Review & Outlook

Last week's recovery from a mid-week selloff on the FBM KLCI confirmed the presence of bargain hunters ready to cushion any severe profit-taking corrections, hence investors should continue to look for bargains on any further falls for oversold rebound ahead. Hopes for a reversal of the recent weak ringgit trend following the government's assurance on its commitment to identify the probable causes, and then implement measures to shore up market confidence and hence strengthen the local currency should aid recovery going forward.

Stronger index supports cushioning downside will be at 1,528, 1,514 and 1,491, the respective rising 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.

As for stocks picks this week, selected oil & gas, semiconductor, telco and utility heavyweights such as Dialog Group, Hibiscus Petroleum, Aemulus, Inari Amertron, Maxis, TM, Sime Darby and Tenaga Nasional should attract investors looking to buy on the cheap for rotational and laggard plays upon recovery ahead.

News Bites

• Malaysia's unemployment rate remained steady at 3.3% in January as the number of jobless people fell further while the labour force expanded.

• Scientex Bhd has proposed to acquire an 826-acre parcel of freehold land in Batang Berjuntai in Kuala Selangor, Selangor, for RM335.7mn.

• Nestle (M) Bhd has commissioned a biomass boiler at its industrial complex in Chembong, Negri Sembilan, which also houses its largest Milo plant in the world, as it makes greater strides towards reducing its carbon footprint.

• IHH Healthcare Bhd is set to enhance Timberland Medical Centre's operations with the construction of a new 200-bed tertiary hospital in central Kuching, Sarawak.

• Two of Top Glove Corporation Bhd directors have stepped down from the world's largest glovemaker's board effective immediately.

• Permodalan Negeri Selangor Bhd, a state-owned real estate development company, signed an agreement with construction firms IJM Corporation Bhd and Lim Seong Hai Capital Bhd to study connectivity routes in the state.

• Yinson Holdings Bhd has successfully issued a Perpetual Sukuk Wakalah worth RM640.0mn in nominal value pursuant to its Perpetual Sukuk Wakalah Programme.

• PIE Industrial Bhd's two new plants in Seberang Jaya, Penang, which will contribute positively to its growth, will start operations this year.

• Varia Bhd has partnered with Sungai Klang Link Sdn Bhd to embark on the ambitious Sungai Klang Link Elevated Highway Project.

• Samaiden Group Bhd has inked a 20-year solar energy power purchase agreement with Maxell Tohshin (Malaysia) Sdn Bhd.

• Perdana Petroleum Bhd has secured contracts from Dayang Enterprise Sdn Bhd worth RM13.4mn for the charter of one unit of anchor handling tug and supply vessel and one unit of accommodation work barge.

• Silver Ridge Holdings Bhd has proposed a private placement of up to 66.8mn shares, representing 30.0% of its issued share capital, to thirdparty investors with the issue price to be determined later.

• Barakah Offshore Petroleum Bhd is seeking upfront approval from shareholders to sell its Kota Laksamana 101 barge at a minimum USD11.4mn cash, to a third-party purchaser to be identified later.

• Mohamed Iqbal Abdul Rahman has retired as Pharmaniaga Bhd chief operating officer effective immediately, ending his 13-year tenure with the group.

• China's consumer price index climbed 0.7% YoY in February, beating the 0.3% gain forecast by economists in a Reuters poll.

• The US nonfarm payrolls increased by 275,000 jobs last month while the unemployment rate rose to 3.9% after holding at 3.7% for three straight months.

Source: TA Research - 11 Mar 2024