TA Sector Research

Daily Market Commentary - 19 Apr 2024

Publish date: Fri, 19 Apr 2024, 10:39 AM

Review & Outlook

Stocks managed to sustain moderate gains on Thursday, as investors returned to nibble amid signs of stability in key regional currencies after the outlook for US interest rates being kept higher for longer due to sticky inflation was partly discounted. The FBM KLCI added 4.34 points to close at 1,544.76, off an early low of 1,538.68 and high of 1,548.46, as gainers led losers 570 to 469 on improved turnover of 3.82bn shares worth RM2.61bn.

The local market should extend consolidation ahead of the weekend, but lingering concerns over strong US growth and inflation to keep interest rates higher for longer could check gains in the immediate term. Immediate index supports are at 1,534 and 1,513, the respective 50-day and 100- day moving averages, with better support at 1,500. Overhead resistance will be at the recent high of 1,565, with stronger upside hurdles seen at 1,580 and 1,600.

Any further weakness on Ekovest should attract buyers ahead of rebound upside towards the 50%FR (49sen), with a confirmed breakout to aim for the 61.8%FR (52sen) and 76.4%FR (56sen), while the 23.6%FR (41sen) cushions downside. IWCity will need convincing breakout above the 61.8%FR (83sen) to fuel further upside momentum towards the 76.4%FR (91sen), with next hurdle seen from the 8/1/24 peak (RM1.03), while the 200-day ma (66sen) provides good uptrend support.

News Bites

  • RHB Bank has raised its target for sustainable financing to over RM50bn by 2026, after cumulatively mobilising RM23.8bn in sustainable financial services by the end of the financial year 2023, surpassing its initial goal of RM20bn.
  • Axiata Group Bhd's unit Dialog Axiata PLC will acquire the entire stake of rival telco Airtel Lanka in Sri Lanka from Bharti Airtel Limited in exchange for 10.4% of the total issued shares in Dialog.
  • Yinson Holdings Bhd's green technologies business unit, Yinson GreenTech has signed a Letter of Intent with Eastern Pacific Shipping to collaborate towards cleaner and more sustainable maritime operations in Singapore.
  • Affin Group has launched a cashless initiative tailored for Lembaga Muzium Negeri Terengganu, aiming to digitalise the ticketing process and provide added convenience to museum visitors.
  • Kimlun Corporation Bhd has bagged a construction contract worth RM150mn for a serviced apartment development project in Johor Bahru.
  • AWC Bhd has bagged two contracts worth a total of RM19.4mn for plumbing works.
  • Pansar Bhd has secured a contract worth RM269.1mn to upgrade the capacity of a water treatment plant in Sibu, Sarawak.
  • DC Healthcare Holdings Bhd opened new Dr. Chong Clinic and DC Body locations in KL Publika Shopping Gallery, and DC Body in Johor Bahru Bukit Indah, expanding its presence nationwide.
  • AwanBiru Technology Bhd said trading in its shares will be suspended from April 26, after the group failed to submit its regularisation plan to the regulators for approval within the stipulated timeframe that ended on April 13.
  • Systech Bhd forges ahead with its transformation plan as the company received shareholders' nod for its capital exercise proposals at its extraordinary general meeting yesterday.
  • Timber products manufacturer Auro Holdings Bhd (formerly known as NWP Holdings Bhd) is proposing to venture into the food and beverage business, more than a year after it diversified into the sand dredging business.
  • Bursa Malaysia Securities Bhd has approved the transfer of UMediC Group Bhd's listing status from the ACE Market to the Main Market, under the 'health care' sector.
  • Datuk Farhash Wafa Salvador, former political aide to Prime Minister Datuk Seri Anwar Ibrahim, has ceased to be a substantial shareholder of HeiTech Padu Bhd, just one month after acquiring a 15.9% stake via a private vehicle in the company.
  • Sin-Kung Logistics Bhd aims to raise RM26mn from its initial public offering en route to a listing on the ACE Market of Bursa Malaysia.
  • China's unemployment rate stayed at 15.3% last month for people between 16 and 24 years old, the same as in February.
  • The number of Americans filing new claims for unemployment benefits was unchanged at a seasonally adjusted 212,000 for the week ended April 13.
  • The International Monetary Fund said price pressures in much of the Middle East and North Africa are easing despite the fallout from the war in Gaza and shipping attacks.

Source: TA Research - 19 Apr 2024

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