TA Sector Research

Daily Market Commentary - 3 Jan 2024

Publish date: Wed, 03 Jan 2024, 10:31 AM

Review & Outlook

Bursa Malaysia shares stayed range bound for the first trading day of the year, as investors braced for upcoming economic data from the region for more leads on the likely trend for easing monetary policy. The FBM KLCI eased 1.56 points to close at 1,453.10, after moving between early low of 1,446.36 and high of 1,453.56, as gainers led losers 512 to 463 on robust turnover of 4.91bn shares worth RM2.00bn.

Stocks are likely to continue trading sideways pending more concrete domestic and regional leads for guidance on a clearer near-term market direction. It will be crucial that the 1,450 immediate support hold to prevent further correction potential towards better supports at 1,440 and 1,430, while 1,400/1,390 should act as stronger support. Immediate resistance remains at 1,470, while a confirmed breakout will encourage further gain towards the 1,490/1,500 level.

MRCB need to overcome the upper Bollinger band (46sen) to fuel upside momentum towards the 123.6%FP (48sen) and 138.2%FP (51sen) ahead, while key retracement support at the 76.4%FR (40sen) cushions downside risk. UEM Sunrise will need convincing breakout above the 123.6%FP (89sen) to enhance further upside momentum and aim for the 138.2%FP (97sen) and 150%FP (RM1.03) going forward, with the 100-day ma (76sen) acting as key uptrend support.

News Bites

  • Prime Minister Anwar Ibrahim launched the Central Database Hub or Padu initiative yesterday, which is expected to help ensure the efficient delivery of targeted subsidies.
  • The seasonally adjusted S&P Global Malaysia manufacturing PMI was unchanged at 47.9 in December, indicating that business conditions remained challenging for manufacturing firms.
  • Sunview Group Bhd's wholly-owned subsidiary, Fabulous Sunview Sdn Bhd, has entered into a MoU with Saudi Arabia-based Vision Ambassadors Company For International Trade Consultancy, LCC to focus on seeking development and investment opportunities in relation to renewable energy and/or green energy.
  • The listing of the shares of Cnergenz Bhd will be transferred from the ACE Market of Bursa Malaysia to the Main Market under the "technology" sector with effect from 9am on Jan 5, 2024.
  • Nestcon Bhd has bagged RM251.5mn in construction works for a mixed development project in Mukim Petaling in the Klang Valley.
  • Straits Energy Resources Bhd said its subsidiary Tumpuan Megah Development Sdn Bhd is set to enter the marine biofuel trading and bunkering industry in the first quarter of 2024 after it was certified by the International Sustainability and Carbon Certification scheme.
  • The planned disposal of a 20.8% stake in troubled Boustead Naval Shipyard Sdn Bhd by Boustead Heavy Industries Corp Bhd to the Ministry of Finance, Inc has been extended for a fourth time to Jan 31, 2024.
  • Heitech Padu Bhd has secured a RM58.88 million contract to provide Next Generation Network services for the Inland Revenue Board.
  • Edaran Bhd has secured a RM356.6mn contract to provide hardware and software rental services to the Royal Malaysian Customs Department.
  • MBM Resources Bhd has appointed Rizal Mohd Zin as its new group chief executive officer, effective Jan 2, 2024.
  • AGX Group Bhd, a third-party logistics service provider preparing to go public on the ACE Market of Bursa Malaysia, has signed an underwriting agreement with TA Securities Holdings Bhd to underwrite a total of 21.7mn new shares in AGX's upcoming IPO.
  • The People's Bank of China injected nearly US$50bn worth of lowcost funds into policy-oriented banks last month, suggesting the central bank may be ramping up financing for housing and infrastructure projects to support the economy.
  • China's Caixin manufacturing PMI rose slightly to 50.8 in December from 50.7 in November.
  • The headline S&P Global ASEAN Manufacturing PMI fell from 50.0 in November to 49.7 in December.
  • The Singapore economy expanded by 2.8% y-o-y in the 4Q2023, faster than the 1.0% growth in the 3Q2023, based on advance estimates.
  • The seasonally adjusted S&P Global US Manufacturing (PMI posted 47.9 in December, down from 49.4 in November and lower than the earlier released 'flash' estimate of 48.2.

Source: TA Research - 3 Jan 2024

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