TA Sector Research

Daily Market Commentary - 31 Jan 2024

Publish date: Wed, 31 Jan 2024, 10:16 AM

Review & Outlook

Bursa Malaysia shares slid into profit-taking consolidation on Tuesday, after the blue-chip benchmark hit resistance at 1,520 amid the more cautious regional tone following the liquidation of a top China property developer. The FBM KLCI eased 2.64 points to close at 1,512.75, off an early high of 1,520.31 and low of 1,511.84, as losers beat gainers 622 to 383 on slower trade totalling 3.77bn shares worth RM2.64bn.

Stocks should extend profit-taking consolidation ahead of the Federal Territory Day holiday, with more investors likely to be sidelined pending more market leads ahead of the weekend break. Immediate overhead resistance for the index is retained at 1,520, with stronger hurdles coming at 1,550 and 1,580. Key chart supports cushioning downside will be at 1,484, 1,474 and 1,461, the respective 30-day, 50-day and 100-day moving averages.

Maybank needs to overcome the 150%FP (RM9.32) to sustain uptrend and aim for the 161.8%FP (RM9.51) and 176.4%FP (RM9.75) ahead, while the 100-day ma (RM8.98) provides good uptrend support. Public Bank will need breakout confirmation above the 4/4/22 peak (RM4.51) to target the 123.6%FP (RM4.72) and 138.2%FP (RM4.86) going forward, while key uptrend support from the 100-day ma (RM4.22) cushions downside.

News Bites

  • Yinson Holdings Bhd's renewables business unit, Yinson Renewables has completed the acquisition of the 97 MWp Matarani Solar Project in Peru from Grenergy Renewables.
  • The Sarawak state government will soon raise its current 5% stake in Affin Bank to be a more significant shareholder in the bank.
  • Dayang Enterprise Holdings Bhd has been awarded a contract amendment and extension for the provision of maintenance construction and modification for PM8E Seligi oilfields from EnQuest Petroleum Production Malaysia Ltd.
  • Sapura Energy Bhd has been served with a €50mn (RM256.2mn) arbitration claim from the developer of the Yunlin offshore wind farm project over alleged contract breaches.
  • The largest shareholders of Malayan Flour Mills Bhd saw their stakes in the flour miller rise due to the mandatory conversion of redeemable convertible unsecured loan stocks.
  • Samaiden Group Bhd's indirect wholly-owned subsidiary, Samaiden Biomass Energy Sdn Bhd has received the feed-in tariff approval certificate from the Sustainable Energy Development Authority to construct and operate a Biomass Power Plant with an installed capacity of 7.0MW in Tangkak, Johor.
  • Uzma Bhd's 70%-owned unit Malaysian Energy Chemical & Services Sdn Bhd has won a contract from Hibiscus Oil & Gas Malaysia Ltd for the supply of chemicals and related services to the PM3 offshore fields over a five-year period between Nov 16, 2023 and Nov 15, 2028.
  • Poh Kong Holdings Bhd expects gold prices to climb higher to the US$2,005 - US$2,050 per troy ounce range in 2024 amidst expectations on the US Federal Reserve's interest rate cuts, ongoing geopolitical issues in the Middle East and the complex US-China relations.
  • DPS Resources Bhd, which is involved in the construction, housing development and home furniture business, has partnered with Sunview Group Bhd to develop green energy projects.
  • Sarawak Consolidated Industries Bhd deems the RM21.6mn cash it plans to fork out for five leasehold plots in Demak Laut Industrial Park in Kuching, Sarawak, as "fair and reasonable", after considering the prices of comparable properties in the same location.
  • MyEG Services Bhd co-founder Wong Thean Soon has disposed of a 2.66% stake in Excel Force MSC Bhd for RM5.8mn.
  • Reneuco Bhd has failed to submit its annual report for financial year 2023 within four months from the close of the financial year of the company which falls on Jan 31, 2024.
  • MMAG Holdings Bhd has appointed one of its former directors Woo Kam Weng as the chairman of the group's newly formed aviation arm MMAG Aviation Consortium Sdn Bhd.
  • HE Group Bhd has won a RM34.8mn contract from a semiconductor components manufacturer for a project in Kedah.
  • Avillion Bhd continues to operate its business as usual after the company and its subsidiaries were listed as part of assets former finance minister Tun Daim Zainuddin failed to declare to the Malaysian Anti-Corruption Commission.
  • Handal Energy Bhd had unintentionally named Pelaburan MARA Bhd as the party it previously announced to be potentially investing in its unit via redeemable non-convertible preference shares.
  • The IMF raised its global growth to 3.1% in 2024, up two-tenths of a percentage point from its October forecast, while maintaining 2025 growth at 3.2%.

Source: TA Research - 31 Jan 2024

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