Review & Outlook

The local market ended lower on Tuesday, falling in line with weaker regional peers, on concerns the US central bank may decide to keep interest rates at current levels for longer given the elevated inflation. The FBM KLCI fell 8.68 points to settle at the day's low of 1,544.96, off an early high of 1,552.1, but gainers edged losers 510 to 502 on lower turnover of 4.05bn shares worth RM3.08bn.

Stocks should stay range bound pending more solid guidance from the US Federal Reserve for a clear path on interest rate direction amid stubborn inflation. Stronger index supports cushioning downside will be at 1,535, 1,522 and 1,498, 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.

DNEX shares need breakout confirmation above the 100-day ma (38sen) to spark further recovery towards the 200-day ma (42sen), with next hurdle seen at 46sen, while the pivot low of 18/1/24 (31.5sen) limits downside risk. Wasco will need to climb above the upper Bollinger band (RM1.31) to enhance upside momentum towards the 150%FP (RM1.36) and 161.8%FP (RM1.43) ahead, while uptrend support will be from the rising 100-day ma (RM1.08).

News Bites

• The Malaysian government, through the National Action Council on Cost of Living, has agreed that the retail price of imported white rice will be reduced by RM2 to RM3 effective Wednesday.

• FGV Holdings Bhd said it has been granted a further six-month extension until 2 September 2024 by Bursa Securities to comply with the public shareholding spread requirement.

• YTL Power International Bhd has set up YTL AI Cloud to deploy and manage one of the world's most advanced supercomputers on Nvidia Grace Blackwell-powered DGX Cloud.

• IJM Corporation Bhd said Urusharta Jamaah Sdn Bhd, a special purpose vehicle established under the Ministry of Finance, has ceased to be its substantial shareholder after disposing of a 0.1% stake in the group.

• SkyWorld Development Bhd has partnered with RHB Banking Group to offer a higher margin of 95.0% green home financing for buyers of the developer's The Vesta Residences and Curvo Residences in Kuala Lumpur.

• Uzma Bhd obtained a 2-year contract extension from Medco Energi Thailand (Bualuang) Ltd for the provision of hydraulic worker unit services and associated equipment service required for workover and well services activities at offshore Thailand.

• Eita Resources Bhd said its 60.0%-owned unit has received a letter of acceptance from Tenaga Nasional Bhd for the establishment of a transmission substation in Ayer Puteh, Perak, worth RM48.0mn.

• Datuk Farhash Wafa Salvador, who recently emerged as a substantial shareholder in HeiTech Padu Bhd with a 15.9% stake, has clarified that he shared ownership of the shareholding in the company, held via private vehicle Rosetta Partners Sdn Bhd, with Kelantan's Sultan Muhammad V.

• Ecoscience International Bhd is partnering with Netherland renewable energy firm Maatschappij Wilhelmina NV, to build and manage Wilhelmina's US$60mn TG2 black pellet plant in Kuantan, Pahang.

• YNH Property Bhd has appointed Messrs. Morison LC Malaysia as its new external auditor for the financial period ending 30 June 2024.

• South Malaysia Industries Bhd has decided against tabling Datuk Au Yee Boon-related company Honsin Apparel Sdn Bhd's resolutions to appoint 2 new directors at the group's annual general meeting next week.

• Sarawak Cable Bhd has requested for a second extension of time from Bursa Securities to resolve its Practice Note 17 status.

• Asdion Bhd has proposed to acquire a 51.0% stake in PT Indoexpress Logistics for RM6.0mn.

• Steel Hawk Bhd has filed for an initial public offering that would raise more funds for the oil-and-gas services firm as part of its listing transfer from the LEAP Market to ACE Market.

• The Bank of East Asia and Wilmar International Ltd have entered into an agreement for a two-year US$100.0mn sustainability-linked loan, the second between BEA and Wilmar.

• The Bank of Japan ended eight years of negative interest rates and other remnants of its unorthodox policy yesterday, set the overnight call rate as its new policy rate and decided to guide it in a range of 0- 0.1%.

• The US residential starts increased 10.7% in February, the largest since May, to a 1.52mn annualised rate.

Source: TA Research - 20 Mar 2024