TA Sector Research

Daily Market Commentary - 27 Mar 2024

Publish date: Wed, 27 Mar 2024, 11:10 AM

Review & Outlook

Stocks traded sideways on Tuesday, as investors await more clues from economic data in the region on the immediate inflation trend. The FBM KLCI ended up 0.88 points at 1,538.42, off an early low of 1,532.07 and high of 1,540.51, as gainers led losers 570 to 472 on muted trade totalling 3.83bn shares worth RM3.04bn.

The local market should stay on hold pending fresh leads, with trading likely to slow ahead of a local religious market and Good Friday holidays, and while investors await the closely watched US inflation index on Friday. Stronger index supports cushioning downside will be at 1,525 and 1,502, the respective rising 50-day and 100-day moving averages, with better support seen at 1,480. 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.

MRCB need a confirmed breakout above the 176.4%FP (69sen) to extend rally towards the 200%FP (74sen), with next resistance at the 223.6%FP (79sen), and key uptrend supports at the rising 50-day ma (59sen) and 100-day ma (52sen). UEM Sunrise will need to overcome the 138.2%FP (RM1.21) to sustain uptrend and target the 150%FP (RM1.30) and 161.8%FP (RM1.38) ahead, while key chart supports from the rising 50- day ma (RM1.03) and 100-day ma (92sen) cushion downside risk.

News Bites

  • The rise in the service tax from 6% to 8% would only have a minimal impact on inflation, estimated at 0.2 percentage points, owing to its limited scope, which exempts essential services and basic necessities, says Prime Minister Datuk Seri Anwar Ibrahim.
  • Yinson Holdings Bhd's major shareholder Lim Han Weng has triggered an unconditional mandatory takeover offer to acquire the remaining shares he does not own in Icon Offshore Bhd after purchasing a 50.2% stake in the offshore support vessel provider from Ekuiti Nasional Bhd for RM172.2mn or 63.5sen/share.
  • Senheng New Retail Bhd's wholly-owned unit Senheng Electric (KL) Sdn Bhd has announced a strategic collaboration with Huawei Technologies (Malaysia) Sdn Bhd and APulsar Technologies Sdn Bhd to boost electric vehicle adoption in Malaysia.
  • Ewein Bhd is acquiring a vacant piece of industrial land measuring 16,004m2 in Butterworth for RM25.8mn to develop a workers' dormitory in a related party transaction.
  • MCE Holdings Bhd, through its wholly-owned unit Multi-Code Electronics Industries (M) Bhd, has secured contracts to supply electronic and mechatronics parts for a Proton car model.
  • Marine & General Bhd sold its oil products tanker, JM Sutera 5, to Kalianda Permata Transport Pte Ltd for USD5.6mn to partly finance its fleet optimisation strategy.
  • Avaland Bhd topped out its fully sold Aetas Damansara condominium development located at Persiaran Tropicana, Selangor on 26 March 2024.
  • One of the parties seeking to wrest control of South Malaysia Industries Bhd has made an eleventh-hour attempt to postpone SMI's annual general meeting scheduled for 27 March 2024.
  • Omesti Bhd's wholly-owned subsidiary Omesti Holdings Bhd had disposed of 3.5% of its shares in Microlink Solution Bhd for RM18.6mn, resulting in its shareholding in the group declining to 33.0%.
  • Scientex Bhd's net profit climbed 32.7% YoY to RM141.0mn in 2QFY24 thanks to higher progress in billings and sales from new launches.
  • United Malacca Bhd has recorded a 49.2% YoY jump in net profit for 3QFY24 to RM19.0mn, lifted by an improvement in its Indonesian operations as well as lower investment losses.
  • Kim Loong Resources Bhd's net profit for 4QFY24 fell 32.1% YoY to RM24.9mn on weaker palm oil prices.
  • Glomac Bhd's net profit jumped by over 800% YoY to RM3.8mn in 3QFY24 driven by higher revenue from its property development and property investment business.
  • SNS Network Technology Bhd's net profit in 4QFY24 fell 22.3% YoY to RM13.0mn in the absence of major orders related to government projects.
  • Oil and gas services firm Keyfield International Bhd, which primarily charters accommodation vessels, has begun taking orders from investors for its Main Market initial public offering that will raise up to RM188.1mn.
  • China's effort to boost manufacturing and shore up the economy amid a real estate slump could put "meaningful upward pressure" on US inflation and push back the start of monetary easing, according to new research by the Federal Reserve Bank of New York.

Source: TA Research - 27 Mar 2024

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