TA Sector Research

Daily Market Commentary - 16 Jan 2024

Publish date: Tue, 16 Jan 2024, 09:46 AM

Review & Outlook

The local blue-chip benchmark climbed above the 1,500 level to close at a 14-month high on Monday, lifted by keen bargain hunting interest in the property (+2.6%), telco (+1.4%), plantation (+1.2%) and construction (+1.2%) sectors. The FBM KLCI surged 13.77 points to end near session highs at 1,501.11, off an early low of 1,487.81, as gainers led losers 575 to 456 on total turnover of 4.98bn shares worth RM3.13bn.

A profit-taking consolidation at current levels will be preferred to consolidate recent strong gains and promote a more sustainable uptrend ahead. The immediate overhead index resistance will be at 1,510, which restricted upside in Jan 2023, with next key hurdles seen at 1,520 and 1,550. Immediate chart support is still at 1,480, with better supports at 1,450/1,440 and 1,430.

Gadang shares will need sustained strength above the 76.4%FR (40sen) to fuel further upside momentum and challenge the 15/4/22 high (44sen), with next hurdle at the 123.6%FP (48sen), and solid support from the 100-day ma (33sen) cushioning downside. Gamuda need to overcome the 123.6%FP (RM5.16) to aim for the 138.2%FP (RM5.40) and 150%FP (RM5.59) ahead, with the 100-day ma (RM4.55) providing strong uptrend support.

News Bites

  • A total of 31 firms across seven local and international consortia have submitted concept proposals to MyHSR Corporation Sdn Bhd for the Kuala Lumpur-Singapore High Speed Rail project by its deadline on Monday.
  • CelcomDigi Bhd has partnered Japanese technology giants, SoftBank Corp and Sumitomo's subsidiary SC-NEX, to accelerate the digitalisation of Malaysian enterprises adopting the Fourth Industrial Revolution solution.
  • Sime Darby Bhd is to compulsorily acquire the remaining shares of UMW Holdings Bhd after accumulating 96.8% of the UMW's shares.
  • Tanco Holdings Bhd has received a letter from Malaysia Marine Department notifying that the Ministry of Transport of Malaysia has no objections to the proposed development of a smart AI container port in Negeri Sembilan.
  • Sunview Group Bhd has entered into a strategic business alliance agreement with a few Cambodian companies to establish a solar facility in Cambodia.
  • Econframe Bhd is proposing to acquire a 70.0% stake in ETA World Sdn Bhd for a purchase consideration of RM56.0mn.
  • George Kent (Malaysia) Bhd has invested up to US$532k (about RM2.5mn) for 70.0% stake in George Kent (Vietnam) Company Ltd and will operate an assembly plant capable of producing 600.0k water meters annually.
  • Tien Wah Press Holdings Bhd has entered into a Joint Venture Agreement with Cat Loi Joint Stock Company for the establishment of a joint venture company in Vietnam to undertake the business of production of paper packaging, printing packaging and other business activities.
  • EVD Bhd had been served with winding-up petitions arising from Construction Industry Payment and Adjudication Act 2012 claims by subcontractors totaling RM1.6mn.
  • Kanger International Bhd said its executive director Wu Wai Kong has emerged as a substantial shareholder on 15 January 2024 after acquiring 50.5mn shares in the company.
  • MGB Bhd, a subsidiary of LBS Bina Group Bhd, has promoted its executive vice chairman, Tan Sri Lim Hock San, to group executive chairman.
  • Jentayu Sustainables Bhd has appointed its executive director Baevinraj Thiagarajah as the group's new chief executive officer.
  • Wentel Engineering Holdings Bhd is pricing its shares at 26sen/share in an ACE Market listing exercise worth RM83.0mn, comprising RM71.0mn to be raised by the company via an initial public offering, and an offer for sale of a 4.0% stake in the company by 2 shareholders for RM12.0mn.
  • Alpha IVF Group Bhd said it has obtained the approval of Bursa Malaysia Securities to proceed with its proposed initial public offering on the ACE Market.
  • The People's Bank of China maintained the rate on its one-year policy loans at 2.5%, contrary to widespread expectations among economists that it would make its first trim to the rate since August.
  • US lawmakers released a stopgap spending bill to avert a partial government shutdown on Jan. 20, greatly reducing the chances of a closure.

Source: TA Research - 16 Jan 2024

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