TA Sector Research

Daily Market Commentary - 10 Nov 2023

Publish date: Fri, 10 Nov 2023, 10:47 AM

Review & Outlook

Blue chips eased further for profit-taking consolidation on Thursday, as traders await comments from US Fed officials for clues on interest rate policy. The FBM KLCI lost another 5.33 points to close at 1,452.27, off an early high of 1,457.84 and low of 1,450.64, as losers edged gainers 470 to 439 on turnover of 3.32bn shares worth RM1.94bn.

The local market should extend consolidation with investors likely to be sidelined ahead of the long Deepavali weekend break, as hopes global interest rates may have peaked help cushion downside. Immediate index support will be 1,450, with 1,430, and then 1,400/1,390 as stronger support platform. Resistance is set at the 1,490/1,500 area, followed by 1,520 as next upside hurdle.

Maybank will need to sustain above the 138.2%FP (RM9.13) to enhance upside momentum towards the 150%FP (RM9.32) and 161.8%FP (RM9.51) ahead, with uptrend support from the rising 50-day ma (RM8.92) cushioning downside. RHB Bank need to convincingly overcome the 123.6%FP (RM5.75) to aid further upside and target the 138.2%FP (RM5.90) and 150%FP (RM6.02) going forward, while the 50-day ma (RM5.54) provides good uptrend support.

News Bites

  • Malaysia's wholesale and retail trade recorded a sales value of RM142.7bn, an increase of 6.5% YoY, in September 2023.
  • Malaysia's service sector revenue grew 7.6% YoY to RM584bn in the 3Q2023.
  • Sime Darby Plantation Bhd will progressively shift its focus to India and China and away from the European Union market as the two nations offer significant potentials to the group, according to its group managing director Datuk Mohamad Helmy Othman Basha.
  • Samaiden Group Bhd has been awarded an individual export capacity of 13.4 megawatts in the latest Corporate Green Power Programme by the Energy Commission while its consortium with Premier Supreme Sdn Bhd has additionally secured a quota of 29.9 megawatts.
  • Vestland Bhd has received a letter of award from Ambang Besar Sdn Bhd for building works in Taman Desa, Kuala Lumpur, for RM240.0mn.
  • Bursa Malaysia Bhd has signed a memorandum of collaboration with Malaysia Steel Works Bhd bringing the group onboard as the latest addition to the centralised sustainability intelligence platform's Early Adopters Programme.
  • The Italian government has rejected the proposed disposal by KNM Bhd's wholly-owned subsidiary KNM Europa BV of its entire stake in FBM Hudson Italiana SpA to the United Arab Emirates' Petro MAT FZCO.
  • Reneuco Bhd has received the approval from the Companies Commission of Malaysia on an extension of time for the group to hold its Annual General Meeting by 31 March 2024.
  • Karyon Industries Bhd is proposing to acquire a piece of freehold industrial land measuring 3,842 sq metres in Johor Baru from Premetal Stamping Ind Sdn Bhd for RM7.6mn.
  • Plenitude Bhd will remain cost-conscious and focused on profitability in order to maintain a strong financial position while ensuring longterm business operations.
  • Westports Holdings Bhd saw its net profit increase by 29.7% YoY in 3QFY23 to RM195.0mn, from RM150.4mn a year ago, due to higher revenue coupled with lower administrative and tax expenses as well as finance costs.
  • Mi Technovation Bhd saw its net profit in 3QFY23 decline by 30.1% YoY to RM14.2mn against RM20.3mn a year ago, due to one-off withholding tax paid and lower foreign exchange gain.
  • Southern Steel Bhd's net loss narrowed by 38.5% YoY to RM39.6mn for its 1QFY24, from RM64.4mn a year ago, thanks to higher sales volume and improved margin.
  • Sentral REIT's net property income rose 6.1% YoY to RM30.1mn in 3QFY23 from RM28.4mn a year ago, underpinned by higher revenue, offset by higher property expenses.
  • The European Central Bank is done with interest-rate increases unless it has to deal with any more shocks, Governing Council member Francois Villeroy de Galhau said.
  • Initial claims for state unemployment benefits fell 3,000 to a seasonally adjusted 217,000 for the week ended Nov. 4 from an upwardly revised 220,000 in the prior week.

Source: TA Research - 10 Nov 2023

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