TA Sector Research

Daily Market Commentary - 12 Mar 2024

Publish date: Tue, 12 Mar 2024, 10:51 AM

Review & Outlook

Bursa Malaysia shares rose moderately on Monday amid hopes the latest US unemployment report will encourage the Federal Reserve to reduce interest rates sometime this year. The FBM KLCI rose 4.85 points to close at 1,544.71, off an early low of 1,540.77 and high of 1,547.48, as gainers led losers 523 to 465 on total trade of 3.65bn shares worth RM2.71bn.

The local market should trade sideways pending fresh domestic catalysts to lift stocks from current consolidation. Stronger index supports cushioning downside will be at 1,529, 1,515 and 1,492, 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.

Dialog will need to overcome the 61.8%FR (RM2.30) to enhance upside potential towards the 76.4%FR (RM2.44) and 25/1/23 high (RM2.68), while key retracement supports from the 38.2%FR (RM2.06) and 23.6%FR (RM1.91) cushion downside. Hibiscus need sustained strength above the upper Bollinger band (RM2.65) to fuel further upside momentum towards the 50%FR (RM2.73) and 61.8%FR (RM2.98) ahead, with retracement support provided by the 23.6%FR (RM2.28).

News Bites

• Logistics service providers in Malaysia are now further exempted from paying service tax for related services, to reduce instances of cascading effects or double taxation, the Ministry of Finance said.

• The Ministry of Transport has brushed off claims that Khazanah Nasional Bhd intends to sell its stake in Malaysia Airports Holdings Bhd to Global Infrastructure Partners as reported earlier.

• AMMB Holdings Bhd has granted RM300.0mn financing facilities to Uzma Bhd's wholly owned subsidiary, Uzma Engineering Sdn Bhd to support key contracts awarded by Petronas Carigali Sdn Bhd.

• Malayan Banking Bhd and clean energy solutions provider, Gentari have signed a MoU to explore collaboration in green mobility and renewable energy solutions.

• Maxis Bhd and Nokia are collaborating to drive next-generation connectivity to enhance network security and reliability, as well as Maxis' engagement of Nokia as a partner to build part of Maxis' 5G core ecosystem in meeting future connectivity needs.

• Rexit Bhd announced a few changes to its boardroom, with the appointment of Datuk Seow Gim Shen as its new chief executive officer with immediate effect.

• Credit reporting agencies, such as CTOS Data Systems Sdn Bhd, a wholly owned unit of CTOS Digital Bhd, are not legally empowered to formulate credit scores, according to a High Court decision.

• MY E.G Services Bhd's unit, MY E.G. Capital Sdn Bhd has bought a 14.4% interest in HeiTech Padu Bhd for RM31.2mn.

• A group of minority shareholders of Kumpulan Jetson Bhd led by Tee Chee Beng, had failed in their attempt to oust the current board of directors.

• Destini Bhd announced the resignation of former Dewan Rakyat speaker Tan Sri Azhar Azizan Harun as its independent and non-executive chairman, after a nine-month tenure at the helm.

• Heitech Padu Bhd has received a contract extension worth RM13.1mn for the comprehensive maintenance and service contract for the immigration system of Immigration Department of Malaysia.

• Grocery chain operator 99 Speed Mart Retail Holdings Bhd has filed a draft prospectus to launch an initial public offering that will see founder Lee Thiam Wah and his family letting go of 17.0% interest upon listing on Bursa Malaysia's Main Market.

• Flexidynamic Holdings Bhd has received a letter of award worth RM12.4mn from Usaha Pammek Sdn Bhd for the supply and installation of mechanical and electrical works for the water treatment plant and intake.

• Iconic Worldwide Bhd has launched the show unit for Iconic Harmony, an upcoming mixed development in Alma, Bukit Mertajam, with a gross development value of RM255.0mn.

• Perak Corporation Bhd has signed a development agreement to move forward with a housing project that will help to rescue the group.

• UMediC Group Bhd's net profit for 2QFY24 fell 14.8% YoY to RM2.5mn from RM2.9mn a year earlier, mainly due to softer orders from the marketing and distribution segments.

• Japan averts technical recession as revised fourth-quarter data shows economy grew 0.4%.

• A growing number of Bank of Japan policymakers are warming to the idea of ending negative interest rates this month on expectations of hefty pay hikes in this year's annual wage negotiations.

Source: TA Research - 12 Mar 2024

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