Review & Outlook

Profit-taking dragged blue chips down from a three-year high on Monday, led by construction, property, telco and oil & gas heavyweights, which forced the blue-chip index to suffer a double-digit fall. The FBM KLCI lost 14.48 points to close at 1,622.07, off an opening high of 1,637.12 and low of 1,616.74, as losers swarmed gainers 1,044 to 285 on total turnover of 5.34bn shares worth RM3.42bn.

Stocks should pause for profit-taking consolidation as traders digest gains after rising to fresh three-year highs, with trading attention likely to sustain on the construction, property and logistics sectors on prevailing interest in data centre and infrastructure plays. Immediate index resistance remains at the recent high of 1,638, with 1,640 and 1,660 as tougher upside hurdles, while immediate supports are revised lower to 1,613, 1,604 and 1,580, the respectively rising 30-day, 50-day and 100-day moving average levels.

AMBank needs a confirmed breakout above the 123.6%FP (RM4.52) to enhance upside momentum towards the 138.2%FP (RM4.68) and 150%FP (RM4.80) ahead, while uptrend supports from the 50-day ma (RM4.20) and 100-day ma (RM4.11) cushion downside. Likewise, Maybank will need breakout confirmation above the 123.6%FP (RM10.28) to extend uptrend and aim for the 138.2%FP (RM10.58) and 150%FP (RM10.82) going forward, with the 50-day ma (RM9.97) and 100-day ma (RM9.78) cushioning downside.

News Bites

• Malaysia's international reserves slipped 0.4% from a fortnight earlier to US$113.3bn as of July 15 this year, sufficient to finance 5.4 months of imports of goods and services, and is one time the total short-term external debt.

• The issue of rationalising RON95 subsidies has not been raised and the government is instead prioritising the public understanding of the diesel subsidies, says Datuk Seri Anwar Ibrahim.

• Malaysia Airports Holdings Bhd has signed a memorandum of understanding with Menteri Besar Selangor Incorporated to advance the development and marketing of Zone 3 and Zone 4 at Sultan Abdul Aziz Shah Airport in Subang.

• Passenger traffic across MAHB's airport network grew 15.8% in the 1H24 compared to 2023.

• RCE Capital Bhd proposed a one-for-one bonus issue involving the issuance of 764.9mn new bonus shares.

• Crescendo Corp Bhd has proposed the subdivision of every one of its shares into three shares to improve the trading liquidity of the property developer's shares.

• Eversendai Corp Bhd has teamed up with a unit of Abu Dhabi-based Emirates Steel Arkan Group, for the development of the Trojena Ski Village project in Saudi Arabia.

• Grand Central Enterprises Bhd, which operates hotels under the Grand Continental brand, has received a takeover offer worth RM90.6mn from its major shareholders as part of a delisting plan.

• Protasco Bhd will dispose of its 100% stake in Ikram Education Sdn Bhd, which owns the Infrastructure University Kuala Lumpur, to Hong Kongbased Star Teenagers International Group Ltd for RM30.0mn.

• YX Precious Metals Bhd has secured approval from the Securities Commission Malaysia for its transfer to the Main Market of Bursa Securities.

• Managepay Systems Bhd's wholly owned subsidiary, ManagePay Services Sdn Bhd has received approval from Bank Negara for Class A Licence to operate money services, including money exchange and issuing multicurrency prepaid cards and wallets.

• The People's Bank of China cut the seven-day reverse repo rate by 10 basis points to 1.7%.

• China's fiscal revenue slid 2.8% in the first half of 2024 from a year earlier, unchanged from a 2.8% fall in the January-May period.

Source: TA Research - 23 Jul 2024