TA Sector Research

Daily Market Commentary - 14 Jun 2024

Publish date: Fri, 14 Jun 2024, 10:43 AM

Review & Outlook

Blue chips staged mild rebound on Thursday, mirroring regional gains after the US Federal Reserve held interest rates steady but shifted its dot plot to only one rate cut this year and a more aggressive four rate cuts in 2025. The FBM KLCI rose 1.22 points to close at 1,610.17, off an early high of 1,616.84 and low of 1,609.13, as gainers led losers 798 to 447 on lower turnover of 5.91bn shares worth RM4.35bn.

Stocks should trade sideways ahead of the long weekend break due to the religious Hari Raya Haji holiday, and as investors shift focus to Bank of Japan's monetary policy decision. Immediate index supports are at 1,602, the rising 30-day moving average, with 1,589 and 1,559, the respective 50-day and 100-day moving averages, acting as stronger supports. Immediate

resistance remains the recent high of 1,632, with 1,640, 1,660 and then 1,680 as tougher upside hurdles.

Genting Berhad should attract buyers on weakness towards chart supports from the 50%FR (RM4.60) or 200-day ma (RM4.55), while sustained strength above the 61.8%FR (RM4.74) should aim for the 76.4%FR (RM4.92), with next hurdle seen at the 11/3/24 peak (RM5.20). GENM should anticipate bargain hunters to cushion downside at 23.6%FR (RM2.52), with next key support from the 21/22/22 pivot low (RM2.40), while a decisive break above the 50%FR (RM2.67) should target the 61.8%FR (RM2.73) and 76.4%FR (RM2.81) ahead.

News Bites

  • TH Plantations Bhd it is teaming up with UEM Lestra Bhd, a wholly owned unit of UEM Group, to develop a 1.2 megawatt biogas power plant in Kluang, Johor.
  • Sunview Group Bhd's wholly owned subsidiary, Fabulous Sunview Sdn Bhd, has inked a development and cooperation agreement with Uzbekistan's Ministry of Energy to develop 2 large-scale solar photovoltaic plants and battery energy storage systems in Uzbekistan.
  • Solarvest Holdings Bhd is buying 4 levels of office space with 200 parking bays and a rooftop retail unit in the Solarvest Tower, which is currently under construction, from Chin Hin Group Property Bhd for RM48.7mn cash.
  • Tex Cycle Technology (M) Bhd is acquiring the entire equity interest in Meridian World Sdn Bhd, which specialises in wastewater and air pollution control, for RM55mn in cash.
  • Careplus Group Bhd plans to raise up to RM10.6mn through a private placement to finance the construction of a manufacturing hub in Negeri Sembilan for its electric vehicle business.
  • LBS Bina Group Bhd said that it has unbilled sales of RM1.7bn as at end-May, which will be recognised in the upcoming years.
  • Cash-strapped Sapura Energy Bhd said it expects to reach an arrangement with its creditors by achieving a majority support in a court-convened meeting.
  • Cabnet Holdings Bhd's wholly-owned subsidiary Cabnet M&E Sdn Bhd has been appointed by Jayaplus Development Sdn Bhd as the subcontractor for electrical works worth RM46mn for a project in Johor Bahru.
  • Malaysia Building Society Bhd's shares will be traded under its new name, MBSB Bhd, effective 18 June.
  • IOI Properties Group Bhd has officially opened its 4.05-hectare Central Park in IOI Resort City, Putrajaya.
  • Avaland Bhd has officially launched its latest high-rise residential development, Aetas Seputeh, which has a GDV of RM468mn, on Thursday in Seputeh, Kuala Lumpur and it has been 50% taken up.
  • Sunway Property, the property division of Sunway Bhd, has announced the expansion of its lifestyle solutions under its Sunway Property+ community aftersales initiative by introducing handyman services, which will commence on 14 June.
  • Taliworks Corp Bhd said its non-independent and non-executive director Lim Chin Sean retired at the conclusion of the group's annual general meeting on Thursday.
  • The chairman and independent director of BTM Resources Bhd Loo Eng Hua and independent non-executive director Leou Thiam Lai have resigned from their positions amid concerns over certain material transactions.
  • Apollo Food Holdings Bhd's net profit fell 11.9% YoY to RM6.0mn for 4QFY24, due to higher operating expenses.
  • Glomac Bhd's net profit rose 8% YoY to RM15.3mn for 4QFY24, thanks to its recognition of RM17mn fair value gain on investment property.
  • The US producer price index for final demand decreased 2.2% YoY and 0.2% MoM, lower than all estimates in a Bloomberg survey of economists.

Source: TA Research - 14 Jun 2024

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