TA Sector Research

Daily Market Commentary - 20 Feb 2024

Publish date: Tue, 20 Feb 2024, 08:58 AM

Review & Outlook

Bursa Malaysia rose on Monday led by plantation and oil & gas stocks as more investors returned from the Chinese New Year holidays to bargain hunt. The FBM KLCI climbed 5.06 points to close at 1,538.61, off an early low of 1,530.58 and high of 1,539.25, but losers edged gainers 554 to 447 on total turnover of 3.47bn shares worth RM2.07bn.

The local market should stay upbeat as market players return from the CNY holidays for sector rotational plays, with more fresh domestic leads key to spur further gains. Immediate overhead resistance for the index remains at 1,550, with stronger upside hurdles coming at 1,580 and 1,600. Key uptrend supports cushioning downside will be at 1,505, 1,492 and 1,474, the respective rising 30-day, 50-day and 100-day moving averages.

Genting Berhad need to decisively overcome resistance from the 19/3/21 peak (RM5.13) to enhance upside momentum and aim for RM5.40 and the 123.6%FP (RM5.71) ahead, while the 76.4%FR (RM4.56) and 200-day ma (RM4.36) cushion downside. Similarly, Genting Malaysia will need convincing breakout above the 19/3/21 peak (RM2.96) to target RM3.10 and the 123.6%FP (RM3.26) going forward, with downside capped by the 76.4%FR (RM2.67) and 200-day ma (RM2.57).

News Bites

  • Public Bank Bhd entered into a sale and purchase agreement with RHB Bank Bhd in relation to the proposed acquisition of RHB Securities Vietnam Company Ltd from RHB Investment Bank Bhd for 374.0bn dong or RM72.6mn, cash.
  • P.A. Resources Bhd is buying 2 parcels of adjoining industrial land in Kuala Selangor for RM21.0mn to build a new factory that would increase its production capacity.
  • Tune Protect Group Bhd flagged a RM30.8mn financial impact in its results for the 4QFY23 due to the non-redemption of Perlindungan Tenang Vouchers by its subsidiary.
  • MainStreet Advisers Sdn Bhd, an independent adviser for Rexit Bhd, says the takeover offer price of 85.0sen/share from the latter's main shareholders is unfair and unreasonable.
  • Dataprep Holdings Bhd has put on hold its proposed private placement of up to 30.0% of its enlarged share base to raise up to RM40.2mn.
  • Prudential Plc bought 1.5mn shares, or a 0.2% stake in InNature Bhd, which raised its stake to 5.1%, making it a substantial shareholder of the group.
  • GFM Services Bhd is looking to raise RM14.8mn via a private placement of 69.1mn shares or 10.0% of its enlarged share base.
  • A fund managed by Kenanga Investors Bhd has emerged as a substantial shareholder of Omesti Bhd with a 6.5% stake.
  • Bursa Malaysia Securities has extended affected listed issuer Landmarks Bhd's deadline to submit its regularisation plan by 6 months to 18 July 2024.
  • Bursa Malaysia has publicly reprimanded CN Asia Corporation Bhd and imposed total fines of RM225.0k on the 7 directors for breaching listing rules.
  • Zantat Holdings Bhd has signed an underwriting agreement with M&A Securities Sdn Bhd for its listing on the ACE Market of Bursa Malaysia Securities Bhd.
  • Former Employee Provident Fund chief executive officer, Tunku Alizakri Raja Muhammad Alias has resigned from his role as non-independent non-executive director of United Plantations Bhd.
  • Dialog Group Bhd's net profit rose 16.6% YoY to RM148.3mn for 2QFY24, on higher revenue driven by better performances from both its Malaysian and international operations.
  • Hextar Global Bhd's net profit jumped fivefold to RM23.4mn in 4QFY23 from RM4.6mn a year ago, underpinned by the stellar performance of the newly diversified fruits segment and improved results from the agriculture and specialty chemicals segments.
  • Hup Seng Industries Bhd's 4QFY23 net profit rose 10.0% YoY to RM13.7mn on the back of the lower cost of certain major input materials.
  • MGB Bhd 4QFY23 net profit surged hiked threefold to RM12.5mn compared to RM3.7mn a year ago, thanks to higher progressive billings and cost control.
  • Core machine orders in Japan were up a seasonally adjusted 2.7% on month in December, in line with expectations following the 4.9% contraction in November.

Source: TA Research - 20 Feb 2024

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