Review & Outlook

Bursa Malaysia shares extended sideway trading Tuesday, outpacing weaker regional markets as traders recalibrated their bets on the Federal Reserve's easing. The FBM KLCI inched higher by 3.97 points to settle at 1,547.99, off a low of 1,540.77 and high of 1,550.99, as gainers led losers 597 to 516 on total turnover of 4.53bn shares worth RM2.82bn.

Persistent profit-taking and selling amid cautious external tone should damped near-term sentiment, forcing the stocks to consolidate with downward bias. Overhead resistance stays at the recent 21-month high of 1,559, followed by 1,580, with stronger upside hurdle seen at the 1,600 level. Immediate index supports remains at 1,531 and 1,496, the respective rising 50-day and 100-day moving averages, with better support seen at 1,480.

Genting Berhad need to climb above the 11/03/24 high (RM5.10) convincingly to aim for the RM5.40 and 123.6%FP (RM5.60) going forward, while key chart support from 76.4%FR (RM4.47) cushions downside. Genting Malaysia shares need sustained strength above the upper Bollinger band (RM2.87) to enhance upward momentum towards the RM3.00, with next resistance seen at the 123.6%FP (RM3.16) ahead while the 200-day ma (RM2.53) limits downside risk.

News Bites

• The Transport Ministry is confident that the East Coast Rail Link will be completed on schedule in December 2026 and will be operational from January 2027,

• Dagang NeXchange Bhd's indirect 90%-owned UK upstream oil and gas arm, Ping Petroleum UK plc, has expanded its portfolio with 3 additional North Sea oilfield licences.

• AIMS Group, the data centre arm of TIME dotCom Bhd, said it would start construction of AIMS Cyberjaya Block 3, with work to be completed by 2QCY25 following completion of AIMS Cyberjaya Block 2.

• GFM Services Bhd along with joint venture partner Mun Siong Engineering Ltd have secured contracts to provide operations and maintenance services for 3 facilities in the Pengerang Integrated Complex in Johor.

• Parkson Holdings Bhd announced that its Hong Kong-listed unit Parkson Retail Group Ltd had inked a 15-year agreement to lease 18,004m2 of commercial space in the city of Guiyang, China.

• Nestcon Bhd aims to diversify its business operations into renewable energy to enhance future earnings and broaden its income sources.

• TAS Offshore Bhd has secured shipbuilding contracts worth RM15.3mn for two tugboats from an existing customer in Indonesia.

• Uni Wall Aps Holdings Bhd's wholly-owned subsidiary has secured a RM17.1mn contract from WCT Bhd.

• Globaltec Formation Bhd's Australia-listed subsidiary NuEnergy Gas Ltd announced that its heads of agreement for initial gas sales from Tanjung Enim's plan of Development 1 has been extended by another 3 months to 30 June 2024.

• Sersol Bhd plans to raise up to RM8.5mn through a private placement of 85mn new shares, representing not more than 10% of its issued shares, for working capital purposes.

• Zen Tech International Bhd is acquiring a 70% stake in the payment gateway provider Alpha Fintech Sdn Bhd for RM10mn.

• Dolphin International Bhd has scrapped its planned rights issue, opting to explore alternative funding methods.

• Johor Plantations Group Bhd, formerly known as Johor Plantations Bhd, has obtained approval from the Securities Commission Malaysia to list on the Main Market of Bursa Malaysia Securities Bhd.

• KPJ Healthcare Bhd has appointed former chief secretary to the government Tan Sri Ismail Bakar as its new non-independent and nonexecutive chairman, effective immediately.

• The Industrial & Commercial Bank of China Ltd will offer CNY300bn (RM197.1bn) in financing to boost the nation's tourism sector amid sluggish consumer spending in the world's second-largest economy.

• Two Federal Reserve officials who vote on monetary policy decisions this year said they still expect the US central bank to cut rates three times in 2024, though they're in no rush to begin lowering borrowing costs.

Source: TA Research - 3 Apr 2024