TA Sector Research

Daily Market Commentary - 18 Mar 2024

Publish date: Mon, 18 Mar 2024, 11:14 AM

Review & Outlook

With short and medium-term technical momentum indicators hooking up following the subsequent recovery from a mid-week selloff, the technical picture on the local market remains supportive for further recovery ahead. Nonetheless, given the still fragile external market tone, following uncertainty over the US Federal Reserve's keenly awaited guidance on the timeline for interest rate cuts due to recent hotter-than-expected inflation numbers, investor sentiment should stay cautious.

Stronger index supports cushioning downside will be at 1,533, 1,520 and 1,496, the respective rising 30-day, 50-day and 100-day moving averages. Immediate resistance remains at 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 gaming, oil & gas, semiconductor and blue chip heavyweights such as Genting Berhad, Genting Malaysia, DNEX, Wasco, Globetronics, Unisem, Sime Darby and Tenaga Nasional should see investors return to bargain hunt for rotational and laggard plays going forward.

News Bites

  • Malaysia has generated new investment interest with a potential value of RM45.4bn following Prime Minister Datuk Seri Anwar Ibrahim's visit to Germany, which ended on last Friday.
  • CelcomDigi Bhd has proposed to change its auditor to PricewaterhouseCoopers PLT, replacing its retiring auditor Ernst & Young PLT.
  • Malaysia Airports Holdings Bhd saw its passenger traffic reach 11mn passengers in February, a 33% rise compared to 8.3mn passengers in the same month last year.
  • Petronas Gas Bhd has approved a final investment decision for the construction of a new compressor station project in Jeram, Selangor, with a total investment cost not exceeding RM650mn.
  • Boost Bank Bhd, a digital bank venture by RHB Bank Bhd and Boost Holdings Sdn Bhd, an indirect subsidiary of Axiata Group Bhd, has received an additional RM8.5mn from its shareholders.
  • UEM Sunrise Bhd has introduced "Happy+Right Home. Right Now", a campaign that offers a one-stop easy ownership package aimed to assist homebuyers in their home purchasing process.
  • Binastra Corp Bhd's wholly-owned subsidiary, Binastra Builders Sdn Bhd has secured a RM370mn construction contract from Exsim Jalil Link Sdn Bhd.
  • AirAsia X Bhd signed a memorandum of understanding today with Kazakhstan Tourism for strategic collaboration following its successful inaugural flight celebration to Almaty, Kazakhstan.
  • Microlink Solutions Bhd said it plans to raise up to RM89.4mn via a rights issue of redeemable preference shares with detachable warrants to repay its bank borrowings and finance working capital.
  • Parkson Retail Group Ltd has entered into a loan agreement in relation to a syndicated loan facility in an aggregate amount of RM1.6bn.
  • Fajarbaru Builder Group Bhd's wholly-owned subsidiary, Fajarbaru Builder Sdn Bhd along with Avionics Pty Ltd, has secured a delivery phase contract from the Australian Department of Defence, with the group's portion of the contract worth RM11mn.
  • KPJ Healthcare Bhd's Datuk Md Arif Mahmood will step down as its non-independent and non-executive chairman upon the completion of his two-year tenure on March 31.
  • Datuk Ahmad Nazri Abdullah, the non-executive chairman of Pertama Digital Bhd, has ceased to be a substantial shareholder after selling a 0.2% stake, or one million shares, valued at RM2.6mn.
  • MN Holdings Bhd has appointed Tenaga Nasional Bhd's former chief executive officer Datuk Seri Baharin Din as its independent nonexecutive chairman.
  • IT services firm Vetece Holdings Bhd is planning an initial public offering of 98mn new shares and an offer for sale of 39.2mn existing shares on the ACE Market on Bursa Malaysia to seek funds for expansion.
  • China's Ministry of Finance will use a combination of policy tools, such as deficits, special local bonds, and ultra-long-term special government bonds to maintain an appropriate size of spending.
  • The Bank of Japan will raise the short-term rate to the 0%-0.1% range for the first time in 17 years on Tuesday.
  • The University of Michigan consumer sentiment index edged down to 76.5 in March after falling to 76.9 in February.

Source: TA Research - 18 Mar 2024

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