TA Sector Research

Daily Market Commentary - 4 Jan 2024

Publish date: Thu, 04 Jan 2024, 07:15 PM

Review & Outlook

Small-caps surged on Wednesday as investors returned to bargain-hunt, with the property (+3.9%), healthcare (+3.4%) and utility (+3%) sectors leading gains, ignoring falls on regional markets led by tech stocks. The FBM KLCI climbed 9.27 points to close at 1,462.37, off an early low of 1,450.17 and high of 1,465.69, as gainers swarmed losers 715 to 352 on strong turnover totalling 5.63bn shares worth RM3.12bn.

The local market should extend gains with investors returning to bargainhunt, with focus on property and rubber glove stocks on momentum play. The index will need to convincingly climb above immediate resistance at 1,470 to aid further upside towards the 1,490/1,500 level, with next hurdle seen at 1,520. Immediate support remains at 1,450, with better supports at 1,440 and 1,430.

Supermax will need to overcome immediate overhead resistance from RM1.03 and RM1.10 to fuel further upside momentum towards RM1.20 and RM1.30 ahead, with downside cushioned by the 200-day ma (86sen) and 100-day ma (85sen). Top Glove need breakout confirmation above the upper Bollinger band (RM1.00) to enhance upside potential towards RM1.10, RM1.25 and RM1.40 going forward, while the 200-day ma (89sen) and 100-day ma (81sen) cushions downside risk.

News Bites

  • At the close of Chin Hin Group Bhd's mandatory takeover offer for the remaining 65.9% stake in Ajiya, Chin Hin received acceptances for 12.3mn shares, or the equivalent of a 4.2% stake that raised its shareholding to 54.3%.
  • Lembaga Tabung Angkatan Tentera is not extending the closing date for its RM1.55 per share privatisation offer for Boustead Plantations Bhd beyond Jan 5, 2024 and said since it does not intend to maintain the listing status of the company.
  • Tropicana Corp Bhd concluded 2023 on a strong note with RM1.4bn in property sales and 11 industry awards.
  • Kerjaya Prospek Group Bhd has bagged a contract worth RM170.9mn from Eastern & Oriental Bhd, for the development of a 45-storey building on Andaman Island, Penang.
  • Aurelius Technologies Bhd is purchasing a vacant piece of industrial land within the Kulim High-Tech Park, Kedah, from Northern Technocity Sdn Bhd for RM12.2mn.
  • Power Root Bhd's subsidiaries have been served with a trademark infringement claim for damages totalling 74.5bn rupiah (RM23mn) over the AH HUAT brand by its Indonesian distributor, CV Ego Sun Star Sukses Mandiri.
  • HSS Engineers Bhd via its associate HSS Integrated Sdn Bhd has accepted a letter of award worth RM4.9mn from Port Klang Cruise Terminal Sdn Bhd for the provision of project management consultancy services at the terminal.
  • Meta Bright Group Bhd has announced that the Kemaman Municipal Council has accepted its proposal for a 407.8kWp solar photovoltaic system at Kijal Mall in Terengganu.
  • PGF Capital Bhd plans to develop a self-sustaining integrated township with an estimated gross development value of RM3bn adjacent to the Automotive High-Tech Valley in Proton City, Tanjong Malim, Perak.
  • JcbNext Bhd has disposed of a total of 581,225 shares, representing a 1.8% stake, in Taiwan-listed company 104 Corp between June 21, 2023 to Jan 3, 2024 for TW$119.9mn (approximately RM17.7mn).
  • HLT Global Bhd has proposed to acquire the remaining 20% stake in its 80%-owned rubber glove manufacturing unit, Triple Care Gloves Sdn Bhd for RM600,000, and will also be repaying existing Triple Care shareholders' advances totalling RM7.6mn via the issuance of new shares.
  • EP Manufacturing Bhd's subsidiary, PEPS-JV (Melaka) Sdn Bhd has been appointed as the contract vehicle assembler for Great Wall Motor Sales Malaysia Sdn Bhd (GWM), a subsidiary of Great Wall Motor Co Ltd.
  • Eversendai Corp Bhd has agreed to scrap a planned injection of a liftboat business into the group, proposed almost four years ago.
  • Datuk Fad'l Mohamed has resigned as CEO of Maybank Investment Bank Bhd, the investment subsidiary of Malayan Banking Bhd.
  • The US Federal Reserve's December meeting minutes showed policymakers agreed that it would be appropriate to maintain a restrictive stance "for some time," while acknowledging they were probably at the peak rate and would begin cutting in 2024.

Source: TA Research - 4 Jan 2024

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