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Malaysia’s Household Debt Reaches RM1.53 Trillion, Anwar Reveals

By
ainul fatihah
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In a written parliamentary reply yesterday, Prime Minister Datuk Seri Anwar Ibrahim disclosed that Malaysia’s aggregate household debt has surged to RM1.53 trillion as of the end of 2023. This revelation comes amid growing concerns about the country’s financial stability and its implications for the wider economy.

Anwar, who also serves as the finance minister, provided insights into the composition of household debt, with housing loans constituting the largest share at 60.5%. This was followed by vehicle loans at 13.2%, personal financing at 12.6%, and loans for other purposes such as non-residential property purchases, credit card debt, and security.

The prime minister further elaborated on the trajectory of household debt over the past years, indicating a steady increase from RM1.19 trillion in 2018 to the current figure of RM1.53 trillion in 2023. This represents a significant rise in indebtedness among Malaysian households over a relatively short period.

One of the key metrics highlighted by Anwar was the ratio of household debt to gross domestic product (GDP), which slightly rose to 84.2% by the end of 2023, compared to 82% in 2018. This suggests a growing reliance on debt relative to the country’s economic output, raising concerns about financial vulnerability.

An average annual growth rate of 5.1% in household debt was also noted by the prime minister. This increase, according to Anwar, is primarily driven by housing and vehicle loans, fueled by government and private sector incentives aimed at promoting home ownership and vehicle purchases, including sales and service tax (SST) incentives.

While initiatives to stimulate certain sectors of the economy through increased consumer spending may have positive short-term effects, there are lingering concerns about the long-term implications of high household debt levels. Excessive indebtedness could potentially strain household finances and pose systemic risks to the economy, especially in the event of economic downturns or rising interest rates.

Anwar’s disclosure underscores the importance of prudent financial management and effective policy measures to address the challenges posed by escalating household debt.

Genting Malaysia: Short Term Renovation Pain For Long Term Revenue Gain, Maybank IB Says Buy

By
K. Harinderan
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Credit: Genting Malaysia

Maybank Investment Bank (Maybank IB) visited Resorts World Genting (RWG) on 14 Mar 2024 to observe their operations. Maybank IB’s view, mass market GGR will take a backseat in FY24E after Genting Malaysia (GENM) temporarily shuttered the Circus Palace and Hollywood mass gaming floors for renovation but history tells us that it will come back stronger from FY25E onwards.

Maybank IB maintains a BUY call with a lower MYR3.16 DCF-TP (-3%).

Maybank IB cuts their FY24E earnings by 15% but leave FY25E and FY26E earnings unchanged and trimmed their DCF-TP to MYR3.16 from MYR3.26.

With >10% upside potential still, Maybank IB maintains their BUY call on GENM. VIP gaming floors at Genting Casino still open The Circus Palace and Hollywood mass gaming floors were shuttered for renovation on 28 Feb 2024. Apparently, plans to renovate them were mulled as early as 2 years ago.

Maybank IB noted that renovations have not commenced despite having been shuttered for 2 weeks by the time of the visit.

GENM stated that it is not yet able to guide on when the Circus Palace and Hollywood mass gaming floors will reopen. That said, Maybank IB believes that they will reopen by year-end to capitalise on the year-end holidays.

Mass gaming floors at Sky Casino buzzing

Maybank IB was positively surprised on how crowded Sky Casino was considering it was a weekday morning. The obvious explanation is that gamblers who used to patronise the Circus Palace and Hollywood mass gaming floors were patronising Sky Casino.

Smatterings of Mainland Chinese accent could be heard, suggesting decent gaming participation by Chinese tourists.

Maybank IB also noticed that the ‘NO SMOKING’ sign at tables have been removed which they believe is positive for table yields.

Maybank IB cuts FY24E earnings by 15%

Assuming that the Circus Palace and Hollywood mass gaming floors will reopen 9 months from 28 Feb 2024 and 50% of their mass market GGR migrate to the Sky Casino, Maybank IB has lowered their FY24E RWG mass market GGR forecasts by 19%.

Net impact of the above is to cut FY24E earnings by 15%

Anyhow, Maybank IB maintained their  FY25E/FY26E earnings which are premised on RWG total GGR recovering to 104%/106% of FY19A levels. History has shown that RWG GGR grows after gaming floors are expanded or renovated.

Trade Outlook Positive Amid Weak Feb Data: CGS

By
K. Harinderan
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Malaysia’s February exports growth fell slightly, by -0.8% yoy, while imports continued to grow, at 8.4% yoy but outlook still remains positive

Feb’s exports to the US (which accounts for 10% of Malaysia’s total trade) increased by 10.1% yoy, signalling better recovery ahead. Current account will be supported by goods and services account, where CSG International (CGS) anticipates sizeable trade surplus for the year on an increase in tourist arrivals.

Slower trade activity in Feb amid fewer working days

Malaysia’s Feb exports growth fell slightly by -0.8% yoy, lower than CGS’s and Bloomberg consensus’ expectations. On a mom basis, both exports and imports contracted by 9.1% and 10.5% in value, respectively, attributed to fewer working days in the month.

Exports of manufactured goods fell by -2.4% yoy in Feb (vs. Jan’s +9.3% yoy), dragged by slow shipments of electrical and electronics (E&E) products, petroleum products, as well as chemicals and chemical product, CGS said, in its Economics Note  today (Mar 19).

Meanwhile, exports of mining products rebounded by 16.8% yoy in Feb (vs. Jan’s -4.9% yoy), supported by higher shipments of LNG, crude petroleum, and petroleum condensates. Imports of intermediate goods, which are used as indicators of export performance going forward, rose by 8.4% yoy in Feb, marking the fourth consecutive month of expansion.

Improved exports with main partners signal some recovery ahead

By destination, Feb’s exports to the US was aided by strong shipments of E&E products, machinery, equipment and parts, as well as optical & scientific equipment, signalling a recovery ahead, in CGS’s view.

Meanwhile for China, on a mom basis, exports rose by 3.1% in Feb, while recording a lower contraction of -0.4% yoy (Jan: -7.4% yoy).

Shipments to increase with improved supply chain

Despite slower growth recorded for the month, exports and imports improved for the period Jan-Feb at 3.9% yoy and 13.6%, respectively, vs. the similar period in 2023.

Manufactured goods shipment also recorded positive growth of 3.4% yoy on a cumulative basis; CGS thinks this a good start for 2024F in supporting trade growth.

CGS projects shipments to increase ahead following Jan’s trade volume showing improvements vs. Dec 23 (Feb 24 numbers yet to be released) indicating Red Sea crisis having a smaller impact than anticipated.

