Review & Outlook

The blue-chip benchmark extended gains on Tuesday, helped by healthcare, telco and plantation heavyweights as investors returned to bargain hunt on economic recovery optimism. The FBM KLCI added 9.85 points to settle at 1,554.56, off an early low of 1,541.36 and high of 1,556.71, as gainers edged losers 505 to 484 on higher turnover totalling 4.28bn shares worth RM2.93bn. Blue chips should trend higher amid renewed rotational buying interest on telco counters, while the broader market consolidates pending the upcoming key US inflation data. Immediate index 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. Stronger supports cushioning downside will be at 1,531, 1,517 and 1,493, the respective rising 30-day, 50-day and 100-day moving averages. Maxis will need sustained strength above the 50%FR (RM3.74) to promote further recovery towards the 61.8%FR (RM3.90) and 76.4%FR (RM4.09) ahead, while key retracement support at the 23.6%FR (RM3.39) limits downside risk. TM need a confirmed breakout above the 123.6%FP (RM6.03) to extend uptrend towards the 138.2%FP (RM6.23) and 150%FP (RM6.39) going forward, while the rising 50-day ma (RM5.75) provide uptrend support.

News Bites

• Malaysia's factory output rose 4.3% YoY in January compares to the median 2% rise predicted in a Bloomberg poll of economists and Dec's 0.03% YoY decline.

• CTOS Digital Bhd on Tuesday said it is business as usual for the group as the recent court decision against its subsidiary does not prevent it from continuing to provide credit score services.

• Hextar Technologies Solutions Bhd has entered into a sale and purchase agreement with Dataran Ehsan Sdn Bhd to dispose of land in Klang for RM8.8MN cash.

• Boustead Properties Bhd, via its subsidiary Boustead DCP Sdn Bhd, has formed a partnership with Opus International (M) Bhd via its subsidiary Opus Energy Sdn Bhd on March 11 for sustainable energy solutions.

• Sapura Energy Bhd has been granted a three-month extension by the Corporate Debt Restructuring Committee to push the deadline of its standstill period.

• Unitrade Industries Bhd is acquiring a two-acre plot of land in Sungai Buloh, Selangor from Nomis Sim Siang Leng and Simson Sim Xian Zhi, both directors of Unitrade and Perfect CLQ, for RM7.8mn.

• Microlink Solutions Bhd, whose share price plunged to its lowest in more than two years on Monday, said it is not aware of any possible explanation for the unusual market activity.

• Sunview Group Bhd's wholly-owned subsidiary has entered into a strategic business alliance agreement with the Malaysian Plastics Manufacturers Association to encourage its members to construct and implement solar photovoltaic systems.

• Sarawak Consolidated Industries Bhd's RM97.8mn contract with Landasan Kapital (M) Sdn Bhd has fallen through following a mutual termination between the two parties.

• Eversendai Corp Bhd said its unit is currently in talks with the Inland Revenue Board to withdraw the winding-up petition initiated by the IRB, following the settlement of the amount allegedly owed.

• The public tranche of Alpha IVF Group Bhd's initial public offering has been oversubscribed by 1.7 times, with the group set to be listed on the ACE Market of Bursa Malaysia on March 22.

• The US core consumer price index for February increased 0.4% MoM and 3.8% YoY.

Source: TA Research - 13 Mar 2024