TA Sector Research

Daily Market Commentary - 28 Nov 2023

Publish date: Tue, 28 Nov 2023, 10:27 AM

Review & Outlook

Bursa Malaysia shares fell into profit-taking consolidation on Monday, with investors refraining from more commitments amid worries over the health of China's economy and pending more cues on the global inflation and interest rate trend. The FBM KLCI shed 5.77 points to close at 1,448.15, off an early high of 1,455.78 and low of 1,448, as losers swarmed gainers 683 to 287 on total turnover of 3.09nm shares worth RM2.05bn.

The local market should extend consolidation with downward bias given the absence of positive domestic leads, and worries over the health of the global economy. On the index, better support is revised lower to 1,430, with 1,400/1,390 as stronger chart supports, while the end June low of 1,370 will act as crucial support. Immediate resistance is at 1,465/1,470, with the 1,490/1,500 area acting as tougher upside hurdle.

Genting Berhad need to overcome immediate resistance from RM4.70 and RM4.90 to enable a challenge of the March 2021 peak (RM5.13), with next major hurdle from the 123.6%FP (RM5.71), and key retracement supports at the 61.8%FR (RM4.20) and 50%FR (RM3.91). GENM need to climb above the 76.4%FR (RM2.74) to aim higher towards RM2.90 and retest the March 2021 high (RM2.96), with downside cushioned by the 50%FR (RM2.49) and 38.2%FR (RM2.38).

News Bites

  • The Malaysian government will roll out a targeted subsidy programme for RON95 petrol in the second half of 2024.
  • Maxis Bhd failed in its bid to initiate a judicial review with regards to additional assessments with penalties imposed by the Inland Revenue Board on 27 November 2023.
  • Bursa Malaysia Bhd has inked a memorandum of collaboration with the United Nations Global Compact Network Malaysia and Brunei in advancing capability and capacity building on sustainability in the Malaysian marketplace.
  • Velesto Energy Berhad mutually agreed for the extension of a contract worth USD74mn with Carigali Hess Operating Company Sdn Bhd for another 18 months.
  • OCK Group Bhd's first tranche of sukuk murabahah worth RM400.0mn has been oversubscribed by 1.3times.
  • Perak Corporation Berhad has issued a Letter of Award to appoint Advancecon Holdings Bhd as a joint venture partner for the development of the main infrastructure for the Silver Valley Technology Park Industrial Hub.
  • LKL International Bhd has aborted plans with Singapore-based Serv Medical Pte Ltd to open up the digital healthcare market in Malaysia with Serv Medical's various product suites.
  • Sapura Resources Bhd said it will settle its RM168.0mn debt with Jurudata Sdn Bhd via the issue of redeemable convertible secured loan stocks in the group.
  • Progressive Impact Corporation Bhd had secured a contract from Indonesian state-owned energy company Pertamina Hulu Rokan to provide environmental sampling and laboratory analysis services for 52.5bn Indonesian rupiah (RM15.7mn).
  • Siab Holdings Bhd has secured a RM106.8mn residential development project in Pantai Sentral, Kuala Lumpur.
  • RHB Bank Bhd's net profit declined 6.5% YoY to RM650.0mn for the 3QFY23, mainly due to lower net fund based income.
  • Sime Darby Bhd's 1QFY24 net profit rose 1-fold to RM589.0mn as all segments improved, led by the industrial division, coupled with a RM251.0mn gain on disposal of Malaysia Vision Valley land.
  • Heineken Malaysia Bhd's 3QFY23 net profit dropped 19.7% YoY to RM87.3mn due to weak consumer sentiment driven by rising cost of living and macro-economic concerns.
  • UMW Holdings Bhd's net profit for the 3QFY23 jumped 71.9% YoY to RM173.1mn as all its businesses saw improved toplines.
  • UOA Development Bhd's net profit dropped by 47.0% YoY to RM50.9mn for the 3QFY23 attributed to lower set of quarterly revenue and coupled with higher tax expense.
  • Malaysian Resources Corporation Bhd's net profit down 93.8% YoY to RM1.5mn in 3QFY23 as revenue declined 41.4% YoY to RM503.7mn.
  • Profits at China's industrial companies rose at a much slower pace of 2.7% YoY in October as deflationary pressures persisted.
  • The US new home sales plunged by 5.6% to an annual rate of 679,000 in October after spiking by 8.6% to a downwardly revised rate of 719,000 in September.

Source: TA Research - 28 Nov 2023

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