According to S&P Purchasing Managers Index (PMI) Manufacturing report, Malaysian manufacturers’ output demand and new orders have been increasing, although at a marginal rate.

The Indo-Pacific Economic Framework (IPEF) for Prosperity agreement on supply chains came into effect last month for its 14 member countries.

CGS thinks the IPEF agreement will provide stronger supply chain support ahead. However, potential risk of trade disruption could be exacerbated due to geopolitical tensions in the Red Sea region, as well as potential trade disputes globally with a change in political administration after the US presidential elections in Nov 24.

CGS maintains their 2024F current account at 2.2% of GDP

CGS thinks the overall outlook for Malaysia’s 2024F trade balance remains positive in the near term. Malaysia’s Feb trade surplus of RM10.9bn was higher than Jan’s RM10.2bn, following a larger decline in import value.

On a cumulative basis, the trade surplus remains sizeable at RM21bn in 2M24, vs. RM37.7bn 2M23.

CGS views a recovery in the services account, following an increase in foreign tourist arrivals, as supportive of the current account.

In 2024, Malaysia aims to welcome 27.3m foreign visitors (2023: 20m), surpassing the 26.1m tourist arrivals in 2019 prior to the Covid-19 pandemic, with tourism-related income expected to exceed RM102.7bn.

CGS believes this will be a positive support for Malaysia’s current account towards their forecasted 2.2% of GDP for 2024F (2023: 1.2%).

Ringgit Opens Lower Against U.S. Dollar On Lack Of Buying Interest

By
ainul fatihah
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Closeup of Malaysia Ringgit currency notes and coins

The ringgit opened lower against the US dollar on Tuesday, due to lack of buying interest, as cautious sentiments surrounding the Bank of Japan’s (BOJ) monetary policy decision continued to prevail.

At 9.05am, the ringgit had depreciated to 4.7225/7265 against the greenback, from Monday’s close at 4.7165/7195.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said market players will be focusing on the BOJ’s monetary policy decision on Tuesday, due to expectations that the Japanese central bank will end its negative interest rate policy and yield curve control.

Apart from that, he said market participants will also be observing the US Federal Open Market Committee meeting, which will begin on Tuesday and end on Wednesday.

On that note, the ringgit is expected to remain soft in light of the cautious trading mode, he told Bernama.

“However, positive data from China on Monday offers some hope that the second-largest global economy is gaining some traction, following a series of economic and monetary stimulus,” said Mohd Afzanizam.

Meanwhile, the ringgit was traded mostly lower against a basket of major currencies.

It decreased vis-a-vis the Japanese yen to 3.1631/1660 from 3.1608/1630 on Monday, fell against the British pound to 6.0070/0121 from 6.0060/0098, but rose versus the euro to 5.1338/1382 from 5.1400/1433 previously.

At the same time, the ringgit traded mixed against other Asean currencies.

It weakened versus the Thai baht to 13.1104/1262 from 13.1050/1203 at Monday’s close, and slipped against the Indonesian rupiah to 300.9/301.3 from 300.5/300.9.

However, the local note was almost flat against the Singapore dollar at 3.5258/5291 from 3.5253/5278 on Monday, and increased against the Philippine peso to 8.48/8.49 from 8.49/8.50 previously. – Bernama

Climate Change’s Unexpected Toll On Our Smiles

By
Business Today Editorial
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By: Dr. Ainol Haniza Kherul Anuwar, Prof. Dr. Nor Adinar Baharuddin

Did you know that in recent years, Malaysia, especially Peninsular Malaysia, has been experiencing unprecedented heat? It’s not just your imagination. Almost record-setting heatwaves have struck the northern region, with the El Niño weather phenomenon exacerbating the hot and dry conditions in Perlis, Kedah, and Penang. According to a recently published local study, since the year 2000, heatwaves have become both more frequent and more intense. The numbers are quite striking: every decade, the area affected by heatwaves expands by nearly 9 km², and these scorching periods last about 1.5 days longer each time.

One surprising effect of this climate shift is its impact on oral health. The intense heat leads to dehydration, which in turn reduces saliva production. This might not seem like a big deal at first glance, but saliva is crucial for maintaining oral health. Without it, we’re at a greater risk of dental issues. Saliva is a secret hero for our mouth, cleaning away food bits and stopping acids. It also gives teeth a protective coating of calcium, phosphate, and fluoride, shielding them from bacteria. But when we are dehydrated, we make less saliva which means less protection. This puts us at a higher risk for tooth decay, gum problems and dry mouth. A recent study in Korea published in 2021 showed that dehydration has been linked to periodontal disease, permanent caries, and other oral health issues. Maintaining adequate hydration is crucial for overall oral health and can help prevent conditions that arise from dehydration. So, those long, hot days can actually lead to more trips to the dentist!

The conversation about weather and dental health might seem unusual, but it’s all interconnected with a larger issue: climate change. It’s not just about polar bears and ice caps; it’s about how changes in our environment are directly affecting our everyday lives right here in Malaysia. Hence, regular dental check-ups are more important than ever. These visits aren’t only for when there’s a problem; they are essential for preventing heat-related oral health issues.

Beyond personal habits, we can also transform our living spaces to be more heat resilient. Planting trees and creating shaded areas in our neighbourhoods can significantly lower temperatures. This not only makes our immediate environment more pleasant but also contributes to broader efforts against climate change. It’s about creating spaces that not only provide relief from the heat but also enhance the overall quality of life for our communities.

Moving beyond personal habits, there’s a critical dimension to this issue. Increased heatwaves can strain our healthcare system, leading to higher medical expenses for individuals and the government. Extreme temperatures can also impact worker productivity, especially in outdoor and non-air-conditioned environments, potentially affecting Malaysia’s economic growth. Addressing these challenges involves not just immediate responses but also long-term planning and investment in climate-resilient infrastructure and health systems. This approach is not just an environmental imperative; it’s a smart economic strategy to safeguard our future.

Malaysia is getting hotter, and it’s affecting us in ways we might not have thought about. But by staying informed, making smart choices, and looking out for each other, we can beat the heat. So, let’s all be more conscious of our environmental impact. Simple actions like reducing waste, conserving energy, and using public transportation can collectively make a big difference in mitigating climate change.

In facing Malaysia’s heatwave challenge, it’s clear that every small action counts. Together, through awareness, lifestyle changes, and community efforts, we can create a cooler, healthier Malaysia. Remember, combating heat is not just about finding relief from the sun; it’s about safeguarding our health and our future. Let’s stay cool, stay hydrated, and stay committed to making a difference for our, oral and overall, health!

