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Tuesday, February 14, 2017

Market Daily Report: KLCI slips but stays above 1,700 as bullish sentiment remains

KUALA LUMPUR (Feb 14): The FBM KLCI declined marginally today but stayed above the 1,700 psychological level the entire day, as market sentiment remained bullish after the rally in the previous two trading days.

The benchmark index settled at 1,708.90, down 1.34 points or 0.08% from yesterday, after moving between 1,703.59 and 1,710.08.

Interpacific Securities Sdn Bhd’s senior remisier Sam Ng said the market’s overall trading behaviour today was stable.

“The price behaviour remains resilient today. The KLCI trend seems stable, as bullish sentiment in the past has attracted some investors to enter the market,” he told

Across the board, there were 2.18 billion shares traded, worth some RM2.56 billion.

A total of 387 stocks gained, 470 counters fell, while 387 stocks finished unchanged.

The biggest loser was KESM Industries Bhd, while the top gainer was British American Tobacco (M) Bhd.

Sterling Progress Bhd was the day’s most actively-traded counter, with 56.35 million shares exchanging hands.

Reuters reported Southeast Asian stock markets fell today, as a stronger dollar weighed on sentiment, while investors awaited the congressional testimony by U.S. Federal Reserve Chair Janet Yellen for clues on the pace of interest rate hikes.

Yellen will present the U.S. central bank's semi-annual report on monetary policy and the economy in testimony to the Senate Banking Committee today, followed by the semi-annual monetary testimony, before the House Financial Committee on Wednesday.

The ringgit weakened slightly to 4.4490 against the U.S. dollar, and to 3.1377 against the Singapore dollar, in late afternoon trading.

Source: The Edge

Friday, February 10, 2017

Market Daily Report: FBM KLCI rises over 10pts on Wall Street gains, Chinese trade data

KUALA LUMPUR (Feb 10): The FBM KLCI rose 10.44 points or 0.62% to 1698.94 today, boosted by strong overnight gains on Wall Street and China’s positive January trade figures.

The broader market was also higher with 542 gainers as against 338 losers. Total turnover was 2.69 billion shares, valued at RM2.42 billion.

Top gainers included Nestle (M) Bhd, British American Tobacco (M) Bhd and Malaysian Pacific Industries Bhd. The leading losers included United Plantations Bhd, Petronas Gas Bhd and Far East Holdings Bhd.

“We are looking at good figures on the FBM KLCI today,” said TA Securities Holdings Bhd senior technical analyst Stephen Soo.

“Wall Street’s performance, which was triggered by (U.S. President Donald) Trump’s announcement of plans to lower taxes on American businesses, was definitely a catalyst of this uptrend,” Soo told over the phone.

He said China’s trade data was another factor for the bullish market sentiment. According to the data, the country’s imports from the U.S. climbed 23.4% in January (the best record ever posted in a year), whereas exports — led by electronics — rose 7.9%, after 2016 shipments dipped almost 8%.

“It can be well said that the FBM KLCI’s performance today is driven by external and globally-led rallies. Investors are beginning to break out of the ‘psychological resistance’,” said Soo.
Reuters reported Asian shares reached an 18-month peak, on the back of better investor confidence, following Chinese trade data and gains on the Wall Street.

Japan’s Nikkei 225 inched up 2.49%, Hong Kong’s Hang Seng Index rose 0.21%, and South Korea’s Composite Stock Price Index dipped 0.45%.

Source: The Edge

Wednesday, February 8, 2017

Market Daily Report: KLCI down 0.02%, investors await US developments

KUALA LUMPUR (Feb 8): The FBM KLCI closed almost unchanged at 1,688.5 points compared to yesterday, as investors braced themselves ahead of more developments in the US, including the appeal court's verdict over US President Donald Trump's travel ban order this week.

A total of 2.29 billion shares valued at about RM2.44 billion were traded today. There were 471 gainers and 389 losers.

The top gainers on the KLCI included Hap Seng Consolidated Bhd, Petronas Dagangan Bhd, Genting Bhd and RHB Bank Bhd. The top losers were MISC Bhd, IOI Corp Bhd, DiGi.Com Bhd and Axiata Group Bhd.

