Review & Outlook

Bursa Malaysia's blue chips rose on the first trading day of the second half, led by utility, energy and consumer heavyweights, as upbeat regional manufacturing data lifted market sentiment. The FBM KLCI climbed 8.11 points to close near session highs at 1,598.20, off an early low of 1,587.03, as gainers led losers 685 to 408 on total turnover of 3.66bn shares worth RM2.76bn.

Sideways trading should persist in the near term, pending fresh local catalysts to lift the market from present consolidation. Immediate index resistance will be the early June high of 1,622, with the May high of 1,632 and 1,640 as tougher upside hurdles, while stronger supports are at 1,566, the 100-day moving average level, followed by 1,550.

MRCB is ripe for oversold rebound, with a climb above the 161.8%FP (65sen) to target the 176.4%FP (69sen) and 20/5/24 high (74sen) ahead, while the 200-day ma (55sen) will provide uptrend support. UEM Sunrise will need confirmed breakout above the 138.2%FP (RM1.21) to fuel further upside momentum and aim for the 150%FP (RM1.30) and 161.8%FP (RM1.38) going forward, with downside cushioned by the 200-day ma (96sen).

News Bites

• The seasonally adjusted S&P Global Malaysia Manufacturing Purchasing Managers' Index was 49.9 in June.

• Telekom Malaysia Bhd has been awarded a RM1.25 bn contract to develop and operate a new emergency call system, known as the Next Generation Emergency Services 999.

• Southern Score Builders Bhd has received a letter of award to serve as the turnkey contractor for a proposed development of three residential apartment blocks, valued at RM315mn.

• Johor Plantations Group Bhd's, 55%-owned subsidiary JPG Greenergy Ventures Sdn Bhd has been awarded BioNexus status by the Malaysian Bioeconomy Development Corporation under the Ministry of Science, Technology and Innovation.

• HSS Engineers Bhd, in a JV with Consultant HSS LLC, has been hired for project management consultancy and supervision services worth US$315.89mn for the Metro project in Baghdad.

• Tenaga Nasional Bhd announced that the Ministry of Energy Transition and Water Transformation decision to maintain electricity tariffs until December 31, 2024, will not impact its business operations.

• ViTrox Corp Bhd will begin constructing the first block of its planned five-block ViTrox Institute of Technology on July 8.

• Nova Pharma Solutions Bhd has accepted a letter of acceptance from the National Institutes of Biotechnology Malaysia to undertake equipment procurement and facility upgrade for NBIM's national vaccine production development and enhancement programme.

• PUC Bhd has entered into an agreement to sell some of its software and intellectual property rights for RM22mn in cash.

• Kinergy Advancement Bhd has partnered with Johor Corp to develop sustainable energy solution projects with a specific focus on energyefficient initiatives for data centres.

• Country Heights Holdings is collaborating closely with the Malaysian Department of Insolvency to resolve the winding-up of its indirect wholly-owned subsidiary, Mines Waterfront Business Park Sdn Bhd, and restore it to solvent status.

• Axiata Group Bhd has appointed Amrit Kaur as its independent nonexecutive director from July 1, 2024.

• Perdana Petroleum Bhd has announced the resignation of Datuk Hasmi Hasnan from its board of directors, effective Monday. Heineken Malaysia Bhd has appointed Martijn Rene van Keulen as its new managing director effective Monday.

• Oil and gas services and equipment provider, Steel Hawk Bhd has inked an underwriting agreement with UOB Kay Hian Securities (M) Sdn Bhd for its upcoming transfer of listing to the ACE Market of Bursa Malaysia Securities Bhd.

• China's Caixin manufacturing purchasing managers index climbed to 51.8 last month.

• Japan's GDP shrank an annualised 2.9% in January-March, down from an earlier estimate of a 1.8% contraction, reflecting corrections in past data on construction orders.

• The Institute for Supply Management said on Monday that its manufacturing PMI slipped to 48.5 last month from 48.7 in May.

Source: TA Research - 2 Jul 2024