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Temporary pullback
Wed, 21-Aug-2024 09:48 am
by Research Team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. The FBM KLCI (-0.4%) slipped after a seven-day rally, as profit-taking activities has pushed the index into the red zone. Similarly, the lower liners also retreated, while the utilities sector (-2.8%) was the worst performer among its sectoral peers.

  • Global Markets Review. US stock markets reversed its gains overnight as investors await the upcoming FOMC minutes. European stock markets ended lower with all sectors in the red except the automotive makers, while Asian stock markets finished mostly green.

  • Market Outlook. We deemed the pullback in the local bourse to be healthy as investors took a breather from the recent rally. Positive momentum is likely to resume over the near term, supported by the return of foreign funds and Malaysia's strong economic fundamentals. Likewise, we opine that the lower liners to follow a similar pattern. For now, investors will be monitoring onto the on-going barrage of corporate earnings release this week. On the global front, all eyes will focus onto the upcoming Fed Chair Powell Speeches this Friday. Meanwhile, renewable energy-related stocks are expected to gain interest following the allocation of 190MW of feed-in-tariff by the Sustainable Energy Development Authority (Seda). We reckon stocks that has exposure to biogas, biomass, and hydro will be the main beneficiary of this scheme.

     

FBM KLCI Technical Review & Outlook

  • Technical Commentary: The FBM KLCI formed a bearish candle as the key index snapped a seven-day winning run and retreated from the upper Bollinger Band. Indicators remained positive as the MACD Line trended above the zero level, while the RSI hovered above 50. Immediate resistance is located at 1,680. Support is envisaged around 1,600.

     

Company News

  • Tenaga Nasional Bhd (TNB) has received notices of additional assessment from the Inland Revenue Board (IRB) for the years of assessment 2020 and 2021, amounting to RM685.82mil and RM705.24mil, respectively.

  • Petronas Dagangan Bhd posted a net profit of RM276.4 million for the second quarter ended June 30, 2024, little changed from RM275.7 million a year earlier, amid higher operating and tax expenses.

  • AMMB Holdings Bhd reported a 32.2% increase in net profit to RM500.2 million for the first quarter ended June 30, 2024, compared with RM378.37 million a year ago, driven by lower impairment charges and higher interest income.

  • Sentoria Group Bhd has denied former CEO Datuk Loh Yuen Tuck's claim of constructive dismissal, asserting that Loh breached his contract by not reporting for duty as requested.

  • Magma Group Bhd said that its 75%-owned unit, Impiana Selo Tioman Resorts Sdn Bhd, is being sued by Marc Bovell Paul Desmidt and Erin Camille Desmidt for US$974,968 (RM4.59 million). 

  • Star Media Group Bhd reported a significant increase in net profit for 2QFY2024, rising to RM7.49 million from RM791,000 a year earlier, driven by gains from its property development segment, which offset losses in its print business. 

  • Johor Plantations Group Bhd, which went public last month, saw its net profit nearly quadruple in the second quarter, reaching RM49.74 million compared to RM12.65 million a year earlier, driven by higher prices and increased sales volume. 

  • MCE Holdings Bhd has secured RM52.13 million in contracts from Proton Holdings Bhd to supply automotive electronic and mechatronic components. 

  • Willowglen MSC Bhd has secured a RM42.84 million contract from Singapore's Ministry of Education through its subsidiary, Willowglen Services Pte Ltd. 

  • South Malaysia Industries Bhd has received a RM47 million takeover offer from major shareholders Francis Leong and two Techbase Industries Bhd subsidiaries.

  • Solarvest Holdings Bhd and Agmo Holdings Bhd are partnering to develop digital products for the clean energy sector through a joint venture (JV). 

  • Kinergy Advancement Bhd net profit for the second quarter ended June 30, 2024 grew by 66% to RM5.57 million from RM3.35 million a year ago, driven by improved margins from its sustainable energy solutions segment. 

Sentiment: Negative
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Market Mover
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Currency Buy Rates (RM) Sell Rates (RM)
USD 4.449264 4.480081
EUR 4.653002 4.657428
CNY 0.611489 0.612097
HKD 0.571899 0.576406
SGD 3.300709 3.323891