Review & Outlook

Bursa Malaysia shares stuck in narrow range- bound trade Friday investors continued to wind down their investments on the local market ahead of the long Chinese New Year weekend. The FBM KLCI closed flat at 1,512.28 (-0.01) after ranging between early high of 1,514.72 and low of 1,509.56, as gainers edged losers 530 to 313 on slower turnover of 1.86bn shares worth RM1.09bn.

Stocks should trade sideways with downside bias given the weak buying momentum at current levels, as investors stayed cautious over the Federal Reserve's stance on interest rates and China's patchy economic recovery. Key index supports cushioning downside will be at 1,493, 1,482 and 1,467, the respective rising 30-day, 50-day and 100-day moving averages, while immediate overhead resistance remains at 1,520, with stronger upside hurdles at 1,550 and 1,580.

AMMB needs decisive breakout above the 150%FP (RM4.60) to enhance upside potential towards the 161.8%FP (RM4.73), with stronger upside hurdle coming at the 176.4%FP (RM4.90), going forward. Crucial chart supports at 100-day ma (RM3.93) and 76.4%FR (RM3.76) limits downside risk. Likewise, CIMB will need breakout confirmation above the 176.4%FP (RM6.59) to boost upside momentum towards the 200%FP (RM6.91), with next major resistance from the 223.6%FP (RM7.22), and immediate supports at 138.2%FP (RM6.09) and 123.6%FP (RM5.89).

News Bites

• The number of unemployed persons in Malaysia dipped to 567,800 individuals (November 2023: 569,000 unemployed) in December, with an unemployment rate of 3.3%.

• Chin Hin Group Bhd made its second issuance of perpetual mediumterm notes RM10mn, under its RM500mn perpetual MTN programme.

• Ideal Capital Bhd will develop about RM1.1bn worth of residential properties in Bayan Lepas, Penang, this year.

• MNRB Holdings Bhd has increased its sukuk programme from RM320mn to RM420mn in nominal value, after obtaining approval from the Securities Commission Malaysia.

• MGB Bhd has announced that its indirect wholly-owned subsidiary MGB International For Industry has accepted two purchase orders from Sany Alameriah worth RM119.5mn.

• LGMS Bhd is introducing a subscription-based solution aimed at small and medium enterprises, which represents a new revenue model for the company.

• Revenue Group Bhd and NSS IT Solution Sdn Bhd is poised to reinforce the significance of technology-driven partnerships in revolutionising transit payments via Keretapi Tanah Melayu Bhd open payment system.

• Zecon Bhd has secured Tawarruq Asset Financing Facilities totalling RM851.9mn from Bank Pembangunan Malaysia Bhd.

• Reneuco Bhd, whose latest annual report saw a disclaimer of opinion by its external auditor, said its special independent review found that the sales transactions and costs with identified customers and suppliers "were sufficiently supported" by relevant documentation.

• EVD Bhd's suspended executive director of operations and largest shareholder Mah Seong Huak has filed a RM25mn lawsuit for defamation against the transport system solutions company.

• Tuju Setia Bhd has appointed Tee Huei Tsyr as its new chief executive officer and Seon Yen Kong as its new chief operating officer.

• Uzma Bhd's managing director-cum-group chief executive officer Datuk Kamarul Redzuan Muhamed has sold 12mn shares or 3.0% of his stake in the oil and gas services provider for RM13.6mn.

• Euro Holdings Bhd's former group managing director and major shareholder Datuk Seri Steven Lim Teck Boon disposed of another 2.4% stake in the furniture maker, trimming his equity interest in the group to 40.8%.

• Crest Group Bhd, a provider of imaging, analytical and test solutions, has proposed an IPO of 234.6mn shares on the ACE Market of Bursa Malaysia.

• The Bank of Japan should consider ending its yield curve control and massive asset purchases now, then gradually raise short-term interest rates, the International Monetary Fund said.

• European Union countries on Friday postponed a decision on a proposed law which would require large companies to check if their supply chains use forced labour or cause environmental damage, after Germany indicated it would abstain.

Source: TA Research - 13 Feb 2024