Review & Outlook

Bursa Malaysia shares traded sideways on Monday, as investors digested the US Fed Chief's dovish views on the US economy while renewed geopolitical tensions in the Middle East capped gains. The FBM KLCI gained 3.22 points to close at 1,638.96, off an early high of 1,643.95 and low of 1,634.72, but losers beat gainers 578 to 506 on cautious trade totalling 2.82bn shares worth RM2.62bn.

The local market should continue to trade range bound with cautious undertone given the fresh tensions in the Middle East, while awaiting more key inflation data from the US. Immediate index resistance remains at the recent high of 1,660, followed by 1,680 and then 1,695, the Dec 2020 high, while immediate supports are at 1,620, then 1,600 and 1,580 as stronger supports.

Gamuda needs to overcome the upper Bollinger band (RM7.90) to enhance upside momentum for re-test of the 18/7/24 peak (RM8.38), with next hurdle seen at RM8.90, while key retracement support from the 61.8%FR (RM6.79) limits downside. Meantime, WCT Holdings will need decisive breakout above the 76.4%FR (RM1.14) to improve upside potential towards the 23/7/24 high (RM1.35), while next major hurdle is at the 123.6%FP (RM1.56), and key retracement support at the 50%FR (90sen) cushions downside.

News Bites

• Tropicana Corporation Bhd is disposing of a parcel of freehold land measuring approximately 68.5 acres in Johor Baru, Johor, to Japanese multinational information technology service and consulting company, NTT Data Group, for RM383.1mn.

• Velesto Energy Bhd has completed its mandatory five yearly special periodical survey for Naga 2 and will head to Sarawak for a development drilling campaign. It also received a letter of award for Naga 3 from Thang Long joint operating company.

• Capital A Bhd chief executive officer Tan Sri Tony Fernandes has not given up on the plan for the group's in-flight catering unit Santan to provide meals aboard Malaysia Airlines flights, saying discussions on the matter are ongoing.

• Telekom Malaysia Bhd is still keen to be involved in the development of the country's 5G network, despite the collapse of its deal with Digital Nasional Bhd.

• Signature International Bhd plans to list its renovation subsidiary Space Alliance Contracts Sdn Bhd and its interior fit-out business that focuses on commercial projects, Zig Zag Builders (M) Sdn Bhd.

• T7 Global Bhd has secured a letter of award worth RM74.6mn from Ministry of Defence Malaysia.

• KUB Malaysia Bhd has entered into a share purchase agreement with Sinong Enterprise Sdn Bhd for the disposal of 70% stake in KUB Sepadu Sdn Bhd for RM103.4mn.

• An adjudicator ruled that KSK Land's unit Damai City Sdn Bhd must pay GDB Holdings Bhd a total of RM59.3mn as outstanding payment based on a contract between them for construction works carried out, but not paid.

• Advancecon Holdings Bhd has announced plans to venture into the refurbishment, renovation, and management of centralised labour quarters in Perak, as well as the development of property projects within the Silver Valley Technology Park Industrial Hub.

• Globaltec Formation Bhd's Australian-listed unit NuEnergy Gas Ltd is making a cash call to raise gross proceeds up to A$8.2mn (RM24.1mn) to fund its early gas sales initiative in Indonesia.

• Infraharta Holdings Bhd is refuting the allegations and reliefs sought by Consortium Zenith Construction Sdn Bhd in a suit against its unit pertaining to issues related to the major roads and Penang third link project.

• Texchem Resources Bhd has redesignated its executive director Dr Yuma Konishi as the group chief executive officer following the retirement of Yap Kee Keong from the post.

• TIME dotCom Bhd 2QFY24 net profit fell to RM99.1mn from RM2.2bn billion a year ago, in the absence of gains from the divestment of its stake in AIMS data centre business last year.

• Bank Islam Malaysia Bhd net profit rose 0.8% YoY to RM137.2mn for 2QFY24.

• Hong Leong Industries Bhd's net profit for 4QFY24 rose 41.9% YoY to RM98.3mn, thanks to higher sales of motorcycles and the improved performance of its associated company.

• The US non-defence capital goods orders excluding aircraft dipped 0.1% last month after a downwardly revised 0.5% increase in June.

• China's combined spending in the general public budget and the government fund account was about CNY19.7tn in the first seven months of the year, down 2% from the same point in 2023, according to Bloomberg calculations.

Source: TA Research - 27 Aug 2024