TA Sector Research

Daily Market Commentary - 14 Dec 2023

Publish date: Thu, 14 Dec 2023, 09:36 AM

Review & Outlook

Bursa Malaysia shares extended sideway trading Wednesday, as sentiment on the local front remain negative amid lack of positive catalysts, and in lined with regional weakness as investors remained cautious ahead of the last Federal Reserve decision of the year. The KLCI rose 0.92 points to end at 1,448.04, after oscillating between high of 1,448.48 and low of 1443.72, as gainers led losers 482 to 373 on total turnover of 3.76bn shares worth RM2.4bn.

The overnight rally on Wall Street should revive the local market today, but undertone remains cautious as investors refrain from trading commitments amid clueless market direction on the local front. On the index, immediate resistance remains 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.

Public Bank need to sustain above the 76.4%FR (RM4.29) to enhance upside momentum towards the 4/4/22 high (RM4.51), with a confirmed breakout to aim for the 123.6%FP (RM4.72) ahead, while the 100-day ma (RM4.14) cushions downside. Sime Darby will need decisive breakout above the 138.2%FP (RM2.46) to target the 150%FP (RM2.52) and 161.8%FP (RM2.57) going forward, while the rising 50-day ma (RM2.33) provides uptrend support.

News Bites

  • The Securities Commission Malaysia has made amendments to the Equity Guidelines that include the accelerated transfer framework from the ACE Market to Main Market of Bursa Malaysia, which will take effect on Jan 1, 2024.
  • AWC Bhd has obtained shareholders' approval to buy the remaining 49% equity interest in automated waste collection systems specialist Stream Group Sdn Bhd and a 51% equity interest in Premium Patents Sdn Bhd for a collective RM110mn cash.
  • Johor Corp-linked Al-'Aqar Healthcare REIT is disposing of its land and buildings of Jeta Gardens Aged Care Facility in Australia for AUD24.2mn (RM74.9mn) cash to Principal Healthcare Finance Pty Ltd.
  • Tower Real Estate Investment Trust has proposed a rights issue to raise gross proceeds of up to RM66mn to repay its bank borrowings and refurbish its existing properties.
  • Point-of-sale systems provider Cuscapi Bhd, in which MyEG Services Bhd founder Wong Thean Soon has a shareholding of close to 31%, has sold off the entire 12.1mn shares it holds in MyEG for RM11.11mn cash.
  • SP Setia Bhd has partnered Mitsui Fudosan (Asia) Malaysia Sdn Bhd to develop two parcels of prime commercial land measuring 2.67 acres in Setia Federal Hill, Bangsar.
  • UMW Holdings Bhd's automotive sales increased by 8% to 42,315 units in November compared with 39,034 units a year earlier, lifted by sales from its associate company Perusahaan Otomobil Kedua Sdn Bhd.
  • Mustamir Mohamad has resigned as Sime Darby Bhd group CFO to take on the role of president and group CEO of UMW from Datuk Seri Ahmad Fuaad Mohd Kenali, whose tenure expired on Oct 31.
  • Samaiden Group Bhd's wholly-owned subsidiary, Samaiden Sdn Bhd, has been appointed to undertake the EPCC works worth RM25.8mn for the development of a 2MWAC small hydro facility at Hutan Rezab Pelagat in Besut, Terengganu.
  • Sapura Energy Bhd has secured requisite approval-in-principle and written confirmation from the Corporate Debt Restructuring Committee for a proposed debt restructuring scheme from at least 75% of its financiers of approximately RM10.3bn multi-currency financing facilities.
  • Eco World International Bhd's net loss narrowed to RM37.7mn for the 4QFY23 from RM95.7mn the year before.
  • Scientex Packaging (Ayer Keroh) Bhd's net profit shrank by 37.2% to RM7.7mn in the 1QFY24 from RM12.3mn a year ago due to lower revenue and higher electricity costs.
  • The Asia Development Bank raised its 2023 growth forecast for developing Asia to 4.9% from 4.7% projected in September, but kept its growth outlook for the region at 4.8% next year.
  • Japan's regional lenders believe the central bank of Asia's second-largest economy has a shot at ending its unprecedented monetary easing policy.
  • The Federal Reserve on Wednesday held its key interest rate steady for the third straight time and set the table for three and four quarter point cuts in 2024 and 2025, respectively.

Source: TA Research - 14 Dec 2023

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