TA Sector Research

Daily Market Commentary - 1 Nov 2023

Publish date: Wed, 01 Nov 2023, 09:35 AM

Review & Outlook

Blue chips stayed range bound Tuesday but ended near highs on late afternoon bargain-hunting interest while the broader market closed mixed. The FBM KLCI rose 2.94 points to settle at 1,442.14, off an early low of 1,437.98 and high of 1,443.46, as gainers edged losers 410 to 398 on a total turnover of 2.99bn shares worth RM1.85bn.

Stocks should extend sideways trade pending policy updates from key global central bankers and Bank Negara's monetary policy meeting. Immediate overhead resistance for the index 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, followed by 1,390, with the end-June low of 1,370 acting as crucial support.

Supermax needs breakout confirmation above the 200-day ma (83sen) to enable the upside challenge of previous peaks of 89sen and 96sen, while stronger chart supports are at 75sen and 70sen. Top Glove remains on a base-building path, pending renewed strength above the 50-day ma (77sen) to aim for the 100-day ma (83sen) or 200-day ma (89sen), while the downside is limited to the lower Bollinger band (70sen).

News Bites

  • MISC Bhd has bagged a contract from Pengerang LNG (Two) Sdn Bhd, a 65%-owned unit of Petronas Gas Bhd, to supply, operate and maintain a liquefied natural gas floating storage unit in Pengerang, Johor with an estimated contract value of up to USD213.7mn (RM1.0bn).
  • CIMB Group Holdings Bhd and Japanese finance company J Trust are among firms vying to buy Indonesia's PT Bank Commonwealth in a deal that could value the lender at USD400mn to USD500mn.
  • Berjaya Land Bhd has secured a syndicated loan of USD330mn (RM1.6bn) from a consortium of Japanese financial institutions to fund the development of the Four Seasons Resort & Private Residences in Okinawa, Japan.
  • Dagang NeXchange Bhd's sub-subsidiary Innovation Associates Consulting Sdn Bhd has secured a project from the Securities Commission Malaysia for the implementation of the Aras 2.0 onboarding and data migration platform for RM3.1mn.
  • PTT Synergy Bhd has secured a RM53.3mn contract from Sime Darby Property Bhd for the construction and completion of various works related to Phase A (Package 1) Elmina Business Park 2 in Rawang.
  • The sudden surge in Salutica Berhad's share price and trading volume has prompted Bursa Malaysia to pose an unusual market activity query to the company.
  • Selangor Dredging Bhd's wholly-owned unit is buying 29.2 acres (11.8 hectares) of vacant leasehold land, together with completed earthworks, in Dengkil, Selangor for RM87.9mn.
  • Tri-Mode System (M) Bhd has proposed to acquire 3 parcels of leasehold land in Pulau Indah, Klang for a total cash consideration of RM42mn.
  • Reneuco Bhd will be undertaking civil construction and telecommunication works along the South Klang Valley Expressway and two roads in Kuala Langat and Sepang for a sum of RM14.9mn.
  • Ireka Corp Bhd said its external auditor, Baker Tilly Monteiro Heng PLT has expressed disclaimer of opinion on the group's audited financial statements for FY23 as it is unable to obtain sufficient appropriate audit evidence.
  • Ageson Bhd's external auditor, Jamal, Amin & Partners is unable to provide a basis for an audit opinion on the company's audited financial statements for FY22 as the group has failed to provide sufficient appropriate audit evidence.
  • Citaglobal Bhd has disclosed that Yang di-Pertuan Agong Al-Sultan Abdullah Ri'ayatuddin Al-Mustafa Billah Shah has increased his stake in the company to 9.9%.
  • Bursa Malaysia Bhd's net profit for 3QFY23 rose 20.5% YoY to RM60.4mn on the back of improved trading revenue from the securities market.
  • China's official purchasing managers' index fell to 49.5 in October from 50.2, underlining the daunting task facing policymakers as they try to revitalise economic growth.
  • Hong Kong's gross domestic product rose 4.1% in July to September from a year earlier, suggesting that the Asian financial hub's postpandemic boost may be fading.
  • U.S. home prices rose in August to a record high as a shortage of homes for sale kept the market competitive.
  • The U.S. Conference Board released a report on Tuesday showing a moderate deterioration in U.S. consumer confidence in the month of October.
  • Euro-area inflation eased to its lowest level in more than two years, as the bloc's economy shrank, following an unprecedented ramp-up in interest rates.

Source: TA Research - 1 Nov 2023

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