Areca Capital Sdn Bhd chief executive and fund manager Danny Wong said the local stock market is expected to remain temporarily stagnant in light of the US appeal court's decision on Trump's order to ban entry for all refugees and visitors from seven predominantly Muslim nations.

"This week is a really important one. The [US appeal court] will finally decide if it agrees or disagrees with Trump's travel ban orders. As such, the FBM KLCI is expected to 'pause' for a while," he told over telephone.

"Give it one or two weeks till we see more clarity from developments on the case. Further, we should brace ourselves should Trump announce new policies or executive orders. And not forgetting too his campaign promises especially with regards to the border tariff plan," Wong warned.

On the regional front, Japan's Nikkei 225 inched up 0.51%, Hong Kong's Hang Seng Index rose 0.66%, and South Korea's Kospi dipped 0.49%.

Reuters today had reported that Asian share markets slid below four-month highs while the euro was pressured as Trump's latest policies had raised doubts, whereas the upcoming French election weighs on investors' outlook.

Source: The Edge

Tuesday, February 7, 2017

Market Daily Report: KLCI falls 0.14% in continued sluggish trading

KUALA LUMPUR (Feb 7): The FBM KLCI slipped 0.14% or 2.4 points to close at 1,688.84 today due in part to falls in heavyweights such as Tenaga Nasional Bhd, Sime Darby Bhd and Malayan Banking Bhd.

Trading continued to be sluggish with a section of investors still preferring to stay at the sidelines awaiting better leads.

Areca Capital Sdn Bhd chief executive and fund manager Danny Wong, however, noted that the market has attracted some fresh buying interest, supported by the price of crude oil and better clarity on US economic policies under Donald Trump's presidency.

"Since early-January, there have been upsides in stock prices with the FBM KLCI trading above 1,600 points. This is obviously better than last year when earnings and sentiment were bad," Wong told over telephone.

"If oil prices continue strengthening to about US$50–US$60 (a barrel) amid OPEC's output cuts, we could be seeing the local stock market hitting 1,700 points," he added.

A total of 2.14 billion shares valued at about RM2.1 billion were traded today. There were 436 gainers and 420 losers.

Reuters reported that the demand for Asian stocks and the euro had subsided on continued economic and political concerns following the slump of China's foreign exchange reserves in January.

In the United States, Wall Street slipped 0.2%, dragged down by the falling oil prices as well as weaker sentiment due to Trump's economic policies.

On the regional front, Japan's Nikkei 225 slipped 0.35%, Hong Kong's Hang Seng Index declined 0.07%, and South Korea's Kospi dipped 0.12%.

Source: The Edge

Monday, February 6, 2017

Market Daily Report: FBM KLCI up 0.37%, helped by gains in O&G counters

KUALA LUMPUR (Feb 6): The FBM KLCI rose 0.37% or 6.23 points to 1,691.24 today, bolstered by gains in oil and gas (O&G) counters on the more positive outlook for global oil prices.
Analysts noted O&G counters saw fresh interest after news that the US Department of Energy could start selling off some of its strategic petroleum reserve soon in a bid to minimise the nation’s oil stockpile.

“Volumes are definitely picking up, although there isn’t a lot of quality buying happening as we speak,” said TA Securities Holdings Bhd senior technical analyst Stephen Soo.

“As far as active stocks are concerned, penny as well as O&G stocks are the most reactive,” Soo told The Edge Financial Daily over telephone. “With that, the O&G counters are the most active currently on the more positive outlook of global oil prices.”

Active O&G stocks included Hibiscus Petroleum Bhd and Borneo Oil Bhd, which were the day’s top two active counters.

On another note, US President Donald Trump’s move to ease regulations on the financial industry is not expected to raise a red flag for now, although it could affect local policies and trigger more uncertainties.

“Trump’s call to scale back on financial regulations would affect the local stock market albeit not so much, for now. However, we could be seeing it impacting our policies, which in turn would bring about more uncertainties and blunders,” Soo said.

A total of 2.63 billion shares valued at about RM2.32 billion were traded On Bursa Malaysia today. There were 622 gainers and 286 losers.

