TA Sector Research

Daily Market Commentary - 7 Mar 2024

Publish date: Thu, 07 Mar 2024, 10:31 AM

Review & Outlook

Stocks extended falls on Wednesday, dragged by the overnight US correction as investors' concerns over the global inflation and interest rate outlook dampened market tone. The FBM KLCI lost another 5.47 points to close at 1,531.51, after moving between early low of 1,527.92 and high of 1,535.2, as losers beat gainers 588 to 422 on lower trade totalling 3.65bn shares worth RM2.66bn.

The local market should drift lower due to absence of stimulus details amid China's disappointing GDP growth target for this year and lacking fresh local leads. Stronger index supports cushioning downside on further profittaking pullbacks will be at 1,527, 1,512 and 1,489, 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.

Further weakness on Hartalega should attract bargain hunters looking for rebound upside towards the 76.4%FR (RM2.66), with tougher hurdle from the 8/1/24 peak (RM3.05), while downside is cushioned by the 50%FR (RM2.22) and 38.2%FR (RM2.03). Kossan should also attract buyers on dips, with upside capped by the 76.4%FR (RM1.93) and 29/1/24 high (RM2.17), and key chart supports from the 100-day ma (RM1.75) and 200-day ma (RM1.56) cushioning downside.

News Bites

  • Hot on the heels of its initial plan to sell a 9% stake in AMMB Holdings Bhd, Australia's fourth largest bank ANZ Group has upsized its stake sale, opting to divest a larger 16.5% stake for about RM2.1bn cash or RM3.85 per share.
  • Perdana Petroleum Bhd's wholly owned subsidiary has secured extensions for four vessel charter contracts plus one new contract from Petronas Carigali Sdn Bhd that is worth an aggregate of RM68.0mn.
  • Econpile Holdings Bhd has bagged a contract worth RM65.5mn to undertake road upgrade works for a project in the Cameron Highlands, Pahang.
  • Globetronics Technology Bhd's wholly owned subsidiary, ISO Technology Sdn Bhd, has secured a contract worth USD7.6mn to provide technical services related to outsourced semiconductor assembly and testing from Kaynes Semicon Private Ltd.
  • Jati Tinggi Group Bhd's wholly owned subsidiary has secured a RM22.1mn job from Worktime Engineering Sdn Bhd to lay underground cables for a data centre in the southern region of Peninsular Malaysia.
  • Thriven Global Bhd is selling four plots of freehold land collectively measuring 12.5 acres in Kulim, Kedah, to raise some RM22.0mn.
  • Awanbiru Technology Bhd's wholly owned unit has secured a RM5.0mn contract from the National Water Research Institute of Malaysia's computing solutions and services for climate change research and development.
  • Niche Capital Emas Holdings Bhd said it has obtained approval from the Department of Environment of Malaysia for its development of gold mining processing facilities on 547 hectares of land in Kelantan.
  • PGF Capital Bhd's unit has obtained authorities' approval for rezoning of 1,311 acres of land in Tanjong Malim, Perak, increasing the residential portion to 577.5 acres, from 71.8 acres previously.
  • Datasonic Group Bhd has partnered with Korea Trade Network to achieve the goal of securing and jointly executing public procurement system projects in Malaysia.
  • Construction company Lim Seong Hai Capital Bhd said it is proposing a public offering which could potentially raise RM168.1mn as part of its listing transfer to the ACE Market from the LEAP Market.
  • Projek Lintasan Kota Holdings Sdn Bhd is listing its four highway concessions via a business trust to raise RM445.3mn by offering 468.7mn units priced at 95 sen per unit.
  • Calcium carbonate producer Zantat Holdings Bhd has begun taking orders from investors for its IPO to raise up to RM18.2mn.
  • US Federal Reserve chair Jerome Powell reiterated to lawmakers that the US central bank is in no rush to cut interest rates until policymakers are convinced they have won their battle over inflation.

Source: TA Research - 7 Mar 2024

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