Review & Outlook

Blue chips extended range bound trading on Tuesday, as investors awaited key economic and inflation data from the region for further market leads. The FBM KLCI eased 1.54 points to close at 1,676.65, off an early high of 1,684.06 and low of 1,673.86, as losers edged gainers 518 to 502 on lower turnover of 2.98bn shares worth RM2.94bn.

The overnight correction on U.S And European markets, dampened by the lingering concerns over the economic slowdown, should filter through to drag the local market lower. 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.

Gadang needs to overcome the 200-day ma (39sen) convincingly to enhance upside momentum towards the 61.8%FR (43sen) and 76.4%FR (46sen) ahead, while the 23.6%FR (33sen) provides good chart support. SunCon will need to decisively overcome resistance from the 123.6%FP (RM4.58) to promote further upside towards the 138.2%FP (RM4.92) and 150%FP (RM5.19) going forward, with downside risk capped by key support from the 100-day ma (RM3.79).

News Bites

• Cypark Resources Bhd is deferring its periodic distribution for its RM235mn tranche 1 perpetual sukuk, due Wednesday, to focus on meeting the commercial operations date for its 60MW floating solar plant in Kelantan.

• Power Root Bhd has submitted the necessary documents to the Securities Commission of Malaysia for the Islamic Medium-Term Notes of up to RM500mn in nominal value to raise funds.

• Solarvest Holdings Bhd has secured a RM113.3mn contract from P Solar Sdn Bhd to construct a 30MW solar plant in Pekan, Pahang.

• Affin Bank Bhd has launched its private banking service designed for individuals with investable assets of RM2mn or more.

• Alpha IVF Group Bhd is venturing into the Philippine medical business, focusing on obstetrics and gynaecology as well as fertility, as it formed a joint-venture with two doctors from that country.

• AWC Bhd has received a letter of award worth RM19.9mn from Gamuda Engineering Sdn Bhd for construction works related to a data centre project in Rawang, Gombak.

• Wellcall Holdings Bhd is looking to acquire three parcels of contiguous vacant leasehold industrial land in Kinta, Perak for RM32mn.

• Hexza Corp Bhd said on Tuesday it had acquired 50,000 shares in British semiconductor and software design giant Arm Holdings PLC for US$6.4mn (RM29.5mn), cash.

• Malaysia Marine and Heavy Engineering Holdings Bhd has entered into a MoU with HD Hyundai Marine Solution Co Ltd to be the latter's strategic partner for green retrofit solutions installation within the regional territory in Southern Asia.

• Euro Holdings Bhd said the High Court on Tuesday struck out the lawsuit filed by Surian Creation Sdn Bhd against the furniture maker and its former managing director Datuk Seri Lim Teck Boon.

• Sorento Capital Bhd has signed an underwriting agreement with Alliance Islamic Bank Bhd as part of its upcoming IPO on the ACE Market of Bursa Malaysia.

• OB Holdings Bhd, a food and beverage and dietary supplements manufacturing services provider, has entered into an underwriting agreement with Alliance Islamic Bank Bhd for its upcoming IPO on the ACE Market of Bursa Malaysia.

• Magni-Tech Industries Bhd reported a 36.4% increase in net profit to RM44.6mn for its 1QFY2025, from RM32.7mn a year earlier, on the back of higher revenue across its business segments.

• The Institute for Supply Management said on Tuesday its manufacturing PMI rose to 47.2 in August from 46.8 in July, which was the lowest reading since November.

Source: TA Research - 4 Sept 2024