Review & Outlook

Blue chips eased into profit-taking consolidation on Thursday, matching the mixed closings on Asian and overnight Wall Street markets due to uncertainty over the interest rate and inflation outlook. The FBM KLCI slipped 3.53 points to end at 1,601.22, off an early high of 1,607.38 and low of 1,599.29, as gainers led losers 601 to 458 on lower turnover of 4.65bn shares worth RM3.13bn.

The local market should extend profit-taking consolidation into the weekend, with uncertainty over the US interest rate direction and inflation outlook to nudge investors to the sidelines. Immediate resistance for the index remains at 1,620, with stronger upside hurdles seen at 1,640 and then 1,660. Key supports will be at 1,567, 1,555 and 1,529, the respective rising 30-day, 50-day and 100-day moving averages.

AMBank need sustained breakout above the upper Bollinger band (RM4.27) to boost upside momentum towards the 20/2/24 high (RM4.45), with next hurdle at the 123.6%FP (RM4.69), while uptrend support from the 200-day ma (RM4.00) cushions downside. CIMB need to overcome the 7/5/24 high (RM6.92) to extend uptrend towards the 123.6%FP (RM7.23) and 138.2%FP (RM7.52), while the 100-day ma (RM6.33) provide good uptrend support.

News Bites

• Malaysia's central bank left the benchmark interest rate unchanged at 3% as widely expected, citing improving economic activity amid moderate inflation.
   
• Solarvest Holdings Bhd has secured a contract worth RM40.4mn from Scientex Bhd to install rooftop solar photovoltaic systems.
   
• Salcon Bhd said Envitech Sdn Bhd, a 60%-owned subsidiary of Salcon Engineering Bhd, has been awarded a RM9.7mn contract by Rantau Urusan (M) Sdn Bhd for the design and construction of a sewerage treatment plant in Durian Sebatang, Hilir Perak, Perak.
   
• Supermax Corp Bhd is acquiring the remaining 33% equity interest in its 67%-owned subsidiary Supermax Healthcare Canada Inc (SHCI) for C$5.5mn (RM19.0mn) cash, financed by internal funds.
   
• The Federal Court on Thursday agreed to hear the merits of the appeal filed by the National Feedlot Corporation Sdn Bhd and four others, including its chairman Datuk Seri Mohamad Salleh Ismail, for damages against Public Bank Bhd.
   
• Malaysia has launched the commercial trading of Renewable Energy Certificates through the Malaysian Green Attribute Trading System to be operated by Tenaga Nasional Bhd.
   
• Wilmar International Ltd has secured a USD100mn (SGD135.7mn) sustainability-linked loan from Malayan Banking Bhd.
   
• MAA Group Bhd, a substantial shareholder of KNM Group Bhd, has extended a RM13.5mn loan to address the working capital requirements of the Practice Note 17 company.
   
• Main-Market listed Warisan TC Holdings Bhd has lodged a 30-year medium-term notes programme worth RM500mn with the Securities Commission of Malaysia.
   
• Annum Bhd, formerly known as Cymao Holdings Bhd, says it is going to hire a new audit firm to conduct a special audit on its revenue.
   
• The property arm of Sunway Bhd, Sunway Property's newly launched Sunway Velocity 3 residential project has achieved a take-up rate of 60%, with over 400 out of 695 units snapped up during its opening weekend on 4 May 2024.
   
• Kerjaya Prospek Property Bhd will jointly develop a piece of freehold land in Aspen Vision City, Batu Kawan, Penang into a mixed development that will include a hotel and serviced apartments.
   
• UEM Sunrise Bhd topped out KAIA Heights Phase 1 in Taman Equine,Seri Kembangan, Selangor, on Wednesday. It is slated for completion in 3QCY25.
   
• Mah Sing Group Bhd, via its unit Star Residence Sdn Bhd, officially launched its latest serviced apartment development named M Zenya in Kepong, Kuala Lumpur yesterday.
   
• LBS Bina Group Bhd has launched SkyRia, the latest addition to its D'Island Residence project in Puchong.
   
• MCE Holdings Bhd said Brahmal Vasudevan has emerged as a substantial shareholder with a 5.0% indirect stake.
   
• Malaysia Airports Holdings Bhd named former Malaysian Aviation Commission executive chairman Dr Nungsari Ahmad Radhi as its director effective immediately.
   
• Pentamaster Corporation Bhd reported an 8.9% YoY decline in its net profit to RM19.4mn for 1QFY24 as slightly higher revenue was impacted by lower other income and share of loss of associates.
   
• Shipments from China grew 1.5% YoY last month, in line with the increase forecast in a Reuters poll of economists, while imports rose 8.4%, beating an expected 4.8% rise and reversing a 1.9% fall in March..

Source: TA Research - 10 May 2024