TA Sector Research

Daily Market Commentary - 24 Apr 2024

Publish date: Wed, 24 Apr 2024, 11:21 AM

Review & Outlook

Rotational buying into construction and rubber glove related stocks on Tuesday sustained trading interest and added to gains as external markets stabilized. The FBM KLCI added 2.05 points to close at 1,561.64, off an opening low of 1,559.81 and high of 1,567.57, as gainers led losers 642 to 402 on improved turnover totalling 3.73bn shares worth RM2.79bn.

The local market tone should remain upbeat as external markets stabilize, as investors assess earnings from key US tech giants and economic data for further clues on the sustainability of global economic recovery. Immediate resistance for the index will be revised to 1,580, with stronger upside hurdles seen at 1,600 and then 1,620. Key supports will be at 1,544, 1,536 and 1,515, the respective rising 30-day, 50-day and 100-day moving averages.

Supermax need to overcome resistance from the 200-day ma (86sen) and 100-day ma (89sen) convincingly to aim for next upside hurdles at 95sen and RM1.04 ahead, while stronger chart supports are at 75sen and 70sen. Top Glove will need breakout confirmation above the 100-day ma (86sen) to enhance upside momentum towards 94sen, RM1.02 and RM1.10 going forward, while the lower Bollinger band (78sen), 75sen and 70sen provide stronger chart supports.

News Bites

  • Malaysia Airports Holdings Bhd's passenger traffic at its airports in Malaysia and Türkiye continued to recover in the 1Q24, recording 31.4mn in total passenger movements, with international passenger movements surpassing pre-pandemic levels for the first time.
  • Capital A Bhd's unit AirAsia Consulting Sdn Bhd is still in the prequalification stage for the acquisition of national carrier SriLankan Airlines.
  • Chin Hin Group Bhd's conditional mandatory takeover offer to acquire the remaining shares it does not own in Signature International Bhd has turned unconditional, after it aggregated more than 50% of the voting shares.
  • Cypark Resources Bhd announced that its 100MWac Large Scale Solar 3 hybrid solar plant project reached the Initial Operations milestone on 21 April 2024.
  • Gadang Holdings Bhd will appeal to the Economic Planning Unit for a waiver of the Bumiputera equity requirement to facilitate its acquisition of a 21.1-acre land in Kwasa Damansara.
  • Comfort Gloves Bhd said there was a fire at the glove maker's newlybuilt 3 storey warehouse and packing department in Taiping, Perak on Tuesday morning.
  • HHRG Bhd aims to raise between RM16.1mn and RM18.1mn through a private placement of up to 10.0% of its expanded issued share capital to yet-to-be identified third-party investors, at a price to be fixed.
  • Haily Group Bhd has secured a RM109.5mn contract to undertake the construction and completion of 332 units of double-storey terrace houses in Pontian, Johor.
  • Crest Builder Holdings Bhd has won a RM486.0mn contract to build three blocks of condominiums in Mon't Kiara.
  • AHB Holdings Bhd's foray into the electric vehicles business has encountered a setback as its planned acquisition of a 51.0% stake in automotive distributor CAF Motor Sdn Bhd was mutually terminated.
  • Inta Bina Group Bhd has accepted a letter of award from Next Delta Sdn Bhd for the construction and completion of main building works at Pekan Country Heights, Selangor worth RM169.7mn.
  • Axis Real Estate Investment Trust reported a 39.5% YoY surge in its net trust income to RM42.3mn for the 1QFY24, attributable to postdevelopment contributions from its Bukit Raja Distribution Centre 2, and new tenancies in its Shah Alam Distribution Centre 3.
  • DXN Holdings Bhd 4QFY24 net profit rose 43.2% YoY to RM79.0mn on the back of higher revenue.
  • KIP Real Estate Investment Trust 3QFY24 net property income rose 10.1% YoY to RM18.1mn mainly due to stronger performance from its retail properties.
  • Ramssol Group Bhd 1QFY24 net profit rose 123.5% YoY to RM4.2mn mainly due to certain projects with higher profit margin and the distributorship of HCM licences.
  • S&P Global said on Tuesday that its flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, fell to 50.9 this month from 52.1 in March.
  • The US new home sales spiked by 8.8% to an annual rate of 693,000 in March after plunging by 5.1% to a revised rate of 637,000 in February.

Source: TA Research - 24 Apr 2024

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