TA Sector Research

Daily Market Commentary - 13 Dec 2023

Publish date: Wed, 13 Dec 2023, 09:44 AM

Review & Outlook

Stocks closed mixed in range bound trade Tuesday, as investors stayed cautious ahead of the crucial U.S. inflation data and the final U.S. Federal Reserve meeting of the year for signals as to when policymakers will begin cutting interest rates. The FBM KLCI ended flat at 1,447.12 (+0.05) after moving between high of 1,447.72 and low of 1,444.26, as losers led gainers 483 to 388 on total turnover of 3.28bn shares worth RM2.37bn.

Range bound trading should persist pending more significant local catalysts, while investors await more policy updates from global central bankers this week. On the index, immediate resistance stays at 1,465/1,470, with the 1,490/1,500 area acting as tougher upside hurdle. Better chart supports are at 1,430, and then 1,400/1,390, while the end June low of 1,370 will act as crucial support.

Gamuda need to rebuild support above the 76.4%FR (RM3.81) to enhance recovery upside to the 123.6%FP (RM4.72) and 138.2%FP (RM5.00) ahead, while stronger retracement support is found at the 61.8%FR (RM3.53). Likewise, Tenaga need to reinforce support above the 200-day ma (RM9.42) ahead of recovery potential to the 138.2%FP (RM10.39), with next hurdle from the 150%FP (RM10.65), while stronger support is at the 76.4%FR (RM9.03).

News Bites

  • Prime Minister Datuk Seri Anwar Ibrahim has made 12 Cabinet line-up changes and split up two ministries as part of the Cabinet reshuffling he revealed yesterday.
  • Malaysia's total palm oil stocks fell by 1.09% to 2.42mn tonnes in November, from 2.45mn tonnes in October, according to the Malaysian Palm Oil Board.
  • Malakoff Corporation Bhd, through its wholly-owned subsidiary, Malakoff Radiance Sdn Bhd has secured a solar agreement with Railway Assets Corp and Keretapi Tanah Melayu Bhd.
  • Yinson Holdings Bhd's Singapore unit Yinson Production Offshore Pte Ltd announced in a statement on Tuesday that it has sealed the deal on a five-year corporate facility loan of up to USD500mn.
  • CapitaLand Malaysia Trust Bhd said it has converted its loan facility of RM693mn from CIMB Bank Bhd into a sustainability-linked loan facility for the funding of the acquisition of Queensbay Mall in Penang.
  • Sarawak Consolidated Industries Bhd has entered into a MoU for a potential joint venture residential development project in Bintulu, Sarawak, with a projected gross development value of RM250mn.
  • Unitrade Industries Bhd has proposed to enter the metal recycling market by acquiring a 51% stake in Intergreen Metals Sdn Bhd for RM66.3mn.
  • Following his appointment to the Cabinet as the Plantation and Commodities Minister on Tuesday, Datuk Seri Johari Abdul Ghani has relinquished his chairman's post at CI Holdings Bhd with immediate effect.
  • Classic Scenic Bhd has proposed to acquire a 51% stake in Redina Malaysia Sdn Bhd, a shoes and clothing, company for RM35.7mn in cash from Perdanis Distribution (M) Sdn Bhd.
  • Kinergy Advancement Bhd is collaborating with leading fertiliser supplier Agromate Holdings Sdn Bhd to spearhead bioenergy or renewable energy generation across palm oil mills.
  • Sarawak Cable Bhd, a PN17 company, has secured Serendib Capital Ltd as a white knight to revive its operations, which aims to assist SCB by providing a substantial fund of RM250mn to reduce debts and reinforce the cable manufacturer's capabilities.
  • Barakah Offshore Petroleum Bhd has proposed to undertake an auction to seek a buyer for its vessel for at least USD11.4mn in cash.
  • Cape EMS Bhd has raised RM73.8mn via a private placement exercise involving 69mn of the company's shares.
  • Hextar Capital Bhd has obtained a moneylender licence issued under the Moneylenders Act 1951 and the Moneylenders (control and licensing) Regulations 2003 from the Housing and Local Government Ministry.
  • Bermaz Auto Bhd 2QFY24 net profit surged 37.2% YoY to RM90.1mn on stronger revenue, along with better share of results from associates and forex gains.
  • China's top leaders including President Xi Jinping vowed to make industrial policy their top economic priority next year, a message likely to disappoint investors seeking big stimulus to boost growth.
  • The US consumer price index increased 3.1% YoY in November after rising 3.2% in October.

Source: TA Research - 13 Dec 2023

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