TA Sector Research

Daily Market Commentary - 19 September 2023

Publish date: Tue, 19 Sep 2023, 09:47 AM

Review & Outlook

Bursa Malaysia blue chips were mostly range bound on Monday with investors sidelined pending clearer cues from global central bankers on the direction of interest rates, but lower liner construction and property stocks were actively traded on policy or contract speculations. The FBM KLCI ended down 1.04 points at 1,457.99, off an early low of 1,452.86 and high of 1,458.46, as losers edged gainers 498 to 468 on total turnover of 3.38bn shares worth RM2.12bn.

Blue chips are likely to extend sideways consolidation pending clearer external leads, while lower liner property and construction stocks continue to attract trading interest on hopes for policy or contract announcements. Immediate overhead resistance for the index stays at 1,465, then 1,470, with the 1,490/1,500 area as next resistance, while immediate support cushioning downside is still at 1,440, followed by 1,433, with subsequently 1420/1,400 acting as stronger supports.

Gamuda need decisive breakout above the upper Bollinger band (RM4.56) to fuel further upside towards the 123.6%FP (RM4.72) and 138.2%FP (RM5.00) ahead, while uptrend supports are at the 100-day ma (RM4.28) and 200-day ma (RM4.06). Sime Darby need breakout confirmation above the 25/3/22 peak (RM2.27) to target the 123.6%FP (RM2.39) and 138.2%FP (RM2.46) going forward, while the 200-day ma (RM2.07) cushions downside.

News Bites

  • My E.G. Services Bhd and China's state-owned Guangxi Beitou IT Innovation Technology Investment Group Co Ltd have entered into a collaboration to leverage on the Zetrix blockchain to offer cross-border credentials verification services.
  • Itmax Bhd's 65%-owned subsidiary Southmax Sdn Bhd has secured an award from the Johor Bahru City Council to provide video surveillance services for a sum of RM105.3mn.
  • Cape EMS Bhd is acquiring 50,072 common stock in the United Statesbased company iConn Inc, representing all the issued capital stock worth approximately RM76.6mn.
  • Capital A Bhd's digital arm airasia Digital Sdn Bhd has changed its name to Move Digital Sdn Bhd as a strategic step to emphasise its commitment towards travel.
  • Mega First Corp Bhd, which is involved in the renewable energy, resources and packaging sectors, has teamed up with Lao Green Power Corp Co Ltd and Enemax Trading Ltd to jointly explore new business investment opportunities in Laos.
  • Boustead Holdings Bhd's move to dispose of a 33% stake in Boustead Plantations Bhd to Kuala Lumpur Kepong Bhd was necessary to resolve its cash flow problem and as debt settlement before the end of FY23, said the. Defense Minister Datuk Seri Mohamad Hasan.
  • Dayang Enterprise Holdings Bhd has secured a contract extension for the provision of Pan Malaysia maintenance, construction and modification from PTTEP Sarawak Oil Limited and PTTEP Sabah Oil Limited.
  • The group of shareholders making a bid to take control of KNM Group Bhd does not intend to acquire Borsig GmbH for cheap, but plans to introduce a five-year strategy to address both the company's growth and debt repayment, said Flavio Porro, a former executive director of KNM.
  • Sunview Group Bhd's wholly-owned subsidiary, Fabulous Sunview Sdn Bhd has signed an agreement with United Overseas Bank (M) Bhd to provide installation and management services of solar power systems for local businesses and consumers.
  • Priceworth International Bhd has proposed a private placement to raise up to RM15.5mn for working capital and to fund its timber reforestation activities.
  • Singapore's non-oil domestic exports fell 20.1% YoY in August.
  • Treasury Secretary Janet Yellen said that the US economy is showing no signs of a looming recession and that it's too soon to tell what impact there may be from the strike in the US automobile industry.

Source: TA Research - 19 Sept 2023

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