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Monday, October 23, 2017

Market Daily Report: FBM KLCI lifted by bargain hunting ahead of Malaysia's Budget 2018




KUALA LUMPUR (Oct 23): The FBM KLCI climbed 0.82 point on bargain hunting ahead of Malaysia's Budget 2018 announcement this Friday (Oct 27). Today, Malaysian shares rose as Japanese Prime Minister Shinzo Abe's election victory cheered global markets.

At 5pm today, the KLCI settled at 1,741.47 points. The index pared gains after reaching its intraday high at 1,744.86 points. Last Friday (Oct 20), the KLCI fell 3.34 points to close at 1,740.65 points.

Today, Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com: “After several declines last week, the local market is likely to see some bargain hunting activities this week, but the upside may not be significant."

Leong said the KLCI's rise was "most likely because of the feel good factor towards the upcoming Budget 2018 (as) it is the last federal budget before the next general election.”

Across Bursa Malaysia, trading volume was 2.73 billion shares worth RM1.95 billion. There were 402 gainers versus 405 decliners.

Malaysian shares rose with Japan equities afer Abe's election victory. Japan's Nikkei 225 rose 1.11% to close at 21,696.65 points, the index's highest in 21 years.

Reuters reported that Abe's convincing election victory lifted the Nikkei to its highest in 21 years and world stocks to an all-time high on Monday, despite an escalation of Spain's constitutional crisis that weighed on the country's banks.


Source: The Edge

Friday, October 20, 2017

Market Daily Report: FBM KLCI down on foreign selling



KUALA LUMPUR (Oct 20): Foreign selling put pressure on share prices and dragged down FBM KLCI, which closed 3.34 points or 0.19% lower at 1,740.65 points today.

The benchmark index has been on the losing streak for four consecutive trading days; it drifted to a six-month low. Hope of a strong pre-budget rally is waning. The index has declined 2.83% from the recent peak of 1,789.86 points on Sept 12, 2017.

Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng told theedgemarkets.com that the downtrend in KLCI for the past few days was caused by foreign selling, and he is expecting the trend to continue.

Wong noted that the global sentiment is good, but somehow the KLCI is not moving in tandem with it.

"The KLCI needs some catalysts such as corporate earnings. And we will see whether the upcoming Budget 2018 will have any impact on the corporate earnings," Wong added.

Across the board, some 2.62 billion shares worth RM2.24 billion were traded today. However, gainers outnumbered losers in 425 to 390.

Elsewhere in Asia, Japan's Nikkei 225 rose 0.04%, South Korea's Kospi climbed 0.67% while Hong Kong's Hang Seng was up 1.17%.

Reuters reported Japan's Nikkei share average rose for the 14th straight session on Friday to post its longest winning streak in over 50 years, as a weaker yen helped stocks recoup earlier losses.

During Asian trade, the US dollar appreciated 0.6% to 113.16 Japanese yen after news that the US Senate voted on Thursday to approve a budget blueprint for the 2018 fiscal year. This could pave the way for Republicans to pursue a tax-cut package without Democratic support, Reuters reported.


Source: The Edge

Thursday, October 19, 2017

Market Daily Report: FBM KLCI slides on profit taking in blue chips





KUALA LUMPUR (Oct 19): The FBM KLCI closed 5 points or 0.29% lower today as investors took profit, mainly in telecommunications, banking, and oil and gas heavyweights. At 5pm, the KLCI settled at 1,743.99 points.

TA Securities technical analyst Steven Soo told theedgemarkets.com that there has been aggressive selling of blue chips in the sectors mentioned, which has affected the broader market.

The unexpected resignation of Malaysia Airlines Bhd's chief executive officer Peter Bellew, Soo said, has also hurt sentiment, which resulted in a pullback of foreign investors' confidence and exposure in the local equities market, which have been largely on the rise.

"[And] as it's a Deepavali week, most market players are away," he added.

Soo also said with no upside catalysts, he is not seeing any buying support in the market presently. The benchmark index has also been ignoring the trend in global markets.

"The trading volume is elevated, it's quite high. The value, however, is not high. This shows that trading is focused on cheaper stocks. I expect this trend to continue tomorrow," said Soo.

Today, Bursa Malaysia saw 3.16 billion shares, worth RM2.51 billion, traded. There were 342 gainers and 502 decliners.

Across in Asia, Japan's Nikkei 225 rose 0.4%, South Korea's Kospi fell 0.4% while Hong Kong's Hang Seng was down 1.92%.

Reuters reported Japan's Nikkei share average rose for the 13th straight session on Thursday, establishing its longest winning streak since 1988, while scaling a fresh 21-year peak as gains in global stocks and a weaker yen cheered investors.


Source: The Edge

Tuesday, October 17, 2017

Market Daily Report: KLCI falls on Deepavali eve as selling pressure persists




KUALA LUMPUR (Oct 17): The FBM KLCI dipped 5.38 points or 0.3% today, amid persistent selling pressure ahead of the mid-week Deepavali break, as local market sentiment ignored the uptrend in commodities and regional markets.

Having traded mostly sideways for much of the day, the benchmark fell to as low as 1,748.99 after 4pm, where it stayed till the end of trading hours.

When contacted, Hong Leong Investment Bank analyst Low Ley See said investors' interests are still limited to small- and mid-caps ahead of the Budget 2018 presentation on Oct 27, and the upcoming third quarter financial results announcements.

“Investors are waiting for fresh buying catalysts. They are still monitoring the US dollar and the crude oil price. There is also an overhang ahead of the upcoming election,” Low told theedgemarkets.com.

Meanwhile, Reuters reported Asian shares held firm on optimism about upcoming earnings, while oil prices clung to this month’s high on Tuesday, after Iraqi forces seized the oil-rich city of Kirkuk from largely autonomous Kurdish fighters.

Across Asia, Hong Kong’s Hang Seng Index inched upwards by 0.08% towards its 10-year high, while Japan’s Nikkei 225 rose 0.38% to its 21-year high. South Korea’s KOSPI strengthened 0.17% for another fresh all-time record.

At 5.03pm, the ringgit weakened to 4.2235 against the greenback, after two consecutive days of gains.

Back on Bursa Malaysia, decliners led gainers by 468 to 365, while 415 counters traded unchanged. Some 2.89 billion shares, worth RM2.28 billion, were traded.


Source: The Edge


Monday, October 16, 2017

Market Daily Report: FBM KLCI down slightly as telcos decline




KUALA LUMPUR (Oct 16): The FBM KLCI closed marginally lower today, dragged down mainly by telecommunication heavyweights.

The benchmark index closed 0.95 points or 0.05% lower at 1,754.37.

Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng said the index was affected by falls in telecommunications stocks such as Axiata Group Bhd, DiGi.com Bhd and Maxis Bhd.
“The telcos have been in the run-up for the past two to three months. So, it’s probably because of profit taking,” Wong told theedgemarkets.com.

Wong said there was continued rotational play in small- and mid- cap stocks.

“There is an interesting performance in small- and mid- caps stocks.  And I foresee this to continue as investors are waiting for the details of Budget 2018, and quarterly results which are coming soon,” he added.

He said if the quarterly results are good, then this coupled with the Budget could be the catalysts for KLCI to rise further.

Overall, the market saw 3.16 billion shares worth RM2.27 billion traded. There were 372 gainers and 448 decliners.

Elsewhere in Asia, Japan's Nikkei 225 rose 0.47%, South Korea's Kospi climbed 0.26% while Hong Kong’s Hang Seng was up 0.76%.

Nikkei rose to a fresh 21-year high as the dollar stayed steady against the yen, while index-heavyweight SoftBank surged on news that T-Mobile and Sprint plan to merge.

Traders' belief that Japan’s ruling party bloc will win the general election later this month continued to underpin market sentiment, and a weaker yen raised hopes that Japanese companies will report strong earnings, Reuters reported.


Source: The Edge

Friday, October 13, 2017

Market Daily Report: KLCI rebounds on closing, lifted by Hong Leong Bank, BAT and TNB




KUALA LUMPUR (Oct 13): The FBM KLCI, which slid into the red earlier today, saw a slight rebound and gained 1.32 points or 0.07% to settle at 1,755.32 by the end of trading hours, boosted by the performance of several heavy weight counters, most notably Hong Leong Bank Bhd.

