TA Sector Research

Daily Market Commentary - 21 Nov 2023

Publish date: Tue, 21 Nov 2023, 10:07 AM

Review & Outlook

Bursa Malaysia shares eased into profit-taking consolidation on Monday, due to lacking local leads and despite the firmer regional tone on hopes the US is done raising interest rates following recent softer inflation data. The FBM KLCI slid 3.75 points to close at 1,456.92, off an opening high of 1,460.26 and low of 1,454.12, as losers beat gainers 499 to 395 on total turnover of 3.23bn shares worth RM1.7bn.

Stocks should trade sideways pending fresh leads for the local market to extend recovery from current consolidation. Immediate index resistance is set at 1,465/1,470, with the 1,490/1,500 area acting as tougher upside hurdle, while immediate support is at 1,450, with 1,430, and then 1,400/ 1,390 as stronger chart supports.

Supermax will need convincing breakout above the April peak (RM1.03) to fuel upside momentum towards RM1.10, RM1.20 and RM1.30 ahead, while downside risk is cushioned by the 200-day ma (83sen). Meanwhile, Top Glove need confirmed breakout above the 200-day ma (88sen) to aim for 95sen, RM1.10 and RM1.25 going forward, with key chart supports at 70sen and 64sen cushioning downside.

News Bites

  • Malaysia total trade fell by 2.4% to RM239.5bn in October 2023, driven by lower YoY exports and imports, which fell 4.4% to RM126.2bn, and 0.2% to RM 113.3bn, respectively.
  • Malayan Banking Bhd has launched its Islamic wealth management regional offshore hub for solutions via Maybank Singapore, extending its IWM position beyond Malaysia and Indonesia.
  • Cahya Mata Sarawak Bhd's wholly owned subsidiary Cahya Mata Cement Sdn Bhd has partnered Sinoma Industry Engineering (M) Sdn Bhd to undertake a comprehensive study and technical analysis for its plans to construct a new clinker line and optimisation of its existing facilities.
  • Muhibbah Engineering (M) Bhd has accepted a contract from Petronas Carigali Sdn Bhd for the construction, commissioning and installation of light weight structure project, around 190km from Terengganu shore for a contract value of approximately RM318mn.
  • Pacific Trustees Bhd, the trustee of AmanahRaya Real Estate Investment Trust, has accepted an offer to enter into a long-term tenancy of 15 years with IHT Rehabilitation Centre (Selangor) Sdn Bhd.
  • XL Holdings Bhd is buying 25% equity interest in Sabah-based Samajutera Sdn Bhd to venture into seaweed cultivation activities through Samajutera's 70%-owned subsidiary, WAF Holding Sdn Bhd.
  • Ahmad Zaki Resources Bhd intends to dispose of its entire 95% stake in its plantation unit PT Ichtiar Gusti Pudi Tbk, which operates in Kalimantan.
  • Mesiniaga Bhd has secured a RM38.1mn contract from the Royal Malaysian Customs for the provision of the MYGST System Maintenance Services and License Renewal from 2023 to 2025.
  • Green Packet Bhd said it is not proceeding with its proposed disposal of its entire 100% stake in Oasis Capital Investment Bank Ltd after the investment bank failed to obtain the required approval from the Labuan Financial Services Authority.
  • Eurospan Holdings Bhd's proposed RM54.6mn sale of its furniture manufacturing unit and properties in Seberang Perai to its controlling shareholder for future leaseback has been deemed "fair and reasonable" by independent adviser Mainstreet Advisers Sdn Bhd.
  • Ecobuilt Holdings Bhd said it is not proceeding with its plan to build a 24-storey police office building in Kuala Lumpur jointly with another company.
  • Main Market-bound CPE Technology Bhd is seeking to raise RM179.6mn from its Dec 7, 2023 IPO to drive its expansion plans.
  • PETRONAS Gas registered a net profit of RM468.5mn in 3Q23, as compared to a net profit of RM425.8mn in 3QFY22, and is on track to delivering a strong financial performance in 2023.
  • Mr DIY Group (M) Bhd has posted a 22.5% increase in its net profit for 3QFY2023 to RM124mn, from RM101.2mn in the corresponding quarter of 3QFY2022, on the back of a higher revenue and gross profit margin.
  • China left benchmark lending rates unchanged at a monthly fixing on Monday, matching expectations.

Source: TA Research - 21 Nov 2023

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