TA Sector Research

Daily Market Commentary - 23 Oct 2023

Publish date: Mon, 23 Oct 2023, 09:56 AM

Review & Outlook

Given the weak technical momentum and absence of stronger followthrough buying momentum to sustain recent gains on the local market, near-term upside potential will be fragile and prone to profit-taking and selling pressure from market players looking to exit or lighten trading positions. Sentiment-wise, the escalation of geopolitical tension in Gaza strip, rising treasury yields and possibility of further rate hikes by global central bankers are likely to continue dampen sentiment in the immediate term.

As for the index, immediate overhead resistance stays at 1,450, with 1,465/ 1,470, and the 1,490/1,500 area acting as tougher upside hurdles, going forward. Immediate support remains at 1,400, followed by 1,390, and the end June low of 1,370 acting as crucial supports.

News Bites

  • Advanced projections show Malaysia's GDP rose 3.3% YoY in the 3Q2023, compared with 2.9% YoY in 2Q23, mainly driven by growth in the services sector, according to the Department of Statistics Malaysia.
  • Malaysia's headline inflation, as measured by the consumer price index, eased to 1.9% YoY in September 2023.
  • UEM Sunrise Bhd is disposing of a 6% stake in Nusajaya Lifestyle Sdn Bhd, the developer and operator of the Mall of Medini, Iskandar Malaysia, to Iskandar Investment Bhd's unit Iskandar Harta Holdings Sdn Bhd, for RM8.9mn.
  • Pestech International Bhd has been issued a notice of arbitration from Syarikat Pembinaan Yeoh Tiong Lai under the Asian International Arbitration Centre.
  • EP Manufacturing Bhd has proposed to set up a RM100mn automotive manufacturing facility in Melaka that will serve as a hub for energyefficient vehicles and electric vehicles in Malaysia.
  • MyEG Services Bhd said it expects to complete the system enhancement for its immigration-related services within one month.
  • Axis Real Estate Investment Trust has obtained a judgement in default against its former tenant at Axis Steel Centre @ SiLC in Nusajaya, Johor, over a default on rental payments and unexpired future rental payments amounting to RM110.0mn.
  • Mestron Holdings Bhd has bagged a RM60.0mn contract from Sunview Group Bhd for a large-scale solar project, increasing its renewable energy order book value to RM71.0mn.
  • Unique Fire Holdings Bhd has proposed a bonus issue of 200.0mn free warrants on the basis of one warrant for every two existing shares held.
  • Malaysia Airports Holdings Bhd said the total local passenger movements in the third quarter of this year reached 21.7mn, a more than 80% recovery in total quarterly traffic for the first time since the same period in September 2019.
  • Industronics Bhd said it had entered into a Memorandum of Agreement on Friday to negotiate a proposed collaboration to construct an international duty-free city on Pulau Langkawi.
  • CIMB Thai Bank PCL, a 94.8%-owned unit of CIMB Group Holdings Bhd, reported a 38.2% decrease in net profit to THB1.08bn (RM141.0mn) for the nine months ended September 2023, primarily due to higher operating expenses and a 26.5% increase in expected credit loss.
  • KIP Real Estate Investment Trust reported a 15.2% surge in net property income for the 1QFY24.
  • The US government on Friday posted a US$1.695tn (RM8.08tn) budget deficit in fiscal 2023, a 23% jump from the prior year as revenues fell and outlays for Social Security, Medicare and record-high interest costs on the federal debt rose.

Source: TA Research - 23 Oct 2023

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