TA Sector Research

Daily Market Commentary - 12 Jun 2024

Publish date: Wed, 12 Jun 2024, 10:49 AM

Review & Outlook

Blue chips eased as profit-taking persisted on Tuesday, but strong situational plays on the construction (+4.3%), technology (+2.4%) and property (+1.4%) sectors lifted the broader market. The FBM KLCI shed another 2.88 points to settle at 1,611.49, off an opening high of 1,617.37 and low of 1,609.26, but gainers led losers 797 to 496 on higher turnover of 6.98bn shares worth RM5.11bn.

As key blue chips extend range bound trade, robust situational plays in the construction, technology and property sectors should continue to highlight trading interest. Immediate index resistance remains the recent high of 1,632, with 1,640, 1,660 and then 1,680 as tougher upside hurdles. Immediate supports are at 1,601, the rising 30-day moving average, with 1,587 and 1,557, the respective 50-day and 100-day moving averages, acting as stronger supports.

SKP Resources will need breakout confirmation above the 38.2%FR (RM1.32) to boost upside momentum and target the 23.6%FR (RM1.47) and RM1.60 ahead, with uptrend supports from the rising 30-day ma (RM1.10) and 50-day ma (RM1.02) cushioning downside. VSI need to overcome the 123.6%FP (RM1.20) to aim for the 138.2%FP (RM1.26) and 150%FP (RM1.31) going forward, and the 30-day ma (RM1.00) and 50- day ma (RM95sen) capping downside risk.

News Bites

  • S P Setia Bhd says it has started pre-initial public offering preparatory works to explore the establishment of a real estate investment trust that will have a diverse asset portfolio.
  • S P Setia Bhd, which previously failed to sell its 959.7-acre Tebrau land to Scientex Bhd due to Bumiputera requirement issues, has finally sold the plot to a company linked to tycoon Tan Sri Syed Mokhtar Albukhary for RM564mn cash.
  • UEM Sunrise Bhd said that it is selling two parcels of freehold land in Iskandar Puteri measuring about 11.7 hectares for RM144.9mn cash for the development of a data centre in Johor.
  • Crescendo Corp Bhd announced the sale of a vacant industrial land in Pulai measuring approximately 20.5 acres to Singapore-based data centre firm Digital Halo Pte Ltd for RM115.9mn cash.
  • Gamuda Land, the property arm of Gamuda Bhd, has announced that its redevelopment plans for the 75 London Wall building in London with UK-based real estate investors Castleforge Partners have been approved.
  • Synergy House Bhd's wholly-owned subsidiary has been appointed as the authorised service partner in Malaysia by one of the world's largest home retailers.
  • Bintai Kinden Corp Bhd has secured 2 sub-contracts with a combined value of RM22.3mn from Lu Chin Poh Construction Sdn Bhd to build double-storey houses in Muar, Johor.
  • Handal Energy Bhd is proposing to acquire a 30% stake in crane and lifting solutions provider Tenzin Heavy Machinery (M) Sdn Bhd for RM8mn.
  • Axteria Group Bhd has been granted a three-month extension until 15 Sept 2024 to implement its proposed private placement of up to 10% of its total number of issued share capital.
  • Agricore CS Holdings Bhd's IPO was oversubscribed by 130.4 times.
  • UK-based Abrdn plc has emerged as a substantial shareholder of Aurelius Technologies Bhd after acquiring a 7.1% stake in the company on 6 June.
  • Soaring Success Sdn Bhd, a company linked to the Loh family, has emerged as the largest shareholder in Oriental Holdings Bhd with a 36.7% stake after they were transferred from Pacific Carnival Sdn Bhd to Soaring Success as part of an internal restructuring of the Loh family's private companies.
  • Tan Sri Dr Chan Ah Chye, the major shareholder and director of property developer Talam Transform Bhd, passed away on 11 June morning at the age of 78.
  • Hektar Asset Management Sdn Bhd, the manager of Hektar Real Estate Investment Trust, has announced the resignation of its executive director and CEO Johari Shukri Jamil effective immediately.
  • Bermaz Auto Bhd said its net profit fell 10.3% YoY to RM90.2mn for 4QFY24 dragged down by lower revenue despite higher profit contribution from associated company Kia Malaysia Sdn Bhd.
  • The World Bank forecast global growth of 2.6% in 2024, which will rise to 2.7% in both 2025 and 2026, well below the 3.1% global average in the decade prior to Covid-19.

Source: TA Research - 12 Jun 2024

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