The authors are from the Faculty of Dentistry, Universiti Malaya

Decathlon Launches Refreshed Brand Identity And Enhanced Shopping Experience

By
ainul fatihah
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Decathlon has embarked on a transformative journey, revealing a vibrant new logo and an invigorating shade of blue. This significant change, brewing over two years, marks a pivotal moment in Decathlon’s quest to embody its global identity as a multi-specialist sports brand.

With a commitment to igniting passion and empowering individuals across all skill levels, Decathlon’s mission remains resolute: to unlock the boundless potential of sports enthusiasts worldwide.

Central to this evolution is the launch of an entirely revamped digital shopping experience. Boasting various new and improved features, both front-end and back-end, Decathlon’s eCommerce platforms now offer a seamless journey for customers.

By placing customers at the heart of the experience, Decathlon ensures that each interaction is imbued with meaning, allowing shoppers to delve into the stories behind the products they love.

Leading the charge is the UK, as the first country to unveil its fully reimagined eCommerce site. As part of a phased rollout, other nations are poised to follow suit, aligning with Decathlon’s modern omnichannel strategy.

Additionally, Decathlon’s physical stores worldwide are undergoing changes, embracing the new brand identity in every facet. From signage to store setups, customers are greeted with an immersive experience that transcends traditional retail. With a circular mass plan fostering intuitive navigation and engaging displays, Decathlon stores become havens of possibility for sports enthusiasts of all stripes.

Moreover, these revamped stores introduce innovative features such as showrooms and discovery stations, seamlessly blending physical and digital elements to enhance product exploration and comparison. Services like circular hubs for repairs and second-life products, along with convenient lockers for order pickups, underscore Decathlon’s commitment to customer convenience and satisfaction.

Furthermore, Decathlon’s new teammates’ vest emerges as a quintessential embodiment of the brand’s refreshed identity. This sleek, unisex gilet, boasting a modern silhouette and practical pockets, symbolises innovation and adaptability. Customisable by Decathlon’s own teammates, it serves as a beacon of confidence for sporting endeavors yet to come

Goldman Sachs: AI Will ‘Destroy Employment In Some Areas’ But Could Bring Long-Term Benefits

By
K. Harinderan
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Goldman Sachs chief economist Jan Hatzius offered a stark prediction for the impact that artificial intelligence (AI) could have on some job sectors, noting he is “confident” the technology will benefit economic growth over time.

When asked last week by CNN’s Matt Egan if he sees AI as a job “creator” or “killer,” Hatzius said, “Well, I see it has a productivity enhancer. It will destroy employment in some areas; I mean, there will be parts of the labour markets where tasks can be replaced to a degree.”

“But then you will also find other ways of innovating and creating more jobs somewhere else,” he noted. “I mean, this is the story of economic growth and innovation for hundreds of years that you have an innovation that is basically labour saving and that reduces employment in some areas, but then boosts it in others.”

Hatzius said while it is difficult to pinpoint AI’s impacts in the short term, he is “much more confident” the emerging technology will “significantly add to growth over time by basically boosting productivity growth.”

“We have actually lifted our long-term growth estimates somewhat in part because of the impact of AI,” he added.

As AI continues to advance in its capabilities, so do fears about the emerging technology taking human jobs, recent studies suggest. According to a report published in December by the Top10.com, 1 in 4 Americans are “somewhat worried” AI will take their job, while for about 1 in 50, this is already a reality.

These concerns appear to have risen compared with previous years. According to a Gallup poll released last fall, about 22 percent of surveyed U.S. workers said they worry their jobs could be no longer needed due to technology. This was up 7 points from 2021, per Gallup.

Congressional leaders have also sounded the alarm on the potential risks of AI, hosting a series of hearings and forums on the emerging technology over the past year. – The Hill

Cisco Acquires Splunk For $28 Billion

By
ainul fatihah
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Cisco has officially announced the successful completion of its acquisition of Splunk, marking a pivotal moment in the realm of digital connectivity and security. This strategic move sets the stage for a new era in which organizations can harness unparalleled visibility and insights across their entire digital footprint.

In today’s rapidly evolving digital landscape, the ability to connect and protect all aspects of business operations is paramount. Cisco recognises this imperative and is set to bring the full power of its network, coupled with market-leading security and observability solutions, to deliver a real-time unified view of the digital landscape. This unified approach will enable teams to proactively defend critical infrastructure, prevent outages, and refine the network experience.

Cisco Chair and CEO, Chuck Robbins, expressed excitement about welcoming Splunk into the Cisco family, highlighting the potential to revolutionize how customers leverage data to connect and protect every aspect of their organizations.

By combining forces, Cisco and Splunk aim to provide truly comprehensive visibility and insights across an organisation’s entire digital footprint, delivering an unprecedented level of resilience through a powerful security and observability product portfolio.

The acquisition of Splunk also positions Cisco to power and protect the AI revolution. As the adoption and impact of AI continue to accelerate, effective utilisation of data at massive scale becomes imperative.

Cisco’s infrastructure, data, security, and observability platforms, when combined with Splunk’s capabilities, will empower organisations to securely harness the power of AI throughout their operations and applications.

Industry experts, including Stephen Elliot from IDC, recognise the transformative potential of the Cisco-Splunk combination. With this close, Cisco has created a unique set of solutions for networking, security, and operations executives in the market, unlocking higher levels of business value for customers.

Accenture Chair and CEO, Julie Sweet, congratulated Cisco on the acquisition of Splunk, underscoring the opportunities this collaboration presents to clients in the future.

The integration of Cisco and Splunk promises a host of benefits for customers, partners, and developers alike. From enhanced security and observability to leading-edge networking solutions and AI empowerment, organisations can expect a comprehensive suite of offerings designed to drive better business outcomes while reducing costs.

Over the coming months, customers can anticipate a wave of new product innovations across the portfolio with the integration of Splunk. These innovations will be showcased at prestigious events such as Cisco Live and .conf24, offering stakeholders a firsthand look at the transformative capabilities of the combined Cisco-Splunk portfolio.

Under the terms of the agreement, Cisco acquired Splunk for $157 per share in cash, representing approximately $28 billion in equity value. The transaction is expected to accelerate Cisco’s revenue growth and non-GAAP gross margin expansion, further solidifying its position as a leader in the digital connectivity and security space.

YTL Power To Run Nvidia’s GB200 AI Supercomputer Cloud Through Data Centre Facility In Johor

By
K. Harinderan
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YTL Power International has set up a YTL AI Cloud, a specialised provider of massive-scale graphics processing unit (GPU)-based accelerated computing, to deploy and manage one of the world’s most advanced supercomputers on Nvidia Grace Blackwell-powered DGX Cloud, an artificial intelligence (AI) supercomputer for accelerating the development of generative AI.

