Review & Outlook

The local benchmark dipped on Tuesday, led by plantation, utility and oil & gas heavyweights, tracking regional weakness as China's GDP growth target of 5% failed to excite investors. The FBM KLCI slipped 2.29 points to settle at 1,536.98, off an opening high of 1,537.92 and low of 1,518.84, as losers beat gainers 653 to 381 on higher turnover of 3.81bn shares worth RM2.8bn.

Stocks should extend their fall following the overnight US correction amid uncertainty over upcoming inflation and interest rate guidance from the US and European Central Bank meetings. A stronger index will cushion the downside from further profit-taking pullbacks, which will be at 1,526, 1,511 and 1,488, the respective 30-day, 50-day and 100-day moving averages. Immediate resistance will be from the recent 21-month high of 1,559, followed by 1,580, with a stronger upside hurdle seen at the 1,600 level.

AMBank needs recovery above the 123.6%FP (RM4.30) to extend the upside towards the 138.2%FP (RM4.46) and 150%FP (RM4.60) ahead, while the 100-day ma (RM4.05) and 200-day ma (RM3.82) provide strong uptrend supports. CIMB need to overcome the 138.2%FP (RM6.62) to aim for the 150%FP (RM6.79) and 161.8%FP (RM6.96) going forward, while uptrend supports from the rising 50-day ma (RM6.14) and 100-day ma (RM5.94) cushion downside.

News Bites

• Major Australian companies have shown interest to invest a total of RM24.5bn in Malaysia, including expansion of existing investments, said Prime Minister Datuk Seri Anwar Ibrahim.

• Australia's fourth-biggest bank ANZ Group is selling around 298.0mn shares or 9.0% stake worth up to USD242.0mn in AMMB Holdings Bhd, according to a term sheet seen by Reuters.

• The Selangor state government is set to explore potential collaborations with Tenaga Nasional Bhd for various renewable energy projects, including the development of a centralised solar park.

• TRC Synergy Bhd said the revaluation of its land and buildings in Malaysia and Australia resulted in a RM27.5mn revaluation surplus and a fair value gain of RM2.4mn.

• Crest Builder Holdings Bhd has won a contract worth RM448.5mn from Sunway Velocity Three Sdn Bhd for the construction of the Sunway Velocity 3 commercial development (Plot A), located on Jalan Shahbandar, Kuala Lumpur.

• Fajarbaru Builder Group Bhd has secured a RM120.8mn contract from Tanjung Nakhoda (M) Sdn Bhd for the construction and completion of partially completed works of Johore Golf & Country Club in Johor.

• PPB Group Bhd said there was an increase in local flour consumption following the boycott of Western consumer brands amid the war in Gaza, as more people visited local eateries.

• Tourism-related property developer Yong Tai Bhd has entered into a strategic collaboration agreement with 828 Asia Pte Ltd, a subsidiary of Singapore-based event organiser Ebenex Group, to promote its Encore Melaka Theatre in Melaka.

• China's Shenzhen Shenyue Joint Investment Co Ltd has partnered with Malaysia's Iskandar Waterfront Holdings and PLS Plantations Bhd to develop a Johor-Shenzhen Industrial Park and Innovation Hub in Johor.

• Keyfield International Bhd has signed an underwriting agreement with M&A Securities Sdn Bhd in conjunction with its upcoming initial public offering and listing on the Main Market of Bursa Malaysia Securities Bhd.

• Alpro Group has signed a MoU with Panasonic Manufacturing Malaysia Bhd to enhance the air quality for Alpro's patrons and employees with nanoeX technology air purification system across all outlets and its headquarters in Malaysia.

• Singapore's retail sales expanded 1.3% YoY in January, largely led by higher sales demand for motor vehicles, preliminary data from the Department of Statistics showed on Tuesday.

• Chinese Premier Li Qiang announced an ambitious 2024 economic growth target of around 5%, promising steps to transform the country's development model and defuse risks fuelled by bankrupt property developers and indebted cities.

• US factory orders plunged by 3.6% in January after falling by a revised 0.3% in December.

• Eurozone producer prices logged a further steep decline in January amid a continued downward trend in energy prices, data published by Eurostat showed.

• The UK service sector expanded for the fourth consecutive month in February underpinned by robust new order growth and further rise in employment, final data from S&P Global showed.

Source: TA Research - 6 Mar 2024