Review & Outlook

Blue chips slipped back into profit-taking correction mode again Tuesday, with falls led by healthcare, utility, banking and consumer heavyweights, as investors reduced commitments ahead of key global central bankers' policy decisions. The FBM KLCI slumped 12.62 points to end at the day's low of 1,611.94, off an early high of 1,629.37, as losers swarmed gainers 814 to 347 on lower turnover of 4.18bn shares worth RM3.11bn.

The local market should extend consolidation with downward bias, as investors look ahead to major US technology earnings and monetary policy clues from key global central bankers. Immediate index supports are revised lower to 1,607 and 1,584, the respective 50-day and 100-day moving average levels, while immediate resistance remains at the recent high of 1,638, with 1,640 and 1,660 as tougher upside hurdles.

Maxis will need breakout confirmation above the 200-day ma (RM3.67) to drive upside momentum towards the 61.8%FR (RM3.80) and 76.4%FR (RM4.02) ahead, while downside is cushioned by the lower Bollinger band (RM3.42). TM needs to sustain breakout momentum above the recent 16/ 7/24 high (RM7.19) to target the 123.6%FP (RM7.81) and 138.2%FP (RM8.19) going forward, with major uptrend supports coming from the rising 50-day ma (RM6.69) and 100-day ma (RM6.37).

News Bites

• Bursa Malaysia Bhd will only move its "front office" to the Tun Razak Exchange, not its entire operation, according to its chairman Tan Sri Abdul Wahid Omar.

• Sarawak needs to establish a special purpose vehicle to facilitate its shareholding acquisition from the Armed Forces Fund Board in Affin Bank Bhd, according to Premier Tan Sri Abang Johari Tun Openg.

• CelcomDigi Bhd, U Mobile Sdn Bhd and ZTE Corporation have teamed up to present the nation's first-ever live broadcast powered by 5G Advanced technology at Sukan Malaysia 2024 to viewers across Malaysia.

• Malaysia's top mini-market chain retailer 99 Speed Mart Retail Holdings Bhd aims to make its market debut on Sept 9 after raising USD509.0mn (RM2.4bn) in an initial public offering set to be launched next month.

• TCS Group Holdings Bhd has secured a RM130.2mn contract from Saujana Permai Development Sdn Bhd for the building works and related external works of a serviced apartment project in Kuala Langat, Selangor.

• Enra Group Bhd plans to sell its Ratu Enra ship for an indicative USD15.0mn (RM70.1mn), to capitalise on rising market value due to high demand in the industry.

• AwanBiru Technology Bhd has inked a two-year memorandum of understanding with the National Cyber Security Agency to develop new technologies in cybersecurity.

• Advancecon Holdings Bhd has secured a RM38.3mn contract from Sime Darby Property Bhd, marking its eighth earthworks contract for the Bandar Bukit Raja township.

• ITMax System Bhd's 65.0%-owned subsidiary Southmax Sdn Bhd has been appointed the operator of smart parking for a period of 15 years by the Kulai Municipal Council.

• MUI Properties Bhd said it is not aware of any corporate development that caused the unusual market activity in its shares.

• Unisem (M) Bhd's net profit fell 29.0% YoY to RM16.8mn in 2QFY24 from RM24.0mn a year ago, due to a change in product mix and higher operating costs.

• Bursa Malaysia Bhd's net profit jumped 5.5% YoY to RM80.5mn in 2QFY24, from RM76.3mn a year before, due to higher income from the securities market.

• Pantech Group Holdings Bhd's net profit fell 2.6% YoY to RM26.3mn in 1QFY25 from RM27.0mn a year ago, due to lower contributions from its manufacturing division.

• Dufu Technology Corporation Bhd's net profit jumped over twofold to RM8.4mn for 2QFY24, from RM3.3mn a year ago, on the back of higher revenue.

• Pensonic Holdings Bhd reported 4QFY24 net loss of RM14.3mn due to inventory write-downs.

• China's ruling Communist Party pledged to make boosting consumer spending a greater policy focus, as weak domestic demand threatens the nation's annual growth target despite an export boom.

• Japan's unemployment rate edged lower to 2.5% in June from 2.6% a month earlier.

• The US Conference Board said its consumer confidence index rose to 100.3 in July from a downwardly revised 97.8 in June.

• The Eurozone's 2Q24 gross domestic product rose by 0.3% compared to the previous quarter.

Source: TA Research - 31 Jul 2024