In a statement on Tuesday (Mar 19), YTL Power said it is among the first companies to adopt the Nvidia GB200 NVL72, which is a multi-node, liquid-cooled, rack-scale system with fifth-generation NVLink. The supercomputer will be interconnected by the Nvidia Quantum InfiniBand networking platform.

The platform acts as a single GPU with 1.4 exaflops of AI performance and 30TB of fast memory, and is designed for the most compute-intensive workloads.

The YTL AI Supercomputer will surpass more than 300 exaflops of AI compute, making it one of the fastest supercomputers in the world.

Nvidia founder and chief executive officer Jensen Huang said Nvidia is working with YTL AI Cloud to bring a world-class accelerated computing platform to Southeast Asia, helping to drive scientific research, innovation and economic growth across the region.

“This latest supercomputer marks one of the first deployments of the NvidiA GB200 Grace Blackwell Superchip on DGX Cloud, supporting the growth of accelerated computing in the Asia-Pacific region,” he said.

Highlighting the economic benefit and spillover of such partnership, Tengku Zafrul Abdul Aziz, Minister of Investment, Trade and Industry (MITI), Malaysia, commented, “This powerful AI Cloud will create high-value, high-income job opportunities for Malaysians, marking a significant step forward in our mission to become a leading AI and Data Centre hub in the region. This initiative not only brings us closer to achieving our goals under the New Industrial Master Plan 2030 but also demonstrates Malaysia’s capability and readiness to play a significant role in the global technology landscape.”

YTL Power managing director Datuk Seri Yeoh Seok Hong said the company is proud to be working with Nvidia and the Malaysian government to bring powerful AI cloud computing to the country.

“We are excited to bring this supercomputing power to the Asia-Pacific region, which has been home to many of the fastest-growing cloud regions, and many of the most innovative users of AI in the world,” Yeoh said.

The YTL AI Supercomputer will be located in a 1,640-acre (663.68-hectare) data centre facility in the YTL Green Data Center Campus, Johor, powered by a renewable energy source from its on-site 500MW solar power facility.

This supercomputer will help meet the demand for highly scalable, high-performance cloud-based solutions for AI and machine learning workloads. Johor is within 50km from some of the world’s densest network interconnection points in neighbouring Singapore.

Hold The Line, Please – RHB Sets Neutral Call On Telecommunications Sector

By
K. Harinderan
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RHB Investment Bank (RHB) expects the tight competition in the mobile segment to persist, with the focus on fixed-mobile bundling and upselling 5G services. Uncertainties remain over the second 5G network (5GDN), which may have implications on capex and dividends.

RHB sets a NEUTRAL call on the telecommunications sector with Top Picks being Axiata Group and OCK Group.

RHB prefers the fixed line/integrated players (over mobile), given their structural growth catalysts and more resilient earnings. They flag Axiata Group as a laggard play on the earnings recovery and balance sheet deleveraging thesis.

Mobile service revenue (MSR) grew 1.2% YoY in 2023

RHB, in its Malaysia Sector Update note today (Mar 19) said Maxis saw the largest MSR gain. Industry mobile revenue (Big- 2) grew 1.1% QoQ in 4Q23 on seasonal factors and stronger postpaid growth (+1.8% QoQ).

For 2023, MSR ticked up 1.2% (Big-2, ie CelcomDigi (CDB) and Maxis) with the dip in prepaid (-0.5%) offset by stronger postpaid growth (+2.5%) – the latter supported by pre-to-post migration and bundling promotions.

Maxis notched a 0.9% gain in MSR share to 43.3% in 4Q23 (4Q22: 42.4%) at the expense of CDB whose share narrowed from 57.6% to 56.7% over the same period.

RHB expects the MSR momentum to remain subdued as weak consumer sentiment and inflationary pressures will crimp wallet share – reflected in the mobile operators’ tepid FY24F guidance of “low-single digit growth” in MSR.

Fixed line players still seeing resilient, superior growth

Aggregate fixed line earnings grew 77% YoY in 4Q23, helped by tax credits at TM. This was ahead of the 3% YoY growth in aggregate mobile earnings (Big-2).

For FY23, fixed line earnings increased 45% vs a 11% decline for mobile, with the latter impacted by accelerated depreciation and network impairment at CDB.

Regulatory noises have dissipated post new access agreements inked but not risks

According to the Communications Minister Fahmi Fadzil, the rollout of 5GDN will be delayed due to some legalities and the formation of the new Board at Digital Nasional (DNB).

The latter is a requisite for share subscription agreements by the four mobile network operators (MNOs) (inked on 1 Dec 2023) for which due diligence is still on-going, with condition precedents to be met. MNOs are required to invest in DNB (14% stake) before being allowed to partake in the second 5G consortium (commercial undertaking). Uncertainties on the 5GDN will continue to impact capex and dividend outlook, in our view.

How is 5G adoption?

Fahmi Fadzil said there were 10.1m 5G subs as at end January (adoption rate: 29.95%).

RHB understands that 4G users connected to 5G networks (even momentarily) are counted as “active” 5G subs, even if they are on 4G most of the time.

If the official mobile population is applied as the base (end-Dec 2023: 50.1m), 5G subs penetration would be 20% (lower, if 4G legacy subs are excluded).

The headline number include: i) Subs on legacy 4G plans trialling 5G on an opt-in basis (not pure 5G subs); and/or ii) subs that fall back on 4G connection whenever 5G coverage is not available.

RHB understands from the regulator that 4G users (currently 90% of overall mobile subs) connected to 5G networks (even momentarily) are counted as “active” 5G subs, even if they are on 4G most of the time.

If the official mobile population base is applied (end-Dec 2023: 50.1m), RHB estimates underlying 5G penetration at c. 20% (lower, if 4G legacy subs are excluded).

For clarity, 5G subs are defined as “at most 5G” by the regulator, with the latest 4Q23 number standing at 8.3m.

RHB expects the 5G population base to continue growing, supported by: i) New 5G plans in the market which offer larger data quotas, ii) the influx of more lower-priced 5G handsets, and iii) the expanded coverage footprint. With consumer/retail use cases still lacking, 5G monetisation would remain a challenge for the industry in the medium term

Ookla’s 4Q23 Speedtest Intelligence Report puts Malaysia’s 5G Availability at 27%, vs Singapore’s 53.7% and Thailand’s 45.5%, despite outperforming on median download speeds.

Overall, RHB expects the 5G base to continue growing, supported by new 5G plans in the market and the influx of lower-priced handsets.

