & gas related stocks bounce back on rotational plays. Immediate index support remains at 1,440, followed by 1,433, with subsequently 1420/1,400 acting as stronger supports. Immediate overhead resistance will be at 1,465, then 1,470, with the 1,490/1,500 levels as higher resistance.

DNEX remains in base building mode, pending decisive breakout above the 200-day ma (53sen) to boost upside momentum towards the 76.4%FR (59sen), and tougher resistance from 64sen and 69sen ahead, with downside risk capped by the lower Bollinger band (42sen) and 30/5/23 low (37sen). Hibiscus needs sustained strength above the 38.2%FR (RM1.03) to support further upside towards the 50%FR (RM1.11) and 61.8%FR (RM1.19) going forward, while the 23.6%FR (93sen) and 5/7/23 low (85sen) provide key chart supports.

News Bites

• A joint tender between Sunway Bhd's subsidiary and Hoi Hup Realty Pte Ltd has won a S$348.5mn tender for a land parcel at Tengah Plantation Close in Singapore. .

• Public Bank Bhd has obtained approval from Bank Negara Malaysia for the establishment of a subordinated medium-term notes (sub-notes) programme of up to RM20bn in nominal value.

• AmBank (M) Bhd's loan growth for small and medium enterprises is expected to maintain double-digit growth this year says Group Chief Executive Officer Datuk Sulaiman Mohd Tahir.

• Destini Bhd and Priceworth International Bhd have entered into a strategic partnership via their respective subsidiaries to advance renewable energy projects, especially in the solar power sector.

• Sarawak Consolidated Industries Bhd has signed an agreement with Indonesian mass rapid transit operator PT MRT Jakarta (Perseroda) Tbk to explore potential partnership to develop a transport-orientated development in Jakarta.

• MyEG Services Bhd has been alleged to have been illegally collecting fees for its foreign worker permit renewal services, despite suspension by the Immigration Department of Malaysia.

• UEM Sunrise Bhd is launching Residensi ZIG, the second phase of the Kiara Bay integrated township development in Kepong with a gross development value of RM646.2mn on 16 September 2023.

• Hektar Real Estate Investment Trust has proposed to acquire buildings from KYS College Sdn Bhd for RM150.0mn.

• Crescendo Corporation Bhd is acquiring two plots of land in Johor with a total gross area of 1.3 hectares from Bewell Realty Sdn Bhd for RM72.0mn.

• Hong Seng Consolidated Bhd has scrapped a plan to sub-lease a part of an industrial land in Prai Bulk Cargo Terminal, Penang from Penang Port Sdn Bhd.

• Bumi Armada Bhd's 30%-owned subsidiary Bumi Armada 98/2 Pte Ltd has achieved financial close under its long-term project financing facility of US$948mn.

• Cypark Renewable Energy Sdn Bhd, a wholly owned subsidiary of Cypark Resources Bhd, has issued the second tranche of its remaining Perpetual Sukuk Musharakah of up to RM265.0mn.

• Berjaya Land Bhd's rail unit Berjaya Rail Sdn Bhd has appointed Tunku Tun Aminah Sultan Ibrahim Ismail as chairperson.

• PBA Holdings Bhd has appointed newly elected Penang Deputy Chief Minister I Datuk Dr Mohamad Abdul Hamid as its Non-Independent and Non-Executive Vice/Deputy Chairman, effective 12 September 2023.

• China's economy is resilient and has not collapsed, the Chinese foreign ministry said, rejecting claims from the West that its economy is faltering and could cause wider problems.

• The National Federation of Independent Business said its Small Business Optimism Index in the US fell for the first time since April to 91.3 in August on continued concern over inflation and difficulty finding quality labour.

Source: TA Research - 13 Sept 2023