TA Sector Research

Daily Market Commentary - 22 Mar 2024

Publish date: Fri, 22 Mar 2024, 11:16 AM

Review & Outlook

Local stocks bounced back Thursday, helped by the overnight Wall Street rally to record highs after the US central bank signalled for 3 interest rate cuts before the end of this year. The FBM KLCI recouped 5.62 points to close at 1,541.41, off an early low of 1,534.66 and high of 1,542.33, as gainers led losers 631 to 451 on robust turnover of 4.02bn shares worth RM2.94bn.

The local market should extend gains ahead of the weekend, following the firm regional tone on optimism over the US Federal Reserve's confidence on further interest rate cuts, which means inflation should be well contained. Immediate index 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. Stronger supports cushioning downside are at 1,524 and 1,499, the respective rising 50-day and 100-day moving averages.

Sime Darby will need to overcome the upper Bollinger band (RM2.70) to extend uptrend towards the 138.2%FP (RM2.75) and 150%FP (RM2.83), with the rising 100-day ma (RM2.43) providing uptrend support. Likewise, Tenaga need sustained strength above the upper Bollinger band (RM11.68) to extend higher towards the 176.4%FP (RM11.99) and 200%FP (RM12.58) going forward, with uptrend support cushioned by the rising 30-day ma (RM11.25) and 50-day ma (RM10.96).

News Bites

  • Sunway Construction Group Bhd has secured a RM747.8mn job to construct a data centre in Selangor.
  • Mah Sing Group Bhd has entered 3 interconditional sale and purchase agreements with Petaling Garden Sdn Bhd for the proposed acquisition of 500 acres in total area of land located in Mukim Beranang, Daerah Ulu Langat, Selangor for a purchase consideration of RM392.0mn.
  • MGB Bhd has secured a contract worth RM207.0mn to undertake a 2- phase property development project in Sepang, Selangor. The group accepted the project from Anuar Aziz Architect on behalf of Astana Modal Sdn Bhd.
  • T7 Global Bhd is planning to raise up to RM41.6mn via a private placement of a maximum of 90.5mn shares or 10.0% of its enlarged share base.
  • Epicon Bhd has secured a letter of award from Syarikat Majuperak Bhd for the main building works of 601 units of single storey terrace houses and 4 units of electrical substations worth RM89.1mn.
  • PTT Synergy Group Bhd has secured an RM299.0mn contract from Prima Wahyu Sdn Bhd for the proposed construction and completion of the Palekbang-Kota Bharu bridge and connecting roads at Jajahan Tumpat and Jajahan Kota Bharu, Kelantan.
  • Binasat Communications Bhd has secured a contract worth RM58.3mn from Tenaga Nasional Bhd for the proposed double-circuit underground cable.
  • The Royal Malaysian Police through the Bukit Aman Commercial Crime Investigation Department has detected the existence of a fraudulent investment scheme using the name Petronas Chemicals Group Berhad.
  • Master Tec Group Bhd was not aware of any corporate development that had not been previously announced in response to Bursa Malaysia's unusual market activity query.
  • South Malaysia Industries Bhd has decided to hold off proposals to change its directors following a substantial shareholder's bid for a temporary court restraint.
  • Eco World Development Group Bhd's 1QFY24 net profit rose 22.2% YoY to RM69.6mn mainly due to higher interest income from the placement of excess funds by the group's Malaysian operations.
  • Astro Malaysia Holdings Bhd's 4QFY24 net profit drop 19.0% YoY to RM44.4mn amid lower revenue, while it recorded higher net financing costs, dragged by unfavourable unrealised foreign exchange losses from unhedged lease liabilities.
  • Marine & General Bhd's 3QFY24 reported a net profit of RM13.3mn compared with a net loss of RM905.0k a year ago, due to higher fleet utilisation and charter rates for offshore vessels.
  • China's central bank signalled a potential boost of liquidity for banks, but expressed caution on cutting interest rates after the world's secondlargest economy reported an upbeat start to 2024.
  • Initial applications for US unemployment benefits decreased by 2,000 to 210,000 in the week ended March 16, which is near historically low levels, underscoring the resilience of the labour market.

Source: TA Research - 22 Mar 2024

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