TA Sector Research

Daily Market Commentary - 2 Apr 2024

Publish date: Tue, 02 Apr 2024, 11:03 AM

Review & Outlook

Strength in consumer, oil & gas and plantation heavyweights helped lift the local blue-chip benchmark index higher on Monday, even as regional markets stalled on mixed economic data and the Good Friday and Easter Monday holidays. The FBM KLCI gained 7.95 points to close at 1,544.02, off an opening low of 1,537.07 and high of 1,544.71, as gainers led losers 577 to 465 on modest trade totalling 3.18bn shares worth RM2.13bn.

The local market should be buoyed by investors that are returning to bargain hunt as the market begin trading for the second quarter for the year. Stronger index supports cushioning downside will be at 1,527 and 1,504, 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.

Maybank need breakout confirmation above the 138.2%FP (RM9.79) to extend higher and aim for the 150%FP (RM9.97) and 161.8%FP (RM10.14) ahead, while uptrend support from the rising 30-day ma (RM9.44) and 50-day ma (RM9.24) cushion downside. RHB Bank will need to overcome the 123.6%FP (RM5.75) to target the 138.2%FP (RM5.90) and 150%FP (RM6.02) going forward, with the 200-day ma (RM5.52) providing key uptrend support.

News Bites

  • The World Bank maintained its forecast for Malaysia's economy to grow 4.3% this year, as household spending accelerates amid moderate inflation, but flagged narrow fiscal space and potential downside from external risks.
  • The seasonally adjusted S&P Global Malaysia Manufacturing Purchasing Managers' Index eased from 49.5 in February to 48.4 in March.
  • The Ministry of Energy Transition and Water Transformation through the Energy Commission will offer a solar quota of 2,000MW through a competitive bidding process under the next phase of the large-scale solar programme.
  • Kerjaya Prospek Group Bhd has secured a RM33.2mn piling and earthworks job for a proposed service apartment in Pulau Andaman, Penang from a related party.
  • MISC Bhd announced that it has secured long-term contracts for three liquefied natural gas carriers from QatarEnergy.
  • Berjaya Corp Bhd has finalised the acquisition of eight parcels of freehold land totalling 20,977.15 sq meters in Yokohama, Japan for JPY12.6bn (RM407.3mn).
  • Ahmad Zaki Resources Bhd said it has been awarded a contract worth RM315.9mn by the Public Works Department for upgrading and renovation works on Istana Abu Bakar in Pekan, Pahang.
  • Boustead Heavy Industries Corp Bhd's has extended the planned disposal of its 20.8% stake in the troubled Boustead Naval Shipyard Sdn Bhd (BNS, now known as Lumut Naval Shipyard Sdn Bhd) to the Ministry of Finance for RM1 for another month until April 30.
  • Betamek Bhd said it is acquiring tuner and car stereo maker Sanshin (Malaysia) Sdn Bhd for RM13.5mn from its Japanese owner.
  • EVD Bhd has secured two contracts worth RM19.5mn for mechanical and engineering works involving the construction of a wastepaper warehouse and a power generation facility in Kuala Langat, Selangor.
  • K-One Technology Bhd is proposing a diversification into the healthcare industry to lessen dependency on existing segments.
  • Meridian Bhd faces a trading suspension for its shares and warrants starting April 8 if it doesn't submit its 2023 annual report by April 5.
  • Sedania Innovator Bhd has appointed Ng Hock Guan as its group chief executive officer effective April 1.
  • HSS Engineers Bhd is set to bolster its footprint in the Southeast Asian region by acquiring a 12% equity stake in PT Oriental Consultants Indonesia, a renowned Indonesian firm specialising in engineering consultancy services.
  • China's Caixin/S&P Global manufacturing purchasing managers' index rose to 51.1 in March from 50.9 the previous month.
  • The Institute for Supply Management's US manufacturing gauge rose 2.5 points to 50.3 last month.

Source: TA Research - 2 Apr 2024

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