TA Sector Research

Daily Market Commentary - 12 Apr 2024

Publish date: Fri, 12 Apr 2024, 10:58 AM

Review & Outlook

Bursa Malaysia shares slid lower on cautious trade Tuesday, as investors risk appetite continued to deteriorate ahead of the Hari Raya Aidilfitri holidays and the shorter trading week. The FBM KLCI slipped 6.47 points to close at 1,553.51, off an early high of 1,565.57 and low of 1,553.43, as losers led gainers 496 to 466 on total turnover of 3.46bn shares worth RM2.06bn.

The local market should slip back into profit-taking consolidation mode ahead of the weekend, with the lack of domestic positive catalysts and worries over the elevated and spreading Middle East geopolitical tensions clouding market tone. Overhead resistance for the index remains at 1,580, followed by 1,600, with stronger upside hurdles at the 1,618 level. Immediate support stays at 1,537 and 1,501, the respective rising 50-day and 100- day moving averages, with better support seen at 1,480.

Any price dips in Globetronics shares should attract bargain hunters looking for rebound upside to the 61.8%FR (RM1.48), with next major resistance coming from the 76.4%FR (RM1.60) and the 18/12/23 high (RM1.80), going forward. Immediate support is capped at the 38.2%FR (RM1.28) and 23.6%FR (RM1.16). Likewise, Inari Amertron is attractive to bargain for upside to 76.4%FR (RM3.53), with confirmed breakout to challenge the high of 01/12/21 (RM3.86), and crucial chart support from the 50%FR (RM3.02).

News Bites

  • The retail prices of RON97 and RON95 petrol as well as diesel will remain unchanged for the April 11 to 17 period. RON97 petrol will be sold at RM3.47 a litre, RON95 at RM2.05, and diesel at RM2.15.
  • Malayan Banking Bhd and CIMB Group Holdings Bhd have been ordered by the central bank to provide a thorough explanation over their recent banking service outages.
  • Tycoon Tan Sri Vincent Tan is considering taking Berjaya Food Bhd private, according to people with knowledge of the matter.
  • Capital A Bhd's plans to enter into a deal to hive off of its aviation business to AirAsia X Bhd has been extended for a second time, to April 30, 2024.
  • Malaysian Rating Corporation Bhd has revised its rating outlook on the sukuk programmes of Guan Chong Bhd and JB Cocoa Sdn Bhd, to negative from stable.
  • Solarvest Holdings Bhd aims to raise up to RM56.7mn through a private placement, representing 6.0% of its enlarged share base, to finance solar power projects.
  • SBH Marine Holdings Bhd said that the impact from the Red Sea crisis to the group is not substantial as the group is able to pass on the higher shipping costs to customers.
  • PN17 company Sarawak Cable Bhd and its subsidiary, Universal Cable (Sarawak) Sdn Bhd, are both facing lawsuits from 2 banks, Hong Leong Bank Bhd and Hong Leong Bank Islamic Bhd, over a total owed sum of RM95.5mn.
  • Bursa Malaysia has approved the transfer of GFM Services Bhd's listing from the ACE Market to the Main Market of Bursa Malaysia.
  • Meridian Bhd has been admitted into PN17 company of Bursa Malaysia.
  • A new major shareholder has emerged in construction outfit Bertam Alliance Bhd after Perfect Link Ventures Sdn Bhd acquired a 12.2% stake or 39.4mn shares via an off-market deal.
  • Low Swee Foong has ceased to be a substantial shareholder of TWL Holdings Bhd after selling 76.8mn shares in the property development and construction firm.
  • China's consumer inflation cooled more than expected in March, while producer price deflation persisted, maintaining pressure on policymakers to launch more stimulus as demand remains weak.
  • The number of Americans filing new claims for unemployment benefits fell more than expected last week, suggesting that the labour market remained fairly tight, though it could be taking longer for some laid off workers to land new jobs.
  • The U.S. producer price index for final demand rose 2.1% from March 2023, the most in 11 months, though certain categories that feed into the Federal Reserve's preferred inflation gauge were more muted.
  • The European Central Bank left its key interest rates unchanged on Thursday, but signaled policymakers are gaining confidence on inflation returning to the 2% target and could lower rates in coming months.

Source: TA Research - 12 Apr 2024

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