TA Sector Research

Daily Market Commentary - 30 Nov 2023

Publish date: Thu, 30 Nov 2023, 12:31 PM

Review & Outlook

The local market drifted lower on Wednesday, with the absence of fresh market leads and current earnings reporting season restricting investor commitments. The FBM KLCI eased 1.95 points to close at 1,446.07, off an early high of 1,450.42 and low of 1,445.61, as losers beat gainers 588 to 354 on slower turnover of 3.27bn shares worth RM2.27bn.

Stocks should continue to trend sideways with downward bias pending more definite market leads and signs of earnings recovery in the current reporting season. 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.

SunCon will need breakout confirmation above the 12/10/23 high (RM1.99) to fuel further upside momentum towards the 123.6%FP (RM2.13) and 138.2%FP (RM2.23) ahead, while the 61.8%FR (RM1.75) and 200-day ma (RM1.73) cushions downside. Further weakness on UEM Sunrise towards key chart supports at the 100-day ma (68sen) and 76.4%FR (64sen) will be attractive to bargain for rebound upside towards the upper Bollinger band (84sen), with tougher upside hurdles from the 123.6%FP (89sen) and 138.2%FP (97sen).

News Bites

  • Malaysia Marine and Heavy Engineering Holdings Bhd has secured an engineering, procurement and construction subcontract worth RM1.2bn for an offshore substation high voltage direct current platform from Petrofac International (UAE) LLC.
  • Pharmaniaga Bhd is making a cash call via a renounceable rights issue of new shares plus private placement, to raise up to RM654.6mn to pare down debts.
  • Titijaya Land Bhd reported an accident occurred on 28 November 2023 at its purpose-built logistics facility construction site in Barat Daya, Penang, resulting in the death of workers.
  • PJBumi Berhad had received a conditional development order from Majlis Perbandaran Sungai Petani, Kedah Darul Amanin relation to the proposed development of its existing 4.6acres industrial land located at Sungai Petani, Kedah.
  • Public Bank Bhd's net profit for the 3QFY23 rose 7.0% YoY to RM1.7bn on the back of healthy loans and customer deposits growth.
  • Axiata Group Bhd widened its net loss to RM797.4mn in 3QFY23 from RM52.4mn a year ago mainly due to asset impairment and lower share of results from subsidiary CelcomDigi Bhd.
  • PPB Group Bhd's 3QFY23 net profit fell 52.5% YoY to RM372.6mn, largely due to lower contribution from its 18.8%-owned associate, the integrated agribusiness giant Wilmar International Ltd.
  • QL Resources Bhd's 2QFY24 net profit surged 30.6% YoY to RM122.6mn due to its better operating profit.
  • Malaysia Airports Holdings Bhd registered a net profit of RM94.8mn against a net loss of RM9.0mn in 3QFY23, on the back of an increase in revenue, other income, and improved share of profits from associates and joint ventures plus lower finance costs.
  • FGV Holdings Bhd posted an 86.8% YoY decrease in net profit for its 3QFY23 to RM32.0mn, owing to a significant fall in profit contribution from its plantation segment.
  • Supermax Corporation Bhd logged a net loss of RM2.1mn in the 1QFY24 from a net profit of RM5.7mn as revenue shrank amid weaker demand and persistent lower selling prices.
  • Mah Sing Group Bhd's net profit improved 6.3% YoY to RM50.0mn in 3QFY23 driven by the higher property sales and progressive revenue recognition from ongoing construction progress.
  • Cahya Mata Sarawak Bhd's 3QFY23 net profit fell 93.5% YoY to RM10.0mn due to a lower share of profit from its associates as well as absence of one-off gains recognised.
  • Velesto Energy Bhd's net profit for the 3QFY23 dropped 91.9% YoY to RM1.2mn as it incurred higher operating and finance costs.
  • Media Prima Bhd posted a net profit of RM14.1mn on the back of revenue of RM213.9mn for the 1QFY23.
  • US economic activity slowed in recent weeks as consumers pulled back on discretionary spending, the Federal Reserve said in its "Beige Book" survey of regional business contacts.
  • The US gross domestic product rose at an upwardly revised 5.2% annualised pace in the third quarter, the fastest in nearly two years.
  • Global growth is set to moderate from 2.9% this year to 2.7% in 2024 before picking up in 2025 to 3.0%, says the OECD

Source: TA Research - 30 Nov 2023

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