TA Sector Research

Daily Market Commentary - 5 Mar 2024

Publish date: Tue, 05 Mar 2024, 10:23 AM

Review & Outlook

Bursa Malaysia shares closed mixed on Monday, with most investors sidelined while awaiting more leads from key global central bank meetings on inflation and interest rate trends. The FBM KLCI ended up 1.25 points at 1,539.27, after moving within early high of 1,574.1 and low of 1,537.03, as losers edged gainers 536 to 426 on total turnover of 3.33bn shares worth RM2.56bn.

Stocks should extend range bound trade on prevailing caution over the US and European central banks' signalling on inflation upside risks and interest rate guidance. Stronger index supports cushioning downside on further profit-taking pullbacks will be at 1,525, 1,510 and 1,487, the respective 30-day, 50-day and 100-day moving averages. Immediate resistance will be from the recent 21-month high of 1,559, followed by 1,580, with stronger upside hurdle seen at the 1,600 level.

Gamuda need breakout confirmation above the 138.2%FP (RM5.32) to extend higher towards the 150%FP (RM5.50) and 161.8%FP (RM5.70) ahead, while downside should be capped by the 50-day ma (RM4.92) and 100-day ma (RM4.72). Maybank will need decisive breakout above the 138.2%FP (RM9.62) to enhance upside momentum and aim for the 150%FP (RM9.76) and 161.8%FP (RM9.90) going forward, with uptrend support from the rising 30-day ma (RM9.34) and 50-day ma (RM9.20) cushioning downside.

News Bites

  • Prime Minister Datuk Seri Anwar Ibrahim has outlined renewable energy, green technology, digital, and food security as key potential areas for Malaysia and Australia to explore further cooperation.
  • The evaluation of the seven concept proposals that have been received from firms and consortia interested in the Kuala Lumpur-Singapore high-speed rail project is expected to take two months to complete.
  • Tenaga Nasional Bhd guided that the prolonged outage of Manjung 4 power plant may lead to capacity revenue loss of RM400mn this year and its power generation unit may also experience reduction in the capacity rate financing for some of its other power plants leading to lower revenue.
  • Deleum Bhd is seeking to acquire a 70% stake in valves company OSA Industries Indonesia for USD7mn to fortify its power and machinery business in Indonesia.
  • Iskandar Waterfront City Bhd has unveiled its 10-year development plan comprising 3 projects in Johor Bahru, with an aggregate gross development value of RM4.3bn.
  • SMRT Holdings Bhd has been awarded a project by Pito AxM Platform to deploy its managed ATM infrastructure solutions in the Philippines through its wholly owned subsidiary N'osairis Technology Solutions Inc.
  • The mandatory general offer by JAG Capital Holdings Bhd to takeover KUB Malaysia Bhd at 60 sen per share has turned unconditional after the offeror received enough valid acceptances that pushed its stake in KUB past 50% threshold to 56.8%.
  • EcoFirst Consolidated Bhd has proposed to dispose of a piece of vacant land in Shah Alam at a loss to HCK Capital Group Bhd for RM34mn cash, saying this will release the burden of monthly loan instalments of about RM1.4mn to its financier.
  • Icon Offshore Bhd has been awarded a letter of award from a petroleum arrangement contractor for the provision of one platform supply vessel for a drilling campaign.
  • Berjaya Land Bhd announced the commencement of construction for its second hotel development in Okinawa, Japan, the Four Seasons Resort & Private Residences Okinawa, which has a GDV of USD1.1bn and is poised to be the most luxurious beach resort in Okinawa.
  • Ge-Shen Corp Bhd has proposed to purchase a 40% stake in electronics manufacturing services firm Local Assembly Sdn Bhd for RM48mn cash, which is to be partially funded via proceeds from a private placement exercise of 39.5mn shares.
  • Nylex Malaysia Bhd has now been given another 6-month extension to 26 July 2024 by Bursa Malaysia Securities Bhd to address its Practice Note 17 status.
  • S P Setia Bhd has achieved an 85% take-up rate for Irama Villa IV since its official launch on 3 March 2024.
  • Handal Energy Bhd has secured approval from the Companies Commission of Malaysia for an extension of time until 31 Dec 2024 to hold its 2024 annual general meeting.
  • Malaysia Steel Works (KL) Bhd has appointed Johor Corp Bhd president and CEO Datuk Syed Mohamed Syed Ibrahim as its independent and non-executive chairman.
  • The Eurozone investor confidence index rose to -10.5 in March from -12.9 in February.

Source: TA Research - 5 Mar 2024

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