TA Sector Research

Daily Market Commentary - 10 Jun 2024

Publish date: Mon, 10 Jun 2024, 11:15 AM

Review & Outlook

The strong rebound last week sparked a buy signal on the daily slow stochastics indicator for the FBM KLCI from oversold levels, cueing further near-term upside potential as technical momentum recovers from the recent profit-taking correction. Improving buying momentum and market breadth, and resurgent rotational plays on the construction, property and rubber glove sectors, will also be supportive for sustainable recovery ahead. Meantime, on the external front, with US stocks ending flat despite the stronger-than-expected May jobs report last Friday which signal the Federal Reserve can afford to be patient regarding lowering interest rates this year, markets in the region and locally should remain steady.

On the index, immediate resistance will be from the recent high of 1,632, with 1,640, 1,660 and then 1,680 as tougher upside hurdles. Immediate supports are at 1,600, the rising 30-day moving average, with 1,585 and 1,555, the respective 50-day and 100-day moving averages, acting as stronger supports.

As for stock picks this week, key construction, property, rubber glove and technology related lower liners are likely to continue attracting bargain hunters looking for further medium-term recovery upside ahead.

News Bites

  • Diesel prices will be floated and will retail at RM3.35 per litre in the Peninsular Malaysia starting today, says Datuk Seri Amir Hamzah Azizan.
  • Public Bank Bhd has received approval from the State Securities Commission of Vietnam to acquire RHB Bank Bhd's stockbroking firm in Vietnam for RM72.6mn.
  • Maxis Bhd, one of the five mobile network operators involved in the implementation of the national dual network 5G model, said that it is ready to complete the Digital Nasional Bhd share subscription agreement process.
  • Toyo Ventures Holdings Bhd's wholly-owned unit Song Hau 2 Power Company Ltd has secured USD980mn (RM4.6bn) equipment financing facility from i-Power Solutions Pte Ltd.
  • Binastra Corp Bhd, formerly known as Comintel Corp Bhd, said it has secured a contract worth RM315mn to build two blocks of residential apartments in Bandar Tasik Selatan, Kuala Lumpur.
  • Paragon Globe Bhd is acquiring a parcel of land, measuring 9.8 acres in Plentong, Johor Bahru, for RM13.5mn.
  • Sunview Group Bhd has secured a RM51.9mn contract to build a 44.99 MWp solar photovoltaic plant in Kuala Ketil, Kedah.
  • Perak Corp Bhd has agreed to jointly develop with Urbax Properties Sdn Bhd a housing development project in Hulu Kinta in Kinta, Perak, on three tracts of vacant freehold land measuring a total area of about 24.807 acres.
  • The takeover bid by doctor-turned-businessman Tan Sri Mohan MK Swami and his partner Datuk Seri Dr Shamir Kumar Nandy for Turiya Bhd has closed with the offerors raising their stake in the property management firm to 59.5%.
  • DS Sigma Holdings Bhd has proposed to transfer its listing from the ACE Market to the Main Market of Bursa Malaysia, stating that it has met the required profit requirements.
  • Euro Holdings Bhd said it is disposing of an 8,000 sq m industrial land in Rawang, together with a two-storey detached factory and an annexed three-storey office building sited on it for RM17.3mn, cash.
  • Engtex Group Bhd has proposed to undertake a bonus issue of up to 414.3mn new shares, on the basis of three bonus shares for every four existing shares.
  • Go Hub Capital Bhd has entered into an underwriting agreement with UOB Kay Hian Securities (M) Sdn Bhd in conjunction with its Initial Public Offering on the ACE Market of Bursa Malaysia.
  • China's exports rose 7.6% YoY last month, beating a forecast 6.0% increase in a Reuters poll of economists and a 1.5% rise seen in April.
  • The US non-farm payrolls increased by 272,000 jobs last month, the Labor Department's Bureau of Labor Statistics said.

Source: TA Research - 10 Jun 2024

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