TA Sector Research

Daily Market Commentary - 1 Dec 2023

Publish date: Fri, 01 Dec 2023, 09:40 AM

Review & Outlook

Late buying in key consumer, construction, plantation and utility heavyweights lifted the local blue-chip benchmark index off lows to close in positive territory on Thursday. The FBM KLCI ended up 6.67 points at the day's high of 1,452.74, off an early low of 1,440.62, as losers beat gainers 626 to 328 on higher turnover of 4.25bn shares worth RM4.97bn.

The local market should continue to stay range bound ahead of the weekend, and pending significant market leads as the current earnings reporting season draws to an end. 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.

Further weakness on SKP Resources towards stronger chart supports at 70sen and the 123.6%FP (60sen) will look attractive to bargain for rebound upside towards the upper Bollinger band (86sen), with tougher upside hurdles from the 100-day ma (90sen) and 76.4%FR (RM1.02). VSI need to climb above the 61.8%FR (93sen) to reinforce upside momentum towards the 50%FR (99sen) and 38.2%FR (RM1.05) ahead, while the 76.4%FR (86sen) and 80sen provide better supports.

News Bites

  • CelcomDigi Bhd is looking to speed up the merger of Celcom and Digi networks, aiming to reach a 30.0% integration milestone by the end of the year.
  • YTL Power International Bhd and its parent YTL Corporation Bhd are to be included as constituents of the Kuala Lumpur Composite Index under the latest semi-annual review by Bursa Malaysia and FTSE Russell.
  • Serba Dinamik Holdings Bhd said it was unable to release its financial report for its 1QFY24 by 30 November 2023 as required under listing requirements.
  • RHB Bank Bhd has appointed Phuah Shok Cheng to serve as acting group chief financial officer upon the expiry of current CFO Nik Rizal Kamil Nik Ibrahim Kamil's contract on 31 December 2023.
  • Tunku Kamariah Aminah Maimunah Iskandariah Sultan Iskandar, eldest sister of Johor's Sultan Ibrahim Sultan Iskandar, has been appointed as non-executive chairman of Zen Tech International Bhd.
  • CIMB Group Holdings Bhd's net profit rose 31.3% YoY to RM1.9bn for the 3QFY23 attributed to strong non-interest income improvement.
  • IHH Healthcare Bhd's 3QFY23 net profit surged more than double to RM532.1mn boosted by growth from higher patient volumes and revenue from higher acuity treatment.
  • Hong Leong Bank Bhd's 1QFY24 net profit rose 4.9% YoY to RM1.0bn, on higher contributions from the bank's associates and reversal of impairment losses.
  • IJM Corporation Bhd's net profit for the 2QFY24 surged over 3-fold to RM93.7mn carried by strong showings from its property development and infrastructure segments.
  • Alliance Bank Malaysia Bhd's net profit rose 17.0% YoY to RM185.3mn in the 2QFY24 due to higher revenue and lower expected credit losses.
  • Capital A Bhd's 3QFY23 net loss of narrowed 80.2% YoY to RM178.8mn on continued improvement in its aviation business.
  • Padini Holdings Bhd's net profit for the 1QFY24 fell 45.4% YoY to RM26.7mn due to a drop in its gross profit margin from 39.0% to 36.0%.
  • SKP Resources Bhd posted a 41.8% YoY drop in net profit to RM27.1mn in 2QFY24 attributed to sagging market demand, increased production costs, and higher overhead costs.
  • The value of new home sales among the 100 biggest real estate companies fell 29.6% from a year earlier to 390.19bn yuan (RM254.4bn), according to preliminary data from China Real Estate Information Corp.
  • The Labor Department said initial jobless claims in the US inched up to 218,000, an increase of 7,000 from the previous week's revised level of 211,000.
  • Consumer price growth in the 20 nations sharing the euro currency dropped to 2.4% in November from 2.9% in October, well below expectations for 2.7%.

Source: TA Research - 1 Dec 2023

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