Review & Outlook

Bursa Malaysia shares closed almost unchanged on Monday, as market undertone remained cautious while investors await key central bank policy meetings in Japan and the US. The FBM KLCI ended up 0.81 points at 1,553.64, off an early low of 1,544.32 and high of 1,557.33, as gainers led losers 546 to 480 on total turnover of 4.24bn shares worth RM2.79bn.

The local market should trade sideways as investors keenly await guidance from key central bank meetings in Japan and the US for further leads. Stronger index supports cushioning downside will be at 1,534, 1,521 and 1,497, 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.

Globetronics will be attractive to bargain on weakness towards the key retracement support of 38.2%FR (RM1.28), for rebound upside towards the 61.8%FR (RM1.48), with tougher hurdles at the 76.4%FR (RM1.60) and 18/12/23 high (RM1.80). Unisem will need to overcome profit-taking resistance near the 76.4%FR (RM3.74) to enable further rise towards RM4.00 and the 22/11/21 high (RM4.28), while the 200-day ma (RM3.21) provide uptrend support.

News Bites

• Malaysia's trade grew 3.3% YoY in February 2024 to RM211.79bn, the highest monthly value for the month of February in Malaysia's trade history, as exports reduced slightly by 0.8% to RM111.33bn while imports rose by 8.4% to RM100.46bn.

• Malaysia Airports Holdings Bhd and the government on Monday signed new operating and land lease agreements that extend the airport operator's concession to manage 39 airports in the country to Feb 11, 2069, from 2034 previously.

• UEM Sunrise Bhd has partnered with Intermedika Co Ltd, a Phuketbased consulting firm, to integrate sports, wellness and hospitality components in its upcoming developments with the creation of Urban Healthy Hubs.

• AirAsia's Cambodia unit has kicked off ticket sales for domestic flights as the budget carrier seeks to expand across the region and tap into a resurgence in travel demand.

• ITMAX System Bhd's subsidiary has secured a video surveillance and traffic light system services contract worth RM77.1mn from the Kulai Municipal Council.

• Kelington Group Bhd is making plans to expand into Germany and Hong Kong to capitalise on the flourishing global semiconductor industry and broaden its geographical reach.

• TT Vision Holdings Bhd has tied up with Autowell (Singapore) Pte Ltd, a wholly-owned subsidiary of China-listed Wuxi Autowell Technology Co Ltd, to establish a new manufacturing hub catering to the overseas solar energy markets.

• New Hoong Fatt Holdings Bhd has proposed to undertake a share split involving the subdivision of every one share into two shares in a move to improve trading liquidity.

• Eversendai Corp Bhd, which announced last week that it had secured four new projects worth an aggregate RM5.4bn, said it is unable to provide a value breakdown of the projects due to non-disclosure agreements.

• Epicon Bhd has received a letter of award from Maju Teluk Batik Sdn Bhd for building works to two apartments in Bandar Meru Raya, Perak worth RM191.1mn.

• GFM Services has proposed a bonus issue of free warrants on the basis of one warrant for every two existing shares.

• JAG Capital Holdings Bhd's mandatory general offer for KUB Malaysia Bhd at 60 sen per share, has seen it obtain 163.8mn shares, which is equivalent to a 29.4% stake.

• Globaltec Formation Bhd said its Australian-listed NuEnergy Gas Ltd has secured an extension until Sept 17, 2025 to undertake exploration of its Muara Enim production sharing contract in South Sumatera, Indonesia.

• The ACE Market debut of Zantat Holdings Bhd has attracted RM459mn worth of orders for shares of its IPO from the Malaysian public, about 33 times the RM14mn that it aims to raise from its IPO.

• SBH Marine Holdings Bhd will raise gross proceeds of RM39.6mn from its, with the lion's share going towards business expansion of frozen seafood products.

• China's industrial output rose 7% YoY in January-February while fixedasset investment accelerated by 4.2% YoY.

• Property investment in China slid 9.0% YoY in the first two months of 2024, compared with a 24.0% fall in December 2023.

• The US NAHB/Wells Fargo Housing Market Index rose to 51 in March from 48 in February.

Source: TA Research - 19 Mar 2024