Bloomberg data showed that shares in Hong Leong Bank, which was among the top 10 active FBM KLCI counters, traded 0.9% or 14 sen higher to settle at RM16.02 today, despite thin trading volume of 334,100.

"While the blue chip stocks have been pretty lifeless of late, several heavyweights, like Hong Leong Bank, Fraser & Neave Holdings Bhd, British American Tobacco (Malaysia) Bhd and Tenaga Nasional Bhd — but especially Hong Leong Bank — contributed to the slight uptick in today's stock market," Inter-Pacific Securities Sdn Bhd's head of research Pong Teng Siew told theedgemarkets.com.

"Further, we had tech counters like ViTrox Corp Bhd and Pentamaster Corp Bhd, which traded up nicely," Pong added.

About 3.22 billion shares worth about RM1.99 billion were traded today.

Gainers outperformed losers with 426 against 362, while 477 counters settled unchanged.
Among the top gainers for the day were MESB Bhd, Pentamaster and ViTrox, while top losers included Panasonic Manufacturing Malaysia Bhd, Malaysian Pacific Industries Bhd and Lafarge Malaysia Bhd.

Across the region, Japan's Nikkei 225 grew 0.96%, Hong Kong's Hang Seng Index was up 0.06%, while the Korea Composite Stock Price Index was down 0.05%.

Reuters reported Asian stocks rose to a 10-year high on Friday, on expectations of brisk global growth. This was despite investors holding off chasing shares higher ahead of US economic data and next week's Chinese Communist Party congress.

"MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.23%, having gained 3.7% so far this month. Japan's Nikkei edged up 1% to another 21-year high," the report said.


Source: The Edge

Thursday, October 12, 2017

Market Daily Report: FBM KLCI falls; volume breaches four billion shares as FBM ACE trumps blue chips



KUALA LUMPUR (Oct 12): The FBM KLCI fell 3.21 points or 0.2% as rotational interest in smaller-capitalisation stocks helped the FBM ACE gain 136.78 points or 2%. Such sentiment led to a share-trade volume rise across Bursa Malaysia to above four billion units.

At 5pm, the KLCI closed at 1,754 points while the FBM ACE ended at 6,840.98 points. The KLCI fell today despite US equity indices reaching record closing highs overnight.

In Malaysia, Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com the stock market was "affected by renewed selling pressure in selected telco (telecommunication company) and banking heavyweights especially Hong Leong Bank Bhd and Digi.Com Bhd.”

Across Bursa Malaysia, 4.33 billion shares valued at RM2.39 billion changed hands. Gainers outpaced decliners at 446 versus 396 respectively.

Top gainers included rubber glove manufacturers Top Glove Corp Bhd, Hartalega Holdings Bhd and Kossan Rubber Industries Bhd.

US shares rose overnight. Reuters reported that major US stock indices edged up to post record closing highs on Wednesday after a report that a market-friendly candidate was being pushed as successor to Janet Yellen to helm the US central bank helped indices close near the highs of the day.

The Dow Jones Industrial Average rose 42.21 points, or 0.18 percent, to end at 22,872.89, the S&P 500 gained 4.6 points, or 0.18 percent, to 2,555.24 and the Nasdaq Composite added 16.30 points, or 0.25 percent, to 6,603.55.


Source: The Edge

Wednesday, October 11, 2017

Market Daily Report: KLCI cuts losses on IHH spike as telcos weigh down index




KUALA LUMPUR (Oct 11): The FBM KLCI cut losses for a 3.92-point or 0.2% drop after index-linked IHH Healthcare Bhd's share price spiked in the final trading minutes.

At 5pm, the KLCI closed at 1,757.21 points while IHH rose 20 sen to RM5.91. IHH was Bursa Malaysia's third-largest gainer.

Earlier, telecommunication companies' (telco) shares weighed down the KLCI.
Besides telco stocks Axiata Bhd, Digi.Com Bhd, Maxis Bhd and Telekom Malaysia Bhd, shares of Genting Bhd and Genting Malaysia Bhd also contributed to KLCI's loss.

“There is concern that valuations are still running ahead of earnings as share prices have already run up a fair bit,” Areca Capital Sdn Bhd CEO Danny Wong said.

At 5pm, Genting Bhd shares fell 13 sen to close at RM9.50, Genting Malaysia dropped nine sen to RM5.27 while Digi was 10 sen lower at RM4.88.

Genting Bhd and Genting Malaysia were Bursa Malaysia's second and seventh largest decliners respectively. Digi was the fifth-largest decliner.

Across Bursa Malaysia, 3.18 billion shares were traded for RM2.31 billion. Gainers outpaced decliners at 395 and 384 respectively.

Most active was Key Asic Bhd with some 249 million shares transacted. The stock rose 10.5 sen to close at 27 sen.


Source: The Edge

Tuesday, October 10, 2017

Market Daily Report: FBM KLCI down as Bursa small caps rise on rotational play



KUALA LUMPUR (Oct 10): The FBM KLCI closed down 2.9 points or 0.2% amid geopolitical concerns and US interest rate hike cues. Bursa Malaysia small-capitalisation (small-cap) stocks however rose on rotational interest.

At 5pm, the KLCI closed at 1,761.13 points. FTSE Bursa Malaysia ACE and FTSE Bursa Malaysia Small Cap indices rose 0.54% and 0.11% respectively.

“Blue chips (on the KLCI) are still in hibernation and appear to be extending their consolidation,” TA Securities Holdings Bhd technical analyst Stephen Soo told theedgemarkets.com.

Across Bursa Malaysia, 2.78 billion shares worth RM1.65 billion were traded. Gainers outpaced decliners at 382 and 379 respectively.

Going forward, Soo projected rotational play focused on small-cap stocks, particularly those in the oil and gas sector.

Today, the KLCI fell as investors evaluated the impact of US-North Korea geopolitical concerns and as investors anticipated a US interest rate hike this December.

Reuters reported that Russia and China both called for restraint on North Korea on Monday after US President Donald Trump warned over the weekend that "only one thing will work" in dealing with Pyongyang, hinting that military action was on his mind. Investors were particularly wary on Tuesday, when Pyongyang celebrated the founding of its ruling party, which loomed over other market factors.

Harumi Taguchi, principal economist at IHS Markit was quoted as saying in Tokyo: "We are expecting a December Fed rate hike, so we are expecting the trend to be dollar strength and yen depreciation, though whenever North Korean risks rise, that pushes down the dollar."


Source: The Edge

Friday, October 6, 2017

Market Daily Report: KLCI breaches 1,760 on optimism over upcoming Budget 2018




KUALA LUMPUR (Oct 6): The FBM KLCI closed 4.91 points or 0.28% higher as sentiment turns positive ahead of the upcoming budget 2018 later this month, and as foreign selling subsides.
At 5pm, the benchmark index ended at 1,764, above the 1,760 level, showing a return of buying interest.

"Market has rebounded above 1,760 level as sentiment turned positive since the final week of September. Foreign selling has subsided this week as compared to the last week of September," said Loui Low, Hong Leong Investment Bank Bhd's head of retail research.

He said the positivity was also supported by expectations that the upcoming Budget 2018, which is due to be tabled in Parliament on Oct 27, will see more contracts announced for the construction sector.

The recovery of oil and gas is another factor that is supporting the positive turn of events, he said.
Low also said the fourth quarter has historically seen a positive runup for the Malaysian market over the past twenty years.

British American Tobacco (M) Bhd was the top gainer on the local exchange today, climbing 82 sen or 1.92% to close at RM43.52, while Magni-Tech Industries Bhd led the decliners list as it fell 21 sen to RM6.99.

The most active counter was Palette Multimedia Bhd, whose share price surged 7.5% to a close at a new multi-year high of 36 sen, after some 109.5 million shares changed hands.
Across the board, 2.49 billion shares worth RM1.95 billion traded, with gainers leading decliners by 488 to 349.

In Asia, Japan's Nikkei 225 gained 0.3%, while Hong Kong's Hang Seng Index grew 0.28%. Nearer to home, Singapore's Strait Times Index jumped 0.9% with Indonesia's Jakarta Composite edged up 0.06%.

