Review & Outlook

While blue chips stayed in profit-taking consolidation on Monday, bargain hunting in construction, technology and property stocks lifted the broader market higher. The FBM KLCI ended down 0.61 point at 1,678.19, off an early high of 1,683.43 and low of 1,671.9, but gainers led losers 679 to 467 on total turnover of 3.25bn shares worth RM3.02bn.

Blue chips are likely to extend range bound trade after the recent volatility, while investors assess key economic data from regional and North Asian countries for further market leads. Immediate index support remains at the recent correction low of 1,633, with 1,620 and 1,600 acting as stronger supports. Key resistance will be the recent high of 1,684, then 1,695, the Dec 2020 high, followed by the 123.6%FP (1,702) and 138.2%FP (1,741) of the 1,369 low to the 1,638 high.

Ekovest will need to sustain climb above the 23.6%FR (42sen) to strengthen recovery before meeting overhead resistance from the 100-day ma (45sen) and 200-day ma (47sen) ahead, with downside risk capped by the June 2023 low (35sen). IWCity need convincing breakout above the 23.6%FR (61sen) to fuel recovery momentum towards the 38.2%FR (69sen) and 200-day ma (73sen) going forward, while the Aug 2023 low (48sen) provide strong chart support.

News Bites

• The seasonally adjusted Malaysian manufacturing purchasing managers index was unchanged at 49.7 in August, according to S&P Global which compiled the survey.

• DRB-Hicom Bhd said it has received a notice of assessment from the Inland Revenue Board amounting to RM246.3mn for the year 2020 assessment.

• Binastra Corp Bhd, formerly known as Comintel Corp Bhd, has secured a RM235.5mn contract from Mightyprop Sdn Bhd to undertake construction work for a 39-story serviced apartment in Petaling Jaya, Selangor.

• Econpile Holdings Bhd has secured a RM71.2mn contract to undertake demolition, substructure and basement work for a 55-storey building located along Jalan Sultan Ismail, Kuala Lumpur.

• Pekat Group Bhd's indirectly-owned unit Solaroo RE (Maldives) Pvt Ltd has secured a 10-year contract worth USD6.9mn to supply solargenerated electricity to Maldives-based Sun Investments Pvt Ltd.

• NPC Resources Bhd is disposing of its indirectly-owned wholly-owned subsidiary, PT Enggang Alam Sawita,to PT Bayan Resources Tbk and PT Bayan Energy for RM29.33mn.

• Scanwolf Corporation Bhd's wholly-owned subsidiary, Scanwolf Flooring Industries Sdn Bhd, has recently secured multiple flooring supply contracts totalling RM16.1mn.

• Puncak Niaga Holdings Bhd's wholly-owned subsidiary, TRIplc Bhd, has entered into a share sale agreement on Aug 21, 2024 with Jinze Sdn Bhd for the disposal of 202,500 ordinary shares representing 4.5% equity interest in Zuriat Watan Sdn Bhd for a disposal price of RM3.6mn.

• Kenanga Investment Bank Bhd has acquired an 8% stake in Singaporean fintech firm Helicap Pte Ltd at an undisclosed price, as part of a move to advance its own digitisation initiatives.

• Sarawak-based oil and gas company Ocean Vantage Bhd saw 97.9mn shares representing a 23.3% stake change hands on Monday afternoon in a direct business transaction.

• FGV Holdings Bhd announced the departure of its group CEO, Datuk Mohd Nazrul Izam Mansor, effective Sept 1.

• China's Caixin/S&P Global manufacturing purchasing managers' index rose to 50.4 in August from 49.8 in July.

• Japanese corporate spending on plant and equipment rose at a faster pace of 7.4% YoY in the 2Q24 versus 6.8% in the previous quarter, keeping alive expectations of a domestic-led recovery in economic growth.

Source: TA Research - 3 Sept 2024