KIP Real Estate Investment Trust (REIT) ended its maiden trading day 0.5 sen or 0.5% lower at 99.5 sen, versus its initial public offering price of RM1 per unit.

Reuters reported that Asian shares inched higher today on the back of stronger momentum by Wall Street, while the US dollar staggered by slow progress on US’ fiscal stimulus.

Japan’s Nikkei 225 rose 0.31%, Hong Kong’s Hang Seng Index inched up 0.95%, and the Korea Composite Stock Price Index nudged 0.22% higher.

Source: The Edge

Friday, February 3, 2017

Market Daily Report: KLCI rises on buying interest despite China's tightening of monetary policy

KUALA LUMPUR (Feb 3): The FBM KLCI rose 11.53 points or 0.68% to 1,685.01 today on a stronger buying interest, especially in plantations and telecommunication stocks, despite the move by China's central bank to tighten monetary policy.

Notable gainers also included metal related companies such as Press Metal Bhd and A-Rank Bhd.
Malacca Securities Sdn Bhd analyst Kenneth Leong said today's uptrend is is a continuation of the modestly positive momentum seen yesterday.

"Despite the strengthening of monetary policy from People's Bank of China, the FBM KLCI climbed due to (gains in the) telecommunications and plantations sectors," he told when contacted.

He noted that the monetary policy move resulted in stocks falling on the Hong Kong and Shanghai markets.

The People's Bank of China raised the interest rate on open market operation reverse repurchase agreements (repos) by 10 basis points. The move reinforced views that Chinese authorities are intent on both containing capital outflows and reining in risks to the financial system created by years of debt-fueled stimulus, said Reuters.

A total of 1.96 billion shares worth RM2.04 billion changed hands. There were 519 gainers versus 317 decliners, while 371 counters closed unchanged.

The top gainer was DanaInfra Nasional Bhd while British American Tobacco (M) Bhd led the decliners list. The most actively-traded counter was Hibiscus Petroleum Bhd.

Across Asia, Japan's Nikkei 225 inched up 0.02% and South Korea's Kospi rose 0.1%, while Hong Kong's Hang Seng dropped 0.24% and the Shanghai Composite Index fell 0.59%.

Reuters reported that Nikkei shares ended flat in choppy trade today as investors awaited the release of the US monthly jobs report, which will set the tone for the Federal Reserve's policy outlook, while bank stocks outperformed on higher yields.

Source: The Edge

Thursday, February 2, 2017

Market Daily Report: KLCI climbs higher on better liquidity breadth

KUALA LUMPUR (Feb 2): The FBM KLCI gained 1.94 points or 0.12% today on the back of better liquidity breadth compared to the sluggish trade last Tuesday, a day before the Federal Territories Day holiday yesterday.

The KLCI settled at 1,673.48 points, driven by climbs by stocks from the plantations, technology, and consumer products sectors.

"The breadth continues to be positive with strong volume, though the region is down. Today, we are catching up with yesterday's game because (Bursa) Malaysia was closed yesterday and the blue chips are the gainers," said Interpacific Research's head of research Pong Teng Siew.

Pong added that actively traded stocks which are strongly positive have also helped the benchmark index play catch up.

Across Bursa, a total of 1.82 billion shares worth RM2.31 billion changed hands. There were 537 gainers versus 315 decliners, while 339 counters closed unchanged.

The top gainer was United Plantations Bhd while British American Tobacco (Malaysia) Bhd led the decliners list. The most actively-traded counter was Hibiscus Petroleum Bhd.

Across Asia, Japan's Nikkei 225 fell 1.22%, while South Korea's Kospi slipped 0.46%; Hong Kong's Hang Seng was also in the red, dropping 0.57%.

The ringgit, meanwhile, strengthened to 4.4250 against the greenback at 5pm.
Reuters reported that Nikkei shares, on average, fell on Thursday to its lowest in more than a week after a stronger yen soured sentiment, while Toyota Motor Corp underperformed after posting weak monthly sales in the US.

In Hong Kong, it said stocks fell, with property counters leading the slide, as investors continued to lock in gains after the US Federal Reserve stuck to its mildly upbeat economic view but gave no hint of when it would next raise interest rates.

Source: The Edge