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- A + A KUALA LUMPUR (June 23): RHB Retail Research said Mestron Holdings Bhd is poised to resume its uptrend after it re-attempted to hit the immediate resistance of 34.5 sen on Wednesday, coupled with high trading volume. In a trading stocks note on Thursday (June 23), the research house said if the stock pushes above that level, forming a “higher high” bullish pattern, the stock may travel towards the resistance of 36.5 sen, followed by 38.5 sen, which was the historical high printed on May 10, 2021. “However, the stock may reverse direction if it falls below the 33 sen support, forming a 'lower low' bearish pattern below the 21-day average line,” it said. … [Read more...] about Mestron poised to resume uptrend, says RHB Retail Research

- A + A KUALA LUMPUR (June 23): RHB Retail Research said Rohas Tecnic Bhd is staging a rebound as it bounced off strongly from the 21-day average line for two consecutive sessions, when it pushed past the 30 sen threshold on Wednesday. In a trading stocks note on Thursday (June 23), the research house said if the stock remains above that level, the stock may climb further towards the resistance point of 34.5 sen (June 7’s high), followed by Oct 28, 2021’s high of 37.5 sen. “If it falls below the support level of 27 sen, the stock may trend downwards, forming a 'lower low' bearish pattern below the average line,” it said. … [Read more...] about Rohas Tecnic staging a rebound, says RHB Retail Research

- A + A KUALA LUMPUR (June 24): RHB Retail Research said UWC Bhd is eyeing a technical breakout as it tried to climb higher again towards the immediate resistance of RM3.23. In a trading stocks note on Friday (June 24), the research house said if the stock manages to breach above that level – forming a “higher high” bullish pattern – the stock may climb further towards the resistance level of RM3.47 ie April 20’s high, followed by RM3.61 or the high of April 14. “If it falls below the support level of RM3.00, the stock may move south, below the 21-day average line,” it said. … [Read more...] about UWC eyeing a technical breakout, says RHB Retail Research

KUALA LUMPUR: Despite opening higher at the start of the opening bell, the FBM KLCI succumbed to profit taking activities as the key index lingered mostly in the negative territory. At 5pm, the 30-stock index plunged 26.78 points, or 1.84% to 1,431.10. The index opened 3.25 points higher at 1,461.13 this morning. Market breadth turned negative as losers overpowered the gainers on a ratio of 640-to-255 stocks. Traded volumes rose to 2.72 billion shares, valued at RM1.9bil as profit taking activities took control Along with investors' profit-taking, dealers said investors were also concerned about the the risk of recession arising from global inflation. Mercury Securities expects global equities to remain volatile in the short-term amid fears of persistently high inflation forcing central banks across the world to raise rates at a more rapid pace. On Bursa Malaysia, Nestle tumbled RM2 to RM132.50, Malaysian Pacific Industries shed RM1.92 to RM26.86, Kuala Lumpur Kepong lost … [Read more...] about KLCI plunges 26.78 points on heavy selling pressure

KUALA LUMPUR: The FBM KLCI ended the day in red on Monday in line with the weak performance of its regional peers. The 30-stock index ended down 15.5 points, or 1.06% to 1,441.24, the lowest since May 2020. The broader market sagged, with decliners outnumbering advancers 747 to 200 while 351 counters were unchanged. Dealers said the local bourse which tracked the performance of key Asian markets, was weighed down by banking stocks. They expect volatility to continue due to the uncertainties surrounding the global economy. On the external front, MSCI’s broadest index of Asia-Pacific shares ex-Japan lost 0.16%. Japan’s Nikkei 225 fell 0.74% to 25,771.22 while South Korea’s Kospi ended down 2.04% to at 2,391.03. Hong Kong’s Hang Seng index rose 0.4% to 21,163.91. China’s CSI300 index rose 0.5% to 4,330.43, while the Shanghai Composite Index closed 0.04% lower at 3,315.43. On Bursa Malaysia, Malaysian Pacific Industries tumbled 98 sen to RM28.52, Batu Kawan lost 52 sen … [Read more...] about FBM KLCI pulls back 1.06% in line with regional retreat

PETALING JAYA: Allianz Malaysia Bhd , which raked in a higher net profit in the first quarter of the year, aims to strengthen its life and general insurance businesses as the subsidiary of the German insurer gears up to increase its market share amid stiff competition in the insurance industry, say analysts. Subject to unforeseeable events, the group’s premiums for its general and life businesses could outpace industry growth this year. AmInvestment Bank Research analyst Kelvin Ong, who is maintaining a “buy” call on Allianz Malaysia, said he continued to like the company for its strong market share in the general and life insurance businesses. “As the largest general insurer domestically, it is envisaged that the group will be able to withstand competition in the general insurance industry, moving forward, from further liberalisation of motor and fire tariffs. “We do not expect the group’s life insurance business to be significantly impacted by global accounting standards … [Read more...] about Allianz aims for more share

