TA Sector Research

Daily Market Commentary - 29 Nov 2023

Publish date: Wed, 29 Nov 2023, 10:51 AM

Review & Outlook

Stocks stayed within tight trading ranges on Tuesday amid lack of significant domestic leads, and as investors await the release of economic data from major global economies for leads. The FBM KLCI ended flat at 1,448.02 (- 0.13), after oscillating between early high of 1,452.6 and low of 1,444.6, as losers beat gainers 526 to 390 on higher turnover of 3.81bn shares worth RM2.39bn.

The local market should continue its current sideways trend pending clearer market leads, and more solid signs of recovery in the global economy. On the index, better support is at 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.

Gadang will need to overcome resistance from the 50%FR (35sen) to enhance upside momentum towards the 61.8%FR (37sen) and 76.4%FR (40sen) ahead, with downside cushioned by the 200-day ma (31sen). Meantime, MRCB will be more attractive to bargain on weakness towards the 76.4%FR (40sen), with better support from the 61.8%FR (38sen), for rebound upside towards the upper Bollinger band (46sen), and tougher resistance seen at the 123.6%FP (48sen) and 138.2%FP (50sen).

News Bites

  • Malaysia's Producer Price Index declined by 0.3% YoY in October 2023 after recording a 0.2% growth in September,
  • Malaysia Airports Holdings Bhd recorded a total of 10.2mn passenger movements in October 2023, with 6.8mn (67.0%) contributed by local operations and 3.3mn (33.0%) from its asset in Türkiye.
  • MKH Bhd has obtained approval from its shareholders for the proposed listing of its wholly owned plantation subsidiary MKH Oil Palm (East Kalimantan) Bhd on the Main Market of Bursa Malaysia.
  • Swift Haulage Bhd is acquiring 3 pieces of industrial land totalling 21,702sq m in Butterworth, Penang from Transocean Holdings Bhd for RM30.2mn.
  • Gadang Holdings Bhd is acquiring a 21.1-acre land in Kwasa Damansara for RM114.8mn, to be developed into a residential project.
  • MARC Ratings Bhd has affirmed the AAA-IS(bg) rating on Malaysia Steel Works (KL) Bhd's RM130.0mn Sukuk Ijarah programme with stable outlook.
  • Catcha Digital Bhd is planning to acquire a 51.0% equity interest in digital agency DS Services Sdn Bhd for RM21.2mn.
  • EA Technique (M) Bhd made its third contract win announcement this year, this time an extension by Petroliam Nasional Bhd for the supply and operation of 3 harbour tugs worth approximately RM18.4mn.
  • Petronas Chemicals Group Bhd's 3QFY23 net profit fell 77.6% YoY to RM424.0mn as unfavourable product spreads and energy costs dented earnings.
  • Press Metal Aluminium Holdings Bhd's net profit dipped 3.1% YoY to RM306.1mn for the 3QFY23 as revenue was weighed by softening metal prices.
  • IOI Corporation Bhd's net profit jumped 81.5% YoY to RM304.0mn for the 1QFY24 lifted by lower tax expenses, higher share of results of associates and a joint venture.
  • KPJ Healthcare Bhd's net profit for the 3QFY23 jumped 78.2% YoY to RM90.3mn as it recorded a gain of RM41.5mn from the sale of its Indonesian operations, while its hospital business in Malaysia improved.
  • Leong Hup International Bhd's 3QFY23 net profit rose 97.5% YoY to RM133.0mn on better margin from higher selling prices of day-oldchicks and eggs in Malaysia, and DOC in Indonesia.
  • Farm Fresh Bhd's net profit rose 14.3% YoY to RM12.8mn for the 2QFY24, on lower dairy raw materials costs, improving Australian operations margins, and contribution from its ice cream unit Inside Scoop.
  • Bank Islam Malaysia Bhd's net profit for its 3QFY23 fell 1.6% YoY to RM140.5mn on the back of lower total net income and higher overheads.
  • Gas Malaysia Bhd's net profit fell 9.9% YoY to RM86.2mn for the 3QFY23 due to lower volume of natural gas sold and higher operating and administrative expenses.
  • KLCC Prop&Reits-Stapled SEC's net profit rose 5.0% YoY to RM185.3mn in 3QFY23 on improved hotel and management services while the office segment remained steady.
  • The US Conference Board's index increased to 102 this month from a downwardly-revised 99.1 in October.

Source: TA Research - 29 Nov 2023

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