Reuters reported that Japan's Nikkei share average scaled a fresh two-year peak today and posted its fourth straight weekly gain, buoyed by the impact of a weaker currency as well as record highs on Wall Street.


Source: The Edge

Thursday, October 5, 2017

Market Daily Report: FBM KLCI down as KLCCP, Genting Malaysia decline



KUALA LUMPUR (Oct 5): The FBM KLCI closed 2.75 points or 0.2% lower as KLCI-linked shares including KLCCP Stapled Group and Genting Malaysia Bhd declined.

At 5pm, the KLCI closed at 1,759.09 points. KLCCP Stapled Group, comprising KLCC Property Holdings Bhd and KLCC Real Estate Investment Trust shares fell 17 sen to RM7.84.

Genting Malaysia dropped 11 sen to RM5.39. KLCCP Stapled Group and Genting Malaysia, both of which fell on profit taking, were Bursa Malaysia's second and fifth-largest decliners respectively.
Across Bursa Malaysia, 3.15 billion shares worth RM2.06 billion were traded. There were 451 gainers and 324 decliners.

“Generally, most of the stocks (on Bursa Malaysia) are on upside. What contributed to the lower (close of the) KLCI is KLCCP and Genting Malaysia,” Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng told theedgemarkets.com.

Malaysian shares fell despite US equities' overnight rise to record highs cheered global markets and as major Asian stock markets were closed for holidays.
 
Wong said: “The US has been for the last five to six days breaking records. This somewhat brings positive sentiment to this part of the world."

Across Asia, Japan's Nikkei 225 rose 0.01% as Mainland China, Hong Kong and South Korea markets were closed for holidays.

Hong Kong Exchanges and Clearing Ltd's website showed that Hong Kong markets were closed today following the Chinese Mid-Autumn Festival.

According to the Shanghai Stock Exchange website, Mainland China markets are closed from last Sunday (Oct 1) till this Sunday (Oct 8) for the Mid-Autumn Festival and National Day holidays.

South Korean markets are also closed this week. The Korea Exchange website showed that South Korean markets, which are closed from Monday (Oct 2) to Friday (Oct 6) for Chuseok Day, will remain closed this Monday (Oct 9) for Hangeul Day.

Overnight, Reuters reported that US stocks edged up to extend their run of record closing highs on Wednesday as data on the services sector added to signs of strength in the economy and prospects for earnings.

It was reported that it was the third straight session where all three major indexes hit record closing highs. The Dow Jones Industrial Average rose 19.97 points, or 0.09 percent, to end at 22,661.64, the S&P 500 gained 3.16 points, or 0.12 percent, to 2,537.74 and the Nasdaq Composite added 2.91 points, or 0.04 percent, to 6,534.63.


Source: The Edge

Wednesday, October 4, 2017

Market Daily Report: FBM KLCI up again on stronger buying interest



KUALA LUMPUR (Oct 4): The FBM KLCI rose 2.17 points or 0.1% on buying interest since yesterday after the index posted losses for the 10th consecutive day on Monday (Oct 2).

Today, investors could have continued bargain hunting for Malaysian shares which had in recent days fallen on US interest rate hike and tax cut cues.

At 5pm today, the KLCI ended at 1,761.84 points after rising 4.89 points yesterday.

Today, Inter-Pacific Securities Sdn Bhd research head Pong Teng Siew  told theedgemarkets.com : “There is an interest in the market after so many days of declining. The index started the recovery yesterday and continues its rally today.

"There was more retail buying interest compared with institutional."
Across Bursa Malaysia, 2.25 billion shares worth RM1.83 billion changed hands. There were 425 gainers versus 378 decliners.

Top gainers included Dutch Lady Milk Industries Bhd, which rose 16 sen to RM60.12 to become Bursa Malaysia's third-largest gainer.

“Interestingly some consumer stocks are making a comeback and they are moving up. The finance counters are also pushing the index up,” Pong said.

Malaysian shares rose with Asian equities. Japan's Nikkei 225 rose 0.06% while Hong Kong’s Hang Seng climbed 0.73%.

Reuters reported that Japanese and Hong Kong shares led Asian stocks higher on Wednesday, supported by optimism about global growth and as the Chinese central bank's weekend move to free up liquidity boosted mainland financial stocks.

Japan's Nikkei climbed to a more than two-year peak while Hong Kong's Hang Seng Index rose to a level not seen since May 2015. The Philippines Stock Exchange added 0.7 percent to a record high.

Across Asia this week, trade has been generally subdued and volumes thin with China and South Korea closed for week-long holidays, while analysts cautioned against reading too much into index moves.


Source: The Edge

Tuesday, October 3, 2017

Market Daily Report: KLCI rebounds after 10 consecutive days of losses



KUALA LUMPUR (Oct 3): The FBM KLCI rose 4.89 points or 0.3% with Asian shares after US equities closed at record highs overnight.

At Bursa Malaysia today, the KLCI closed at 1,759.67 points, the first rise after 10 consecutive days of losses. Across Asian share markets, Japan's Nikkei 225 rose 1.05% while Hong Kong’s Hang Seng gained 2.25%.

Mainland China markets are closed from last Sunday (Oct 1) till this Sunday (Oct 8) for the Mid-Autumn Festival and National Day holidays, according to the Shanghai Stock Exchange website.

South Korean markets are also closed this week. The Korea Exchange website shows that South Korean markets, which are closed from Monday (Oct 2) to Friday (Oct 6) for Chuseok Day, will remain closed this Monday (Oct 9) for Hangeul Day.

In Malaysia today, TA Securities Holdings Bhd senior technical analyst Stephen Soo told theedgemarkets.com: “I suspect there was a pause in foreign selling activity and due to the stronger US manufacturing number which is helping the market to rebound today."

Reuters reported that MSCI's 47-country 'All-World' index which contains more than 2,400 firms was pushed to the fresh peak as Europe's main bourses added to gains made in Asia and after Wall Street set its own record close again overnight.

It was reported that US stocks started the fourth quarter on a strong note on Monday, with all three major indexes hitting record high closes as data pointed to underlying strength in the economy. A measure of US manufacturing activity surged to a near 13½-year high in September.

Across Bursa Malaysia today, 2.17 billion shares worth RM2.07 billion changed hands. There were 388 gainers versus 379 decliners.

Top gainer Petron Malaysia Refining & Marketing Bhd added 58 sen to RM11.02 with some two million shares traded.


Source: The Edge

Monday, October 2, 2017

Market Daily Report: KLCI down for 10th consecutive day; ringgit weakens



KUALA LUMPUR (Oct 2): The FBM KLCI dropped 0.8 point to end at 1,754.78 points while the ringgit weakened against the US dollar as foreign selling continued on US interest rate hike bets.

Telekom Malaysia Bhd and British American Tobacco (M) Bhd share losses dragged down the KLCI as both KLCI-linked stocks fell among Bursa Malaysia major decliners.

Across Bursa Malaysia, there were 501 decliners versus 276 advancers. A total of 2.23 billion shares worth RM1.74 billion were traded.

“The weakness of the KLCI is due to the renewed foreign fund outflow and the market will continue to trend in a negative way in a couple of days due to the lack of fresh leads,” Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com.

The KLCI posted losses for the 10th consecutive trading session today.

Earlier today, TA Securities Holdings Bhd wrote in a note that "as technical indicators for the local benchmark index turn more bearish following the sell-off for the past nine consecutive trading days (ended last Friday), sentiment is likely to stay weak, dampened by the deleveraging of the US government's balance sheet which strengthens the outlook for rising US interest rates ahead, hence encouraging foreign portfolio outflows back to developed markets."

Such sentiment has weakened the ringgit. At the time of writing, the ringgit had depreciated to 4.2343 against the US dollar.

The ringgit has weakened against the US dollar from 4.1888 on Sept 18 this year.


Source: The Edge

Friday, September 29, 2017

Market Daily Report: KLCI ends September on weaker note




KUALA LUMPUR (Sept 29): The FBM KLCI fell 2.48 points or 0.1% as Hong Leong Financial Group Bhd and Public Bank Bhd dropped among Bursa Malaysia's top decliners on foreign selling.

TA Securities Holdings Bhd senior technical analyst Stephen Soo said there seemed to be selling pressure on Malaysian blue-chip stocks on US interest rate hike and tax cut cues.

