TA Sector Research

Daily Market Commentary - 9 Apr 2024

Publish date: Tue, 09 Apr 2024, 11:22 AM

Review & Outlook

Blue chips rose on Monday, copying regional gains as investors weighed when the U.S. Federal Reserve will start cutting rates in the wake of yet another blowout jobs report over the weekend. The FBM KLCI gained 4.73 points to close at 1,559.98, off a high of 1,560.26 and low of 1,554.15, as gainers edged losers 531 to 511 on total turnover of 3.96bn shares worth RM2.33bn.

In spite of the firm local benchmark, the sustained negative market breadth and relative weakness on lower liners indicate persistent selling or profittaking interest, which should increase on further gains. Overhead resistance for the index is revised upwards to 1,580, followed by 1,600, with stronger upside hurdles at the 1,618 level. Immediate support remains at 1,536 and 1,500, the respective rising 50-day and 100-day moving averages, with better support seen at 1,480.

Gadang will need breakout confirmation above the upper Bollinger band (45sen) to boost upside momentum towards the 123.6%FP (47sen), with next major resistance from the 138.2%FP (50sen), and immediate supports at 61.8%FR (37sen) and 50%FR (35sen). WCT Holdings needs decisive breakout above the upper Bollinger band (57sen) to enhance upside potential towards the 76.4%FR (61sen), with stronger upside hurdle coming at the peak of 15/10/21 (69sen) going forward. Crucial chart supports at 38.2%FR (47sen)) and 23.6%FR (42sen) limits downside risk.

News Bites

  • Malaysia's Industrial Production Index grew by 3.1% YoY in February 2024, induced by positive momentum in all sectors, while unemployment rate sustained at 3.3% YoY.
  • Malaysia's wholesale and retail sales grew 5.5% YoY in February, while manufacturing sales rose 0.7% YoY.
  • The owner of the Resorts World casino in New York City, Genting Malaysia Bhd said an expansion of its gambling offering there would lift its tax payment to the state to more than USD1bn (RM4.6bn) annually.
  • Inta Bina Group Bhd has secured a contract worth RM348.9mn for a mixed development project named Maya Integrated Development in Shah Alam, Selangor.
  • Nextgreen Global Bhd signed a shareholders' agreement with IOI Corp Bhd to develop a paper pulp plant in Pahang, which may contribute over RM300mn in revenue by 2026.
  • NationGate Holdings Bhd intends to transfer its listing status to the Main Market of Bursa Malaysia.
  • Sarawak Consolidated Industries Bhd has secured a revised contract worth RM162mn for the construction of high-rise residential units in Kota Bharu, Kelantan, under the PR1MA Corp Malaysia affordable homes scheme.
  • Awanbiru Technology Bhd said it applied for a waiver from having to submit its regularisation plan and for an upliftment of its classification as an affected listed issuer.
  • Malaysia Building Society Berhad's wholly owned subsidiary MBSB Bank Bhd is discontinuing its e-wallet platform, effective 31 May 2024.
  • Sunzen Biotech Bhd has initiated the closure of its loss-making animal health division to reduce costs and bolster profitability, focusing instead on its human health and loan financing segments.
  • Meridian Bhd was designated as a Practice Note 17 affected listed issuer due to a disclaimer of opinion expressed by its external auditor in the audited financial statements for the period ending 30 Sept 2023.
  • YNH Property Bhd is deemed to be in a "technical default" for its Islamic medium-term notes programme (sukuk wakalah), according to the MARC Ratings, which downgraded its rating further to BBB-, from the BBB+.
  • Pan Malaysia Holdings Bhd's minority shareholders should reject the takeover offer from new major shareholders, its independent adviser DWA Advisory Sdn Bhd said.
  • EVD Bhd's wholly-owned subsidiary, EV-Dynamic Sdn Bhd, has been awarded a sub-contract worth RM59.6mn from Sunway Construction Sdn Bhd to design, supply, deliver, install, test and commission of smart building and security services.
  • Topmix Bhd slated for a listing on the ACE Market of Bursa Securities on 23 April 2024 has seen its IPO oversubscribed by 58.6 times.
  • Property developer KTI Landmark Bhd said on Monday that it has secured approval for its IPO on ACE Market from Bursa Malaysia. (The Edge)
  • US Treasury Secretary Janet Yellen warned China on Monday that Washington will not accept new industries being decimated by Chinese imports, as she wrapped up four days of meetings to press her case for Beijing to rein in excess industrial capacity.

Source: TA Research - 9 Apr 2024

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