TA Sector Research

Daily Market Commentary - 14 Feb 2024

Publish date: Wed, 14 Feb 2024, 11:09 AM

Review & Outlook

The local benchmark added double-digit gains on Tuesday, as strong buying interest in major banking stocks lift the index higher and in line with firmer regional markets as investors waited for a U.S. inflation report that could shape the Federal Reserve policy. The FBM KLCI surged 19.09 points or 1.26 percent to end at 1,531.37, off an early low of 1,512.63 and high of 1,533.16, as gainers edged losers 634 to 297 on total turnover of 2.1bn shares worth RM2.04bn.

Even as stocks edge higher, underlying caution over the uncertainties over future interest rate hikes should keep buyers in check. Key index supports cushioning downside stays at 1,494, 1,482 and 1,467, the respective 30- day, 50-day and 100-day moving averages, while immediate overhead resistance are revised higher to 1,550, with stronger upside hurdles at 1,580 and 1,618.

A confirmed breakout on Gamuda above the 138.2%FP (RM5.40) would enhance upside momentum for share price to target the 150%FP (RM5.59), with next significant hurdle being the 161%FP (RM5.78). Key retracement support is capped at the 50-day ma (RM4.77). Gadang needs decisive breakout above the upper Bollinger band (41sen) to target the peak of 15/04/22 (44sen) and 123.6%FP (47sen) going forward, while support from the 50%FR (35sen) is padded by the 200-day ma (32sen).

News Bites

  • Malaysia's crude palm oil production declined 9.59% from December to 1.40mn tonnes in January, the lowest since April, while exports dropped 0.85% to 1.35mn tonnes, the MPOB said.
  • YTL Corporation Bhd and YTL Power International Bhd have been included into the MSCI Malaysia Index, while Dialog Group Bhd have been removed from the index, effective from 29 February 2024.
  • Westports Holdings Bhd is considering external strategic investors to help fund a RM39.6bn expansion that will see capacity nearly double in coming decades.
  • KPJ Healthcare Bhd has issued a letter of acceptance to JLG & BP Design Sdn Bhd for the proposed RM15.9mn renovation works.
  • FGV Holdings Bhd has once again applied to Bursa Malaysia Securities Bhd for more time up to 13 August 2024 to issue its circular for a proposed bonus issue, to comply with the public shareholding spread requirement.
  • Dayang Enterprise Holdings Bhd has secured contract extensions for the supply of 3 accommodation work boats to Petronas Carigali Sdn Bhd.
  • Ekovest Bhd has obtained approval from the Employees Provident Fund an extension of up to 2 years to facilitate and implement exit plan for the company from its investment in Konsortium Lebuhraya UtaraTimur (KL) Sdn Bhd, the concessionaire of Duke highway.
  • Nextgreen Global Bhd's largest shareholder Datuk Gan Kong Hiok has increased his stake in the printing and publishing outfit by 2.0% via the conversion of redeemable convertible preference shares, bringing his total stake to 17.7%.
  • Kumpulan Kitacon Bhd has accepted a Letter of Award from Worldwide Holdings Berhad for main building works for a total contract sum of RM65.4mn.
  • AwanBiru Technology Bhd has sealed a RM294.3mn deal with REDtone Digital Bhd to provide cloud computing solutions and services.
  • GDB Holdings Bhd's legal actions against Damai City Sdn Bhd and KSK Land Sdn Bhd over the 8 Conlay project disputes have been put back on hold for 3 months after the court granted the pair and their parent KSK Group Bhd, another restraining order against their creditors.
  • Ireka Corporation Bhd said RHB Bank Bhd has filed a lawsuit against the company, claiming RM6.5mn over an alleged default in a revolving credit facility.
  • Agmo Holdings Bhd has entered into a shareholders' agreement with Teh Yu Nen to regulate the relationship between the shareholders of AFintech Sdn. Bhd.
  • The Securities Commission Malaysia has won an insider trading civil suit against Datuk Aminuddin Md Desa, the former chief executive officer of the Perak State Development Corporation and Perak Corporation Bhd.
  • Indonesia filed a complaint at the World Trade Organization against the European Union for its import duties on fatty acids.
  • US core consumer prices jumped 3.9% YoY in January, dashing hopes for a continued drop in inflation and likely delaying any Federal Reserve interest-rate cuts.

Source: TA Research - 14 Feb 2024

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