TA Sector Research

Daily Market Commentary - 19 Jun 2024

Publish date: Wed, 19 Jun 2024, 09:49 AM

Review & Outlook

Bursa Malaysia shares traded sideways to lower on Tuesday, with profittaking on the utilities and transport sectors dampening the blue-chip benchmark index. The FBM KLCI ended down 1.19 points at the day's low of 1,606.13, off an early high of 1,615.09, as losers beat gainers 766 to 480 on total turnover of 5.93bn shares worth RM4.14bn.

The local market should extend trading sideways to lower near-term, pending positive leads to lift stocks from current consolidation. Immediate index supports are at 1,603, the rising 30-day moving average, with 1,590 and 1,561, 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.

AMBank shares will need convincing breakout above the 20/2/24 high (RM4.45) to boost upside momentum and target the 123.6%FP (RM4.69) and 138.2%FP (RM4.84) ahead, while key chart supports are at the 76.4%FR (RM4.20) and 200-day ma (RM4.05). CIMB need to sustain above the 4/ 6/24 high (RM7.04) to extend uptrend and aim for the 123.6%FP (RM7.57) and 138.2%FP (RM7.89) going forward, while uptrend support is from the 100-day ma (RM6.57).

News Bites

  • Malaysia will soon begin formal procedures to join the intergovernmental organisation BRICS says Datuk Seri Anwar Ibrahim.
  • A five-year Programme for Economic and Trade Cooperation between China and Malaysia is expected to be signed soon during the inaugural visit of Chinese Premier Li Qiang to the country, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
  • Malaysia's new vehicle sales surged 9% to 68,665 units in May 2024, from 63,158 in the same month a year earlier, according to the Malaysian Automotive Association.
  • Telekom Malaysia Bhd is setting up a joint venture with Singtel's regional data centre platform Nxera MY Pte Ltd to develop a data centre in Johor, Malaysia with an initial investment cost of RM1.2bn.
  • The Aerotrain Replacement Project at Kuala Lumpur International Airport is slated to be completed by Jan 31, 2025, two months ahead of the project's original planned completion date, said Malaysia Airports Holdings Bhd.
  • Bursa Malaysia Bhd has confirmed that discussions with Mulia Property Development Sdn Bhd about relocating to Tun Razak Exchange are ongoing, with details yet to be finalised.
  • UEM Sunrise Bhd's subsidiary UEM Land Bhd, plans to exit a joint venture company with KL Kepong Bhd, which has the rights to develop 2,500 acres of land in Kulai, Johor for RM386.2mn and will sell its 40.0% equity stake to KLK Land Sdn Bhd.
  • Malayan United Industries Bhd has secured a term loan facility of up to £152.5mn from CF Hyde Park LP to refinance its existing term loan facility of its Corus Hyde Park Hotel in London, UK.
  • Nestcon Bhd has bagged two high-rise building projects in the Klang Valley worth a total of RM165.6mn.
  • BM Greentech Bhd has signed a term sheet with the shareholders of solar firm Plus Xnergy Holding Sdn Bhd to acquire the company for RM110.0mn, to be paid with new shares in BMG.
  • Sunview Group Bhd has secured a RM79.5mn engineering, procurement, construction and commissioning contract from Bulgaria-based OKOP Solar EOOD.
  • Berjaya Corporation Bhd has inked two memoranda of strategic collaboration in the fields of smart technologies and new energy vehicles respectively in an effort to expand across these vital sectors in Malaysia and the broader Asean region.
  • Plytec Holding Bhd has secured a RM26.3mn contract from Setiakon Builders Sdn Bhd.
  • BWYS Group Bhd has set its initial public offering price at 22.0sen/ share.
  • LBS Bina Group Bhd said trading in its shares will be suspended on today at the company's request, pending a material announcement. The suspension will take effect from 9am to 5pm.
  • IOI Corporation Bhd has appointed Tan Kean Hua as its new deputy chief executive officer effective July 1.
  • Matrix Concepts Holdings Bhd announced that Datuk Hon Choon Kim has resigned as its independent and non-executive director, effective immediately.
  • China new home prices were down 0.7% MoM in May, marking the 11th straight month-on-month decline and steepest drop since October 2014.
  • The nonpartisan Congressional Budget Office ramped up its estimate for this year's US budget deficit by 27% to almost $2tn, sounding a fresh alarm about an unprecedented trajectory for federal borrowing.

Source: TA Research - 19 Jun 2024

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