Review & Outlook

Stocks slipped on Wednesday, copying regional weakness as investors pared back expectations for the pace and scale of interest rate cuts by the US Federal Reserve this year. The FBM KLCI fell 2.04 points to end at 1,529.33, off an early low of 1,521.79 and high of 1,530.95, as losers edged gainers 503 to 387 on total turnover of 2.8bn shares worth RM1.92bn.

The overnight rebound on Wall Street should revive the local market today, but undertone remains cautious as uncertainty over interest rate outlook persist. Key index supports cushioning downside remains at 1,497, 1,479 and 1,461, the respective rising 30-day, 50- day and 100-day moving averages, while immediate overhead resistance stays at 1,550, with stronger upside hurdles at 1,580 and 1,618.

Investors should look to bargain on weakness Aemulus for recovery upside to the upper Bollinger band (34sen), with further strength to aim for the 76.4%FR (39sen) and 61.8%FR (45sen) ahead. Key chart supports are at the lower Bollinger band (28sen) and 25sen. Similarly, any dips on Unisem should attract buyers ahead of recovery towards the 61.8%FR (RM3.40) and 76.4%FR (RM3.74) going forward, while crucial supports are at the 38.2%FR (RM2.80) and 23.6%FR (RM2.52).

News Bites

• IHH Healthcare Bhd said Agilus Diagnostic Ltd, a subsidiary of its 31.17%-owned associate Fortis Healthcare Ltd, has decided to withdraw its initial public offer application to the Securities and Exchange Board of India.

• UMW Holdings Bhd will be delisted from Bursa Malaysia on 19 February 2024 to mark the completion of its privatisation by Sime Darby Bhd.

• Top Glove Corporation Bhd has been included in the S&P Global Sustainability Yearbook 2024 for the third year in a row.

• UEM Sunrise Bhd has issued Islamic medium-term notes worth RM500.0mn in nominal value.

• Dayang Enterprise Holdings Bhd has secured 2 more contract extensions from Petronas Carigali Sdn Bhd for the provision of 2 accommodation work boats, namely Dayang Ruby and Dayang Opal.

• Perdana Petroleum Bhd has secured a new contract, along with a 7-month extension of an existing contract, from Saujana Marine Sdn Bhd, with a combined value of RM38.3mn.

• Ann Joo Resources Bhd group chairman Datuk Lim Kiam Lam has ceased to be a substantial shareholder in Engtex Group Bhd after he disposed of 2.9mn shares or a 0.7% stake.

• HSS Engineers Bhd's associate SMHB Sdn Bhd has secured a RM9.5mn contract from Pengurusan Aset Air Bhd for engineering consulting services of the proposed water systems upgrade project in Kuantan, Pekan and Rompin in Pahang.

• Pansar Bhd has bagged a RM130.0mn contract from Borneo Development Corporation (Sarawak) Sdn Bhd to construct an infectious disease centre at Muara Tuang Land in Sg Jernang, Samarahan, Sarawak.

• PLB Engineering Bhd's external auditor flagged a material uncertainty that could cast significant doubt on its ability to continue as a going concern.

• Malaysia Marine and Heavy Engineering Holdings Bhd 4QFY23 net profit tumbled 77.2% YoY to RM6.2mn on lower operating income and higher finance costs.

• The euro area economy posted nil growth in the fourth quarter after shrinking 0.1% in the preceding period, escaping a technical recession, the flash estimate from Eurostat showed Wednesday.

Source: TA Research - 15 Feb 2024