TA Sector Research

Daily Market Commentary - 27 Nov 2023

Publish date: Mon, 27 Nov 2023, 09:40 AM

Review & Outlook

Note that while shorter-term daily technical indicators on the FBM KLCI have turned negative following last week's profit-taking consolidation, medium-term weekly indicators retained their upward trajectories, implying that the longer-term uptrend bias remained intact. Hence, near-term profittaking pullbacks should be viewed as buying opportunities for recovery upside ahead. Meantime, improving external sentiment following the Israel/ Hamas ceasefire, easing US/China trade tensions after the recent summit between the two top leaders, and more optimism that US interest rates have peaked and are poised to pivot for rate cuts sometime next year should filter through to aid recovery in global financial markets.

On the index, immediate support remains at 1,450, with 1,430, and then 1,400/1,390 as stronger chart supports, while the end June low of 1,370 will act as crucial support. Immediate resistance is still at 1,465/1,470, with the 1,490/1,500 area acting as a tougher upside hurdle.

As for stock picks for the coming week, key gaming, construction and technology-related counters like Genting Berhad, Genting Malaysia, Gadang, MRCB, Sunway Construction, UEM Sunrise, SKP Resources and VSI should attract bargain hunters looking for rotational plays and rebound upside ahead.

News Bites

  • Malaysia's headline inflation, measured by the consumer price index, continued to slow to 1.8% in October 2023, with the index points recorded at 130.9, compared with 128.6 a year ago.
  • IHH Healthcare Bhd said its 31.2%-owned associate company, Fortis Healthcare Ltd, is selling the Fortis Malar Hospital in Chennai, India for RM71.9mn.
  • MBSB Bank Bhd has withdrawn its winding-up petitions against Sentoria Group Bhd over a judgement debt of RM303.3k.
  • Sunway Bhd has signed a memorandum of understanding with Putrajaya Holdings Sdn Bhd to team up for the development of commercial land in Precincts 7 and 8 within the administrative capital.
  • Pharmaniaga Bhd has denied that the group ignored a letter of demand issued by the Ministry of Health regarding shortcomings in the procurement of faulty ventilators during the height of the Covid-19 pandemic in 2020.
  • Leform Berhad's 85.0%-owned subsidiary Leform Metal Sdn Bhd has secured a contract with Nim Meng Group Co. Ltd. for the supply of highway guardrail products for the National Road No. 5 Improvement Project, Package 4 in Cambodia worth US$2.0mn (RM9.2mn).
  • Samaiden Group Bhd has launched a solar project at Tsun Jin High School, which includes installing a solar photovoltaic system with a capacity of 637.65kWp.
  • Iris Corporation Bhd said it is taking its dispute with the Home Ministry over the cancellation of its contract for the National Integrated Immigration System to arbitration.
  • Apex Equity Holdings Bhd announced that the material litigation against the group and Apex Securities is hereby concluded and the Securities Commission will withdraw its claim against the group and Apex Securities.
  • ECM Libra Group Bhd is adding to its hospitality assets by acquiring 2 leasehold properties in the city centre of Liverpool, UK - the Tune Hotel and a ground floor shop with basement - for £4.5mn or about RM26.5mn.
  • Bintulu Port Holdings Bhd's 3QFY23 net profit increased 13.4% YoY to RM32.5mn. Quarterly revenue declined 5.9% YoY to RM186.5mn due to lower revenue from the handling of liquefied natural gas cargo and marine services to Darussalam Pilotage Services.
  • Malaysia will grant a 30-day visa-free entry for citizens of China and India from Dec 1, as part of the celebration of the 50-year strategic partnership between Malaysia and China next year.
  • The foreign ministers of South Korea, China and Japan meet in South Korea on Sunday, seeking to restart cooperation among the Asian neighbours and pave the way for a trilateral summit.
  • Japan's core consumer price growth picked up slightly in October, after easing the previous month, reinforcing investors' views that stubborn inflation may push the Bank of Japan to roll back monetary stimulus before long.
  • U.S. business activity held steady in November, but employment in the private sector declined for the first time in almost three-and-a-half years, consistent with expectations for an economic slowdown in the fourth quarter, S&P Global said.
  • Destatis showed that gross domestic product of Germany shrank 0.1% quarterly in the third quarter with the household consumption that used to be the pillar of growth, acting as a drag.

Source: TA Research - 27 Nov 2023

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