“The foreign selling (in Malaysian shares) happens because investors’ mood or sentiment is damaged by the (US) fed funds (rate) announcement, Soo told theedgemarkets.com. The US interest rate is also known as federal funds rate.

At Bursa Malaysia, the KLCI ended at 1,755.58 points at 5pm. The KLCI had earlier fallen sharply to its intraday low at 1,753 points on Hong Leong Financial and Public Bank share losses.

At 5pm, Hong Leong Financial fell 20 sen to close at RM16.60 while Public Bank dropped 14 sen to RM20.44 to become Bursa Malaysia's third and fourth largest decliners respectively.

Across Bursa Malaysia, there were 397 decliners versus 387 advancers. A total of 2.02 billion shares worth RM2.13 billion were traded.

The most active stocks included CIMB Group Holdings Bhd, which rose three sen to RM6.30 with some 23 million shares transacted. CIMB was the 10th most active stock on Bursa Malaysia.


Source: The Edge

Thursday, September 28, 2017

Market Daily Report: KLCI falls 0.4% with Genting as foreign selling continues



KUALA LUMPUR (Sept 28): The FBM KLCI dropped 6.18 points or 0.4% mainly on late selling of index-constituent Genting Bhd shares. Malaysian equities have seen foreign selling on US interest rate hike and tax cut cues.

At 5pm, the KLCI ended at 1,758.06 points while Genting shares fell three sen to RM9.48. In currency markets, the ringgit weakened to 4.2310 versus the US dollar at 5:22pm.

“It (Malaysian shares) was down since last week on foreign selling factor. Investors’ sentiment will definitely get affected from this.

"At the moment, the US dollar is strengthening against the ringgit,"
Inter-Pacific Securities Sdn Bhd research head Pong Teng Siew told theedgemarkets.com.

Reuters reported that the dollar and US bond yields rose on Thursday after President Donald Trump proposed the biggest US tax overhaul in three decades and as strong US economic data supported the case for a Federal Reserve rate hike later this year.

Trump offered to lower corporate income tax rates, cut taxes for small businesses and reduce the top income tax rate for individuals. The dollar's strength pressured many emerging market currencies and bonds, helping drag down MSCI's broadest index of Asia-Pacific shares outside Japan 0.4 percent to one-month lows. South Korean 10-year yields hit a 2-year high.

Across Bursa Malaysia, there were 473 decliners versus 316 advancers. A total of 2.31 billion shares worth RM2.19 billion were traded.

Tiger Synergy Bhd was the most active stock with some 139 million shares transacted. Tiger Synergy shares closed unchanged at six sen.

Source: The Edge

Market Daily Report: KLCI down as foreign selling persists on U.S. rate hike cue



KUALA LUMPUR (Sept 27): The FBM KLCI lost 1.35 points or 0.1% as foreign selling of Malaysian stocks continued on expectation of U.S. interest rate hikes.

At 5pm, the KLCI closed at 1,764.24 points. U.S. interest rate hikes do not bode well for Asian markets, in anticipation investors will shift their money into US dollar-based assets.

“We are still at the selling stage. We will see how bad it gets, my guess is foreign selling will not slow down anytime soon,” Inter-Pacific Securities Sdn Bhd research head Pong Teng Siew told theedgemarkets.com.

Pong said foreign funds have been selling Malaysian equities since last week, as they took a cautious approach on the U.S.' impending quantitative drawdown and possible interest rate hikes.

Reuters reported markets were put on notice by Federal Reserve Chair Janet Yellen, who used a Tuesday speech to warn that it would be "imprudent" to keep policy on hold until inflation is back at 2%. She said the U.S. central bank "should also be wary of moving too gradually" on rates.

Across Bursa Malaysia today, 2.21 billion shares valued at RM2.16 billion exchanged hands. Gainers led decliners at 376 and 343 respectively.

Sapura Energy Bhd was among Bursa Malaysia's most active stocks and leading decliners. Sapura Energy reported today, a 74% drop in its second quarter net profit at RM28.93 million from a year earlier.

Sapura Energy was Bursa Malaysia's sixth most-active stock today, as well as the 10th-largest decliner. Sapura Energy shares fell 10 sen to RM1.61, with some 45 million units traded.


Source: The Edge

Tuesday, September 26, 2017

Market Daily Report: KLCI falls after North Korea says Donald Trump declared war



KUALA LUMPUR (Sept 26): The FBM KLCI fell 3.55 points or 0.2% after North Korea's statement saying US President Donald Trump has declared war on North Korea, rattled global markets.

Reuters reported North Korean Foreign Minister Ri Yong Ho as saying Trump's Twitter comments, in which the U.S. leader said Ri and leader Kim Jong Un "won't be around much longer" if they acted on their threats, amounted to a declaration of war and that Pyongyang had the right to take countermeasures.

It was reported that the White House disputed the declaration, calling the suggestion "absurd".
In Malaysia, the KLCI closed at 1,765.59 points, after falling to its intraday low at 1,761.21 points.
Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com that the US-North Korea "geopolitical tension" had affected market sentiment.

“(In Malaysia), there is selling pressure on renewed foreign fund outflow," Leong said.
Across Bursa Malaysia, 3.7 billion shares valued at RM2.74 billion exchanged hands. Decliners outpaced gainers at 528 against 282 respectively.

North Korea's statement rattled world share markets. Japan's Nikkei 225 declined 0.33%, while South Korea's Kospi was 0.26% lower.

Asian equities had tracked overnight US stock losses today. The Dow Jones Industrial Average fell 0.24%, S&P 500 declined 0.22%, while Nasdaq was down 0.88%.


Source: The Edge

Monday, September 25, 2017

Market Daily Report: KLCI falls 0.11% on further selling by foreign funds




KUALA LUMPUR (Sept 25): The FBM KLCI ended in negative territory for the fifth consecutive trading session today, on continued selling by foreign funds.

The benchmark index ended the day 1.90 points or 0.11% lower at 1769.14.

On the broader market, there were 558 decliners versus 264 advancers, while 412 counters finished unchanged. Some 2.46 billion shares, worth RM2.36 billion were traded.

“There has been unwinding of foreign funds and they have been selling for the past few days,” said Malacca Securities Sdn Bhd senior analyst Kenneth Leong.

“(The decline) is because of profit-taking as well, but only mild, in selective banking companies such as RHB Bank Bhd, Malayan Banking Bhd and AMMB Holdings Bhd,” Leong told theedgemarkets.com when contacted.

Elsewhere in Asia, Japan’s Nikkei 225 close up 0.50%, South Korea's Kospi fell 0.35%, while Hong Kong's Hang Seng decreased by 1.36%.

Reuters reported the Nikkei share average rose as a weaker yen lifted exporters, while expectations of economic stimulus measures, after an election next month supported overall sentiment.

As the end of Japan’s fiscal first half looms on Sept 30 for a majority of listed companies, the market was also underpinned by investors buying up stocks before they go ex-dividend on Wednesday.


Source: The Edge

Thursday, September 21, 2017

Market Daily Report: KLCI down as constituent stocks among top losers



KUALA LUMPUR (Sept 21): The FBM KLCI closed down 2.54 points today at 1,771.04 as its constituent stocks ranked among the top losers for the day.

Petronas Gas Bhd, British American Tobacco (M) Bhd and Hong Leong Industries Bhd were among the top losers. Also down was Genting Bhd, Genting Malaysia Bhd and Hong Leong Financial Group Bhd.

Stocks have been trading in a tight range, but the market saw a sizable volume of 3.25 billion shares valued at RM2.41 billion, noted Pong Teng Siew, head of research at Inter-Pacific Securities Sdn Bhd noted.
"There was heavy volume on some of the oil and gas counters, which are retreating on high volume after having made gains on similar volumes,” Pong told theedgemarkets.com

Hibiscus Petroleum Bhd and UMW Oil and Gas Corp Bhd were the top two most active counters, followed by Trive Property Group Bhd.

Meanwhile, semiconductor counters retook the limelight as top gainers with counters such as KESM Industries Bhd and Pentamaster Bhd alsp rising.

Overall, 434 counters closed lower compared to 378 gainers, while 438 counters closed unchanged.
Meanwhile, the US Federal Reserve’s "great unwinding" of its monetary policy and a December rate hike brought down Asian shares.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.5%, with Australian shares declining most by 0.8%, Reuters reported.


