Tuesday, 09 Jul, 2024

Research Team
Uptrend Intact Led By Mid And Small Caps research@msec.com.my
(603) 2201 2100
Market Review Market Scorecard
Key indices Last price C ha nge ( %)
Malaysia: The FBM KLCI (-0.35%) ended lower as the index was dragged by selling Do w Jo nes 39,344.79 -0.08

pressure in the Telco and Utilities heavyweights as investors were taking profits S&P 500 5,572.85 0.10

reducing their exposure prior to the long weekend after 2 consecutive days of NA SDA Q 18,403.74 0.28

positive gains on the index. FB M KLCI 1,611.02 -0.35

FB M Small Cap 19,752.73 -0.15

FB M A CE 5,966.31 0.11
Global markets: The S&P 500 and Nasdaq ended at all-time highs again, both the Co nstructio n 284.53 -0.23

indices rose higher ahead of the key inflation data and earnings results due later this Co nsumer 587.42 0.24

week, while the Dow was the laggard. Meanwhile, both the European and Asia stock Energy 986.75 -0.28

market ended lower. Financial Services 17,603.44 -0.32

Healthcare 2,191.49 -0.31

Ind P ro ducts 199.92 0.37

The Day Ahead P lantatio n 7,005.64 -0.12

P ro perty 1,109.28 -0.39

Both the FBM 70 and FBM Small Cap declined marginally but are still hovering along REITs 831.43 0.35

77.65 0.08
the all-time high zone prior to the long weekend holiday. Meanwhile, the US stock
Techno lo gy

Telco & M edia 596.08 -0.73

markets ended mixed with both S&P500 and Nasdaq closing at records, while the Transpo rt & Lo gistics 1,125.64 -0.22

Dow lagged. Investors will be watching the upcoming CPI and PPI data as that may Utilities 1,887.18 -0.30

dictate the interest rate directions taken by the Fed. We believe the inflationary Trading Vo l (m) 4,336.79 -12.03

pressures have been on the declining trend and that should allow the Fed to Trading Val (RM m) 2,955.08 -22.05

potentially lower down the interest rate in 2H2024. On the commodity markets, Brent Gainers/ Lo sers ratio
68%

oil had declined for the past 2 trading days after hitting resistance around USD88, FKLI 1,619.00 -0.34

while the gold price traded above USD2360. The CPO could be forming a rounding FCP O (RM ) 4,042.00 -0.61

bottom and a flag formation, awaiting a breakout above RM4,100.

B rent o il (USD) 85.75 -0.91

Go ld (USD) 2,359.13 0.02

USD 4.7087 0.01

Sectors focus: Sentiment has turned better last week for the local front and we might GB P 6.0218 -0.30

be anticipating more upside potential on various sectors driven by the data center EURO 5.0982 -0.26

catalysts following the investment from several MNCs earlier on. Meanwhile, we SGD 3.4896 -0.16

believe the outcome of the KL-SG HSR project will be announced in 2H24 and may Trading partic ipation 5- day trend and value ('m)
Institution Re ta il Fore ign
boost the appetite for stocks within the Construction, Property, Building Materials,
and Utilities sectors.
32.2 - 426.7 394.5

FBMKLCI Technical Outlook

Sourc e: Bloomberg, Bursa Market Plac e

Bloomberg

The FBM KLCI index ended lower towards the 1,611 level. However, the technical
readings on the key index were positive with the MACD histogram forming another
positive bars and RSI surged above 50. The resistance is envisaged around 1,626-
1,631 and the support is set at 1,591-1,596.
Tuesday, 09 Jul, 2024

Company Brief

Malayan Banking Bhd (MAYBANK) plans to double assets in Vietnam to US$2b

(RM9.42b) by 2027 and become the country’s top foreign bank for syndicated loans,
to capitalise on a booming economy. It also aims for its securities unit to be the
leading foreign broker, according to Maybank Vietnam country chief executive
officer Michael Foong. The bank also aims to strengthen its role in foreign direct
investment in Vietnam and will target new mid-tier corporate clients with annual
revenues ranging from US$50m to US$100m. (The Edge)