- A + A KUALA LUMPUR (June 23): The prosecution team in the 1Malaysia Development Bhd (1MDB)-Tanore trial against former prime minister Datuk Seri Najib Razak told the High Court on Thursday that they have 20 witnesses to go before they close their case. Deputy Public Prosecutor (DPP) Deepa Nair Thevaharan informed Justice Datuk Collin Lawrence Sequerah that thus far the prosecution has called 33 witnesses to testify against Najib and they will be calling 20 more witnesses before they wrap up their side of the case. "Yang Arif, we have called 15 witnesses in the month of June alone, and we have 20 witnesses to go before we close the prosecution's case," she said. She was informing Justice Sequerah after the prosecution's 33rd witness, Khalil Khalid, a banker with RHB Bank, was done with his testimony. He verified documents on transactions related to Terengganu Investment Authority, 1MDB's predecessor. After he finished testifying in the afternoon before lunch, … [Read more...] about Prosecution in 1MDB trial has 20 witnesses remaining before wrapping up case against Najib

- A + A KUALA LUMPUR (June 27): Analysts have maintained their "buy" rating of VS Industry Bhd (VSI) despite the company’s earnings for the nine-month period ended April 30, 2022 (9MFY22) coming in below their expectations. Despite maintaining a "buy" rating for the stock, Hong Leong Investment Bank (HLIB) Research trimmed its target price (TP) to RM1.14 (from RM1.21 previously). “In light of [the] rising interest rate environment and cost headwinds, we tweak our P/E (price-to-earnings) target lower from 18 times to 16 times. “As the biggest EMS (electronic manufacturing services) player in Malaysia with a solid track record, we opine that VSI would be able to weather through the gloomy clouds while simultaneously scour for opportunities from the trade diversion,” said the research house in a note on Monday (June 27). VSI’s net profit for the third quarter ended April 30, 2022 (3QFY22) dropped 30.1% year-on-year to RM51.29 million, from RM73.38 million … [Read more...] about Analysts keep ‘buy’ on VS Industry despite lower-than-expected 9MFY22 earnings

- A + A KUALA LUMPUR (June 27): The government's plans to increase subsidies to cover the cost of living are a positive and could improve market sentiment in the short term as this will help maintain consumers' purchasing power and reduce operational cost pressures on Malaysian companies in the second half of 2022 (2H22). Coupled with the return of foreign labour, this could boost Malaysian manufacturing competitiveness in the export market and point to an early general election in Malaysia in 2H22, CGS-CIMB said in a strategy note on Monday (June 27). Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz announced on Saturday that the projected consumption subsidy expenditure is RM77.3 billion in 2022, the highest ever borne by any government, versus RM17.4 billion estimated in Budget 2022. The projected consumption subsidy covers petrol, diesel and liquefied petroleum gas (RM37.3 billion), cooking oil (RM4 billion), flour and electricity (RM9.7 billion), … [Read more...] about CGS-CIMB: Govt’s plan to raise subsidies boosts short-term market sentiment and signals early election

This article first appeared in Capital, The Edge Malaysia Weekly, on June 20, 2022 - June 26, 2022. - A + A Bermaz Auto Bhd Target price: RM2.40 ADD CGS-CIMB RESEARCH (JUNE 14) : BAuto’s 4QFY22 revenue rose 44% quarter on quarter due to stronger contribution from Malaysia (+45% q-o-q) and the Philippines (+34% q-o-q) on the back of higher sales volume, which grew 47% and 30% q-o-q respectively. The group also attributed the stronger sales in Malaysia to higher contributions from new model launches for Kia and Peugeot, which grew 29% and 94% q-o-q respectively. BAuto declared a combined interim and special dividend per share of 4.5 sen for the quarter, bringing the total dividend for FY22 to 8.75 sen, significantly above our expectation of 6.5 sen. Overall, the dividend payout rose from 56% in FY21 to 65% in FY22. BAuto’s Ebit margin for FY22 expanded 2.1 percentage points year on year to 8.6% due to (1) a discontinuation of aggressive … [Read more...] about Brokers Digest: Local Equities – Bermaz Auto Bhd, MyEG Services Bhd, Genting Bhd, Scientex Bhd