Source: The Edge

Wednesday, September 20, 2017

Market Daily Report: FBM KLCI in the red as CIMB drags




KUALA LUMPUR (Sept 20): The FBM KLCI closed 3.08 points or 0.17% lower at 1,773.58 points today, weighed by declines at CIMB Group Holdings Bhd.

AmInvestment Bank retail research vice president Lim Sai Wai told theedgemarkets.com that other than the drag from CIMB, the index was relatively flat today.

"It's quite obvious it's because of CIMB, and it takes time for traders to digest the news," said Lim.
He was referring to CIMB's confirmation that its Japanese shareholder Mitsubishi UFJ Financial Group (MUFG) has sold its entire stake of 412 million shares, equivalent to a 4.6% stake in the group, via an overnight block trade.

The banking group, however, did not say as to who the buyers were, nor how much the stake were sold for. On Bursa Malaysia, CIMB shares declined 15 sen or 2.32% to close at RM6.31, after dropping as low as RM6.22 earlier in the day.

"Apart from that, the general market [is seeing] more losers, but the small cap index closed positive. It is on the verge of recovering above a major resistance level," Lim added.

Today, Bursa Malaysia saw 3.15 billion shares, worth RM2.38 billion, traded. There were 352 gainers compared to 432 decliners.

KESM Industries Bhd topped the gainers list, closing 6.11% higher at RM15.98, while Far East Holdings Bhd led the decliners as it fell 6.12% to settle at RM9.20.

Hibiscus Petroleum Bhd was the most active counter, with over 416.67 million shares traded. It closed 39.78% higher at 65 sen.

Across Asia, Japan's Nikkei 225 rose 0.05%, South Korea's Kospi fell 0.16% while Hong Kong's Hang Seng was up 0.27%.

Reuters reported that Japanese stocks were nearly flat on Wednesday after scaling highs not seen in more than two years on Tuesday, as investors stayed cautious before the completion of the US Federal Reserve's policy meeting later today.

Traders said investors stayed on the sidelines as they awaited signals from the Fed on when it will hike rates again and start shrinking its balance sheet, said Reuters.

The US central bank is expected to announce when it will begin paring its bond holdings, and while a September interest rate increase is not expected, investors will closely study Fed Chair Janet Yellen's views on inflation for clues to whether the Fed will raise rates in December, the news agency added.


Source: The Edge

Tuesday, September 19, 2017

Market Daily Report: FBM KLCI down amid renewed caution ahead of US Fed meet




KUALA LUMPUR (Sept 19): The FBM KLCI slid 0.39% today, as renewed caution shadowed the market ahead of the two-day US Federal Reserve policy meeting, which will begin later today.
On market close, the KLCI settled at 1,776.66 points, down seven points.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com that the mood turned cautious as investors are waiting for updates from the Fed meet for clues on its plans to pare its balance sheet.

The market has largely been in the negative zone throughout the trading day. "The lower liners were also in the negative, in tandem with the local board," said Leong.

Across the board, Bursa Malaysia saw 2.01 billion shares worth RM1.92 billion traded. Decliners led gainers by 485 to 309.

Panasonic Manufacturing Malaysia Bhd topped the gainers list, closing 2.72% higher at RM38.50, while CIMB Group Holdings Bhd led the decliners as it fell 3.44% to close at RM6.46.

Hubline Bhd was the most active counter, with over 191.14 million shares traded. It closed 8.33% higher at 6.5 sen.

Across Asia, Japan's Nikkei 225 was up 1.96%; South Korea's Kospi fell 0.09% while Hong Kong's Hang Seng slid 0.38%.

Reuters reported that Japan's Nikkei share average surged 2% on Tuesday to hit its highest close in more than two years as investors drew confidence from a weakening yen and gains on Wall Street, while hopes of a snap election underpinned the market.


Source: The Edge

Monday, September 18, 2017

Market Daily Report: KLCI slides as local retail investors take a breather



KUALA LUMPUR (Sept 18): The FBM KLCI was down on the first trading day after the Malaysia Day weekend, as local retail investors take a breather from the market.

At 5pm, the KLCI was 2.67 points or 0.15% lower compared to Friday's close, to settle at 1,783.66 points.

"Local retail investors are taking a break from the market. There isn't enough liquidity to keep in the market," Inter-Pacific Securities Sdn Bhd's head of research Pong Teng Siew told theedgemarkets.com.

Pong stressed that the lack of liquidity in the market, as seen by lower bank deposits, is a cue that the market will be range bound for now.

"I'm still quite positive on the market but with the lack of liquidity, retail investors will take profit now and then, which will cause the market to take periodic breaks," he added.

The KLCI saw some 1.99 billion shares worth some RM1.61 billion traded today. Losers outnumbered gainers by 457 to 406, while 366 counters were unchanged.

United Plantations Bhd topped the gainers list, closing 1.48% higher at RM27.40, while Panasonic Manufacturing Malaysia Bhd led the decliners as it fell 4.87% to close at RM37.48. Sino Hua-An International Bhd was the most active counter, with over 99.7 million shares traded as it closed higher by 8.51% at 25.5 sen.

Meanwhile, Reuters reported that a surge in technology stocks helped lift Asian bourses to decade highs and emerging market shares to three-year highs on Monday, tracking gains in developed markets.

"The gains came after new closing highs on Wall Street on Friday, with the Nasdaq setting an intraday record. This fueled an appetite for Asian technology firms, with Samsung Electronics up over 4% to a record high and chip maker SK Hynix up 3.2%," it said.

Across Asia, Hong Kong's Hang Seng Index closed 1.27% higher and South Korea's Kospi gained 1.35%. The MSCI AC Asia Pacific was up 0.05%, with Asian shares ex-Japan up just over 1% to highs not seen since late 2007. Markets in Japan are closed for the Respect-for-the-Aged Day holiday.


Source: The Edge

Friday, September 15, 2017

Market Daily Report: FBM KLCI rises on bargain hunting for blue chips




KUALA LUMPUR (Sept 15): The FBM KLCI ended on a positive note on the last trading day of this week, as investors were bargain hunting for blue chip stocks, despite a negative broader market.

At 5pm, the KLCI climbed 0.3% higher than the previous day's close to settle at 1,786.33 points, 0.36% higher than its close of 1,779.90 points seen last Friday.

"The improvement of the KLCI today is largely due to bargain hunting of major blue chip companies such as British American Tobacco (Malaysia) Bhd. However, this is not an accurate picture of the broader market, which is still negative," a technical analyst at TA Securities Holdings Bhd told theedgemarkets.com.

Meanwhile, oil and gas counters are seeing a little rebound.

"The oil and gas sector is going through its rotational period and is seeing improvement in performance due to the increase in oil prices lately," he added.

Oil players such as Hibiscus Petroleum Bhd, Scomi Group Bhd, and Bumi Armada Bhd were among the top active counters today.

The KLCI saw some 2.15 billion shares worth some RM2.7 billion exchanging hands today. Losers outnumbered gainers at 447 versus 379, while 402 counters were unchanged.

BAT topped the gainers list, closing 1.1% higher at RM44.10, while Magni-Tech Industries Bhd dominated the decliners, shedding 15.62% to settle at RM6.16.

Reuters reported that North Korea's missile launch caused investors to worry but did not trigger the level of risk aversion seen last week.

Across Asia, Japan's Nikkei 225 closed 0.52% higher, while Hong Kong's Hang Seng rose 0.11%. South Korea's KOSPI climbed 0.35%.


Source: The Edge

Thursday, September 14, 2017

Market Daily Report: FBM KLCI sheds 0.3% after China economic data disappoints




KUALA LUMPUR (Sept 14): The FBM KLCI closed 4.7 points or 0.3% lower with Asian share markets after China reported weaker-than-expected economic data, which included factory output and retail sales growth.

At 5pm, the KLCI settled at 1,781.37 points. In China, the Shanghai Stock Exchange Composite dropped 0.38%, while Hong Kong’s Hang Seng shed 0.42%. Japan’s Nikkei 225 fell 0.29%.
 
