Review & Outlook

Stocks stayed range bound on Thursday, as investor caution prevailed with high US Treasury and European bond yields pointing toward inflationary pressures remaining high for a period. The FBM KLCI ended 1.09 points down at 1,604.26, after ranging between opening low of 1,602.32 and high of 1,608.84, as losers edged gainers 620 to 577 on improved trade totalling 5.33bn shares worth RM3.99bn.

The local market should trade sideways with downward bias ahead of the weekend as investors remain on inflation watch ahead of the release of the key US core PCE index for leads. Immediate index resistance stays at 1,640, with 1,660 and then 1,680 as tougher upside hurdles ahead. Immediate uptrend support remains at 1,600, with 1,595, 1,580 and 1,550, the respective rising 30-day, 50-day and 100-day moving averages, acting as stronger supports.

Public Bank looks attractive to bargain at current depressed levels for oversold rebound towards the 200-day ma (RM4.23), with a decisive breakout to aim for the 76.4%FR (RM4.34) and 21/2/24 high (RM4.52) going forward, while the 23.6%FR (RM3.95) cushions downside. RHB Bank is also attractive to bargain at present levels, ahead of breakout above the 200-day ma (RM5.58) which should aid further gain towards the 38.2%FR (RM5.68) and 50%FR (RM5.80) ahead, while the lower Bollinger band (RM5.45) and 2/6/23 pivot low (RM5.29) limits downside risk.

News Bites

• Axiata Group Bhd aims to complete the merger of its Indonesian mobile unit XL Axiata with Smartfren Telecom by the end of 2024.

• Australia & New Zealand Banking Group Ltd is inviting bids to sell its remaining 5.2% stake in AMMB Holdings Bhd for up to RM701.2mn.

• Mah Sing Group Bhd announced it is setting up a joint venture to develop a data centre in Bangi, Selangor.

• Serba Dinamik Holdings Bhd will be delisted from Bursa Malaysia effective June 5 after failing to obtain an extension of time to submit its regularisation plan.

• To achieve its net zero emissions goal by 2050, Malayan Banking Bhd has identified interim decarbonisation targets for the bank's palm oil and power portfolios.

• RGB International Bhd has secured a contract worth US$81.3mn from the Philippines' state-owned casino regulator Philippine Amusement and Gaming Corp.

• Vizione Holdings Bhd has secured a RM750.0mn contract from a company partially owned by its directors for construction works on a mixed development in Gombak, Selangor.

• HHRG Bhd, which was slapped with a RM58.2mn suit by its former executive chairman Ooi Chieng Sim, said it had received the sealed copy of the court's order pertaining to a Mareva injunction against the group.

• QL Resources Bhd's net profit surged almost 35% YoY to RM98.7mn in the 4QFY24 on the back of improved sales from most business segments, which helped offset flat sales for palm oil and clean energy.

• Malaysia Airports Holdings Bhd reported a more than 3-fold rise in its 1QFY24 net profit to RM190.0mn, fuelled by higher passenger volumes.

• IOI Properties Group Bhd 3QFY24 net profit rose 90.9% YoY to RM220.2mn mainly thanks to the completion of a land sale in Johor.

• Panasonic Manufacturing Malaysia Bhd 4QFY24 net profit surged 239.1% YoY to RM17.6mn, on the back of higher revenue achieved, lower material costs and higher share of profit from the associated company.

• Genting Bhd's net profit for the 1QFY24 surged 6 folds to RM588.9mn, mainly contributed by its leisure and hospitality segment in Malaysia and Singapore.

• Malaysia Building Society Bhd 1QFY24 net profit rose 5.7% YoY to RM78.3mn, thanks to higher financing earnings and consolidation contribution from MIDF Group.

• Leong Hup International Bhd net profit 1QFY24 more than doubled to RM56.6mn, mainly due to a turnaround in its Indonesian operations on better margins for chicks and chickens.

• Datasonic Group Bhd posted a 70.0% YoY jump in its 4QFY24 net profit to RM38.6mn, driven by strong demand for passports, identity cards and financial card personalisation services.

• China will control exports of some aviation and space components from July 1.

• The US economy grew at an 1.3% annualised rate from January through March, down from the advance estimate of 1.6% and notably slower than the 3.4% pace in the final three months of 2023.

Source: TA Research - 31 May 2024