TA Sector Research

Daily Market Commentary - 27 Feb 2024

Publish date: Tue, 27 Feb 2024, 11:55 AM

Review & Outlook

Bursa Malaysia shares ended softer on Monday as profit-taking consolidation persisted while investors await the release of inflation prints from key global economies for leads. The FBM KLCI slipped 1.51 points to close at 1,547.60, off an early high of 1,553.90 and low of 1,544.47, as losers beat gainers 633 to 443 on total turnover of 3.74bn shares worth RM3.12bn.

Stocks should trade sideways to neutralize overbought conditions from recent gains, and pending emergence of positive domestic catalysts to lift the market from consolidation. Key index supports cushioning downside on profit-taking pullbacks will be at 1,540, 1,518 and 1,503, the respective rising 10-day, 30-day and 50-day moving averages. Immediate resistance remains at 1,580, with stronger upside hurdles coming at 1,600 and 1,620.

Bumi Armada need to climb above the 76.4%FR (63sen) to fuel further upside towards the 7/3/23 high (73sen), with next hurdle from the 123.6%FP (82sen), while downside risk should be capped by the 50%FR (52sen). Velesto will need confirmed breakout above the 27/2/23 high (28.5sen) to enhance upside momentum towards 32sen, the 123.6%FP (34sen) and 138.2%FP (36sen) ahead, while the 200-day ma (24sen) cushions downside.

News Bites

  • The Securities Commission has extended the deadline for the issuance of a Real Estate Investment Trust's annual report to four months after its financial year end.
  • The parent company of Malaysian budget airline AirAsia, Capital A Berhad, is looking to raise up to USD400mn in equity as part of a planned merger to bring its long and short-haul operations under one brand.
  • MCE Holdings Bhd is disposing of a piece of freehold land measuring 12,263.4 sq m in Setia Alam, Selangor for RM43.7mn cash.
  • Rohas Tecnic Bhd has appointed Amirul Azhar Baharom its new group chief executive officer with effect from March 1.
  • Petronas Chemicals Group Bhd's net profit for the 4QFY23 fell 76% YoY to RM112mn from RM481mn on the back of revenue of RM7.2bn versus RM8.7bn.
  • Petronas Dagangan Bhd's 4QFY23 net profit rose by 25% YoY to RM180.8mn, thanks to high volume growth on the back of higher demand.
  • AMMB Holdings Bhd said its net profit rose 22% YoY to RM543.4mn in the 3QFY24 as tax credits helped offset provisions for bad loans.
  • Allianz Malaysia Bhd's net profit rose 11.7% to RM193.7mn in 4QFY23 from RM173.5mn a year earlier, lifted by better contributions from its life insurance segment.
  • FGV Holdings Bhd's net profit fell 12-fold to RM103mn in 2023 from RM1.3bn in 2022 as the group's mainstay plantation business' earnings plummeted amid lower average crude palm oil prices.
  • Inari Amertron Bhd's net profit fell 7.3% YoY to RM86.8mn in the 2QFY24 from RM93.6mn, due to set-up costs for new products and higher electricity costs.
  • LPI Capital Bhd's 4QFY23 net profit jumped 44% YoY to RM78.6mn from RM54.6mn, primarily due to the absence of the one-off prosperity tax that was imposed in FY22.
  • Syarikat Takaful Malaysia Keluarga Bhd's 4QFY23 net profit was up 4.8% YoY to RM70.3mn, thanks to higher contribution from its group and general takaful segment.
  • Lay Hong Bhd announced a higher net profit of RM54.9mn for 3QFY24 versus RM7.0mn in the same quarter a year ago, inclusive of subsidies received from the government.
  • Puncak Niaga Holdings Bhd reported a net profit of RM53.1mn in 4QFY23, compared with a net loss of RM7.1mn in the previous corresponding period, mainly due to higher other income attributable to fair value gain on investment properties and discontinuing of legal suits.
  • Cahya Mata Sarawak Bhd's 4QFY23 net profit jumped 71.1% to RM36.3mn from RM21.2mn a year prior, as the group's cement segment returned to profitability.
  • SKP Resources Bhd posted a 42.5% drop in its 3QFY24 net profit to RM23.4mn from RM40.7mn a year earlier, on reduced sale orders amid softer market demand.
  • China firmly opposes the decisions of Britain, the European Union and the United States to impose sanctions on its companies for Russiarelated reasons, its commerce ministry said on Monday.
  • President Joe Biden will meet with top congressional leaders including House Speaker Mike Johnson at the White House on today in a bid to unlock billions of dollars in emergency aid to allies including Ukraine and avert a US government shutdown.

Source: TA Research - 27 Feb 2024

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