TA Sector Research

Daily Market Commentary - 20 Nov 2023

Publish date: Mon, 20 Nov 2023, 09:06 AM

Review & Outlook

With most technical momentum and trend indicators of the FBM KLCI regaining strength following last week's renewed upside test of another nine-month high, buying interest should flow back to support gains in the local market. Sentiment-wise, reduced geopolitical tensions from the Israel/ Hamas war, cooling US/China trade relations following productive meetings between the top two world economic leaders, and more conviction from traders over the likelihood that global interest rates have peaked, thus paving way for rate cuts sometime next year, should spread optimism and hence improve risk sentiment in global markets.

On the index, immediate resistance is retained at 1,465/1,470, with the 1,490/1,500 area acting as tougher upside hurdle, while immediate support is upgraded to 1,450, with 1,430, and then 1,400/1,390 as stronger chart supports, while the end June low of 1,370 will act as crucial support.

As for stocks picks for this coming week, core rubber glove, oil & gas and telco players such as Hartalega, Kossan Rubber, Supermax, Top Glove, Velesto, Wasco, Maxis and TM should attract bargain hunters looking to profit in the medium-term, given their improved earnings potential going forward.

News Bites

  • Malaysia's GDP grew 3.3% YoY in the 3Q2023 driven mainly by privatesector expenditure and services sector.
  • UEM Sunrise Bhd's three indirect wholly-owned subsidiaries have inked eight deals to dispose of 46.9ha of freehold land parcels to PGB Landmark Sdn Bhd, a subsidiary of Paragon Globe Bhd, for a combined RM146.1mn.
  • Berjaya Construction Bhd, the construction arm of Berjaya Land Bhd, has secured a US$50mn construction loan from Export-Import Bank of Malaysia Bhd for the construction of the Four Seasons Resort and Private Residences Okinawa in Japan.
  • Nextgreen Global Bhd has entered into a MoU with a governmentowned company to enhance the potential of biomass by utilising biotechnology applications for the biomaterial and agricultural farm input sector.
  • Crescendo Corp Bhd has announced its third land disposal in Pulai, Johor Bahru, this time three vacant pieces of land measuring 2.6mn sq ft for RM315.2mn cash to Microsoft Payments (M) Sdn Bhd.
  • Media Chinese International Ltd expects to record losses attributable to owners of the company of between US$4.5mn (RM21.1mn) to US$5.5mn (RM25.7mn) for the six months ending Sept 30, 2023, compared with the profit attributable of US$1mn (RM4.68mn) reported a year earlier.
  • Marco Holdings Bhd is acquiring the remaining 59.6% stake in watches and clock retailer Time Galerie (M) Sdn Bhd for RM37.6mn cash from Giro Laksana Sdn Bhd and Lim Siew Sooi.
  • Panda Eco System Bhd, which is en route to a listing on Bursa Malaysia's Ace Market on Nov 27, 2023, saw its IPO shares offered to the public oversubscribed by 153.5 times.
  • CelcomDigi Bhd is expecting to accelerate capex investments in the final quarter of 2023 as it continues to deliver on its merger integration efforts.
  • Greatech Technology Bhd's net profit rose to RM46.7mn in the 3QFY23 from RM41mn a year earlier.)
  • Affin Bank Bhd's pre-tax profit after zakat for the nine months to Sept 30, 2023 was RM449.7mm, a 9.2% decline from the same period last year on a business-as-usual basis.
  • MNRB Holdings Bhd's net profit surged to RM41.6mn in 2QFY23, from RM13.5mn in the corresponding quarter last year.
  • Malaysia Smelting Corp Bhd swung back to the black in 3QFY2023, with a net profit of RM11.8mn compared with a net loss of RM31.3mn a year earlier.
  • Tasco Bhd's net profit in the 2QFY2024 dropped 34.3% to RM15.9mn from RM24.1mn, largely due to the normalisation of freight rates.
  • Eurozone harmonized inflation stood at 2.9% in October, well below the 4.9% rise seen in September.

Source: TA Research - 20 Nov 2023

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