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Friday, November 24, 2017

Market Daily Report: Local sentiments weighed down by uncertainties on GE14

KUALA LUMPUR (Nov 24): The FBM KLCI ended the week lower today as investors were either staying at the sidelines waiting for fresh leads ahead of the 14th General Election or switching to regional markets for higher returns.

At 5pm, the benchmark index fell 4.04 points or 0.23% to close at 1,717.23 points, after ranging between 1,713.26 points and 1,720.38 points.

The benchmark index has declined by 4.2% or 75.12 points from this year's peak of 1,792.35 points on June 14.

Areca Capital Sdn Bhd chief executive officer Danny Wong told that the Malaysia market weakness may persist for the next few weeks.

“I think the sentiment will remain weak over the next few weeks because of uncertainties on the upcoming general election. If you look at the regional market, there are many other markets which look more attractive than us. As foreign investors, it is very normal for them to opt out of Malaysia and go to somewhere that gives them better returns,” he said.

“Having said that, the mid-and small cap stocks are still attractive in Malaysia, judging by their recent quarterly financial results,” he added.

On Bursa Malaysia, some 1.84 billion shares worth some RM2.53 billion were traded today. On the scoreboard, losers outnumbered gainers 476 to 322, with 462 counters remaining unchanged.

Trive Property Group Bhd was the most actively traded counter, with 54.9 million shares traded. The counter went up 0.5 sen to 6.5 sen. Low-cost long haul carrier AirAsia X Bhd was the second most actively traded stock with 47.39 million shares changing hands. Its share price dropped two sen to 36 sen.

The ringgit weakened against the US dollar to 4.1170, and against the Singapore dollar to 3.0558 today.

Most major regional market indices closed on a positive note today, with Japan’s Nikkei gaining 0.12%, the Hong Kong Hang Seng Index going up by 0.53% and South Korean Kospi advancing 0.28%.

Reuters reported that Asian shares hovered below their 10-year peak on Friday while mainland Chinese shares dropped to three-month lows after big falls the previous day on concerns about fresh government steps to curb financial risks and an ongoing rout in the Chinese bond market.

Source: The Edge

Thursday, November 23, 2017

Market Daily Report: KLCI down with China shares amid CPO drag

KUALA LUMPUR (Nov 23): The FBM KLCI closed 2.27 points or 0.1% lower, tracking China's share drop on concerns about China's bond selloff. Malaysian crude palm oil (CPO) selling pressure also affected market sentiment.

At 5pm, the KLCI closed at 1,721.27 points on losses in KLCI-linked plantation counters Sime Darby Bhd, IOI Corp Bhd and Kuala Lumpur Kepong Bhd (KLK).

In China, the Shanghai Stock Exchange Composite fell 2.29% while Japan markets were closed for the Labour Thanksgiving Day holiday. US markets are also closed today for the Thanksgiving Day holiday.

In Malaysia, Malacca Securities Sdn Bhd research analyst Kenneth Leong told “Selling pressure in CPO is one of the sources of market weakness today. The other reason was China's bond selloff. It had affected local market sentiment as well."

Reuters reported that Chinese shares tumbled on Thursday with the blue-chip index suffering its worst fall in nearly 1½ years as worries about a selloff in the bond market bled into equities.

It was also reported that Malaysian CPO futures fell in early trade on Thursday as the edible oil was weighed down by a stronger ringgit and prospects of rising production. The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange was down 0.7 percent at RM2,626 a tonne at the midday break, its sharpest decline since Monday.

Across Bursa Malaysia today,, 2.09 billion shares worth RM1.87 billion were traded. There were 381 gainers versus 438 decliners.

KLK was the second-largest decliner after the stock fell 24 sen to RM24.26.

In currency markets, the ringgit appreciated against the US dollar to 4.0965, the strongest level over the last one year. The exchange rate today was between 4.0965 and 4.1215.

Source: The Edge