Review & Outlook

Blue chips stayed range bound on Thursday, with investors mostly sidelined following the Chinese New Year holidays amid lacking positive domestic market leads. The FBM KLCI slipped 0.95 points to close at 1,528.38, off an early high of 1,532.66 and low of 1,525.39, but gainers led losers 557 to 370 on higher turnover of 3.68bn shares worth RM2.27bn.

The local market should extend sideways trade ahead of the weekend, given absence of clear market leads and as investors assess the impact of sustained high inflation on the interest rate outlook. Key index supports cushioning downside remains at 1,501, 1,488 and 1,471, the respective rising 30-day, 50-day and 100-day moving averages, while immediate overhead resistance stays at 1,550, with stronger upside hurdles at 1,580 and 1,600.

Public Bank will need breakout confirmation above the 4/4/22 peak (RM4.51) to fuel further upside momentum towards the 123.6%FP (RM4.72) and 138.2%FP (RM4.86) ahead, with uptrend support from the 100-day ma (RM4.25) cushioning downside. RHB Bank need decisive breakout above the upper Bollinger band (RM5.66) to extend uptrend towards the 123.6%FP (RM5.75) and 138.2%FP (RM5.90) going forward, while the 200-day ma (RM5.46) provides uptrend support.

News Bites

• Maybank Islamic Bhd and Telekom Malaysia Bhd have joined forces to introduce 5G-powered Islamic banking-as-a-service solutions by launching the inaugural "Go Niaga" mobile business banking bundle.
   
• Sunway Bhd secured a 4.95-acre land parcel in Tengah town for S$423.4mn (RM1.5bn) to develop an executive condominium, is expected to contribute a share of profit of up to RM105.0mn to the group.
   
• Fraser & Neave Holdings Bhd is leasing a parcel of industrial land in Cambodia for 50 years for US$3.9mn (RM18.5mn) to set up a manufacturing facility for dairy products.
   
• S P Setia Bhd's Setia Warisan Tropika and Setia Eco Templer township developments received the Diamond Design awards at the Low Carbon City Awards 2023 held on 8 February 2024.
   
• Hume Cement Industries Bhd has entered into a conditional sale and purchase agreement with Skygate Technology (KL) Sdn Bhd to sell a plot of land in the Prai Industrial Estate in Penang to Skygate Technology (KL) Sdn Bhd for RM39.8mn cash.
   
• Uzma Bhd has secured a term contract from Petronas Carigali Sdn Bhd for the provision of a portable water injection module for the Sepat platform in Terengganu.
   
• Hektar REITS is issuing 5-year medium-term notes worth RM215.0mnthe first issuance under Hektar MTN Satu Sdn Bhd's MTN programme of up to RM500.0mn in nominal value.
   
• YNH Property Bhd's proposed sale of a 5.1-acre freehold land in Desa Seri Hartamas to Sunway Group for RM170.0mn has been extended for a fourth time, pushing the deadline to 12 May 2024.
   
• Carimin Petroleum Bhd has received a letter of contract extension from Petronas Carigali Sdn Bhd for the provision of integrated hookup and commissioning services.
   
• Maxim Global Bhd said the company's public shareholding spread of 30.8% as at 13 February 2024 is back in compliance with Bursa Malaysia's listing requirements.
   
• APB Resources Bhd has completed a RM140.0mn purchase of a 10.4% stake in Globetronics Bhd.
   
• Priceworth International Bhd has proposed a bonus issue of 801.8mn free warrants on the basis of 1 warrant for every 2 shares held.
   
• GFM Services Bhd is acquiring the entire stake in Era Gema Bina Sdn Bhd for RM23.0mn to develop, operate and maintain the Rest & Service Area at Sungai Muda, Penang.
   
• Alpha IVF Group Bhd has signed an underwriting agreement with AmInvestment Bank Bhd for what would be the largest initial public offering on the ACE Market.
   
• Reach Energy Bhd said its sub-subsidiary Emir-Oil LLP is facing a reduced fine of RM9.6mn along with a state duty of RM300.0k amid a dispute with the Ministry of Energy in Kazakhstan.
   
• Malaysia Smelting Corporation's 4QFY23 net profit fell 175.8% YoY to RM9.4mn, dragged by foreign exchange losses as well as the absence of sale of refined tin from processed tin intermediates and by-products.
   
• Singapore's economy expanded by a slightly more modest pace of 1.1% in 2023 than initially expected 1.2% in the advanced estimate.
   
• The U.S. retail sales fell 0.8% in January, pulled down by declines in receipts at auto dealerships and gasoline service stations.

Source: TA Research - 16 Feb 2024