Trading ideas: Leong Hup, Favelle Favco, DNeX, Sapura Resources

KUALA LUMPUR: JF Apex Research expects Leong Hup International  Bhd, Favelle Favco Bhd, Dagang Nexchange Bhd (DNeX) and Sapura Resources Bhd to see trading interest on Thursday. 

Leong Hup is making its listing debut today. Leong Hup is the biggest initial public offering (IPO) on the Main Market of Bursa Malaysia this year. Its IPO, valued at RM1.2bil, will be the largest IPO since Lotte Chemical Titan Holding Bhd.

Favelle Favco has secured a total of six contracts for the supply of tower cranes, worth a cumulative RM78.3mil.

DNeX has been awarded a contract worth RM7.49mil to supply four new units of marine loading arm (MLA) integrated with relevant systems for Johor Port Bhd’s facilities.

Sapura Resources is forming a joint-venture agreement with Rolls-Royce Power Systems AG's (RRPS) unit, MTU Asia Pte Ltd, to sell and service original equipment for the marine, rail, construction, mining, agriculture, oil and gas, and power generation sectors in Malaysia

JF Apex noted that Kuala Lumpur Kepong Bhd (KLK), Pentamaster Corp Bhd, Gas Malaysia Bhd, Foundpac, Cahya Mata Sarawak posted better year-on-year (y-o-y) results while HSS Engineers, Malaysia Building Society Bhd (MBSB) recorded lower y-o-y quarterly net earnings.

Meanwhile, US markets rose overnight led by car manufacturers after President Trump delays the implementation of automotive tariffs. 

Similarly, European stocks advanced after the US puts on hold tariffs on European car imports.

“Following the bullish performance in the US and Europe, the FBM KLCI could extend its rebound towards the resistance of 1,625 points,” JF Apex said.