Review & Outlook

Bursa Malaysia shares rose on Monday, with bargain hunting in utility, healthcare, construction and technology heavyweights lifting the bluechip benchmark to another fresh near two-year high. The FBM KLCI climbed 7.5 points to close at 1,582.66, off an opening low of 1,575 and high of 1,583.34, as gainers led losers 668 to 438 on robust trade totalling 4.24bn shares worth RM3.48bn.

Stocks should pause for profit-taking breather after recent strength given the short-term overbought technical momentum, which should check gains. Immediate resistance for the index is revised higher to 1,600, with stronger upside hurdles seen at 1,620 and then 1,640. Key supports will be at 1,551, 1,542 and 1,520, the respective rising 30-day, 50-day and 100-day moving averages.

A confirmed breakout on MRCB share price above the upper Bollinger band (70sen) should accelerate gain towards the 200%FP (74sen) and 223.6%FP (79sen) ahead, with profit-taking pullbacks seen cushioned by the 150%FP (63sen) and 138.2%FP (60sen). UEM Sunrise will need breakout above the 123.6%FP (RM1.11) to enhance upside momentum towards the 138.2%FP (RM1.21) and 150%FR (RM1.30) going forward, while the rising 100-day ma (98sen) provide strong uptrend support.

News Bites

• Kuala Lumpur Kepong Bhd said that it had completed all reimbursements of recruitment and related fees in compliance with the group's strict no-recruitment-fee policy.

• Capital A Bhd said that the number of passengers it carried rose 17% YoY to 15.4mn in the 1Q24, on the back of strong travel demand during the school holidays and Chinese New Year.

• AirAsia X Bhd's passenger load factor rose to 83.0% in the 1Q2024, from 80.0% in the same period a year earlier, driven by robust travel demand.

• UOA Development Bhd said it plans to launch 2 new projects worth an estimated RM2.7bn in gross development value this year.

• YTL Hospitality REIT is planning to develop a hotel in Hokkaido, Japan, for an estimated total cost of RM199.0mn.

• Malakoff Corporation Bhd has inked a partnership with China Northeast Electric Power Engineering & Services Co Ltd for technical manpower supply for the operation and maintenance of combined cycle power plant projects under NEPCS in Bangladesh.

• Sapura Energy Bhd has landed a 5-year call-out contract from PTTEP Sabah Oil Ltd and PTTEP Sarawak Oil Ltd to provide underwater services.

• Oppstar Bhd is collaborating with South Korea's tech giant Samsung Electronics Co Ltd for the production of industrial ICs manufactured using Samsung's 14 nanometre FinFET technology foundry process.

• Saudi Arabia-based renewable energy giant ACWA Power has expressed interest in investing more than US$10.0bn in Malaysia over a 10-year period and some of the proposed projects are those to be undertaken through collaboration with Cypark Resources Bhd.

• Gadang Holdings Bhd has called off its planned acquisition of a 21.1- acre land in Kwasa Damansara for RM114.8mn from Kwasa Development (3) Sdn Bhd after it failed to obtain a waiver of the Bumiputera equity requirement to facilitate its acquisition.

• Tex Cycle Technology (M) Bhd has partnered with Evolusi Bersatu Sdn Bhd to invest RM100.0mn in Sabah's first integrated scheduled waste management facility.

• OpenSys (M) Bhd, which makes automated teller machines, expects a revenue boost from an estimated 3,000 units of cash machines due for replacement in the next 3 years.

• Kawan Renergy Bhd's IPO is priced at 30.0sen/share and comprises a public issuance of 110.0mn new shares as well as an offer for sale of 34.5mn existing shares by way of private placement to selected investors.

• Nestlé (Malaysia) Bhd's net profit for the 1QFY24 dipped 0.8% YoY to RM195.5mn due mainly to the impact of slightly lower sales, offset by proactive cost management initiatives as well as better commodity costs.

• LPI Capital Bhd net profit surged 37.0% YoY to RM101.3mn in 1QFY24 on lower net expenses from reinsurance contracts held and higher investment income.

• Ajiya Bhd recorded its second straight quarterly loss of RM12.7mn 1QFY24, versus a net profit of RM46.1mn a year ago, despite logging higher revenue.

• The economic confidence index in Euro area dropped to 95.6 in April from 96.2 in the previous month, the European Commission said.

Source: TA Research - 30 Apr 2024