Cables and wires manufacturer Southern Cable Group Bhd (SCGBHD) has secured
a RM99.6m contract extension to supply underground power cables and conductors
of various sizes to utility giant Tenaga Nasional Bhd (TNB) (TENAGA). The contract
was awarded to the group’s wholly-owned subsidiary Southern Cable Sdn Bhd, and
will boost the total value of the group’s ongoing supply agreement with TNB to
RM854.3m. (The Edge)

NTT DATA Japan Corp (NTTD Japan) is extending the closing date of its
unconditional mandatory takeover offer of RM1.08 per share for GHL Systems
Bhd (GHLSYS) by two weeks. CIMB Investment Bank Bhd, acting on behalf of NTTD
Japan in its privatisation bid, announced that the offer’s closing date has been
extended from July 9 to July 23. As at 5pm on Friday, NTTD Japan held 1.08b shares,
constituting 94.61% of the total issued shares of GHL Systems. (The Edge)

The takeover bid by the children of businessman Tan Sri Robert Tan Hua Choon
for Eurospan Holdings Bhd (EUROSP) has closed, with the offerors increasing their
stake in the furniture maker to 73.99%. The takeover bid was triggered on May 24
when Datuk Seri Tan Han Chuan and his sister Datin Tan Ching Ching increased their
shareholdings in Eurospan to 71.8%. They are the children of Hua Choon, widely
known as Malaysia's first Casio watch distributor, earning him the ‘Casio king’
moniker. The offerors intend to maintain Eurospan’s listing status on the Main
Market of Bursa Malaysia. (The Edge)

Shares of Salutica Bhd (SALUTE) fell to their lowest in nearly nine months, and the
sharp decline prompted the suspension of intraday short-selling of the electronics
manufacturing services firm’s stock. Salutica fell as much as 26% or 18 sen to 50
sen, its lowest since Oct 20, 2023, before recovering slightly to close 11 sen or
16.18% lower at 57 sen, valuing the company at RM243.1m. Trading volume totalled
25.91m shares. Intraday short-selling of Salutica shares will only be allowed to
resume on Tuesday. Salutica’s legal suit against Apple, filed in November last year
for alleged patent infringement, was dismissed by the court. (The Edge)

Scheduled waste recycling company Tex Cycle Technology Bhd (TEXCYCL) has
proposed to transfer its listing from the ACE Market to the Main Market of Bursa
Malaysia. The company said it has met the profit requirements, maintains a healthy
financial position and satisfies the public shareholding spread under the Securities
Commission of Malaysia (SC) and Main Market listing requirements. (The Edge)

Pestech International Bhd’s (PESTECH) wholly-owned subsidiary Pestech Sdn Bhd

(PSB) and Syarikat SESCO Bhd (SSB) have opted for annulment of the notification of
award for the Entinggan project after taking into consideration economic factors.
PSB through a joint venture (JV) with Sky High Construction Sdn Bhd had in
December 2023 secured a substation construction project in Entinggan, Kuching,
Sarawak from SSB worth RM109.98m. (The Edge)

2
Tuesday, 09 Jul, 2024

Computer Forms (Malaysia) Bhd (CFM) does not anticipate any significant financial
or operational impact on the group from the recent fire outbreak at its wholly-owned
subsidiary’s factory here. The group said it is currently awaiting the Fire and Rescue
Department’s official report to determine the full extent of the incident. It added that
it has adequate insurance for its assets and coverage for consequential business
losses, which will help mitigate the financial impact. (The Edge)

