TA Sector Research

Daily Market Commentary - 14 May 2024

Publish date: Tue, 14 May 2024, 10:49 AM

Review & Outlook

Bursa Malaysia blue chips stayed mostly range bound on Monday, as investors wait for more evidence on easing inflation on global economies before committing fresh positions. The FBM KLCI rose 2.24 points to close at 1,602.91, off an early high of 1,604.8 and low of 1,600.43, as gainers led losers 642 to 494 on robust turnover of 4.53bn shares worth RM3.01bn.

Stocks are likely to trade sideways in the immediate term as market players await key US inflation data for further clues on the likely direction for interest rates. Immediate resistance for the index stays at 1,620, with stronger upside hurdles seen at 1,640 and then 1,660. Immediate uptrend supports will be at 1,572, 1,558 and 1,532, which are the respective rising 30-day, 50-day and 100-day moving averages.

Genting will need convincing breakout above the 61.8%FR (RM4.74) to ensure challenge of the 76.4%FR (RM4.92) and 11/3/24 high (RM5.20) ahead, while the 200-day ma (RM4.51) provide strong chart support. Genting Malaysia need breakout confirmation above the 61.8%FR (RM2.73) to enhance upside momentum towards the 76.4%FR (RM2.81) and 27/2/24 high (RM2.94) going forward, while the 38.2%FR (RM2.60) provide good retracement support.

News Bites

  • Telekom Malaysia Bhd said that it had signed deals with the Home Ministry relating to two contracts worth RM120.5mn, at the recent Defence Services Asia Exhibition and Conference 2024 and National Security Asia 2024.
  • MISC Bhd is going to jointly develop specialised ships with Japanese multi-modal transportation company Mitsui OSK Lines Ltd, as well as Petronas, to transport liquefied carbon dioxide for storage in Malaysia.
  • Teleport, Capital A Bhd's wholly owned logistics arm, is planning to boost its network with 7 more air freighters, as it targets to increase the volume of parcels it delivers daily to 2mn by end-2025, from 130k parcels a day at end-2023.
  • PTT Synergy Group Bhd has secured two contracts worth a total of RM169.9mn from Sime Darby Property Bhd.
  • Aurelius Technologies Bhd plans to invest RM450mn over the next 5 years to build a new manufacturing hub on an industrial land spanning 571,908 sq ft in the Kulim Hi-Tech Park, Kedah.
  • AME Elite Consortium Bhd is selling 11 plots of freehold land measuring over 34.9 acres in Pulai, Johor Bahru, for RM209.8mn cash to Hong Kong-based data centre operator Digital Hyperspace Malaysia Sdn Bhd.
  • Construction group Southern Score Builders Bhd is acquiring a 51% equity stake in electrical contractor SJEE Engineering Sdn Bhd for RM23.0mn cash to tap into new market segments within the construction value chain and to expand its income stream.
  • Mulpha International Bhd said its indirect wholly owned Australian subsidiary Mulpha Norwest Pty Ltd had accepted a cash advance facility of AUD100mn (~RM313.1mn) from National Australia Bank Ltd to refinance borrowings and for working capital.
  • Teo Seng Capital Bhd is buying eight parcels of land measuring 104.9 acres in Batu Pahat district in Johor for RM23.6mn.
  • Uzma Bhd has secured a contract valued at USD9.3mn (RM43.9mn) to undertake standard and special application of coiled tubing and pumping services.
  • Building materials maker Ajiya Bhd said its Thai unit, Thai Ajiya Safety Glass Co Ltd is disposing of a 13,544 sq m land in Thailand's Chonburi province, together with office buildings and a factory, for RM26.8mn.
  • Telecommunication services provider Silver Ridge Holdings Bhd said its 80%-owned subsidiary, Centropia Technologies One Sdn Bhd, had secured a RM17mn contract to provide recruitment services for two years.
  • Serendib Capital Ltd said on Monday an agreement to rescue Sarawak Cable Bhd remains in force and cannot be terminated unilaterally.
  • Home appliances company Fiamma Holdings Bhd is proposing a private share sale that is expected to raise up to RM56.3mn from investors to be identified later.
  • KUB Malaysia Bhd's has raised its stake in Central Cables Bhd to 98.9% at the close of its mandatory general offer for the remaining CCB shares on Monday.
  • Indonesian consumers continued to express a positive attitude in April, with their confidence strengthening to the strongest level in almost a year, survey data from the Bank Indonesia showed on Monday.
  • Treasury Secretary Janet Yellen said she hopes China won't mount major retaliation against any steps Washington takes to safeguard investments in critical new industries.
  • US consumer expectations for inflation and home prices rose in April while perceptions of the labour market weakened, underscoring an uneasy backdrop for household finances and the cost of living.

Source: TA Research - 14 May 2024

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