Review & Outlook

Blue chips traded sideways on Thursday, with more investors sidelined and awaiting stronger cues from major global central bankers on their monetary policy positions. The FBM KLCI eased 1.49 points to end at 1,590.38, off an opening low of 1,579.69 and high of 1,593.24, as losers edged gainers 652 to 444 on lower turnover of 4.32bn shares worth RM3.1bn.

Range bound trade should persist ahead of the weekend, as investors refrain from committing fresh positions until clearer clues emerge on the global inflation and economic growth momentum. Immediate index supports are at 1,550 and recent low of 1,529, then 1,520 and 1,500, while immediate resistance will be at 1,600, 1,620 and then 1,638.

Short-term technical momentum buy signals imply further near-term upside bias for DNEX towards the 100-day ma (42sen), with a breakout to aim for the 23.6%FR (46sen) and 51sen ahead, while downside is cushioned by key chart supports at 34sen/32sen. Likewise, Inari should appreciate towards the 123.6%FP (RM3.60), with tougher resistance at the 138.2%FP (RM3.78) and 150%FP (RM3.92), while key supports at RM3.30 and recent low of RM3.15 limit downside risk.

News Bites

• Cape EMS Bhd's managing director Christina Tee Kim Chin further trimmed her stake by 11.6% after selling shares worth RM44.9mn. Following the latest share sale, Kim Chin's shareholding in the company shrank to 14.0% from 38.1% on 29 July.

• Sunway REIT has entered into a conditional sale and purchase agreement with Tenaga Nusantara Sdn Bhd to acquire Kluang Mall in Kluang, Johor for RM158mn.

• FGV Holdings Bhd cements its commitment to sustainable practices with the first production of its European Union Deforestation Regulation compliant crude palm kernel oil.

• Ranhill Utilities Bhd announced the appointment of 5 new directors, 4 of whom are linked to YTL Power International Bhd.

• ATA IMS Bhd has teamed up with Shanghai-listed Jinhua Chunguang Technology Co Ltd to venture into the household and electrical appliances sector.

• I-Bhd's net profit tripled YoY to RM5.5mn in 2QFY24, thanks to a turnaround of its leisure business and higher property investment income.

• Ge-Shen Corp Bhd's net profit for 2QFY24 doubled YoY to RM4.5mn on increased sales revenue from a higher utilisation rate across its factories in Penang, and Hanoi, Vietnam.

• TSH Resources Bhd's land sales, which would have fetched roughly 2.4tn Indonesian rupiah (RM731.1mn) in North Kalimantan have been downsized to RM447.2mn.

• Seal Inc Bhd is raising its shareholding in loss-making MSR Green Energy Sdn Bhd to 30% by acquiring an additional 10% for RM21.0m. MSR is involved in the installation and servicing of solar photovoltaic systems, renewable energy project management.

• JF Technology Bhd and US-based Ironwood Electronics Inc have signed a cross-distribution agreement. Ironwood will bring high insertion count variants of its high-performance test technology to the ATE marketplace.

• MK Land Holdings Bhd has reached a settlement with the tax authority that would cut the additional bills and penalty imposed on its unit by nearly 85%.

• Eastern & Oriental Bhd has launched its latest luxury apartment development named The Lume on its 760-acre Andaman Island master plan development in Penang on Thursday.

• Malaysia's wholesale and retail sales growth moderated and rose 5.4% year-on-year in June, led by retail sales in specialised stores and wholesale of agricultural raw materials and live animals.

• Initial applications for US fell last week by the most in nearly a year, potentially alleviating some concerns that the labour market is cooling too fast following last week's disappointing jobs report. Initial claims decreased by 17,000 to 233,000 on Aug 3.

• The European Central Bank can continue lowering interest rates if there is increased confidence among policymakers that inflation is slowing, ECB Governing Council member and Bank of Finland governor Olli Rehn said Wednesday.

Source: TA Research - 9 Aug 2024