TA Sector Research

Daily Market Commentary - 08 August 2023

Publish date: Tue, 08 Aug 2023, 04:52 PM

Review & Outlook

Bursa Malaysia shares traded range bound with investors sidelined pending release of key economic data from China and the US in the later part of the week. The FBM KLCI ended up 0.6 points at 1,445.81, after ranging between early low of 1,442.13 and high of 1,449.38, as losers beat gainers 482 to 330 on total turnover of 3.13bn shares worth RM1.34bn.

The local market should continue to trade sideways as investors await data to assess the health of key global economies, and consolidate their position ahead of this weekend's keenly watched state elections. Immediate index support cushioning downside will be last week's low of 1,433, with stronger supports seen at 1,420 and 1,400, while immediate overhead resistance will be last week's high of 1,464, with 1,470, and the 1,490/ 1,500 level acting as tougher upside hurdles.

Genting Berhad is in base building phase, pending decisive breakout above the 200-day ma (RM4.44) to fuel upside momentum towards the 76.4%FR (RM4.62) and the 19/3/21 high (RM5.20) ahead, with key retracement support from the 50%FR (RM3.97) cushioning downside. GENM will need breakout confirmation above the 61.8%FR (RM2.67) to enhance upside pontential towards the 76.4%FR (RM2.81) and RM2.90 going forward, with the 38.2%FR (RM2.44) cushions downside.

News Bites

  • Bank Negara's international reserves rose to US$112.9bn as at July 31 compared with US$111.8bn as at July 14.3. It is sufficient to finance 5.1 months of imports of goods and services, and is 1.1 times the total short-term external debt.
  • The Communications and Digital Minister Fahmi Fadzil unveiled several initiatives for postpaid users including the 5G RAHMAH package and the RAHMAH Civil Servants Postpaid Incentive which he said are cheaper than existing packages on the market.
  • IHH Healthcare Bhd said that Agilus Diagnostic Ltd, a subsidiary of its 31.2%-owned Fortis Healthcare Ltd, will be undertaking an initial public offering.
  • Sunway Property, a property division of Sunway Bhd, announced that it had received RM1bn in bookings from its Signature Series 2023 campaign on 7 August 2023.
  • Berjaya Corp Bhd founder and adviser Tan Sri Vincent Tan and BCorp's unit Berjaya Land Bhd are demanding a public apology and RM200mn in compensation from the caretaker Kedah Menteri Besar over his remarks relating to the Selangor Maritime Gateway project.
  • Yinson Holdings Bhd's offshore production business unit Yinson Production has secured a USD230mn term loan facility in relation to FPSO Maria Quitéria.
  • Time dotCom Bhd's subsidiary, AVM Cloud Sdn Bhd, has identified sovereign cloud solutions as a new pillar of growth for businesses in Malaysia.
  • UMW Toyota Motor Sdn Bhd, the automobile arm of the UMW Holdings Bhd, reported that its monthly sales grew by 25.8% YoY to 8,349 units in July 2023.
  • Optimax Holdings Bhd has obtained a licence from the Ministry of Health to offer plastic surgery and aesthetic services at its Optimax Ipoh Specialist Centre.
  • PLB Engineering Bhd is disposing of 2 pieces of lands measuring 2.4 acres in Penang for RM26.2mn, which will result in a one-off disposal gain of RM10.8mn.
  • TCS Group Holdings Bhd has secured a RM10.7mn contract to build a sales gallery along the Federal Highway in Subang Jaya for a property developer.
  • Ni Hsin Group Bhd is planning an initial exchange offering (IEO) via IEO operator Pitch Platforms Sdn Bhd, to raise funds for its new electric vehicle business
  • Trading in the securities of Jerasia Capital Bhd continues to be suspended from 9am on 8 August 2023 until further notice.
  • Opcom Holdings Bhd said Baker Tilly Monteiro Heng PLT has resigned as its external auditor due to a disagreement over audit fees.
  • The US Congress left for an extended August recess without resolving simmering conflicts over spending and hot-button social issues, raising the risk of a government shutdown when federal funding runs out after Sept. 30.

Source: TA Research - 8 Aug 2023

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