Review & Outlook

Bursa Malaysia shares rose on Monday, matching regional gains after a closely watched key US inflation data showed easing inflation, raising the odds for interest rate cuts ahead. The FBM KLCI climbed 11.68 points to close at 1,624.56, off an early low of 1,616.35 and high of 1,625.55, as gainers led losers 626 to 455 on total turnover of 4.23bn shares worth RM2.89bn.

Stocks should consolidate at current levels as investors await earnings from key US technology names and upcoming monetary policy guidance from the US Federal Reserve. Immediate index supports will be at 1,615, 1,607 and 1,583, the respective 30-day, 50-day and 100-day moving average levels, while immediate resistance will be the recent high of 1,638, with 1,640 and 1,660 as tougher upside hurdles.

Gamuda should attract buyers on weakness for rebound upside, with a confirmed breakout above the 161.8%FP (RM8.19) to aim for the 176.4%FP (RM8.54) and 200%FP (RM9.10) ahead, and key uptrend supports from the rising 30-day ma (RM7.31) and 50-day ma (RM6.80). SunCon will need convincing breakout above the 150%FP (RM5.19) to target the 161.8%FP (RM5.46) and 176.4%FP (RM5.80) going forward, with uptrend supports from the 30-day ma (RM4.37) and 50-day ma (RM3.94) cushioning downside.

News Bites

• Malaysia's producer price index rose by 1.6% YoY in June 2024, from 1.4% in the previous month.

• Malaysia will become a high-income country from 2027 onwards if the national economy grows 4% to 5% every year and the ringgit strengthens to around 4.20 against the US dollar, Economy Minister Mohd Rafizi Ramli said.

• Dialog Group Bhd is adding 150k m3 of storage for renewable and petroleum products at its Terminal Langsat 3 in Tanjung Langsat, Johor.

• Kelington Group Bhd is acquiring the remaining 9.3% equity interest in industrial gas player Ace Gases Sdn Bhd for RM35.7mn in a related party transaction.

• Datasonic Group Bhd's wholly owned unit has secured a two-year contract worth over RM21mn from the Ministry of Economy to rent out 818 vending machines for the implementation of the People's Income Initiative programme.

• IHH Healthcare Bhd is ready to explore the feasibility of outcomebased payment models, citing results from its recent initiatives.

• PMB Technology Bhd has proposed to undertake a renounceable rights issue of up to 266.8mn new ordinary shares on the basis of 6 rights shares for every 1 existing ordinary share held to raise around RM300mn.

• Ekovest Bhd is disposing of another 4 parcels of land along Jalan Pahang in Kuala Lumpur, measuring a total of 2,286 sq. m., to Airman Sdn Bhd for RM9.8mn.

• Paragon Globe Bhd is buying more land in Plentong, Johor Bahru, for RM35.0mn cash, as it looks to further enhance its presence in the state.

• Genting Plantations Bhd's wholly owned subsidiary, Benih Restu Bhd, has undertaken its first issuance of RM1.2bn in nominal value of Islamic medium-term notes.

• MUI Properties Bhd has received unusual market activity query from Bursa Malaysia Securities due to sharp rise in its share price and trading volume.

• The High Court has rejected South Malaysia Industries Bhd's leave application to commence a judicial review against the Securities Commission Malaysia.

• Marine & General Bhd's executive chairman and major shareholder, Tan Sri Mohammed Azlan Hashim, and his son Mohammed Zhakri Mohammed Azlan, have exercised a call option to acquire 3.2mn preference shares of Jasa Merin (Malaysia) Sdn Bhd, a 70%-owned subsidiary of the group.

• Tune Protect Group Bhd has appointed How Kim Lian as its new group chief executive officer effective yesterday, succeeding Rohit Nambiar, who stepped down in May 2024.

• PGF Capital Bhd's net profit rose 69.8% YoY to RM6.7mn in 1QFY25 on the back of a higher revenue of RM40.5mn, up 42.1% YoY from RM28.5mn in 1QFY24.

• Ecofirst Consolidated Bhd's net profit for 4QFY24 more than doubled YoY to RM41.5mn from a year earlier thanks to higher sales conversion rate for the KL-48 project.

• Singapore's manufacturing producer price index climbed 4.4% YoY in June, faster than May's 3.5% rise.

Source: TA Research - 30 Jul 2024