In Malaysia, Malacca Securities Sdn Bhd analyst Kenneth Leong told theedgemarkets.com: “The KLCI was trading mostly in negative territory today, in line with weakness across key regional indexes, due to China’s factory output and retail sales growth data, which came in below economists’ expectations.”

Reuters reported China's factory output grew 6.0% in August from a year earlier, while fixed-asset investment expanded 7.8% in the first eight months, both well below economists' forecasts, data showed on Thursday.

Analysts polled by Reuters had predicted factory output to grow 6.6% in August, up from 6.4% in the previous month. Fixed-asset investment had been forecast to grow 8.2% over the first eight months of the year, which would have marked a slight moderation from 8.3 growth in January-July.

Retail sales rose 10.1% in August from a year earlier, the statistics bureau said, cooling from July's 10.4% pace and below analysts' expectations for a 10.5% increase.

In Malaysia, Leong said the broader market faced negative sentiment today, as share trade volume and value across Bursa Malaysia dropped.

The bourse saw 1.89 billion shares, traded for RM1.81 billion. Decliners outnumbered gainers at 464 to 376 respectively.

“Trading volume is also below the 2 billion mark, which is not so encouraging,” Leong said. Yesterday, Bursa Malaysia registered a share trade volume of 2.7 billion shares, worth RM1.85 billion.


Source: The Edge

Wednesday, September 13, 2017

Market Daily Report: FBM KLCI lower on profit taking after rising on US share gains




KUALA LUMPUR (Sept 13): The FBM KLCI shed 3.79 points or 0.2% on profit taking after the index breached the 1,790-point level in intraday trade.

At 5pm, the KLCI closed at 1,786.07 points after rising to its intraday high at 1,793.22 points. The KLCI had earlier risen after the US' S&P 500 closed at a record high overnight on Tuesday.

In Malaysia today, Maybank Investment Bank Bhd chartist Nik Ihsan Raja Abdullah told theedgemarkets.com that “the (KLCI's) lower performance is actually a healthy pullback for the market, as you can see that the trading volume remains strong at 2.7 billion shares.
"The broader market is still positive.”

Across Bursa Malaysia, the 2.7 bllion share-trade volume was worth RM1.85 billion. Decliners outnumbered gainers at 462 to 362 respectively.

DBE Gurney Resources Bhd was the most-active stock. DBE shares closed 0.5 sen  higher at 3.5 sen with some 193 million units traded.

Malaysian shares tracked overnight US share gains. Reuters reported that the Dow Jones Industrial Average rose 61.49 points or 0.28 percent to 22,118.86, the S&P 500 gained 8.37 points or 0.34 percent to 2,496.48 and the Nasdaq Composite added 22.02 points or 0.34 percent to 6,454.28.

It was reported that the S&P 500 hit a record closing high for the second day in a row on Tuesday, with financial stocks leading the charge, but gains were stunted by a decline in Apple Inc shares after it unveiled its latest iPhone.



Source: The Edge

Tuesday, September 12, 2017

Market Daily Report: FBM KLCI up 0.4% at intraday high on foreign buying



KUALA LUMPUR (Sept 12): The FBM KLCI rose 7.12 points or 0.4% to its intraday high while share-trade volume across Bursa Malaysia climbed to 3.66 billion shares on foreign buying.

At 5pm, the KLCI closed at 1,789.86 points mainly on Hong Leong Financial Group Bhd's share price spike in the final trading minutes. Hong Leong Financial added 18 sen to RM17.24 to become Bursa Malaysia's eighth-largest gainer.

“The KCLI’s performance today is spurred by the positive spillover effect from the S&P 500, which closed at its record high overnight (Monday), thereby, pushing the KLCI [further] into the positive,” Malacca Securities Sdn Bhd analyst Kenneth Leong told theedgemarkets.com.

Leong said there was "renewed buying interest today in the KLCI, particularly from foreign investors, resulting in fresh funds buying into the market."

Across Bursa Malaysia, 3.66 billion shares valued at RM2.26 billion were traded. Gainers outnumbered decliners at 460 and 345 respectively.

Yesterday, 2.73 billion shares worth RM2.16 billion were traded across the bourse.
Today, Petronas Gas Bhd topped Bursa Malaysia gainers while Malaysian Pacific Industries Bhd led decliners.

MQ Technology Bhd was the most-active counter. MQ shares rose 3.5 sen to 8.5 sen with some 487 million shares transacted.

SJ Securities Sdn Bhd senior remisier Goh Kay Chong said short-term traders might have bought MQ shares on expectation the company will benefit from a weaker ringgit versus the baht. At 5:18pm today, the ringgit weakened to 12.7065 against the baht.

“MQ Technology is one of the companies that is benefiting from the rise of the Thai baht. MQ earns about 25% of its turnover from Thailand,” Goh told theedgemarkets.com.


Source: The Edge

Monday, September 11, 2017

Market Daily Report: FBM KLCI up on North Korea cue as Hengyuan renews investor confidence




KUALA LUMPUR (Sept 11): THE FBM KLCI closed 2.84 points or 0.2% higher today with Asian shares after North Korea refrained from missile launches during the 69th anniversary of North Korea’s founding on Saturday.

In Malaysia today, investor confidence also grew amid improved performance of shares in downstream oil and gas-related companies like Hengyuan Refining Co Bhd, Petron Malaysia Refining & Marketing Bhd and Lotte Chemical Titan Holding Bhd. At 5pm, the KLCI closed at 1,782.74 points.

“Investors are reacting to changes in direction of petrochemical and refining companies’ stocks,” Inter-Pacific Securities Sdn Bhd research head Pong Teng Siew told theedgemarkets.com.

Hengyuan, Petron and Lotte were among Bursa Malaysia top gainers. Hengyuan closed 47 sen higher at RM8.21, Petron added 43 sen to RM9.83 while Lotte rose 26 sen to RM5.77.

Across Bursa Malaysia, gainers outnumbered decliners at 502 and 312  respectively. A total of 2.73 billion shares worth RM2.16 billion changed hands.

Malaysian shares rose with Asian equities on North Korea's latest geopolitical sentiment. Japan's Nikkei 225 rose 1.41% while Hong Kong’s Hang Seng closed 1.04% higher.
South Korea’s Kospi addded 0.66%.


Source: The Edge

China's onshore bond market getting used to defaults?

When I woke up today, I was caught astounded by an article on Bloomberg, relating to the China's bond market that is seeing higher default rates.

Is this the new reality? If it is, I think there's every reasons to be cautious since China is the world's third largest bond market by value. 


Wuyang Construction Group Co., a builder in the eastern province of Zhejiang, defaulted on two put-able notes totaling 1.36 billion yuan ($209 million) last month. Bondholders are now up in arms, claiming in an Aug. 23 filing posted on the Shanghai Stock Exchange’s website that the company didn’t disclose a raft of transgressions in sale documents for the bonds, which were sold in 2015. Three phone calls to Wuyang Constructions’ headquarters in Hangzhou went unanswered, and the company didn’t respond to a fax from Bloomberg News.

The incident is a good example of the teething problems China is seeing as it works to develop its $9 trillion bond market -- made more accessible to offshore investors via a connect with Hong Kong in July.

But it is not the only companies with such an issue. 

A quick look at the data provided by Bloomberg on China's onshore bond market's default since 2014.


Well, the good news is most of the bonds are still hold locally, with only 1.5% of the holdings are foreigners. 

The lack of disclosure especially on critical information has continued to be an issue for debt investors in China. I'm not too sure but this definitely doesn't sound like a good news for a country heavily in debt. 

Hektar REIT banks on turnover lease


KUALA LUMPUR: Turnover rent structure has helped Hektar Real Estate Investment Trust (Hektar REIT) to manage rental pressures amid a weak retail environment coupled with the overbuilding of malls in the Klang Valley.

Hektar Asset Management Sdn Bhd, the manager of Hektar REIT, said that while the average rental reversion measured on base rent was reduced by 7.1% in the first half of 2017, the lower base rent was covered by turnover rent.

The base rent is a fixed initial rent that has been agreed upon while turnover rent depends on the annual turnover of the retail’s business.

“When the tenants do well and their sales go up, then they can afford to pay more rent as a percentage of that (increased revenue),” said Hektar Asset Management chief executive officer Datuk Hisham Othman.

