TA Sector Research

Daily Market Commentary - 12 Oct 2023

Publish date: Thu, 12 Oct 2023, 09:33 AM

Review & Outlook

Bursa Malaysia shares ended softer on range bound trade Wednesday, as investors traded cautiously ahead to the start of the U.S. Federal Reserve's two-day monetary policy meeting, which will ultimately decide the interest rate direction. Still, the KLCI ended 1.32 points up at 1,436.49, off a high of 1,438.45 and low of 1,432.27, as gainers beat losers 464 to 399 on steady turnover of 3bn shares worth RM2.18bn.

The local market should extend sideways trade amid caution ahead of the US central bank's policy meeting and the inflation data this week, which could decide the direction of a range of interest rates. On the index, immediate overhead resistance remains at 1,450, with 1,465/1,470, and the 1,490/1,500 area acting as tougher upside hurdles. Immediate support stays at 1,400, with 1,390 and the end June low of 1,370 acting as crucial supports.

Further weakness on Genting Berhad would be attractive to bargain for rebound upside, with a confirmed breakout above the 200-day ma (RM4.38) to aim for the 76.4%FR (RM4.56) and RM4.70 ahead, while the 50%FR (RM3.91) cushions downside. Genting Malaysia will need convincing breakout above the 61.8%FR (RM2.60) to enhance upward momentum and target the 76.4%FR (RM2.74) and RM2.90 going forward, while the 38.2%FR (RM2.38) cushion downside.

News Bites

  • The personal loan programme, which utilises Employees Provident Fund contributors' Account 2 as collateral, saw 64,619 approved applications involving some RM1.29bn as of Oct 2.
  • Westports Holdings Bhd and OCBC Bank (Malaysia) Bhd have signed a memorandum of collaboration to become the latest adopters of Bursa Malaysia's centralised sustainability intelligence platform.
  • Bumi Armada Bhd has secured a syndicated term loan facility of US$105.5mn with a final maturity of 25 September 2028, to refinance the remaining balance of the existing facility maturing in May 2024.
  • DRB-Hicom Bhd has inked a master collaboration agreement with Chinese automaker Zhejiang Geely Holding Group Co Ltd for the development of the Automotive High-Technology Valley project in Tanjung Malim, Perak.
  • Tropicana Corporation Bhd is seeking to strike out a claim filed by RHB Trustees Bhd, Sunway REIT Management Sdn Bhd and Sunway Education Group Sdn Bhd over its breach of agreement and alleged double-dealing pertaining to the sale of shares and a stake in the St Joseph International School.
  • Nextgreen Global Bhd is partnering with private company P Teguh Services Sdn Bhd to venture into the trading, supply and export of biodiesel, edible cooking oil and related products, such as equipment and facilities.
  • Hektar Real Estate Investment Trust has proposed to undertake a private placement of up to 20.0% of the total number of issued units of the company to third-party investors to be identified later.
  • APB Resources Bhd has proposed to acquire a 16-storey Serba Dinamik building in Shah Alam, Selangor for RM38.0mn.
  • Ramssol Group Bhd has entered into a collaboration with GoSaas inc to provide Oracle Fusion Cloud Solutions in the areas of human capital management and enterprise resource planning to clients in Malaysia and Southeast Asia.
  • Straits Energy Resources Bhd has accepted a letter of award worth RM27.7mn from Tianu Sdn Bhd for the installation, testing and commissioning aluminum XLPE underground cables and accessories for asset development for Tenaga Nasional Bhd.
  • TSR Capital Bhd has accepted a letter of award valued at RM104.0mn from Kwasa Land Sdn Bhd for the proposed construction of common infrastructure works at the Kwasa Damansara township development in Sungai Buloh, Selangor.
  • Star Media Group Bhd's group chief executive officer Alex Yeow Wai Siaw will step down after completing his employment contract at the end of February 2024.
  • Zhulian Corporation Bhd posted a net profit of RM6.2mn for its 3QFY23, which is 14.4% YoY decrease from RM7.2mn.
  • US Treasury Secretary Janet Yellen said the unprecedented attacks on Israel posed additional risks to an already tepid global economic outlook, but the US still appeared headed for a soft landing.

Source: TA Research - 12 Oct 2023

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