With consumer/retail use cases still lacking, 5G monetisation would remain a challenge for the industry in the medium-term, in RHB’s view.

Key risks are competition, weaker-than-expected earnings and negative regulatory developments.

Dewan Rakyat To Address Impact Of Hot Weather On Padi Planting Among Focus Of Parliament Today

By
K. Harinderan
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The immediate and long-term measures to minimise the effects of hot and dry weather conditions on padi planting activities, especially in Sabah, are among the focus of today’s Dewan Rakyat sitting.

According to the Order Paper on the Parliament website, Munirah Majilis (Warisan-Kota Belud) will pose the question to the Agriculture and Food Security Minister during the Minister’s Question Time.

Datuk Siti Zailah Mohd Yusoff (PN-Rantau Panjang) will inquire about the steps taken by the Women, Family and Community Development Ministry to ensure the well-being of social workers in the country and the status of the consultation process on the Social Work Profession Bill.

Aminolhuda Hassan (PH-Sri Gading) will ask the Human Resources Minister about the timeline for the relevant parties to take action against employers for negligence, particularly concerning issues like delayed salary payments and failure to make Employees Provident Fund contributions for workers, upon receiving complaints from affected employees.

There will also be a question from Datuk Adnan Abu Hassan (BN-Kuala Pilah) to the Prime Minister regarding the mechanism implemented by the government to shorten the waiting time for Malaysians to perform the haj.

In the same session, Datuk Shamshulkahar Mohd Deli (BN-Jempol) will ask the Communications Minister whether the government plans to require all social media platform service providers in the country to register with the Malaysian Communications and Multimedia Commission, while also seeking clarification on how this measure will not restrict media freedom.

Ahmad Tarmizi Sulaiman (PN-Sik) is expected to ask the Defence Minister about the acquisition of 18 Fighter Lead-In Trainer-Light Combat Aircraft (FLIT/LCA) FA-50 worth RM4.08 billion for the Royal Malaysian Air Force (RMAF).

Sabri Azit (PN-Jerai) will ask the Transport Minister to state the statistics of speed limit violations captured by speed trap cameras nationwide and whether the government plans to increase the speed limit to 120 km/h.

The sitting will then continue with the winding-up session for the debate on the Jurisdictional Immunities of Foreign States Bill 2023.

Also listed are the tabling of the Limited Liability Partnerships (Amendment) Bill 2024 for its first reading and the tabling of the Supplementary Supply (2023) Bill 2024 and the Police (Amendment) Bill 2024 for their second reading.

The First Meeting of the Third Term of the 15th Parliament will last for 19 days until March 27.

IMF Lending Hits Near Record US$150 Billion To Counter Debt And Wars

By
K. Harinderan
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The International Monetary Fund  (IMF) is lending near a record amount to almost 100 countries, evidence of its growing role as a backstop against the financial and political dangers of the post-pandemic world.

Primarily because of surging borrowing costs and conflicts, the IMF has had to put out more economic fires, including major blazes in Ukraine, Egypt and elsewhere in Africa as well as in Argentina and Pakistan.

IMF credit outstanding, a key measure of money disbursed by the Washington-based fund, climbed to about $151 billion at the end of February, according to Bloomberg calculations of IMF data. (The IMF reports the figure as 113 billion units of its foreign exchange reserve asset, called Special Drawing Rights.)

That’s likely to rise further after the fund finalises up-sizing its support for Egypt to USD8 billion, likely this month, pushing the total toward a recent record in August.

Although the pandemic is drifting into the past “countries are still going through pressure and strain,” said Masood Ahmed, president of the Center for Global Development think tank and a former head of the IMF’s Middle East department. “The world has become more geopolitically fraught. There are more tensions and conflicts.”

More than 50 of those borrowers have active loan or guarantee programs — about a quarter of the fund’s members. While that’s down from 90 during the depths of Covid-19 — and largely with smaller zero-interest emergency loans — it’s the most ever under the fund’s normal borrowing programs.

Kristalina Georgieva (pic), the fund’s managing director since 2019, has warned that the widening income gap between rich and poor countries is a major factor fuelling instability. The other is conflict.

“We see trust diminishing among nations too, with geopolitical tensions on the rise,” she said in a speech last week. “A fragmented world would be poorer and less secure,” she said, referring to the effects of Russia’s invasion of Ukraine, the Israel-Hamas war and “many more that often don’t make the headlines.”

Georgieva has touted the fund’s USD1 trillion in liquidity support, including funds available but not used. By comparison, the amount currently outstanding is relatively small — less than 0.2% of the global USD100 trillion-plus economy — but a testament to the IMF’s central role of policing and managing the global financial system designed by the US in the wake of World War II.

Given those origins, it’s not surprising that many of the fund’s borrowers — including some of its biggest, Argentina, Egypt and Ukraine — overlap with Washington’s top geopolitical priorities.

“The US has seen the fund as a vital tool for promoting its own national security, economic welfare and interests in financial stability around the world,” said Mark Sobel, a former US Treasury Department official who spent almost two decades focused on international policy, especially the IMF. “Western and certainly US officials view the IMF as a first responder.”

Shoring up Ukraine against Russia provides a prominent example, with the fund voting to revamp its rules to allow lending to a country at war, a decision only made possible by the backing of the US, which has a veto-proof 16.5% voting share.

The two other biggest borrowers — accounting for a combined $58 billion, nearly half the total outstanding credit — are Argentina and Egypt, long-time clients of the fund.

The IMF declined to elaborate on its priorities or on loan details.

Argentina’s recently elected president, Javier Milei, is currently pushing through major economic reforms sought by the IMF, such as shoring up foreign exchange and raising revenue. IMF lending to Egypt, at the same time, is growing, but only a fraction of the more than $50 billion pledged globally to shore up the country’s teetering economy, a strategic linchpin at the intersection of Africa and the Middle East, and and bordering the Gaza Strip and Israel.

“Egypt is not by accident getting all those programs even though they haven’t reformed the role of the military in the economy,” said Martin Muhleisen, a former director at the IMF’s key strategy, policy and review department. “There are clearly geopolitical considerations at work.” – Bloomberg

Oil Holds Gain With Russian Refining And OPEC+ Curbs To The Fore

By
K. Harinderan
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Oil held a gain with continued Ukrainian drone attacks on Russian refineries and OPEC+ supply cuts in focus.

Brent crude traded near $87 a barrel after a 1.8% rally on Monday to the highest close since late October. West Texas Intermediate was below $83. About 600,000 barrels of Russia’s daily refining capacity has been knocked out by the strikes, according to Gunvor Group Ltd., while JP Morgan Chase and Co. put the figure at about 900,000 barrels.

