TA Sector Research

Daily Market Commentary - 24 Nov 2023

Publish date: Fri, 24 Nov 2023, 12:55 PM

Review & Outlook

Stocks traded sideways on Thursday, tracking the performance of regional peers as sentiment weakened after the latest US Federal Reserve meeting minutes showed a cautious approach to future interest-rate moves. The FBM KLCI fell 2.60 points to close at 1,453.29, off an opening high of 1,456.68 and low of 1,451.35, as losers beat gainers 533 to 417 on total turnover of 3.70bn shares worth RM2.08bn.

The local market should remain in consolidation mode with downside bias ahead of the weekend given the lack of positive catalyst on the local front, while investors closely monitor the economic data for clues on inflation trajectory. Immediate index resistance stays at 1,465/1,470, with the 1,490/ 1,500 area acting as tougher upside hurdle, while immediate support remains at 1,450, with 1,430, and then 1,400/1,390 as stronger chart supports.

Maxis needs breakout confirmation above the 16/06/23 high (RM4.50) to enhance upside potential towards the 123.6%FP (RM4.86) and 138.2%FP (RM5.08) ahead, while key supports are at the 50%FR (RM3.74) and 38.2%FR (RM3.56). Likewise, TM will need convincing breakout above the 76.4%FR (RM5.47) to target the 25/08/22 peak (RM5.80) and 123.6%FP (RM6.13) ahead, while retracement supports are at the 38.2%FR (RM4.93) and 23.6%FR (RM4.73).

News Bites

  • CIMB Group Holdings Bhd is formalising its 2030 climate target for its palm oil sector portfolio, focusing on sustainable palm oil production, and is also establishing a target for its power portfolio to achieve its commitment towards net zero by 2050.
  • Tenaga Nasional Bhd's wholly-owned subsidiary has inked a partnership with the Perak State Development Corporation to harness floating solar potential in the Sungai Perak Hydroelectric Scheme, Dam and Reservoir.
  • Alliance Bank Malaysia Bhd is on track to achieving 81 locations nationwide by 2QFY2024 in its network expansion.
  • KSL Holdings Bhd is acquiring freehold land measuring 72,820 sq metres in Shah Alam, Selangor from S P Setia Bhd for RM228.8mn.
  • AirAsia X Bhd is set to spread its wings to Central Asia as the first Malaysian airline to fly directly to Almaty in Kazakhstan commencing on March 14, 2024.
  • Jentayu Sustainables Bhd is disposing of a 12,884 sq ft piece of residential land in Jalan Mayang here to Armani Development Sdn Bhd for RM25mn.
  • Pestech International Bhd said an injunction has been issued against its indirect wholly-owned subsidiary CRSE Sdn Bhd to restrain the company from calling on two bonds worth RM14.3mn.
  • Synergy House Bhd is cautiously optimistic on the potential of the global furniture e-commerce market and believes that with its strategies, the group will be able to capitalise on such potential and increase its market share.
  • Petronas Dagangan Bhd said its net profit for 3QFY2023 declined 33.1% to RM184.7mn from RM276mn in the same period last year, amid an increase in operating expenditure.
  • Telekom Malaysia Bhd's net profit more than doubled to RM538.2mn for 3QFY2023 from RM265.2mn recorded in the previous year's corresponding quarter, due to lower tax and net finance costs.
  • Genting Bhd posted a higher net profit of RM520.5mn in 3Q FY2023 from RM128mn in 3QFY2022, due to recovery in travel and tourism.
  • Genting Malaysia Bhd recorded a net profit of RM177.4mn or 3.1 sen per share for 3QFY2023, the group's highest quarterly profit since the Covid-19 outbreak in 1QFY2020, thanks to continued recovery in its leisure and hospitality businesses.
  • S P Setia Bhd has reported that its net profit for 3QFY2023 fell to RM51.8mn from RM70.2mn in the same quarter of 2022.
  • Allianz Malaysia Bhd net profit for 3QFY2023 rose to RM197.9mn from RM139.6mn registered in the corresponding period a year ago.
  • TSH Resources Bhd has recorded a core profit before tax of RM60.1mn in the 3QFY2023, up 76.7% from RM34mn in the corresponding quarter last year, on the back of higher revenue.
  • WCT Holdings Bhd has gone back to the red in the 3QFY2023 with a net loss of RM13.5mn despite stronger revenue compared to a net profit of RM12.5mn a year ago, due to absence of positive one-off items.
  • Oil fell as discord within OPEC+ forced the group to delay an upcoming meeting, quelling speculation of further production cuts by the Saudiled alliance just as US data showed a hefty rise in stockpiles.

Source: TA Research - 24 Nov 2023

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