Review & Outlook

Bursa Malaysia shares ended softer on range bound trade Wednesday, with most investors sidelined and cautious ahead of the release of the U.S. inflation figures that may give a better guide on the path for Federal Reserve interest rates. The KLCI inched higher by 0.15 points to close near the session high of 1,453.54, off an early low of 1,444.81, as losers led gainers 480 to 405 on reduced turnover of 2.51bn shares worth RM1.88bn.

Trading should remain choppy and in a tight range amid weak buying support as nagging doubts about inflation and concerns over the path of interest rates continued to weigh on investor appetite. Immediate index support stays at 1,440, followed by 1,433, with subsequently 1420/1,400 acting as stronger supports. Immediate overhead resistance remains at 1,465, then 1,470, with the 1,490/1,500 levels as higher resistance.

Aemulus is still in base building mode, pending breakout confirmation above the 200-day ma (38sen) to target the 38.2%FR (45sen) and 50%FR (50sen) ahead, while the lower Bollinger band (30sen) and 12/5/23 low (29sen) limit downside risk. Globetronics will need to overcome significant resistance from the 61.8%FR (RM1.63), matching the upper Bollinger band, to aim for the 76.4%FR (RM1.79) and 27/9/21 high (RM2.04) going forward, while the 50-day ma (RM1.45) and 100-day ma (RM1.30) cushions downside.

News Bites

• Prime Minister Datuk Seri Anwar Ibrahim said that Malaysia is not ready for the reinstatement of the GST anytime soon.

• Capital A Bhd's AirAsia has announced plans to fully reactivate its 204 aircraft, supported by a refreshed agreement with its long-term partner and engine provider, CFM International.

• Tropicana Corporation Bhd is rolling out a 362-acre new township development called Tropicana Alam in Puncak Alam, Selangor that has an estimated gross development value of RM700mn.

• Avaland Bhd's newly launched Alora Residences has achieved a take-up rate of 50%. It is the first phase of 2Fifth Avenue, the company's RM3bn, 13-acre integrated development.

• JHM Consolidation Bhd plans to team up with its Chinese counterpart Jiangsu Dekai Auto Parts Co Ltd to sell automotive lighting products in Malaysia and other Southeast Asian countries.

• Bumi Armada Bhd has entered into a non-binding agreement with Indonesia's PT Pertamina International Shipping and PT Davenergy Mulia Perkasa to develop and commercialise liquefied natural gas from the Madura gas field and its surrounding fields.

• Majuperak Holdings Bhd has signed a MoU with SPIC Energy Malaysia Bhd to explore the potential development of ground mounted and floating solar photovoltaic projects in Perak and further explore potential joint ventures for EPCC services to potential investors.

• Dagang Nexchange Bhd has proposed a private placement to raise up to RM133.4mn as funding for the expansion of its oil and gas segment.

• Berjaya Corporation Bhd has increased its stake in Berjaya Food Bhd from 52.86% to 55.31% after the conglomerate bought 43.0mn BFood shares for RM29.6mn or about 68.8sen per share.

• Malaysian Genomics Resource Centre Bhd's Chief Executive Officer Sasha Omar Firdaus Aamir has resigned after 3 years at the helm to pursue his personal interest.

• MyEG Services Bhd has clarified that it has not misrepresented services available on its online platform and will continue to be provide all services in accordance with the terms and conditions stipulated by the government.

• The US consumer price index increased by 0.6% last month, the largest gain since June 2022.

• Despite recent optimism about a soft landing for the US economy, key recession indicators tracked by the National Bureau of Economic Research are showing increasing weakness.

Source: TA Research - 14 Sept 2023