TA Sector Research

Daily Market Commentary - 15 September 2023

Publish date: Fri, 15 Sep 2023, 09:31 AM

Review & Outlook

Blue chips were softer and stuck in range bound trade on Thursday, as concerns over sticky inflation globally and uncertain outlook on interest rates kept investors sidelined. The FBM KLCI slid 3.96 points to close at 1,449.58, off an early low of 1,445.31 and high of 1,455.09, as gainers led losers 530 to 342 on improved turnover totaling 2.96bn shares worth RM2.2bn.

While blue chips should stay range bound amid lacking leads ahead of the weekend, positive anticipation for project announcements should lift property and construction stocks. Immediate index support stays at 1,440, followed by 1,433, with subsequently 1420/1,400 acting as stronger supports. Immediate overhead resistance remains at 1,465, then 1,470, with the 1,490/1,500 levels as higher resistance.

MRCB will need to overcome the 123.6%FP (48sen) to fuel upside momentum towards the 138.2%FP (51sen), 150%FP (53sen) and 161.8%FP (55sen) ahead, while the 30-day ma (42sen) and 76.4%FR (40sen) limit downside risk. UEM Sunrise need sustained strength above the 150%FP (69sen) to enhance upside potential and target the 161.8%FP (73sen), 176.4%FP (79sen) and 200%FP (87sen) going forward, while the rising 30-day ma (63sen) and lower Bollinger band (60sen) cushion downside.

News Bites

  • Malaysia's total property transaction rose 1.1% YoY to RM85.37bn in 1H23 with more than 184,000 transactions recorded, according to a report from the National Property Information Centre.
  • Tenaga Nasional Bhd's indirect 70%-owned subsidiary Southern Power Generation Sdn Bhd has been allowed to proceed with its challenge of additional tax assessments from the Inland Revenue Board amounting to RM78.5mn via a judicial review.
  • MyEG Services Bhd said its concession providing foreign worker permit renewal services had not been suspended since February of this year, as it continued to face calls to reimburse employers that had paid upfront for its services.
  • OSK Property, the property arm of OSK Holdings Bhd, has partnered with RHB Banking Group to offer homebuyers a home loan application and tracking mobile app.
  • AmBank (M) Bhd and Bank Simpanan Nasional have signed a Memorandum of Understanding to establish an entrepreneurship development workshop via the 'Amplifying MSMEs Programme' to nurture micro-SMEs to a new level.
  • AWC Bhd has proposed to acquire the remaining 49% stake in Stream Group Sdn Bhd from Premium NXL Sdn Bhd for RM110.0mn.
  • The Ministry of Education Malaysia has awarded Theta Edge Bhd and Heitech Padu Bhd contracts amounting to RM88.3mn for the rental of eco-friendly laptops.
  • MN Holdings Bhd has secured a RM40.1mn turnkey project from Lagenda Properties Bhd to build the main distribution substation network for a residential development in Taman Lagenda in Teluk Intan, Perak.
  • Propel Global Bhd is disposing its entire 55% equity interest in Propel Chemicals Sdn Bhd to Hextar Kimia Sdn Bhd for RM16.5mn cash.
  • Sunsuria Bhd has partnered with Australian integrated cancer care provider Icon Group to set up and operate oncology centres in the country.
  • XOX Bhd said it has entered into a fresh Memorandum of Understanding with the Ipoh City Council for a proposed technology collaboration.
  • Signature International Bhd has disposed a 1.42% stake in property developer Tanco Holdings Bhd for a total of RM15.5mn or an average price of 55.0sen per share between 1 August 2023 and 12 September 2023.
  • Bursa Malaysia has dismissed financially distressed Pharmaniaga Bhd's appeal to undertake a second standalone private placement proposal.
  • Axbena Sdn Bhd has decided to drop the RM27.7mn lawsuit against Johnson Medical International Sdn Bhd, an indirect subsidiary of Bintai Kinden Corporation Bhd, after the parties involved reached an amicable settlement resulting in the resolution of the dispute.
  • UUE Holdings Bhd, which provides underground utilities engineering solutions, is planning an initial public offering on the ACE Market of Bursa Malaysia to raise funds to buy machinery and equipment, and for working capital.
  • The People's Bank of China lowered the reserve requirement ratio for most banks by 25 basis points and the weighted average RRR for banks will be 7.4% after the reduction.
  • The European Central Bank raised its key interest rate to a record high of 4% on Thursday but signalled this was likely to be its final move in a more-than year-long fight against inflation.

Source: TA Research - 15 Sept 2023

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