TA Sector Research

Daily Market Commentary - 24 Jan 2024

Publish date: Wed, 24 Jan 2024, 10:39 AM

Review & Outlook

Stocks rose further on Tuesday, with certain small caps recouping some of their recent heavy losses due to oversold rebound and light bargain hunting interest. The FBM KLCI added 4.92 points to settle at 1,496.11, off an early low of 1,490.2 and high of 1,500.39, as gainers led losers 511 to 470 on higher turnover of 5.16bn shares worth RM3.33bn.

The local market should move into recovery mode, with the reversal of recent heavy losses on selected small cap stocks and rotational plays to encourage bargain hunting. 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 cushioning downside will be at 1,475, 1,468 and 1,457, the respective 30-day, 50-day and 100-day moving averages.

Sunway Construction need sustained strength above the 150%FP (RM2.30) to enhance upward momentum towards the 161.8%FP (RM2.38) and 176.4%FP (RM2.46) ahead, with the rising 50-day ma (RM1.98) providing uptrend support. WCT Holdings will need to overcome the 61.8%FR (56sen) to fuel further recovery and aim for the 76.4%FR (61sen) and the 15/10/21 high (69sen) going forward, while the 200-day ma (48sen) limits downside risk.

News Bites

  • The government has extended the concession period with Express Rail Link Sdn Bhd by another 30 years to 2059, after seven years of negotiations since 2017, according to Transport Minister Anthony Loke Siew Fook.
  • Tenaga Nasional Bhd, via its subsidiary TNB Repair and Maintenance Sdn Bhd, is broadening its power plant maintenance business in Kuwait, with a five-year maintenance programme agreement for the Shuaiba North Power Generation and Water Distillation Plant in Ahmadi.
  • Mah Sing Group Bhd has entered into a master cooperation agreement with PT Gaya Sukses Mandiri Kaseindo to jointly carry out business relating to manufacturing and trading of plastic pallets, containers and related material handling and storing products in Indonesia.
  • AirAsia X Bhd's passenger load factor continued to climb to 80% for FY23, versus 78% a year earlier, even as seat capacity jumped 6.6 times YoY to 3.6mn.
  • Sime Darby Property Bhd's Elmina Lakeside Mall in the City of Elmina, Shah Alam, has secured 85% of confirmed tenancy prior to its completion and opening in 3Q24.
  • LBS Bina Group Bhd has issued the first tranche of sustainability sukuk, amounting to RM200mn, under its RM750mn Sukuk Wakalah Programme.
  • YNH Property Bhd said it has received offers to buy its Mont'Kiara retail shopping mall, which sits on a 6-acre land, and is expected to finalise the selection of the buyer in a month.
  • Rapid Synergy Bhd has signed an agreement on 23 Jan 2024 to sell a freehold land in Sri Hartamas, measuring 4,716 sq m, to Exsim Putra Permai 45 Sdn Bhd for RM39mn.
  • Hextar Capital Bhd plans to dispose of its 40% stakes in Unigel (UK) Ltd to Unigel Technologies Ltd for £1.3mn (RM7.6mn) and its 40% stake in Unigel IP Ltd to Unigel Ltd for £400k (RM2.3mn).
  • Agmo Holdings Bhd has teamed up with two individuals, Wong Zhi Heng and Ong Yong Seng, to provide end-to-end machine learning and artificial intelligence-powered solutions through a JV company,
  • Ni Hsin Group Bhd's wholly owned subsidiary Ni Hsin EV Mobility Sdn Bhd signed a master dealer agreement with MYUS Autotech Sdn Bhd, to promote and market EBIXON motorcycles in Perlis and Langkawi.
  • Star Media Group Bhd has appointed Chan Seng Fatt as its new group chief executive officer, effective 1 March 2024.
  • Former CEO of IOI Properties Group Bhd Datuk Voon Tin Yow is set to come out of retirement and assume the role of CEO at Mah Sing Group Bhd, effective 2 Feb 2024.
  • Two months after the departure of its former auditor, chemical manufacturer Sersol Bhd has appointed Morison LC PLT as the company's auditor effective immediately.
  • Sentral Real Estate Investment Trust's net property income rose 30.2% YoY to RM36.3mn for 4QFY23 as gross revenue increased 28.2% YoY to RM46.7mn.
  • Axis Real Estate Investment Trust's net property income for 4QFY23 increased by 6.3% YoY to RM66.2mn as revenue edged up by 6.5% YoY to RM75.6mn.
  • China will grow rapeseed on more land and stabilise soybean acreage this year, extending a policy drive to boost oilseed harvests and cut reliance on overseas supplies.
  • The Bank of Japan left unchanged its short-term rate target at -0.1% and that for the 10-year bond yield around 0%.

Source: TA Research - 24 Jan 2024

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