Review & Outlook

Profit-taking interest returned to drag telco, technology and oil & gas heavyweights lower on Thursday, causing trading momentum to ease on the broader market. The FBM KLCI slipped 6.01 points to close at 1,584.94, off an opening high of 1,592.26 and low of 1,582.31, as losers swarmed gainers 804 to 320 on slower trade totalling 4.23bn shares worth RM3.13bn.

In the absence of end first-half window-dressing interest, the local market should drift lower on the last trading day for June and the first-half of the year. Stronger index supports are at 1,565, the 100-day moving average level, and 1,550, while immediate resistance is at the early June high of 1,622, with the May high of 1,632 and 1,640 as tougher upside hurdles.

Any further fall on Genting Berhad shares to stronger chart supports at the 200-day ma (RM4.57) or 38.2%FR (RM4.46) should attract bargain hunters ahead of rebound upside to the 76.4%FR (RM4.92), with tough resistance seen at the 11/3/24 high (RM5.20). GENM is also attractive to bargain on weakness for recovery upside to the 50%FR (RM2.67), with the 61.8%FR (RM2.73) and 76.4%FR (RM2.81) as tougher upside hurdles, while key supports are from the lower Bollinger band (RM2.46) and 21/ 11/22 low (RM2.40).

News Bites

• Malaysia's Producer Price Index increased by 1.4% YoY in May 2024, from 1.9% in the previous month.

• Fitch Ratings has maintained Malaysia's sovereign credit ratings at BBB+ with a 'stable' outlook, underpinned by a diversified economy and export base.

• The Employees Provident Fund has approved nearly RM7bn in withdrawals from Account Flexible as of June 10.

• MARC Ratings Bhd has downgraded YNH Property Bhd's Islamic Medium-Term Notes Programme (Sukuk Wakalah) to BBIS with a negative outlook.

• At Dataprep Holdings Bhd's annual general meeting, shareholders rejected the reappointment of non-independent and non-executive chairman Datuk Mohd Rizal Jaafar, along with two independent directors, Abdul Aziz Ishak and Nur Zarina Ghazali.

• Voultier Sdn Bhd, controlled by businessmen Datuk Wira Mubarak Hussain Akhtar Husni and Datuk Lai Keng Onn, has completed the acquisition of a 51% stake in financially troubled EA Technique (M) Bhd.

• MyEG Services Bhd has announced the activation of its blockchainbased cross-border trade facilitation services after securing recognition of certificates from relevant authorities.

• Johor Plantations Group Bhd, set to be listed on the Main Market of Bursa Malaysia on July 9, announced that the 50 mn new shares offered to the Malaysian public under its IPO have been oversubscribed by 2.18 times.

• EPB Group Bhd, a one-stop food processing and packaging machinery solutions provider, is set to debut on the ACE Market of Bursa Malaysia on August 23.

• Sapura Energy Bhd's net profit dropped nearly 44% to RM82.13mn for 1QFY2025 from RM146.09mn the previous year, primarily due to a RM117.76mn loss from the liquidation of a subsidiary.

• Crescendo Corp Bhd's net profit for 1QFY2025 surged to RM289.03mn from RM13.2mn in 1QFY2024, primarily due to land sales for a data centre in Nusa Cemerlang Industrial Park in Johor.

• United Malacca Bhd reported a 77.8% increase in quarterly net profit to RM15.3 mn from RM8.6 mn a year earlier, driven by stronger revenue contributions from its main business segments.

• The American economy expanded at a 1.4% annual pace from January through March, the slowest quarterly growth since spring 2022,

Source: TA Research - 28 Jun 2024