“This structure also allowed us to monitor the performance of our tenants and by having their sales figures in hand, we can foresee the direction of where the business is heading,” Hisham told The Edge Financial Daily.

“So, as a landlord, we can take action in advance to find replacements or help them with marketing,” he added, noting that tenants are generally keen with the new rental structure especially in the current macroeconomic climate.

Unlike most REITs, Hektar REIT is a retail-focused investment trust with a diversified portfolio in secondary cities apart from one in the Klang Valley. This has given the management an advantage as they would be able to introduce existing brands in the Klang Valley that have yet to have a presence in these cities.

Subang Parade, which is the only mall under its portfolio situated in the Klang Valley and the main contributor to its earnings, has seen a negative rental reversion measured on base rent but a 2% growth in its monthly moving average turnover rent.

Another notable decline in its base rent is the Mahkota Parade in Melaka, which has fallen by 10.8%. However, when measured on its moving average turnover rent, it had grown by 198% as at June 30.
Hisham said Hektar REIT is also at the design stage to revamp Subang Parade to cater to current consumer needs. The renovation is expected to be implemented in stages, with the first stage involving the expansion of its food and beverages (F&B) area, taking advantage of the sector’s resilience amid the current weak economic sentiment.

“We realise that the F&B offerings in Subang Parade need to be stepped up, and we have plans for that. The design is almost complete and we will tender this out soon,” he said.

The investment for asset enhancement initiatives (AEI) for Subang Parade will be higher than the RM23 million spent on AEI in Landmark Central, another mall under Hektar REIT’s portfolio, located in Kulim, Kedah.

The AEI on Landmark Central involved massive renovations and reconstruction on every floor, car park, toilets, food court, corridors and walkways. Hashim said that the upgrade has created new net lettable areas covering 20,000 sq ft with 24 new lots, of which 21 has secured tenants.

“The new tenants are doing their fit-out right now, and we’re looking to officially launch the renovated area by the end of December,” Hisham added.
Going forward, Hektar REIT is also looking to introduce edutainment components in its malls to appeal to children in an educational sense while having fun.
On threats from the emerging e-commerce business, Hisham said there was a trend of convergence between traditional bricks and mortar shops with online retail stores. Thus, as online businesses grow rapidly, one way to expand the business is to set up a physical store. Similarly, a business that already has its own physical store may want to increase its presence online in order to expand its reach of customers.

“For example, we have a cake shop [tenant] in Subang Parade. Before they set up a shop in Subang Parade, they were doing good business online. In fact, that was how they became known. When they put up a physical store where customers can eat at ... their sales is currently one of the best,” he said.
Hektar REIT’s portfolio also comprises Wetex Parade in Muar, Johor and Central Square in Sungai Petani, Kedah. These malls together with Subang Parade, Mahkota Parade and Landmark Central have a combined value of RM1.09 billion.

The soon-to-be completed acquisition of 1Segamat Shopping Centre in Segamat, Johor will contribute to Hektar REIT’s revenue from 2018 onwards. The acquisition was initiated in June last year and the rights issue to fund the acquisition has been reported to be oversubscribed by 13%.

Hektar REIT’s portfolio had boasted an average of 93% occupancy rate for the past 10 years. Most notably, its Wetex Parade in Muar has enjoyed a 100% occupancy rate. This is partly due to the group’s strategy of focusing on malls that are situated in secondary cities which do not entail much competition.

Asked whether there were any other target acquisitions, Hisham said that while buying opportunities were abundant, Hektar REIT only focused on those with high-yielding potentials.

A fund manager with a local asset management firm told The Edge Financial Daily that while retail malls are still in a challenging environment, Hektar REIT’s dividend yield appears attractive.

“In the assumption [that] wage growth kicked in and the consumer sentiment index continued to inch up, it makes sense to take some position now as it has a limited downside,” he said.

Historically, the average distribution yield for Hektar REIT is about 8% since its listing, and has seen its portfolio expand from two malls to six malls, including the 1Segamat Shopping Centre.
Hektar REIT, which last traded at RM1.28, has a trailing 12-month dividend yield of about 8.9%.


Source: The Edge Financial Daily

Friday, September 8, 2017

Market Daily Report: FBM KLCI closes lower on profit taking




KUALA LUMPUR (Sept 8): The FBM KLCI saw a modest pullback today on profit taking, erasing gains accumulated over the past two trading days.

The benchmark index closed the day 3.08 points or 0.17% lower at 1,779.90. It opened at 1,781.07 points and moved between 1,775.06 and 1,782.81.

Malacca Securities head of research Victor Wan said the index's retreat was a "healthy pullback", as gains in the market, which largely reflected the positive economic outlook, were overdone.

"There are very few catalysts at this point, as the market has gone up by about 8% year-to-date. The gains were overdone so it is expected that the market pulls back today," Wan told theedgemarkets.com.

On the broader market, however, gainers outpaced decliners by 473 to 384 while 404 counters were unchanged.

Trading volume rose to 2.97 billion shares worth RM2.27 billion, from 2.63 billion shares valued at RM2.41 billion yesterday.

Red chip company Sino Hua-An International Bhd was the most active counter with 313.39 million shares exchanged. It closed at 23.5 sen, up 5.5 sen or 30.56%.

Elsewhere in the region, indices were mostly in red in tandem with geopolitical risks and natural disasters which spooked investors in the United States.

This, however, excluded Hong Kong's Hang Seng, which rose 145.55 points or 0.53% to close at 27,668.4, supported by the strengthening of the Hong Kong dollar.

Japan's Nikkei fell 121.70 points or 0.63% to 19,274.82, while South Korea's Kospi closed 2.47 points or 0.11% lower at 2,343.72, due to the downward revision of Japan's GDP growth and geopolitical tensions in North Korea.


Source: The Edge

Thursday, September 7, 2017

Market Daily Report: FBM KLCI up on BAT spike, Malaysia election cue



KUALA LUMPUR (Sept 7): The FBM KLCI jumped 10.5 points or 0.6% mainly on index-linked British American Tobacco (M) Bhd's (BAT) share price spike in the final trading minutes.

Analysts said the KLCI had also risen on Malaysia's 14th General Election's (14th GE) timing speculation. At 5pm, the KLCI closed at 1,782.98 points while Bursa Malaysia top gainer BAT added RM1.46 to RM44.60.

“It’s very much linked to the 14th GE. It was the case during the late 2012 and early 2013. It’s almost like a replay,” Inter-Pacific Securities Sdn Bhd  research head Pong Teng Siew told theedgemarkets.com.

Malaysia held its 13th GE on May 5, 2013.

Today, the KLCI also rose on KLCI- and Malaysian Government-linked Tenaga Nasional's share gains. Tenaga added 16 sen to close at RM14.56.

Across Bursa Malaysia, 2.63 billion shares worth RM2.41 billion were traded. Gainers outpaced decliners at 504 against 299 respectively.

The most-active stocks included Olympia Industries Bhd and Iris Corp Bhd.


Source: The Edge

Wednesday, September 6, 2017

Market Daily Report: Malaysian stocks end higher, buck trend in region



KUALA LUMPUR (Sept 6): Malaysian stocks bucked regional trend to finish higher today, as bargain hunting helped the market to recover from yesterday's fall.

The FBM KLCI closed 0.16% or 2.85 points higher at 1,772.48. The market traded between an intra-day high of 1,772.62 and a low of 1,767.07 today.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong said while the KLCI opened lower today, bargain-hunting activities in selected heavyweights pushed the benchmark index higher.

"It is also probably because of the stronger ringgit and higher crude oil prices that pushed the key index upward," he told theedgemarkets.com.

Leong said trading volume is at a healthy 2 billion range since yesterday, indicating fresh money coming into the market.

However, trading volume fell to 2.21 billion shares worth RM1.81 billion compared with yesterday's 2.53 billion shares worth RM2.18 billion. Market breadth was positive with 407 gainers compared with 377 losers.

According to Bloomberg, Asian shares finished lower today, to extend losses for a second day in a row, after North Korea's nuclear test on Sunday rattled global equity markets.

Japan's Nikkei 225 dropped 0.14%, South Korea's Kospi fell 0.29% while Hong Kong's Hang Seng was down 0.46%.

A top North Korean diplomat reportedly warned yesterday his country is ready to send "more gift packages" to the US as world powers struggled to find an effective response to Pyongyang's latest nuclear weapons test.