Technical Focus Tracker

Technical Focus Tracker
Report Date Cut Change in
Report Resistance 1 Resistance 2 Long Term Support Last Price
No. Companies Share Price Loss Share Price Comments
Date (RM) (RM) Target (RM) (RM) (RM)
(RM) (RM) (%)
1 OCK 5-Apr 0.605 0.660 0.670 0.690 0.580 0.570 0.615 1.7% Initiate on 5/4/2024
2 FFB 24-Apr 1.490 1.600 1.620 1.650 1.410 1.400 1.510 1.3% Initiate on 24/4/2024
3 FOCUSP 31-May 0.813 0.890 0.910 0.930 0.790 0.780 0.835 2.7% Initiate on 31/5/2024
4 CORAZA 6-Jun 0.580 0.620 0.630 0.640 0.540 0.530 0.545 -6.0% Initiate on 6/6/2024

Market Chat Tracker – 3Q24 Stock Picks

3Q24 Stock Picks
Report Date Cut Change in
Report Resistance 1 Resistance 2 Long Term Support Last Price
No. Companies Share Price Loss Share Price Comments
Date (RM) (RM) Target (RM) (RM) (RM)
(RM) (RM) (%)
1 CAB 2-Jul 0.755 0.820 0.855 0.700 0.665 0.750 -0.7% Initiated on 2-Jul-2024
2 DKSH 2-Jul 5.160 5.820 5.880 5.110 5.040 5.16 0.0% Initiated on 2-Jul-2024
3 DUFU 2-Jul 2.630 2.920 3.110 2.480 2.310 2.70 2.7% Initiated on 2-Jul-2024
4 GREATEC 2-Jul 5.320 6.160 6.440 5.080 4.900 5.53 3.9% Initiated on 2-Jul-2024
5 INFOTEC 2-Jul 1.040 1.090 1.140 0.960 0.915 1.05 1.0% Initiated on 2-Jul-2024
6 ITMAX 2-Jul 2.580 2.780 2.850 2.480 2.420 2.59 0.4% Initiated on 2-Jul-2024
7 PPHB 2-Jul 1.090 1.230 1.300 1.040 0.975 1.06 -2.8% Initiated on 2-Jul-2024
8 SCOMNET 2-Jul 1.530 1.630 1.720 1.420 1.330 1.47 -3.9% Initiated on 2-Jul-2024
9 SKBSHUT 2-Jul 0.735 0.835 0.865 0.725 0.695 1.00 35.4% Initiated on 2-Jul-2024
10 SPRING 2-Jul 0.245 0.280 0.295 0.230 0.220 0.24 -4.1% Initiated on 2-Jul-2024
11 SUNVIEW 2-Jul 0.745 0.805 0.840 0.730 0.705 0.72 -3.4% Initiated on 2-Jul-2024
12 SYGROUP 2-Jul 0.805 0.895 0.935 0.750 0.705 0.81 0.0% Initiated on 2-Jul-2024
13 TECHBND 2-Jul 0.530 0.620 0.645 0.505 0.490 0.52 -1.9% Initiated on 2-Jul-2024
14 TM 2-Jul 6.760 7.360 7.500 6.540 6.390 6.81 0.7% Initiated on 2-Jul-2024
Average Return 2.0%

Technical Focus Tracker Summary

Total recommendations 387
Total winners 217
Total losers 135
Portfolio performance (2020) 22.7%
Accuracy (2020) 53.3%
Portfolio performance (2021) 30.4%
Accuracy (2021) 66.4%
Portfolio performance (2022) 13.3%
Accuracy (2022) 62.9%
Portfolio performance (2023) 31.0%
Accuracy (2023) 39.2%
FBM KLCI (Since 30/12/2022) 7.7%
FBM Small Cap (Since 30/12/2022) 32.4%
Malaysia GDP Growth (1H23) 4.2%

Disclaimer
Research analyst(s) of MSSB whom produced this report hereby certifies that the views expressed in this report
accurately reflect his/her personal opinions about all of the subject corporation(s) and securities in this report. He/She
does not carry out, whether for himself/herself or on behalf of MSSB or any other persons did not receive and will not
receive any compensation that is directly or indirectly related or linked to the recommendations or views expressed in
this report or to any sales, trading, dealing or corporate finance advisory services or transaction in respect of the
securities in this report. As of the report date, the analyst whom prepared this report does not have any interest in the
following securities covered in this report, unless otherwise stated.