Crude is on course for a third monthly climb after breaking free from a narrow range it had been trading in for much of the year. OPEC+ supply curbs have helped to bolster prices, and Iraq said this week it would cut oil exports in the coming months to compensate for not having delivered in full on its earlier pledges to reduce production.

Timespreads have risen in tandem with the latest gains in futures, with the gap between Brent’s two nearest contracts at 73 cents a barrel in backwardation. That’s a bullish pattern, with nearer contracts trading at a premium to later-dated ones. The figure was 49 cents a week ago. Volatility, however, continues to creep lower. – Bloomberg

Nvidia Reveals B200 Flagship AI Chip Aiming To Extend Dominance

By
K. Harinderan
-

Nvidia Chief Executive Jensen Huang on Monday kicked off his company’s annual developer conference with a slew of announcements designed to keep the chip maker in a dominant position in the artificial-intelligence industry.

On a hockey arena stage in the heart of Silicon Valley, Huang introduced Nvidia (NASDAQ:NVDA)’s latest chip, which is 30 times speedier at some tasks than its predecessor.

He also detailed a new set of software tools to help developers sell AI models more easily to companies that use technology from Nvidia, whose customers include most of the world’s biggest technology firms.

Nvidia’s chip and software announcements at GTC 2024 will help determine whether the company can maintain its 80% share of the market for AI chips.

“I hope you realize this is not a concert,” Huang said, wearing his signature leather jacket and joking that the day’s keynote would be full of dense math and science.

It was a nod to how Nvidia, once mostly known among computer gaming enthusiasts, has earned recognition on par with tech giants like Microsoft (NASDAQ:MSFT) and has become a Wall Street standout, with sales that more than doubled in its most recent fiscal year to surpass $60 billion.

Nvidia’s new flagship chip, called the B200, takes two squares of silicon the size of the company’s previous offering and binds them together into a single component.

While the B200 “Blackwell” chip is 30 times speedier at tasks like serving up answers from chatbots, Huang did not give specific details about how well it performs when chewing through huge amounts data to train those chatbots – which is the kind of work that has powered most of Nvidia’s soaring sales. He also gave no price details.

All together, Huang’s announcements failed to provide new fuel for a rally in which Nvidia’s shares have surged 240% over the past 12 months, making it the U.S. stock market’s third-most valuable company, behind only Microsoft and Apple (NASDAQ:AAPL). Nvidia stock dipped 1.4% in extended trade, while Super Micro Computer (NASDAQ:SMCI), which makes AI-optimized servers with Nvidia’s chips, fell 4%. Advanced Micro Devices (NASDAQ:AMD) stock dipped nearly 3% during the keynote.

Tom Plumb, CEO and portfolio manager at Plumb Funds, whose largest holdings include Nvidia, said the Blackwell chip was not a surprise.

“But it reinforces that this company is still at the cutting edge and the leader in all graphics processing. That doesn’t mean the market is not going to be big enough for AMD and others to come in. But it shows that their lead is pretty insurmountable,” said Plumb.

Nvidia said major customers including Amazon.com (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL)’s Google, Microsoft, OpenAI and Oracle (NYSE:ORCL), are expected to use the new chip in cloud-computing services they sell, and also for their own AI offerings.

Nvidia also is shifting from selling single chips to selling total systems. Its latest iteration houses 72 of its AI chips and 36 central processors. It contains 600,000 parts in total and weighs 3,000 pounds (1,361 kg).

Many analysts expect Nvidia’s market share to drop several percentage points in 2024 as new products from competitors come to market and Nvidia’s largest customers make their own chips.

“Rivals like AMD, Intel (NASDAQ:INTC), startups, and even Big Tech’s own chip aspirations threaten to chip away at Nvidia’s market share, particularly among cost-conscious enterprise customers,” said Insider Intelligence analyst Jason Bourne.

Though Nvidia is widely known for its hardware offerings, the company has built a significant battery of software products as well.

The new software tools, called microservices, improve system efficiency across a wide variety of uses, making it easier for a business to incorporate an AI model into its work, just as a good computer operating system can help apps work well.

In addition to AI software, Nvidia dived deeper into software for emulating the physical world with 3-D models. For work on designing cars, jets and products, Huang also announced partnerships with design software companies Ansys (NASDAQ:ANSS), Cadence and Synopsys (NASDAQ:SNPS). Shares of the three companies jumped around 3% in extended trade following Huang’s comments.

Huang also said that Nvidia’s software would be able to stream 3-D worlds to Apple’s new Vision Pro headset.

Nvidia also introduced a new line of chips designed for cars with new capabilities to run chatbots inside the vehicle. The company deepened its already-extensive relationships with Chinese automakers, saying that electric vehicle makers BYD (SZ:002594) and Xpeng (NYSE:XPEV) will both use its new chips.

Toward the end of his keynote speech, Huang also outlined a new series of chips for creating humanoid robots, inviting several of the robots made using the chips to join him on the stage. – Reuters

Encouraging Malaysians To Read Reflectively

By
Business Today Editorial
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By: Pravin Periasamy 

There have been concerted efforts in the country to promote a love for reading among Malaysians, primarily in youth circles – many of which have proven to have had a successful impact on improving literacy. According to UNESCO’s Institute of Statistics, Malaysia’s literacy rate stands presently at 94.64%. Despite the strong literacy presence in the country, the long standing criticism of Malaysia’s lack of a reading culture has evoked great concern from local academics. Where this was found most evident was the striking discrepancy between the reading literacy results in the Programme for International Student Assessment (Pisa) 2022 which saw a reduction from 415 to 388 points. The decline of reading proficiency has also seen its stark decrease in upper primary school levels, with a World Bank report stating that a 13% did not meet a sufficient threshold.

The waning and declining levels of reading literacy could inadvertently discourage efforts to strengthen the quality of critical thinking initiatives introduced in schools nationwide. If the current trend continues to escalate, it could dismantle the reading infrastructure present in the country – weakening our overall capacity to serve the interests of the future generation. In 2014 alone, the National Library of Malaysia reported that Malaysians read 15 books a year – amounting to just over a book a month. The Malaysian government, in recognizing the quandary, introduced the 2022/2023 Malaysians’ Reading Profile Study which was designed to gauge the state of the reading culture in Malaysia and will study a total of 100,000 respondents aged 5 and above from a variety of diverse backgrounds. Such initiatives will be crucial in exploring the fundamental root causes of the decline in reading rates. 

