TA Sector Research

Daily Market Commentary - 27 September 2023

Publish date: Wed, 27 Sep 2023, 02:08 PM

Review & Outlook

Sideways trading persisted on the local market Tuesday as investors fret over pending inflation data for clues over how long interest rates need to be kept high to fight inflation. The FBM KLCI rose 2.1 points to close at 1,445.55, off an early low of 1,441.89 and high of 1,447.05, as losers beat gainers 564 to 367 on turnover of 3.15bn shares worth RM1.95bn.

Stocks should extend range bound trade pending more definite cues over the global inflation and interest rate outlook, and as worries over capital gains taxes in the coming Budget kept investors sidelined. Immediate index support cushioning downside remains at 1,440, followed by 1,433, with subsequently 1420/1,400 acting as stronger supports. Immediate overhead resistance stays at 1,465, then 1,470, with the 1,490/1,500 area as next resistance.

Velesto will need breakout confirmation above the 27/2/23 high (28.5sen) to fuel further upside towards the 123.6%FP (33sen) and 138.2%FP (36sen) ahead, with uptrend support from the 100-day ma (23sen) and 200-day ma (22sen) cushioning downside. Wasco need to decisively overcome the 138.2%FP (RM1.09) to aim for the 150%FP (RM1.14) and 161.8%FP (RM1.20) going forward, while the rising 50-day ma (98sen) and 100-day ma (92sen) provide good uptrend supports.

News Bites

  • Malaysia's producer price index improved for the second consecutive month with a slower contraction of 1.8% YoY in August, against a 2.3% YoY contraction in July,
  • Tenaga Nasional Bhd has estimated a recovery of about RM7.0bn from imbalance cost pass-through in 1HFY24, based on current fuel price trends.
  • Axiata Group Bhd and Cybersecurity Malaysia will sign a memorandum of understanding in near future to strengthen the country's cyber security, according to Communications and Digital Minister Fahmi Fadzil.
  • FGV Holdings Bhd has appointed former Foreign Affairs Ministry secretary general Tan Sri Rastam Mohd Isa as its new chairman effective yesterday.
  • Ecoscience International Bhd has received a letter of award involving construction works worth RM38.0mn from the Maitreya Moral Society Malaysia.
  • Powerwell Holdings Bhd has secured two purchase orders totaling RM9.3mn from Datapuri Sdn Bhd.
  • Tomei Consolidated Bhd's subsidiaries have received conditional approvals from the Local Government Development Ministry for pawnbroker licence to operate as pawnbroker under the Pawnbrokers Act 1972.
  • Khazanah Nasional Bhd has disposed a 1.9% stake for RM10.8mn in TT Vision Holdings Bhd and pared down its stake to 16.9% or 79.3mn shares.
  • Sedania Innovator Bhd's major shareholder Sedania Corp Sdn Bhd has filed an application at the High Court to set aside and postpone the court's order to compensate RM14.5mn to two individuals claiming to own a 49.0% stake in SIB's consumer healthcare products business.
  • Metrod Holdings Bhd announced that a fire incident occurred at one of the company's rod casting lines at about 4.35pm, on September 22, 2023 and all assets are adequately covered by insurance.
  • Berjaya Corporation Bhd has disposed of a 2.2% stake in Berjaya Land Bhd, ahead of its end-September deadline to comply with a public shareholding spread requirement.
  • Samaiden Group Bhd has partnered with Meta Bright Group Bhd to expand business opportunities and accelerate the growth of renewable energy solutions, particularly for the mining sector in Asia Pacific.
  • Cypark Resources Bhd has issued the third tranche of its Perpetual Sukuk Musharakah of RM165.0mn in nominal value on an unsecured basis from the issuance size of up to RM265.0mn.
  • MyNews Holdings Bhd posted a wider net loss of RM2.2mn in 3QFY23, from a net loss of RM1.5mn a year ago, due to higher selling and distribution costs.
  • Japan retained its view of a modest recovery in the world's thirdbiggest economy, but upgraded its assessment of corporate earnings for the first time since March 2022 even as it warned of risks to growth from a global slowdown and volatile markets.
  • The US government is hurtling toward an Oct. 1 shutdown as Senate leaders and House moderates work to try to at least shorten a disruptive federal funding lapse.
  • The US Conference Board said its consumer confidence index tumbled to 103.0 in September from an upwardly revised 108.7 in August.

Source: TA Research - 27 Sept 2023

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