Review & Outlook

Bargain hunting in oil & gas, transportation and plantation heavyweights lifted stocks on Thursday, as the broader market stayed range bound while awaiting key US inflation data for leads. The FBM KLCI climbed 5.62 points to end at the day's high of 1,543.75, off an early low of 1,533.80, as gainers edged losers 513 to 478 on slightly better trade of 4.34bn shares worth RM2.76bn.

Rotational interest should return to focus on construction and property related stocks ahead of the weekend, while investors await key US inflation data for clues on the timeline for interest rate cuts. Stronger index supports cushioning downside will be at 1,532, 1,519 and 1,495, 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.

Ekovest will need to sustain breakout above the 61.8%FR (52sen) to reinforce upside momentum and aim for the 76.4%FR (56sen) and 8/1/24 high (62sen) ahead, while key retracement support from the 23.6%FR (41sen) limits downside risk. IWCity need to strengthen breakout momentum above the 61.8%FR (83sen) to extend higher towards the 76.4%FR (91sen) and 8/1/24 peak (RM1.03), while the 100-day ma (71sen), matching the 38.2%FR level, cushions downside

News Bites

• The federal government will conduct a review of the minimum wage order this year, said Human Resources Minister Steven Sim.

• Sime Darby Property Bhd has recorded 376 units of property bookings worth RM352mn via its Dragon Deals Campaign, under the Go Landed & High-Rise Collection, which ran from Jan 1 to March 10 this year.

• Awanbiru Technology Bhd has won its legal suit against the government over the termination of the RM3.5bn National Immigration Control System project but awarded only one-third of the company's RM733mn claim.

• Econpile Holdings Bhd has received a letter of award worth RM83mn from BRDB Developments Sdn Bhd to undertake sub-structure works in Bukit Tunku, Kuala Lumpur.

• CTOS Digital Bhd's wholly-owned unit, CTOS Data Systems Sdn Bhd has applied for a stay of execution of a High Court judgement, after CDS was ordered to pay damages to its client over inaccurate negative credit rating.

• Bermaz Auto has won the rights of distributorship, sale of spare parts and provision of after-sales services of XPeng smart electric vehicles in Malaysia.

• Kelington Group Bhd has entered into an addendum to the agreement for the sale and purchase of carbon dioxide dated Nov 17, 2017 with PETRONAS Energy & Gas Trading Sdn Bhd.

• Coastal Contracts Bhd is acquiring an 82% stake in Sabah-based Jewel Of Mabul Development Sdn Bhd for RM19mn as part of its growth strategy to diversify its income stream and venture into the tourism industry.

• Bursa Malaysia said intraday short selling activities for Comintel Corp Bhd will be allowed to resume at 8.30am today.

• AirAsia X has commenced its first foray into Central Asia with the launch of its direct flight to Almaty, Kazakhstan on Thursday.

• Icon Offshore has secured a contract to provide an accommodation workboat to Petrolanpan Sdn Bhd for an undisclosed amount.

• Boustead Heavy Industries Corp Bhd has been awarded a contract extension worth RM3.5mn from the Ministry of Defence Malaysia for the upkeep of the Royal Malaysian Navy's submarine facilities

• Ucrest Bhd has entered into a partnership with Mediprima Healthcare (M) Sdn Bhd to digitalise clinics and integrate artificial intelligence and Internet of Medical Things into the latter firm's medical services.

• South Malaysia Industries Bhd has filed a judicial review against the Securities Commission Malaysia to compel the capital markets regulator to come up with a decision on a complaint it made nearly a year ago.

• HeiTech Padu Bhd saw Datuk Farhash Wafa Salvador emerge as a new substantial shareholder with an indirect interest of 15.9% or 16.1mn shares acquired earlier this week

• The public portion of Prolintas Infra Business Trust's initial public offering of 27.5mn units was oversubscribed by 3.6 times after receiving a total of 7,211 applications for 126.2mn units, with a total value of RM119.9mn.

• US retail sales rebounded by 0.6% in February, driven by increases at auto dealerships and gasoline service stations, but consumer spending is slowing as households grapple with inflation and higher borrowing costs.

• The producer price index for final demand rose 0.6% last month after advancing by an unrevised 0.3% in January.

Source: TA Research - 15 Mar 2024