The ever-growing need to increase reading rates in Malaysia has never been more apparent. In an age of widespread technological adoption, the threats that is posed by rampant disinformation campaigns has the potential to puncture a hole in the country’s democracy as it contributes towards an uninformed populace. This is also holds importance, in particular, for school-leaves aged 18 given their eligibility to vote in the country’s elections. This need to be politically informed rests upon early exposure to crucial readings that help build well-thought out beliefs, opinions and ideas.

One such suggestion that the government ought to explore is the support for extra-curricular initiatives that provide such an exposure outside the confines of the school curriculum. This allows for a more liberal approach towards reading education as it actively promotes an authentic love for reading outside the learning environment. The initiative of the Malaysian Philosophy Society, titled “Reflective Reads” brings Malaysians of all ages together to discuss books of rich philosophical ideas. These discussions not only allow for the exposure to reading but simultaneously encourage reflective and philosophical discussions on the contents of the ideas that undergird the book; helping exercise the critical thinking muscle. Faris Rizal, content curator of the Malaysian Philosophy Society, who is also project lead of Reflective Reads envisions the development of communities in Malaysia who have a love for philosophical introspection through the reading of important and powerful literary works and believes that the society’s book club has the potential to inspire a love of reading in all Malaysians regardless of race, religion and economic background. Together with Dr Giap and Ms Zhun, Co-Founders of the Malaysian Philosophy Society and Ms Soo Wee May the team has curated a total of three sessions – involving the following books: The Burn Out Society Byung-Chul Han, Hiking with Nietzsche by John Kaag and When Breath Becomes Air by Paul Kalinithi and saw an impressive turnout at the respective sessions which involved table readings and philosophical discussions on various chapters of the book in order to better understand the ideas within the books that are personally applicable in one’s life. Inspiring Malaysians to read reflectively is one such a way a local reading culture can be born.

It is my hope that such initiatives are better supported in order to reach the country’s goal of building an authentic culture of reading for Malaysians everywhere. 

Pravin Periasamy is a Networking and Partnerships Director at Malaysian Philosophy Society 

Energy Transition Ministry, Sarawak Govt To Form Joint Committee: DPM Fadillah

By
K. Harinderan
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Deputy Prime Minister Datuk Seri Fadillah Yusof. Photo from Facebook.

The Ministry of Energy Transition and Water Transformation (Petra) and Sarawak government will form a coordination committee to ensure the former’s programmes and projects planned in the state can be effectively implemented for the benefit of Sarawakians, said its minister Datuk Seri Fadillah Yusof.

Fadillah, who is also Deputy Prime Minister, said this matter was agreed upon following a courtesy call by the ministry on Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg at Wisma Bapa Malaysia here yesterday.

“A total of 46 projects were approved under the water sector in Sarawak through Petra, namely 33 continuation projects and 13 new projects costing a total of RM6.01 billion. The amount approved for implementation in 2024 is up to RM298 million.

“These approved projects include flood and coastal flooding protection, coastal erosion, estuary conservation, study for Integrated River Basin Management, sewage treatment plant development, treatment plant sludge, sewerage system development and upgrading of water treatment plants,” he said in a statement.

Fadillah said the federal government is always concerned and vigilant in ensuring sustainability in the implement of government projects to guarantee maximum impact on the people of Sarawak.

“Comprehensive and continuous monitoring is the main key to balanced national development, as desired by the prime minister through the Malaysia Madani concept,” he said.

Fadillah, who is also in charge of Sabah and Sarawak Affairs, had earlier chaired the coordination meeting at the Sarawak Drainage and Irrigation Department, revealed the statement.

He was also given a briefing regarding the design of Kuching city’s flood mitigation plan, so the benefits of the project can reach the targeted community effectively and accurately once implemented.

He also visited the Kuching Federal Complex to listen to a briefing on Sarawak projects implemented by federal agencies and departments.

Also present during the courtesy call were Deputy Premier Datuk Amar Dr Sim Kui Hian; state Minister of Utilities and Telecommunications Datuk Seri Julaihi Narawi; Sarawak State Secretary Datuk Amar Mohamad Abu Bakar Marzuki; Deputy Minister in the Premier’s Department (Law, MA64 and State-Federal Relations) Datuk Sharifah Hasidah Sayeed Aman Ghazali; Petra secretary-general Datuk Mad Zaidi Mohd Karli; and ministry officials.

Tech Tonic As World Awaits BOJ Fireworks

By
K. Harinderan
-
RTTNews

The waiting is almost over.

The Bank of Japan delivers its potentially historic policy decision on Tuesday against a backdrop of positive investor sentiment after a wave of bullish tech sentiment offset higher U.S. bond yields, and lifted stocks around the world on Monday.

Tech and megacaps drove Wall Street higher, led by Alphabet’s 4.6% rise – its biggest in four months – on a media report that Apple is in talks to build Google’s Gemini AI engine into the iPhone, while Nvidia rose too ahead of its annual developer conference.

With Japan’s Nikkei already kicking off the week with a 2.7% gain of its own and China delivering a broadly positive batch of economic data on Monday, markets around the world are on a solid footing ahead of the BOJ bonanza.

Apart from the decision and Governor Kazuo Ueda’s press conference on Tuesday, the Asia and Pacific calendar also includes the Reserve Bank of Australia’s latest policy decision, so the Aussie dollar could be one of the most heavily traded currencies along with the yen.

Indeed, the Aussie/yen cross, often a good measure of investors’ thirst for carry trades and global risk appetite in general, could be the currency pair to watch on Tuesday.

Not only is the BOJ expected to raise rates for the first time in 17 years, ending eight years of negative interest rate policy, it may also call time on its yield curve control and purchase of risk assets, Nikkei newspaper reported on Monday.

If the BOJ does make a triple-pronged moves on rates, YCC and purchases of risky assets, Japanese markets could be in for a wild rise on Tuesday.

As far as the yen is concerned, much will depend on the spread between Japanese and U.S. yields. Hedge funds and speculators have trimmed their short yen position, but it remains substantial by historical standards.

There’s a lot of scope for short-covering, but there may be little appetite for that against a backdrop of dollar-supportive spreads. Especially with the Federal Reserve announcing its latest policy decision and economic projections on Wednesday.

Australia’s central bank, meanwhile, is widely expected to hold its cash rate at 4.35% for a third straight meeting on Tuesday and at least until end-September, according to a Reuters poll of economists who see at least two rate cuts in the final quarter of 2024.

While financial markets have priced in rate cuts for some major central banks such as the Fed and European Central Bank starting around June, the RBA is a notable outlier with no such mid-year pricing.

