TA Sector Research

Daily Market Commentary - 22 Dec 2023

Publish date: Fri, 22 Dec 2023, 10:55 AM

Review & Outlook

Blue chips fell for profit-taking correction on Thursday, tracking overnight US and regional markets lower, as lacking window-dressing action discouraged bargain hunting. The FBM KLCI shed 8.98 points to close at 1,455.58, off an opening high of 1,463.17 and low of 1,454.97, as losers beat gainers 435 to 390 on lower turnover of 3.06bn shares worth RM2.09bn.

The local market should extend profit-taking consolidation ahead of the weekend, given the weak buying momentum and as investors await key US economic GDP data and inflation readings for leads. Immediate index resistance remains at 1,470, with the 1,490/1,500 level as next resistance area, while immediate support is at 1,450, with better supports at 1,430, and then 1,400/1,390.

Globetronics will be attractive to bargain on further dips, with key retracement support at the 50%FR (RM1.50) cushioning downside, for rebound upside towards resistance from the 76.4%FR (RM1.79), RM1.92 and the 27/9/21 high (RM2.04) going forward. Unisem need convincing breakout above the 61.8%FR (RM3.40) to enhance upside momentum towards the 76.4%FR (RM3.74) and 22/11/21 high (RM4.28) ahead, while the 200-day moving average (RM3.11) limits downside risk.

News Bites

  • Oriental Interest Bhd has entered into a deal with TTDI Land Sdn Bhd to jointly develop 54.6 acres of land in Klang into commercial and residential units.
  • Rimbunan Sawit Bhd has proposed to dispose of 9,935 hectares of oil palm land in Miri for a total of RM165mn to Mahawangsa Sungai Bok Plantation Sdn Bhd.
  • TDM Bhd's unit has entered into a 36-month agreement to supply crude palm oil and/or RSPO certified CPO to Ikhasas CPO Sdn Bhd, with the latter providing an upfront payment of RM70mn.
  • Port Klang Authority and Westports Holdings Bhd will evaluate the ramifications of prohibiting Israeli cargo shipping operator Zim Integrated Shipping Services Ltd vessels from docking in Port Klang.
  • Epicon Bhd (formerly Konsortium Transnasional Bhd) is establishing a consortium with a unit of Permodalan Negeri Selangor Bhd to develop an affordable housing project in Rawang, Selangor. Foundpac Group Bhd has proposed to acquire a leasehold industrial land in Bayan Lepas, Penang, for RM41.9mn from Bluemetal Sdn Bhd.
  • Protasco Bhd has initiated bankruptcy proceedings against former director Datuk Tey Por Yee and his associate Datuk Ooi Kock Aun, demanding a total sum of RM123.4mn from each of them.
  • Bursa Malaysia Securities Bhd has reprimanded Serba Dinamik Holdings Bhd and 10 of its directors for breaches of Bursa Malaysia Securities Main Market Listing Requirements.
  • SMIS Corp Bhd is selling a 35% stake in its Indonesian subsidiary PT Grand Surya Techno Tbk to Japan-based Sugihara Co Ltd for USD1.4mn, reducing its stake to 60%.
  • Kumpulan Jetson Bhd has turned down a requisition from 10 shareholders to convene an extraordinary general meeting to remove five company directors.
  • Bina Darulaman Bhd has entered into a joint venture agreement with OIB Properties (KV) Sdn Bhd to develop 782 affordable single-storey terrace homes in Kubang Pasu, Kedah.
  • AEON Credit Service (M) Bhd's net profit rose 2.3% YoY to RM85.6mn for 3QFY24 despite a 16.4% YoY increase in revenue, due to higher impairment losses, coupled with an increase in interest expenses.
  • The final reading of US GDP for 3Q23 showed it increased at a 4.9% annualized rate, revised down from the previously reported 5.2% pace.
  • Initial claims for state unemployment benefits in the US increased 2,000 to a seasonally adjusted 205,000 for the week ended Dec 16.

Source: TA Research - 22 Dec 2023

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