TA Sector Research

Daily Market Commentary - 23 Jan 2024

Publish date: Tue, 23 Jan 2024, 10:58 AM

Review & Outlook

Bursa Malaysia shares rose on Monday, led by the utility, construction and property sectors, as optimism over infrastructure plays offset concerns over the limit-down losses on certain small cap stocks. The FBM KLCI gained 4.82 points to close at 1,491.19, off an early low of 1,485.51 and high of 1,493.98, as gainers led losers 644 to 375 on total turnover of 4.79bn shares worth RM3.12bn.

Stocks should move back to recovery mode, given the assurance by regulators on the stock market's strong fundamentals and some reversal of the heavy losses suffered by selected small cap stocks. Immediate overhead resistance on the index stays at the 1,500/1,510 zone, with next key hurdles seen at 1,520 and 1,550. Key chart supports to watch will be 1,465 and 1,455, the respective 50-day and 100-day moving averages, with 1,440/1,430 as stronger supports.

Globetronics looks attractive to bargain at current levels, with key chart support from the 200-day ma (RM1.41) capping downside risk, while a breakout above the 100-day ma (RM1.56) should target the 61.8%FR (RM1.63) and 76.4%FR (RM1.79) ahead. Unisem need breakout confirmation 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) going forward, while the 200-day ma (RM3.14) restricts downside.

News Bites

  • Malaysia's headline inflation rate remained at 1.5% in December 2023.
  • Bank Negara Malaysia's international reserves rose to US$115.1bn as at Jan 15, 2024, from US$112.8bn as at Dec 15, sufficient to finance 5.4 months of imports of goods and services and was one times the total short-term external debt.
  • A special telecommunications package with exclusive discounts for ehailing and p-hailing workers will be announced on Tuesday, Communications Minister Fahmi Fadzil said.
  • Samaiden Group Bhd's wholly-owned subsidiary, Samaiden Sdn Bhd and its consortium member, JS Solar Sdn Bhd, have won a contract worth RM100mn from NUR Renewables Sdn Bhd to develop a solar power plant at Kulim Hi-Tech Park, Kedah.
  • Dayang Enterprise Holdings Bhd has received a one-year contract extension for the scope expansion to cover Sarawak Gas Area under contract amendment for the provision of offshore maintenance, construction and modification services for PETRONAS Carigali Sdn Bhd.
  • TAS Offshore Bhd via its wholly-owned subsidiary has secured shipbuilding contracts for three units of tugboats with a total value of RM22.6mn.
  • Bina Darulaman Bhd has teamed up with Shanghai Youzhu Industry Co Ltd to pursue an industrial waste management project.
  • Indonesian Internet provider PT Link Net, a unit of Axiata Group Bhd, is considering selling a stake in its fiber business to raise as much as USD500mn to fund an expansion, according to people with knowledge of the matter.
  • Jentayu Sustainables Bhd, whose share price plummeted 58% over the last week, asserted that the recent selling wave does not accurately reflect the company's underlying fundamentals.
  • Matrix Concepts Holdings Bhd remains firmly on course to achieve its sales target of RM1.35bn for its FY24 and plans to raise the bar even higher for the next fiscal year.
  • ACE Market-bound power cable manufacturer Master Tec Group Bhd's 51.0mn IPO shares available for public application have been oversubscribed by 7.11 times.
  • HE Group Bhd's IPO has been oversubscribed by 63.4 times by the Malaysian public ahead of its listing on the ACE Market of Bursa Malaysia on Jan 30.
  • UOA Real Estate Investment Trust's net rental income fell 11.8% to RM18.8mn for the 4QY23, from RM21.3mn a year earlier, dragged down by lower gross rental and higher property operating expenses.
  • Ajiya Bhd slipped into a net loss of RM13.0mn in the 4QFY23, compared to a net profit of RM9.5mn a year ago primarily due to impairments and retrenchment benefits.
  • PGF Capital Bhd's 3QFY24 net profit rose over twofold to RM5.4mn from RM2.0mn a year ago, driven by higher revenue.
  • China's capital city Beijing has set a growth target of around 5% for 2024, surpassing last year's target of above 4.5%, despite expectations of slower growth for the national economy.
  • China kept the one-year and five-year loan prime rate at 3.45% and 4.20%, respectively, matching market expectations.
  • The US Conference Board said its leading economic index edged down by 0.1% in December after falling by 0.5% in November.

Source: TA Research - 23 Jan 2024

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