TA Sector Research

Daily Market Commentary - 7 Nov 2023

Publish date: Tue, 07 Nov 2023, 10:14 AM

Review & Outlook

The local blue-chip benchmark rallied to end at a fresh nine-month high on Monday, fuelled by regional strength on optimism global interest rates have peaked and rate cuts may follow next year. The FBM KLCI surged 14.74 points to close at the day's high of 1,464.67, off an opening low of 1,452.29, as gainers beat losers 665 to 284 on robust trade totalling 3.76bn shares worth RM2.34bn.

Renewed buying interest in key blue-chip telcos, banking and utility heavyweights should see them resuming uptrends on hopes the rising global interest rates trend is ending and should give way to rate cuts next year. On the index, resistance is revised higher to the 1,490/1,500 area, followed by 1,520 as next upside hurdle. Immediate support is also adjusted upwards to 1,450, with 1,430, and then 1,400/1,390 as stronger support platform.

Axiata need convincing breakout above the 100-day ma (RM2.48) to enhance upside potential towards the 200-day ma (RM2.70), with tougher hurdles from the 38.2%FR (RM2.82) and 50%FR (RM3.01), and downside cushioned by the lower Bollinger band (RM2.20). CelcomDigi will need breakout confirmation above the 138.2%FP (RM4.55) to aim for the 150%FP (RM4.68), 161.8%FP (RM4.82) and 176.4%FP (RM4.98) ahead, while the lower Bollinger band (RM4.14) limits downside risk.

News Bites

  • The proposal for methods and forms of targeted subsidies is expected to be submitted to the Cabinet for approval this month, with three different implementation approaches to be considered, said Economy Minister Mohd Rafizi Ramli.
  • Malaysia's services producer price index rose 1.4% YoY in 3Q23.
  • DXN Holdings Bhd's wholly owned subsidiary DXN Corp (Ningxia) Co Ltd has filed a writ of summons and statement of claims against China's Fujian Anxi Jinjiang Source Tea Technology Co Ltd over a stake disposal dispute.
  • Kerjaya Prospek Group Bhd has secured a RM104.7mn contract from Persada Mentari Sdn Bhd for the construction and completion of 69 units of 3-storey semi-detached and terrace houses on Andaman Island, Penang.
  • Kinergy Advancement Bhd has secured a RM33.3mn contract from Pengerang LNG (TWO) Sdn Bhd to supply utilities expansion and infrastructure enhancement of 137,000m3 of liquefied natural gas carriers into a floating storage unit transformation at the Regasification Terminal Pengerang.
  • Econpile Bhd has inked a MoU with Sungai Klang Link Sdn Bhd for the construction works for an elevated highway project proposed by SKL to the government.
  • Euro Holdings Bhd and 3 of its subsidiaries, as well as its managing director Datuk Seri Lim Teck Boon, are being sued for allegedly using Surian Creation Sdn Bhd to obtain banking facilities.
  • Sedania Innovator Bhd has proposed to acquire a 51% stake in premium personal care products and food supplements producer Tanamera Group Sdn Bhd for RM8.2mn, cash.
  • Edaran Bhd has secured a RM89.9mn job to maintain the Royal Malaysian Customs Department's customs operating system and Malaysia Sales & Services Tax application.
  • Perak Corp Bhd has been granted a further six-month extension of time until 10 Feb 2024 to submit its regularisation plan to address the company's financial condition.
  • Sime Darby Property Bhd's Hype Residences Phase 1 in its SJ7 mixeduse development in Subang Jaya was fully taken up within an hour of its official launch on 28 Oct 2023.
  • AMMB Holdings Bhd has appointed Ling Fou-Tsong @ Jamie Ling as its group chief executive officer and CEO of AmBank (M) Bhd, following the retirement of Datuk Sulaiman Mohd Tahir, effective 23 Nov 2023.
  • Box-Pak (Malaysia) Bhd's president cum CEO and executive director Chee Khay Leong is retiring after having served the company for more than a decade.
  • Bank of Japan governor Kazuo Ueda signalled it is unlikely policymakers will have the data needed to declare by year end that it's time to put an end to negative interest rates.

Source: TA Research - 7 Nov 2023

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