Market Review & Outlook
Malaysia Market Review. The FBM KLCI (+0.7%) rebounded from recent losses, driven by gains in more than half of the key index components yesterday as bargain hunting emerged. The lower liners also recovered, while the Property sector (+1.9%) outperformed among its sectoral peers.
Global Markets Review. US stock markets turned flattish as investors eagerly awaits on the upcoming release of corporate results and key economic data. The European stock markets closed mostly lower, while Asia stock markets advanced higher with Japan’s Nikkei leading gains in the region as the US inflation print raised hopes for a rate cut.
Market Outlook. Although the FBM KLCI managed to march higher to end its losing streak, we believe the recovery might not be sustainable. Investors are likely to adopt a cautious approach while awaiting the Fed’s interest rate decision this Thursday. Likewise, we expect the rally on the lower liners to come to a halt as stocks retraced from their overbought levels. Economic wise, investors will be keeping an eye onto a slew of economic data from EU such as 2Q24 GDP data, consumer inflation expectations, business confidence and others that is expected to be release today. Moving forward, we expect to see some trading opportunity in transportation sector after Transport Minister Anthony Loke express hope to develop and enhance the infrastructure at existing ports, aiming to make Malaysia a ‘homeport’ for cruise ships. Conversely, oil & gas stocks might come under pressure with weakness in Brent oil prices, as traders remain unfazed by the Israel-Hezbollah escalation.
FBM KLCI Technical Review & Outlook
The FBM KLCI rebounded to snap a three-day losing streak as the key index bounced off SMA50. Indicators have turned mixed as the MACD Line hovered below the Signal Line, while the RSI hooked above 50. Immediate resistance located at 1,650. Support is envisaged around 1,580.
Company News
• Kelington Group Bhd has entered into a conditional share sale agreement (SSA) to acquire 2.53 million ordinary shares in Ace Gases Sdn Bhd for RM35.69 million.
• Paragon Globe Bhd (PGB) has proposed to acquire two parcels of freehold land in Plentong, Johor Bahru, Johor for RM34.96 million.
• Datasonic Group Bhd's wholly owned unit, Datasonic Technologies Sdn Bhd (DTSB), has secured a contract worth over RM21 million from the Ministry of Economy to rent out 818 vending machines for the implementation of the People's Income Initiative (IPR) programme.
• Dialog Group Bhd is adding 150,000 cubic metres of storage for renewable and petroleum products at its Terminal Langsat 3 (DTL3) in Tanjung Langsat, Johor.
• PMB Technology Bhd has proposed to undertake a renounceable rights issue of up to 266.78 million new ordinary shares on the basis of six rights shares for every one existing ordinary share held to raise around RM300 million.
• Ekovest Bhd is disposing of another four parcels of land along Jalan Pahang in Kuala Lumpur, measuring a total of 2,286 sq m.
• HB Global Ltd has appointed Johol ruling chief (Undang Luak Johol) Datuk Johan Pahlawan Lela Perkasa Setiawan Datuk Muhammad Abdullah as its new independent non-executive chairman.
• Marine & General Bhd executive chairman and major shareholder, Tan Sri Mohammed Azlan Hashim, and his son Mohammed Zhakri Mohammed Azlan, have exercised a call option to acquire 3.2 million preference shares
of Jasa Merin (Malaysia) Sdn Bhd (JMM), a 70%-owned subsidiary of the group.
• Chin Teck Plantations Bhd's net profit nearly doubled to RM22.69 million or 24.83 sen per share for its third quarter ended May 31, 2024, from RM11.44 million or 12.52 sen per share a year earlier, driven by higher revenue.
• EcoFirst Consolidated Bhd net profit for its fourth quarter ended May 31, 2024 more than doubled to RM41.51 million compared with the RM17 million reported over the same period a year ago, thanks to higher sales conversion rate for the KL-48 project.
• Genting Plantations Bhd’s wholly owned subsidiary, Benih Restu Bhd, has undertaken its first issuance of RM1.2 billion in nominal value of Islamic medium-term notes (sukuk wakalah) under the sukuk wakalah programme of RM2 billion in nominal value of the shariah principle of Wakalah Bi AlIstithmar.
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Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.
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| Currency | Buy Rates (RM) | Sell Rates (RM) | 
|---|---|---|
| USD | 4.183360 | 4.212600 | 
| EUR | 4.873028 | 4.878308 | 
| CNY | 0.589871 | 0.590472 | 
| HKD | 0.538522 | 0.542295 | 
| SGD | 3.220053 | 3.242721 |