Source: The Edge

Tuesday, September 5, 2017

Market Daily Report: FBM KLCI down on profit taking amid North Korea concerns




KUALA LUMPUR (Sept 5): The FBM KLCI closed 3.53 points or 0.2% lower on profit taking amid concerns over the US and North Korea's geopolitical tension.

At 5pm, the KLCI closed at 1,769.63 points. Last Wednesday (Aug 30), the KLCI rose 12.02 points to end at 1,773.16 points. Malaysian markets resumed trading today following a break since Thursday (Aug 31).

Malaysian markets were closed for National Day on Thursday and Hari Raya Haji on Friday (Sept 1). In an unexpected move, Prime Minister Datuk Seri Najib Tun Razak had last week declared that yesterday (Sept 4) would be a public holiday following Malaysia's stellar performance at the 29th SEA Games.

Today, Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com that despite the KLCI opening in the green, quick profit taking sent the index lower for most of the trading session due to the US- North Korea geopolitical tension.

Reuters reported that North Korea on Sunday conducted its sixth and most powerful nuclear test, which it said was of an advanced hydrogen bomb for a long-range missile, prompting the threat of a "massive" military response from the United States if it or its allies were threatened.

Today, Leong said : “We [still] find some strong (KLCI) resistance at the 1,780 level, which was previously retested in early August,” Leong said.

Across Bursa Malaysia, 2.53 billion shares worth RM2.18 billion were traded. There were 335 gainers and 536 decliners.

Asian share markets fell. Japan's Nikkei 225 dropped 0.63%, South Korea's Kospi fell 0.13% while Hong Kong’s Hang Seng erased losses to close flat.

Reuters reported that Asian shares eked out small gains on Tuesday as expectations that Beijing will maintain support for its economy ahead of a key congress supported Chinese stocks and metals prices, but worries about North Korea kept many investors on edge.


Source: The Edge

Wednesday, August 30, 2017

Market Daily Report: KLCI gets 11th hour boost from CIMB, MISC, ahead of long holiday weekend




KUALA LUMPUR (Aug 30): The FBM KLCI ended today's trade 12.02 points or 0.68% higher, after getting 11th hour boost from index-linked CIMB Group Holdings Bhd and MISC Bhd.

The last minute push from CIMB and MISC was due to investors who were on the hunt for good stocks, according to Hong Leong Investment Bank Bhd's retail research analyst Loui Low Ley Yee.

"In a way, the last minute boost was also part of the bourse's 'window-dressing' activity, marking a nice end to August's subdued and sideways trade as investors digest the corporate earnings announcement, which are either in-line or disappoints," Low told theedgemarkets.com in a brief telephone conversation.

At 5pm today, the FBM KLCI closed at 1,773.16 points, from a previous close of 1,761.14 points on Tuesday.

Some 1.83 billion shares, worth RM2.21 billion, were traded at the local bourse today, with gainers outpacing decliners at 449 counters versus 346 counters, while 411 stocks closed unchanged.
Gainers were led by Time dotCom Bhd, UMW Holdings Bhd and CIMB, while Ajinomoto (Malaysia) Bhd was the top decliner.

Sino Hua-An International Bhd was the most active stock, with 217.34 million shares — equivalent to 19.37% of its outstanding shares — traded today.

Japanese shares, on average, recovered all of the previous day's loss, helped by Wall Street's rise and a weaker yen, as worries sparked by North Korea firing a missile over Japan receded, according to Reuters.

The Nikkei, which hit a four-month low on Tuesday and settled 0.5% lower, climbed 0.7% to 19,506.54. Similarly, South Korea's Kospi erased all its 0.2% retreat from Tuesday and closed 0.3% higher as domestic institutions' buying offset foreign selling.

Meanwhile, Hong Kong's Hang Seng index rose 1.2% to 28,094.61 — passing the 28,000 mark for the first time since May 2015 — helped by easing geopolitical tensions and signs that mainland money has continued to flow steadily into the city's bourse, the news agency wrote.


Source: The Edge

Tuesday, August 29, 2017

Market Daily Report: FBM KLCI struggles to stay above 1,770 level




KUALA LUMPUR (Aug 29): The FBM KLCI struggled to remain above the 1,770 level today amid selling pressure, and an analyst said the benchmark index may see further declines moving forward.
The KLCI closed the day 8.35 points or 0.47% lower at 1,761.14.

TA Securities Holdings Bhd senior technical analyst Stephen Soo said the KLCI could come down further, to even hit April's low of 1,729 points, but sees this as a "blessing in disguise" for non-blue chips.

"The FBM KLCI evidently struggles to remain above the 1,770 level and it is evident that selling pressures are still there with trading volume being thin today. I believe the index could go down to July's low of 1,750 points or lower to April's low," Soo told theedgemarkets.com.

"But I see this is a blessing in disguise. When the index falls low, it becomes more attractive for the smaller players to come in at a time when the bigger counters, particularly in the banking sector, are under pressure," he added.

On the broader market, about 1.46 billion shares valued at RM1.83 billion changed hands today. Losers outpaced gainers at 570 against 269, while 394 counters traded unchanged.

Among the top gainers for the day were Hengyuan Refining Company Bhd, Heineken Malaysia Bhd and Petron Malaysia Refining & Marketing Bhd, while top losers were Malaysian Pacific Industries Bhd, AEON Credit Service (M) Bhd and Petronas Gas Bhd.

World stocks plunged while safe-haven assets jumped today after North Korea fired a missile over northern Japan, igniting concern over further tension between the US and North Korea, Reuters reported.

Japan's Nikkei hit a four-month low before paring losses to settle 0.5% lower, while South Korea's Kospi was down 0.23%.

North Korea launched a missile over Japan and landed in the Pacific about 1,180km off the northern region of Hokkaido in a sharp escalation of tensions on the Korean peninsula.


Source: The Edge

Monday, August 28, 2017

Market Daily Report: KLCI up marginally on last minute buys of select heavyweights



KUALA LUMPUR (Aug 28): The FBM KLCI inched up 0.32 points or 0.02% to settle at 1,769.49 today, on the back of last minute buying of selective index heavyweights, which sent the KLCI marginally higher.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong said the benchmark index was in a tight range today, after being dragged by the refinery sector earlier in the day, like Hengyuan Refining Company Bhd and Petron Malaysia Refining & Marketing Bhd.

Consumer products also weighed on the index, such as Ajinomoto (M) Bhd and Dutch Lady Milk Industries Bhd.

"There was last minute buying from investors on selective index heavyweights, which sent the KLCI marginally higher in the last minutes before trading ended," he said.

Among them were Westports Holdings Bhd, CIMB Group Holdings Bhd, and Malayan Banking Bhd.
Nevertheless, he said the KLCI remained sluggish in the final hour of trading, despite hovering in the positive territory, due mainly to profit-taking ahead of the extended weekend break.

"In the refinery sector, both Hengyuan and Petron have seen selling pressure. Hengyuan was the top loser after weaker-than-expected corporate earnings," he told theedgemarkets.com.

At market close, there were 557 declining counters versus 278 advancers, while 369 were unchanged. Across Bursa Malaysia, a total of 1.78 billion shares worth RM1.65 billion were traded.

Across Asia, Japan's Nikkei 225 slid 0.01%, while South Korea's Kospi fell 0.35%; Hong Kong's Hang Seng climbed 0.05%.

Reuters reported that Japanese stocks ended flat in thin trades on Monday, as investors assessed the impact of a weaker US dollar after the greenback came under pressure after Federal Reserve chair Janet Yellen made no reference to monetary policy at the central bank's annual conference in Jackson Hole, Wyoming, while casualty insurers fell on worries about the impact of the tropical storm Harvey.

The Nikkei share average was flat at 19,449.90, after logging its sixth straight weekly fall on Friday for its longest losing streak since January 2014, the news wire noted.

The broader Topix rose 0.2% to 1,600.12, but turnover was only at 1.74 trillion yen; a level below 2 trillion yen is considered thin.

"Investors are waiting for more catalysts, and they will likely refrain from taking large positions until important economic indications come out this week," said Chihiro Ohta, general manager of investment research at SMBC Nikko Securities.


Source: The Edge