TA Sector Research

Daily Market Commentary - 15 Nov 2023

Publish date: Wed, 15 Nov 2023, 09:44 AM

Review & Outlook

Bursa Malaysia shares ended higher on Tuesday as investors returned from the extended weekend Deepavali festival break to bargain hunt, but caution prevailed ahead of the release of U.S. inflation data. The FBM KLCI rose 6.54 points to close at 1,451.72, off an opening low of 1,444.90 and high of 1,453.99, as gainers narrowly edged losers 489 to 481 on a total turnover of 3.08bn shares worth RM1.77bn.

The local market should extend a rebound following the overnight U.S. rally sparked by cooling inflation numbers for October, but gains could be checked by caution over the fiscal talks deadline to prevent another U.S. government shutdown by the end of the week. Immediate index resistance will be at 1,465/1,470, with the 1,490/1,500 area acting as a tougher upside hurdle. Immediate support remains at 1,430, then 1,400/1,390, with the end of June low of 1,370 acting as crucial support.

Bumi Armada shares are base building at current levels pending renewed strength to overcome the 200-day ma (57sen) and aim for the 76.4%FR (63sen), with a tougher upside hurdle at the 7/3/23 peak (73sen) and stronger support at the 38.2%FR (47sen). Hibiscus need to climb above the 50%FR (RM2.76) to enhance upside potential towards the 61.8%FR (RM2.96) and 76.4%FR (RM3.22) going forward, while the 200-day ma (RM2.50) cushions downside.

News Bites

  • IHH Healthcare Bhd is seeking over ¥20.0bn (approximately RM634.0mn) in damages from Japan's Daiichi Sankyo Company Ltd in relation to its stake acquisition in India's Fortis Healthcare.
  • Malakoff Corporation Bhd has signed a solar power purchase agreement with Gas Malaysia Bhd as part of its commitment towards ensuring access to sustainable energy for all.
  • Matrix Concepts Holdings Bhd has secured a RM512.0mn financing facility from AMMB Holdings Bhd to facilitate the development of 1,382.2 acres of prime housing in Malaysia Vision Valley 2.0 located in Sendayan, Negeri Sembilan.
  • JF Technology Bhd has entered into a JV agreement with HFC Industry HK Ltd to incorporate HFC Tech Sdn Bhd to engage in activities that include the design and manufacture of electromagnetic interference shielding materials, thermal interface and absorbing materials.
  • LBS Bina Group Bhd is planning to raise up to RM750.0mn via sukuk for capital expenditure, investments, working capital and refinancing.
  • Teo Seng Capital Bhd is selling a leasehold 2-storey detached factory in Singapore for SG$8.5mn (about RM29.4mn), as the 19-year-old property remains under-utilised.
  • Priceworth International Bhd has secured a RM13.8mn contract from Integrated Marine Works Sdn Bhd for maintenance dredging works at Northport and Southpoint wharves frontage and the marine base at Pulau Indah, Port Klang.
  • Kumpulan Perangsang Selangor Bhd, along with Menteri Besar Selangor (Inc) and the Kuala Langat land administrator, have been sued by a trio over alleged fraud involving land in Kuala Langat.
  • Reservoir Link Energy Bhd has entered into a share sale agreement with SAG Green Tech Sdn Bhd for the proposed acquisition of a 100.0% stake in SAG Renewables Sdn Bhd for a total purchase consideration of RM10.5mn.
  • Dialog Group Bhd's net profit in the 1QFY24 rose 5.1% YoY to RM132.2mn, largely due to better performance from its international operations and a higher share of results from joint ventures and associates.
  • Ranhill Utilities Bhd posted a 10.0% rise YoY in net profit to RM10.2mn for the 3QFY23, on higher earnings in the environment, engineering services and energy segments.
  • US consumer prices were unchanged in October amid lower gasoline prices, and underlying inflation showed signs of slowing, supporting views that the Federal Reserve was probably done raising interest rates.
  • US Treasury Secretary Janet Yellen said she disagrees with Moody's Investors Service's shift to a negative outlook on the country's Aaa credit rating, expressing confidence in the economy and in Treasuries as a safe asset.
  • British wages grew slightly less fast in the three months to September but remained close to their record pace, according to official data that will do little to ease the Bank of England's concerns about inflation pressures.
  • Economists estimate that Japan's real gross domestic product shrank at an annualised pace of 0.4% in the three months through September, as the impact of trade weighed on the nation's sputtering recovery.

Source: TA Research - 15 Nov 2023

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