Review & Outlook

The local market fell on Wednesday, with sentiment dented by waning market momentum across the region as investors weighed chances that the Federal Reserve could delay cutting interest rates in June. The FBM KLCI lost 10.98 points to settle at the day's low of 1,537.01, off a high of 1,548.42, as losers led gainers 592 to 480 on higher turnover of 4.26bn shares worth RM2.87bn.

Lingering concerns about the outlook for interest rates following a recent increase in treasury yields should see stocks retrace further as external sentiment deteriorates. Overhead 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. Immediate index supports stays at 1,532 and 1,497, the respective rising 50-day and 100-day moving averages, with better support seen at 1,480.

Axiata looks attractive to bargain for rebound upside towards the 50%FR (RM2.94), with a confirmed breakout to aim for the 61.8%FR (RM3.13) and 76.4%FR (RM3.37) going forward. Crucial support is from the 23.6%FR (RM2.51). Meantime, CelcomDigi needs convincing breakout above the 138.2%FR (RM4.48) to target the 150%FR (RM4.61) and 161.8%FP (RM4.74) ahead, while key retracement supports are from the 76.4%FR (RM3.79) and 61.8%FR (RM3.62).

News Bites

• My EG Services Bhd's sub-subsidiary MY EG Finance Technologies Bhd has obtained a renewal of the moneylender's licence from the Ministry of Housing and Local Government.

• Kumpulan Kitacon Bhd's unit has secured a contract worth RM81.0mn from Sime Darby Property City (City of Elmina) Sdn Bhd for a housing development project in Shah Alam.

• Boustead Heavy Industries Corp Bhd will receive a repayment sum of RM49.7mn, leading to reversal of the write-off of the RM384.4mn net debt owed by Lumut Naval Shipyard Sdn Bhd.

• MN Holdings Bhd has secured a contract worth RM17.6mn for the supply, erection and commissioning of transmission main intake for the Pasir Gudang power station extension in Johor from Tenaga Nasional Bhd.

• Gamuda Land, the property arm of Gamuda Bhd, has signed a memorandum of understanding with Samsung Malaysia Electronics Sdn Bhd to equip The Camellia's show unit with Samsung's Bespoke AI home appliances.

• Ranhill Utilities Bhd's 80%-owned Johor water supply company, Ranhill SAJ Sdn Bhd, has been ordered to make preparations to deal with the issue of water shortage in several districts statewide, said Menteri Besar Datuk Onn Hafiz Ghazi.

• Kobay Technology Bhd said its 70%-owned subsidiary Avelon Healthcare Sdn Bhd has secured banking facilities totalling RM21.0mn from CIMB Islamic Bank Bhd.

• UMediC Group Bhd has secured approval from the Securities Commission Malaysia for the proposed transfer to the Main Market of Bursa Malaysia Securities.

• UCrest Bhd has signed an agreement with MDC Asia Link Bhd to provide the iMedic clinic management system to MDC Asia Link for 5 years, for an undisclosed amount.

• Engineering solutions provider Kawan Renergy Bhd on 3 April 2024 signed an underwriting agreement with M&A Securities for its upcoming initial public offering on the ACE Market of Bursa Malaysia.

• JAG Capital Holdings Bhd has increased its shareholding in KUB Malaysia Bhd to 62.7% following the conclusion of a mandatory general offer.

• Tune Protect Group Bhd's group chief executive officer Rohit Chandrasekharan Nambiar is resigning from his position "due to personal reasons," effective 10 May 2024.

• HeiTech Padu Bhd has appointed Salmi Nadia Mohd Hilmey as group managing director, effective 3 April 2024.

• Subsequent to an earthquake measured 7.4 in magnitude in Taiwan, the Taiwan Semiconductor Manufacturing Co. said there was no damage to critical tools, including all of its extreme ultraviolet lithography tools.

• China's Caixin service sector Purchasing Managers' Index rose to 52.7 in March from 52.5 in February.

• Opec+ chose to stick with oil supply cuts for the first half of the year, keeping global markets tight and potentially sending prices higher.

Source: TA Research - 4 Apr 2024