Key developments that could provide more direction to markets on Tuesday are Japan monetary policy decision,  Australia monetary policy decision and  Japan industrial production (February, final) – Reuters

Hang Seng Index Futures: Consolidating Sideways Above The 20-Day SMA Line

By
ainul fatihah
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The HSIF staged a rebound during Monday’s session to close at 16,756 pts – attempting to stay above the 20-day SMA line (16,616 pts).

RHB Retail Research in a note today (Mar 19) said yesterday, the index began trading at 16,725 pts.

After oscillating between 16,825 pts and 16,648 pts, it closed at 16,756 pts.

However, the index fell 76 pts in the evening session and last traded at 16,680 pts.

The latest price action saw both the bulls and bears sharing equal strength.

Since the index managed to close above the 20-day SMA line, the bulls still have the upper hand.

Furthermore, the 16,600-pt level is providing an immediate support.

As mentioned in the previous note, the index will consolidate sideways above the immediate support.

Post consolidation, expect the HSIF to resume its upside movement towards the recent high at 17,251 pts.

As long as the index stays above the 16,600-pt support, they will retain the bullish trading bias.

Traders should keep the long positions initiated at the close of 11 Mar, ie 16,616 pts.

To manage the trading risks, the stop-loss threshold is placed at 16,600 pts.

The immediate support is marked at 16,600 pts, followed by 16,000 pts.

Meanwhile, the immediate resistance remains unchanged at 17,251 pts – 14 Mar’s high – and followed by 18,000 pts.

Bursa Malaysia Tipped To Extend Winning Streak

By
ainul fatihah
-

The Malaysia stock market has moved higher in three straight sessions, collecting more than 15 points or 1 percent along the way.

The Kuala Lumpur Composite Index now sits just above the 1,550-point plateau and its expected to open to the upside again on Tuesday.

At 9.16am, the FBMKLCI dipped -2.20 points to open at 1,551.59.

RHB Retail Research in a note today (Mar 19) the FKLI’s recent bullish momentum paused on Monday to settle 2.50 pts lower at 1,552 pts.

The index opened lower at 1,552 pts and oscillated in a tight range of between 1,545.50 pts and 1,558 pts, then closing at the opening level.

Despite yesterday’s neutral momentum, the technical setup remains bullish, and the momentum will likely resume in the coming sessions – lifting the index towards the 1,563-pt immediate resistance.

If a breakout occurs, the FKLI will continue to trend higher, towards the resistance at 1,600 pts.

The RSI indicator remains steady at 60% (positive territory), positive price action may follow through in coming sessions.

Meanwhile, the index is firmly supported by the ascending 50-day and 200-day SMA lines.

As the uptrend is still intact, we maintain our bullish trading bias.

Traders should maintain the long positions initiated at 1,455 pts (the close of 3 Nov 2023).

To minimise the downside risks, the stop-loss threshold is fixed at 1,500 pts.

The immediate support remains unchanged at 1,533 pts – 20 Mar’s low – followed by 1,520 pts.

Conversely, the immediate resistance is eyed at 1,563 pts –28 Feb’s high – followed by the higher resistance level of 1,600 pts.

Malacca Securities (MSSB) the FBMKLCI (+0.05%) ended flat, despite with the positive performance in the regional stock markets, boosted by selected Utilities and Banking heavyweights.

On the broader market, the Utilities sector (+2.21%) was the leading sector, while the Telco & Media sector (-1.08%) declined.

The Day Ahead
The FBMKLCI traded flat for the session as Telco heavyweights were beaten down.

Meanwhile, overall US stock markets headed higher as investors digested news from Nvidia’s AI conference and traded more positively ahead of the FOMC meeting that will be concluding this week.

However, based on Bloomberg, the market is positioning for a delayed rate cut, probably by 2H2024.

Given the more positive sentiment in the US, they believe buying support could spillover towards stocks on the local front.

On the commodity markets, Brent oil rose strongly, near a 5-month high amid heightened geopolitical tensions after Ukraine attacks on Russian refineries, while China reported better-than-expected economic data.

Sectors focus: Still, the house likes the commodities sector like the O&G sector as Brent oil is trading firmly above the USD85/bbl level.

Also, they noticed significant momentum building up within the construction sector, with the resurfacing of KL-SG HSR over the weekend.

They expect smaller contractors that have positive QoQ growth in their recent earnings may be a more decent pick.

Besides, they like selected Technology and Packaging stocks such as FPI and PPHB at least for the near term.

Bloomberg FBMKLCI Technical Outlook
The FBMKLCI index ended flat after a 2-day rebound.

However, the technical readings on the key index were mixed, with the MACD Histogram hovering flattish along 0, while the RSI is above 50.

The resistance is envisaged around 1,565-1,570 and the support is set at 1,535-1,540.

CGS International said Asian stock markets finished higher on Monday ahead of the monetary policy meetings in Japan and the US.

The local benchmark FBMKLCI (KLCI) inched up 0.81pts or 0.05% to end the day at 1,553.64.

Most sectors rallied with the largest gains coming from utilities (+2.21%), energy (+1.35%) and property (+1.19%).

Top laggards included telecommunications (-1.08%), REIT (-0.34%) and healthcare (-0.19%).

Trading volume reduced to 4.24bn (down from 4.53bn on Friday) while trading value decreased to RM2.79bn (down from RM4.82bn previously).

Market breadth stayed positive six days in a row with 546 gainers beating 480 decliners.

The benchmark formed its third white candle yesterday, shaping a pennant consolidation in the process.

A breakout above the said pattern translates to a bullish continuation which may send the bulls up to retest the 20-month high at 1,559 and beyond.

The longer-term resistance is placed at 1,570-1,583.

Otherwise, the index may continue to trade in a sideways manner.

The 1,525- 1,531 level acts as the minor support, followed by the 1,508-1,521 band.

Their portfolio stays in risk-on mode this week.

Stock Picks Of The Day – Edelteq Holdings, VS Industry

By
ainul fatihah
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Edelteq Holdings is set for an uptrend rebound as it pushed past the MYR0.365 level yesterday on strong trading volume.

RHB Retail Research in a note today (Mar 19) this, coupled with the price being above the ascending 21-day SMA line, may indicate a persistent bullish momentum as the stocks heads towards the MYR0.40 resistance, followed by MYR0.43.

On the flip side, falling below the MYR0.34 would nullify the bullish bias.

VS Industry is set for an uptrend reversal after undergoing a technical rebound above the immediate resistance level of MYR0.78 yesterday, on a surge in trading volume.

The bullish momentum above that level may see the stock trending upwards further towards the YTD high of MYR0.83, followed by the next resistance mark of MYR0.90.

On the other hand, breaching below the MYR0.74 support would increase the risk of a correction.

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