TA Sector Research

Daily Market Commentary - 11 September 2023

Publish date: Mon, 11 Sep 2023, 10:59 AM

Review & Outlook

Hook downs seen on technical momentum indicators for the FBM KLCI following last week's choppy trading sessions suggest that the current profit-taking consolidation is likely to persist, while the market await positive domestic catalysts to provide upside trigger for further gains ahead. Strong trading momentum and sustained buying interest in the property and construction sectors will be key for spillover to other sectors and encourage rotational trading plays going forward. Meanwhile, given recent strong U.S. economic data which raised concerns interest rates could remain high for an extended period, even if the Federal Reserve kept rates unchanged in this month's policy meeting, and the U.S. Consumer Price Index reading for August this week amid rising oil prices, cautious sentiment should prevail to cap upside potential.

Immediate index support cushioning downside is retained at 1,440, followed by 1,433, with subsequently 1420/1,400 acting as stronger supports. Immediate overhead resistance will be at 1,465, then 1,470, with the 1,490/1,500 resistance area as higher resistance, and stronger upside hurdles seen at 1,514, the 200-week moving average, and 1,552, which is the 50%FR of the 1,896 high (April 2018) to the 1,207 low (March 2020).

As for stock picks, key telcos, oil & gas and semiconductor players like Maxis, TM, Bumi Armada, Dialog Group, Inari Amertron and Unisem are most likely to attract bargain hunters on weakness for rebound upside and longer term upside potential ahead.

News Bites

  • The six-day special sitting of the Dewan Rakyat, slated to begin today, will focus on the tabling of the 12th Malaysia Plan Mid-Term Review by Prime Minister Datuk Seri Anwar Ibrahim.
  • INTA Bina Group Bhd has secured a RM43.6mn building works from Eco Majestic Development Sdn Bhd in Hulu Langat, Selangor.
  • Eastern & Oriental Bhd saw its executive chairman and executive director increase their stake in the group with the conversion of irredeemable convertible unsecured loan stocks to ordinary shares.
  • CelcomDigi Bhd inked a memorandum of understanding with South Korean technology company VIRNECT for the development and commercialisation of industrial extended reality solutions in Malaysia.
  • ECM Libra Group Bhd is to acquire two pieces of beachfront land in Johor for an aggregate RM36.9mn for future hospitality developments.
  • KNM Group Bhd is selling its loss-making unit FBM Hudson Italiana SpA for EUR22.0mn cash to United Arab Emirates-based Petro MAT FZCO.
  • Pan Malaysia Corporation Bhd has proposed to acquire the remaining 49% equity interest in fast-food chain operator A&W (Malaysia) Sdn Bhd from Inter Mark Resources Sdn Bhd, comprising 30.4mn ordinary shares, for RM69.5mn.
  • Iqzan Holding Bhd said it plans to submit an appeal to Bursa Securities on the bourse regulator's decision to delist the company on Sept 19.
  • Khazanah Nasional Bhd has disposed of a 4.6% stake in ACE Marketlisted TT Vision Holdings Bhd for RM25.9mn.
  • GDB Holdings Bhd's legal actions against Damai City Sdn Bhd over the Conlay 8 project disputes are to be put on hold for three months after the High Court granted the latter a three-month restraining order against its creditors.
  • Mercury Securities Group Bhd, which is en route to a listing on the ACE Market of Bursa Malaysia on Sept 19, saw its initial public offering for the public potion oversubscribed by 66.6 times.
  • AirAsia X Bhd has promoted its non-independent non-executive director, Datuk Fam Lee Lee, as deputy chairman effective Sept 9.
  • Serba Dinamik Holdings Bhd narrowed its net loss to RM105.0mn in the 4QFY23 from RM327.8mn in the previous year's corresponding quarter, on higher operating income and lower administrative expenses.
  • China's consumer price index rose 0.1% YoY in August while core inflation was unchanged at 0.8% YoY

Source: TA Research - 11 Sept 2023

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