Review & Outlook

The local blue-chip benchmark rebounded on Wednesday, led by banking heavyweights and mirroring regional strength on investor optimism after Bank of Japan raised interest rates and China's Politburo meeting cued the need for economic stimulus. The FBM KLCI rose 13.63 points to close at 1,625.57, off an early low of 1,611.60 and high of 1,627.94, but losers beat gainers 602 to 480 on higher turnover of 4.42bn shares worth RM3.62bn.

Sentiment should remain upbeat amid hopes for fresh stimulus to boost China's economy, and as investors assess the monetary policy statements from global central bankers. Immediate index supports are reset to 1,615, 1,608 and 1,585, the respective 30-day, 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.

CIMB needs to overcome the 123.6%FP (RM7.64) to boost upside momentum towards the 138.2%FP (RM8.02) and 150%FP (RM8.32) ahead, while uptrend supports from the 50-day ma (RM6.96) and 100-day ma (RM6.77) cushions downside. RHB Bank will need breakout from consolidation and climb above the 123.6%FP (RM5.76) to aim for the 138.2%FP (RM5.88) and 150%FP (RM5.98) going forward, with uptrend supports seen from the 50-day ma (RM5.56) and 100-day ma (RM5.50).

News Bites

• Alliance Bank Malaysia Bhd expects loan growth of 8% to 10% this year on the back of a stronger economic environment for the first half of the year.

• Yong Tai Bhd is proposing to dispose of a five-star hotel known as "Courtyard by Marriott Melaka" in Melaka to Southern Envoy Sdn Bhd for RM160.0mn.

• CelcomDigi Bhd has submitted its proposal for the deployment of Malaysia's second 5G network to the Malaysian Communications and Multimedia Commission.

• Bursa Malaysia Securities Bhd has publicly reprimanded and imposed fines on Zen Tech International Bhd and eight of its directors for breaches of ACE Market listing requirements.

• Avillion Bhd's external auditor has flagged material uncertainty that would affect the hotel-and-travel company's ability to continue as a going concern.

• Infomina Bhd has accepted a letter of acceptance from the Ministry of Home Affairs worth RM34.7mn for the provision of technology application and infrastructure operations, maintenance and support services to the National Registration Department for 3 years.

• Bintai Kinden Corporation Bhd has announced that the group has successfully restructured and rescheduled all its defaulted banking facilities with its financiers with the aim of uplifting its PN17 status.

• Malaysian Genomics Resource Centre Bhd is collaborating with IMU University on its graduate trainee programme for healthcare professionals.

• Censof Holdings Bhd has teamed up with Netherlands-based Storecove to strengthen its position in the e-invoicing market.

• RHB Bank Bhd has appointed Mohmed Rastam Shahrom as its group chief financial officer, effective Aug 1, 2024.

• CIMB Group Holdings Bhd has appointed Tengku Datuk Seri Azmil Zahruddin Raja Abdul Aziz as CIMB Thai Bank's chairman and director, effective July 19, 2024.

• Malaysia Airports Holdings Bhd announced the appointment of Datuk Mohd Izani Ghani as the group's new managing director, effective Aug 1, 2024.

• FACB Industries Incorporated Bhd has appointed Lim Kam Choy as its new chief executive officer, effective Aug 1, 2024.

• Atrium REIT Managers Sdn Bhd has announced the retirement of its chief executive officer Chan Kum Chong, effective Aug 31, 2024, to pursue personal interests.

• Lotte Chemical Titan Holding Bhd reported its ninth consecutive quarterly loss with a narrower net loss of RM248.9mn for 2QFY24, compared to RM313.5mn in 2QFY23.

• China's purchasing managers' index contracted for a third month, easing to 49.4 from 49.5 in June, but just ahead of a median forecast of 49.3 in a Reuters poll.

• The Bank of Japan decided to raise the overnight call rate target to 0.25% from 0%-0.1% in a 7-2 vote.

• Federal Reserve Chair Jerome Powell said an interest-rate cut could come as soon as September after the US central bank voted to leave its benchmark at the highest level in more than two decades.

• The Biden administration plans to unveil a new rule next month that will expand U.S. powers to stop exports of semiconductor manufacturing equipment from some foreign countries, including Malaysia, to Chinese chipmakers.

Source: TA Research - 1 Aug 2024