TA Sector Research

Daily Market Commentary - 27 Dec 2023

Publish date: Wed, 27 Dec 2023, 09:40 AM

Review & Outlook

Bursa Malaysia shares drifted sideways in listless trade on Tuesday, given the lack of local market leads with most investors away for the weekend Christmas and Boxing Day holidays. The FBM KLCI dipped 3.6 points to end at the day's low of 1,450.78, off an early high of 1,456.66, as losers edged gainers 426 to 397 on moderate turnover of 2.93bn shares worth RM1.97bn.

Stocks should stay range bound pending the eventual return of windowdressing ahead of the year-end to lift the market from present consolidation. As for the index, it will need to hold above the 1,450 immediate support level to prevent further dip toward better supports at 1,440 and 1,430, while 1,400/1,390 should act as stronger support. A convincing breakout above 1,470 will encourage further gain towards the 1,490/1,500 level, where it may end the year as window-dressing activity returns.

Axiata need to overcome the upper Bollinger band (RM2.47) to enhance upside momentum towards the 200-day ma (RM2.61) and tougher hurdle from the 38.2%FR (RM2.82), while key chart supports are at the lower Bollinger band (RM2.26) and 31/10/23 low (RM2.16). CelcomDigi needs a breakout confirmation above the 200-day ma (RM4.24) to fuel further upside towards the 123.6%FP (RM4.35) and 138.2%FP (RM4.52) ahead, with downside cushioned by the lower Bollinger band (RM4.01).

News Bites

  • Malaysia Airports Holdings Bhd saw a 22.3% YoY increase in passenger movement in both its Malaysian and Turkish airport network, reaching 9.6mn passengers in November, compared to 7.9mn a year ago.
  • Gabungan AQRS Bhd is claiming RM89.7mn from Econpile Holdings Bhd for what it alleged was wrongful termination of a sub-contract under Package SUKE-CA3 of the Sungai Besi-Ulu Kelang Elevated Expressway project in 2016.
  • Malayan Flour Mills Bhd and its joint venture company, Dindings Poultry Development Centre Sdn Bhd, are in consultation with their external legal counsel to challenge the Malaysia Competition Commission's decision to impose a penalty of RM70.0mn for a price-fixing infringement.
  • BDO Capital Consultants Sdn Bhd recommended the shareholders of Ajiya Bhd to accept the unconditional voluntary takeover bid by Chin Hin Group Bhd and other joint offerors, deeming the offer price of RM1.53/share as "not fair, but reasonable".
  • Ho Hup Construction Company Bhd said its unit will challenge an adjudication decision requiring the company to pay RM23.2mn to Ecobuilt Holdings Bhd.
  • Icapital.biz Bhd will hold an extraordinary general meeting on Dec 29 to seek shareholder approval for the proposed establishment of a dividend reinvestment plan.
  • Focus Point Holdings Bhd is eying to increase the contribution of its food and beverage segment to group's revenue over the next 2 years, according to its president and chief executive officer Datuk Liaw Choon Liang.
  • TCS Group Holdings Bhd has proposed to undertake a renounceable rights issue of up to 243.6mn new shares at 12.0sen/share, coupled with free warrants to raise up to RM29.2mn.
  • CSH Alliance Bhd will be changing its name to Velocity Capital Partner Bhd effective on this coming Thursday.
  • Marine & General Bhd had disposed of its vessel, JM Sutera 7, for USD5.8mn (RM27.2mn) cash to an external party, Narsimhaa Shipping Inc, Liberia.
  • Seasonally adjusted data from S&P CoreLogic Case-Shiller showed home prices in the US rose 0.6% MoM in October, reaching a fresh record as buyers battled for a stubbornly tight supply of listings.

Source: TA Research - 27 Dec 2023

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