Review & Outlook

Blue chips on Bursa Malaysia stayed range bound on Monday, with investors mostly sidelined awaiting stronger cues from global central banks guidance and upcoming key US inflation data for market direction. The FBM KLCI slipped 4.85 points to close at 1,537.54, off an opening high of 1,540.23 and low of 1,532.73, as losers beat gainers 587 to 476 on total turnover of 3.76bn shares worth RM2.55bn.

Sideways trade should persist near-term as investors await clearer guidance on the likely inflation and interest rate trend from key global central bankers. Stronger index supports cushioning downside will be at 1,525 and 1,501, the respective rising 50-day and 100-day moving averages, with better support seen at 1,480. Immediate resistance remains at the recent 21-month high of 1,559, followed by 1,580, with stronger upside hurdle seen at the 1,600 level.

Bumi Armada will need breakout confirmation above the 76.4%FR (63sen) to extend rise and challenge the 7/3/23 peak (73sen), with next major hurdle at the 123.6%FP (82sen), and key retracement supports at the 50%FR (52sen) and 38.2%FR (47sen). Likewise, Velesto need sustained strength above the 28/2/24 high (31.5sen) to extend uptrend and aim for the 123.6%FP (37sen) and 138.2%FP (40sen) going forward, with key chart supports from the 76.4%FR (26sen) and 61.8%FR (22sen) cushioning downside.

News Bites

• Malaysia's consumer price index rose 1.8% YoY in February 2024.

• Malaysia's leading index grew 3.2% YoY to 112.0 points in January 2024.

• The construction cost of the East Coast Rail Link project from Kota Bharu to Port Klang along 665 km and 20 stations in Kelantan, Terengganu, Pahang and Selangor remains at RM50.27bn, said the Transport Minister Anthony Loke Siew Fook.

• Projek Lintasan Kota Holdings Sdn Bhd, the major shareholder of newlylisted Prolintas Infra Business Trust, has yet to decide whether to inject 2 more highways under its belt into the listed business trust.

• Pharmaniaga Logistic Sdn Bhd, a wholly-owned unit of Practice Note 17 outfit Pharmaniaga Bhd, has agreed to reimburse the Ministry of Health RM16.8mn for the supply of 104 malfunctioning ventilators during the Covid-19 pandemic in 2020.

• DC Healthcare Holdings Bhd has opened its latest DC Body outlet in USJ Taipan.

• Reservoir Link Bhd will form a joint venture company with Sumitomo Corporation, MAQO Engineering Sdn Bhd and SRM Utama Selambau Sdn Bhd to undertake a 29.99 MWac ground mounted solar photovoltaic project in Kedah.

• TCS Group Holdings Bhd has secured a contract worth RM140.3mn to undertake building works for a proposed commercial complex known as Bandar Seri Coalfields Retail Park in Sungai Buloh, Selangor.

• UWC Bhd's net profit fell 75.0% YoY to RM4.8mn for the 2QFY24 as the semiconductor market cyclical downturn weighed on revenue, coupled with higher expenditure on investment to cater for future growth.

• Binastra Corporation Bhd posted a record-high net profit of RM15.4mn for its 4QFY24, a jump of 176.3% YoY from RM5.6mn, on the back of higher revenue driven by its construction segment.

• Sapura Energy Bhd 4QFY24 net loss narrowed to RM728.4mn from RM3.3bn a year earlier mainly attributed to the lower provision of impairment.

• MyNews Holdings Bhd posted a net profit of RM1.3mn for 1QFY24, compared to a net loss of RM3.2mn a year ago mainly contributed by the improvement in overall in-store sales.

• Sales of new U.S. single-family homes unexpectedly fell 0.3% to a seasonally adjusted annual rate of 662,000 units in February but data for the prior month was revised higher, pointing to underlying strength as a shortage of previously owned houses on the market persists.

Source: TA Research - 26 Mar 2024