TA Sector Research

Daily Market Commentary - 05 September 2023

Publish date: Tue, 05 Sep 2023, 10:33 AM

Review & Outlook

Bursa Malaysia shares stayed range bound on Monday with profit-taking on key property and construction stocks checking recent strong gains. The FBM KLCI eased 0.71 points to settle at 1,462.72, after ranging within early high of 1,465.93 and low of 1,460.84, as losers edged gainers 526 to 498 on total turnover of 4bn shares worth RM2.37bn.

Resistance at 1,464/1,470; Support at 1,440/1,433

The local market should continue to trade sideways due to profit-taking on recent strong gains on property and construction counters, pending fresh leads to sustain the positive sentiment. Immediate overhead resistance for the index remains at 1,464/1,470, with next tougher resistance seen at the 1,490/1,500 level, while immediate chart support cushioning downside will be at 1,440, then 1,433, and subsequently 1420/1,400.

Bargain Bumi Armada & Dialog Group

Bumi Armada shares need breakout confirmation above the 61.8%FR (57sen) to sustain recovery towards the 76.4%FR (63sen), with tougher hurdle from the 7/3/23 high (73sen), while retracement support from the 38.2%FR (47sen) cushions downside. Dialog Group will need to overcome the 50%FR (RM2.27) to improve upside momentum towards the 61.8%FR (RM2.41), with the 76.4%FR (RM2.58) as next target, and downside cushioned by the 23.6%FR (RM1.96).

News Bites

  • Chin Hin Group Property Bhd has proposed a private placement of RM102.4mn to finance the working capital requirements of its property development projects.
  • Aeon Credit Service (M) Bhd issued a senior sukuk with a nominal amount of RM250.0mn, having a tenure of 5 years on 4 September 2023.
  • Dayang Enterprise Holdings Bhd's Pan Malaysia contract with Kebabangan Petroleum Operating Company Sdn Bhd to provide maintenance, construction and modification services has been extended by 1 year and 5 months till end-2024.
  • Comintel Corporation Bhd will be uplifted from its PN17 classification effective 5 September 2023 after its regularised financials no longer meet PN17-related criteria.
  • Lion Industries Corporation Bhd is selling 2 parcels of land, measuring 26.8 acres in Kawasan Perindustrian Olak Lempit, Banting, for RM92.0mn in cash.
  • Titijaya Land Bhd recorded a RM14.0mn impairment loss in the 4QFY23, as a result of its indirect wholly-owned subsidiary Renofajar Sdn Bhd being wound-up.
  • Ireka Corporation Bhd has joined hands with a property development and construction outfit for a mixed development project in Kajang, with a gross development value of RM310.0mn.
  • Sasbadi Holdings Bhd has secured a RM486.5k contract from the Education Ministry for supplying and delivering market-ready digital solutions.
  • FGV Holdings Bhd has been granted another 6-month extension by Bursa Malaysia Securities Bhd to comply with the minimum public shareholding spread requirement, pushing the deadline to 2 March 2024.
  • EA Technique (M) Bhd has secured another extension of 6 months to submit its regularisation plan, pushing its deadline to 23 February 2024.
  • Boilermech Holdings Bhd has changed its name to BM Greentech Bhd.
  • Morning Crest Sdn Bhd, controlled by former Eastern & Oriental Bhd executive deputy chairman and managing director Datuk Terry Tham Ka Hon, has ceased to be a substantial shareholder in E&O after selling 18.1mn shares or 11.6% in the property developer.
  • Eita Resources Bhd director Fu Mun Win and alternate director Fu Jia Lik have emerged as substantial shareholders of the electrical component supplier with a 16.5% stake.
  • China has proposed tougher-than-expected rules on commodities trading by its state-owned giants, as Beijing seek to tackle hidden risks.
  • The Sentix investor confidence index for Eurozone fell to -21.5 in September from -18.9 in August.

Source: TA Research - 5 Sept 2023

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