TA Sector Research

Daily Market Commentary - 9 Nov 2023

Publish date: Thu, 09 Nov 2023, 09:34 AM

Review & Outlook

The local market extended profit-taking breather on Wednesday, with investors sidelined pending more cues from US Fed officials on the outlook for interest rates and inflation. The FBM KLCI fell 5.77 points to close at 1,457.60, off an early high of 1,462.01 and low of 1,454.46, but buyers led losers 490 to 412 on total trade of 3.45bn shares worth RM1.97bn.

Stocks should stay range bound from profit-taking after the recent strong gains, with market undertone still steady on hopes global interest rates may have peaked and rate cuts should follow next year. On the index, resistance is set at the 1,490/1,500 area, followed by 1,520 as next upside hurdle. Immediate support is now at 1,450, with 1,430, and then 1,400/ 1,390 as stronger support platform.

Sime Darby need decisive strength above the 123.6%FP (RM2.39) to further boost upside momentum towards the 138.2%FP (RM2.46), 150%FP(RM2.52) and 161.8%FP (RM2.57) ahead, while the rising 50-day ma (RM2.23) provides good uptrend support. Tenaga will need breakout confirmation above the 123.6%FP (RM10.06) to aim higher towards the 138.2%FP (RM10.38) and 150%FP (RM10.64) going forward, with uptrend support seen from the 100-day ma (RM9.58).

News Bites

  • Malaysia's unemployment figures declined to 573,700 individuals in September 2023 but unemployment rate remains at 3.4%.
  • Malayan Banking Bhd has expanded its cross-border QR Pay service to China, amplifying its capabilities and enhancing the ease and efficiency of financial transactions.
  • Tenaga Nasional Bhd has collaborated with Chargeplus Sdn Bhd to explore a ground-breaking cross-border roaming platform to connect their customers to electric vehicle charging points across Malaysia and Singapore.
  • Fraser & Neave Holdings Bhd is on track to meet its Phase 1 completion of the group's dairy farm in Ladang Permai Damai in Gemas, Negeri Sembilan by early 2025.
  • Eastern Steel Sdn Bhd, a steel slabs and billets producer that is 27.3%- owned by Hiap Teck Venture Bhd, is determined to shift its focus to produce hot rolled coils on next year.
  • OCK Group Bhd has accepted a RM48.7mn contract from the Education Ministry for the rental of eco-friendly ICT hardware that meet green requirements on a lease-to-use basis for Sarawak.
  • Capital A Bhd's chief executive officer Tan Sri Tony Fernandes has been named 'Asia Pacific CEO of The Year' at the Airline Economics' Aviation 100 Asia Pacific Awards 2023 in Singapore.
  • GenomeSelect, the super high-yielding oil palm seed from Sime Darby Plantation Bhd, is now commercially available for only RM5.50 per seed.
  • Solarvest Holdings Bhd has partnered with Alliance Bank Malaysia Bhd and Sarawak property developer Hornbill Networks Consortium Sdn Bhd to drive the adoption of clean energy solutions in Sarawak.
  • Panda Eco System Bhd, which is set to list on the Ace Market on November 27, is pricing its shares at 16.0 sen apiece, seeking to raise RM17.5mn through an initial public offering.
  • Master Tec Group Bhd, a manufacturer of a wide range of highperformance low voltage, control and instrumentation as well as solar direct current cables, has obtained approval to list on the ACE Market of Bursa Malaysia by 1Q2024.
  • Duopharma Biotech Bhd's net profit for 3QFY23 fell by 45.1% YoY to RM9.0mn from RM16.4mn a year ago due to higher finance costs.
  • Malaysia Marine and Heavy Engineering Holdings Bhd incurred a net loss of RM105.2mn for 3QFY23, versus a net profit of RM16.0mn a year ago, due to cost escalation in existing projects.
  • Hup Seng Industries Bhd's net profit in 3QFY23 jumped threefold to RM13.0mn, from RM3.8mn a year ago, thanks to higher revenue and margin expansion.
  • Swift Haulage Bhd's net profit more than doubled to RM28.4mn in 3QFY23, from RM11.7mn a year earlier, thanks to higher other income.
  • Federal Reserve officials are still trying to assess whether a run-up in long-term Treasury yields will help cool the economy enough to curtail the need for more interest-rate increases.

Source: TA Research - 9 Nov 2023

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