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Friday, March 31, 2017

Market Daily Report: FBM KLCI down on profit taking, lack of window dressing

KUALA LUMPUR: The FBM KLCI closed down 0.5% or 9.16 points to 1,740.09 on profit taking as well as a lack of window dressing.

TA Securities Holdings Bhd senior technical analyst Stephen Soo said the index’s performance for the day fell below the firm’s expectations, and the lack of upside in window dressing signalled continued weak sentiment.

“The local stock market is underwhelming. We expected some upside in window dressing but that did not happen. The subdued momentum indicated that sentiment is still weak,” Soo told the

However, Soo said TA Securities foresees a rebound in the FBM KLCI next week following reports that Malaysia Rail Link Sdn Bhd (MRL), the operator of the East Coast Rail Line (ECRL), could announce the breakdown of its tenders as early as early April.

“The announcement of contractors that will take part in the ECRL project will trigger the local stock market. It is a bit quiet now but things could (shake up) soon,” he said.

Overall, 3.13 billion shares worth RM2.69 billion were traded on Bursa Malaysia today.
There were 431 gainers led by British American Tobacco (M) Bhd, Far East Holdings Bhd and Nestle (M) Bhd.

Losers totalled 466, spearheaded by PPB Group Bhd, Malaysian Pacific Industries Bhd and Hong Leong Financial Group Bhd.

Regionally, Japan’s Nikkei 225 declined 0.81%, Hong Kong’s Hang Seng Index slid 0.78%, and the Korea Composite Stock Price Index dropped 0.2%.

Reuters quoted Rivkin Securities’ global investment analyst James Woods as saying that Asian markets showed healthy levels of profit-taking as investors looked out for developments from Brexit and US inflation.

Source: The Edge

Wednesday, March 29, 2017

Market Daily Report: KLCI down as BAT, Petronas Dagangan top Bursa decliners

KUALA LUMPUR (March 29): The FBM KLCI fell 4.01 points or 0.2% on index-linked British American Tobacco (M) Bhd (BAT) and Petronas-related share losses.

BAT shares fell on speculation Malaysia may raise cigarette prices, a move which could affect BAT's sales volume. Petronas Dagangan Bhd and Petronas Gas Bhd shares declined on profit taking after both stocks rose yesterday.

At 5pm today, the KLCI closed at 1,750.41 points. BAT shed RM2.46 to RM45.44, Petronas Dagangan dropped 94 sen to RM23.90 while Petronas Gas was 16 sen lower at RM19.80.
BAT was Bursa Malaysia's top decliner. Petronas Dagangan and Petronas Gas were the second and eighth-largest decliners respectively.

“There was a knee-jerk reaction on BAT as a deputy minister had suggested that cigarette prices may be increased to RM21.50 per pack, while everyone will be monitoring how Petronas Dagangan will adjust to the weekly ceiling price (for petrol),” Maybank Investment Bank Bhd chartist Nik Ihsan Raja Abdullah told

Across Bursa Malaysia, 3.4 billion shares worth RM2.63 billion were traded. Gainers outpaced decliners at 522 versus 402 respectively.

Source: The Edge

Tuesday, March 28, 2017

Market Daily Report: Malaysian stocks recover after US markets, dollar stabilise

KUALA LUMPUR (March 28): Malaysian stocks rebounded today, mirroring movements among regional counterparts, after Wall Street and the US dollar stabilised following US President Donald Trump’s failure to push through a healthcare reform Bill.
The benchmark FBM KLCI index closed 9.47 points or 0.54% higher at 1,754.42 points, with gains led by Petronas Dagangan Bhd and Panasonic Manufacuring Malaysia Bhd.

However, trading volume fell to 3.07 billion shares worth RM2.42 billion compared with Monday’s 3.97 billion shares worth RM2.49 billion. Market breadth was positive, with 513 gainers versus 366 losers.

“The stock market rebounded slightly (today), but there isn’t anything too spectacular happening in Malaysia for now. However, we do expect the ongoing reversal of outflow to continue for at least the next two weeks,” Etiqa Insurance and Takaful research head Chris Eng told

Eng said economy-wise, although Asean stock markets are still patchy at this point, the situation is set to improve gradually for the region with China expected to take the lead.

Indonesia, Thailand and the Philippines could continue underperforming for the remaining of 2017 while the outperformers could very likely be Malaysia and Singapore, he added.

“We are now seeing a rising tide for boats, and the winning boat could very well be China. Malaysia, on the other hand, is also expected to perform well moving forward,” Eng said.

Actively traded stocks today included Scomi Group Bhd, Dataprep Holdings Bhd and Olympia Industries Bhd, while top losers were United Plantations Bhd, Dutch Lady Milk Industries Bhd and Teck Guan Perdana Bhd.

Elsewhere in the region, Japan’s Nikkei 225 rose 1.14%, Hong Kong’s Hang Seng Index climbed 0.63% and South Korea's KOSPI index gained 0.35%.

Reuters reported that Asian stocks were up today following Wall Street’s stabilisation and strengthening of the US dollar. Stock markets, which suffered following Trump’s presidential election win and most recently, his setback on healthcare reform, were given a boost from the US Federal Reserve's decision to hike its benchmark interest rate.

However, the rally came to a halt on doubts over Trump's ability to keep his promises of fiscal stimulus, including tax reform.

Source: The Edge

Wednesday, March 22, 2017

Market Daily Report: FBM KLCI falls on Trump's policy uncertainty

KUALA LUMPUR (March 22): The FBM KLCI fell 6.37 points or 0.4%,tracking Asian share losses after a weaker overnight performance in US stock markets. World equities fell on uncertainties over US President Donald Trump's policies for the US economy.

At 5pm, the KLCI closed at 1,748.3 points after falling to its intraday low at 1,738.4 points. Across Asian share markets, Japan's Nikkei 225 declined 2.13%, Hong Kong’s Hang Seng fell 1.11% while South Korea’s Kospi was 0.46% lower.

In overnight US share trades, the Dow Jones Industrial Average fell 1.14%, S&P 500 dropped 1.24% while Nasdaq Composite was 1.83% lower.

Reuters reported that Asian stocks posted their biggest drop in two weeks on Wednesday as growing doubts about Trump's economic growth agenda prompted investors to dump risky assets and rush to safe havens such as gold and government debt.

Wall Street fell sharply on Tuesday as investors worried that Trump will struggle to deliver promised tax cuts that propelled the market to record highs in recent months, with nervousness deepening ahead of a key healthcare vote.

In Malaysia, Malacca Securities Sdn Bhd senior analyst Kenneth Leong told that Trump's policies would be closely watched.

“Moving forward, investors will closely watch whether Trump will fulfill his promises on tax plans and healthcare reform," Leong said. He said investors will also closely watch prices of crude oil, which forms a crucial portion of the Malaysian economy.

Across Bursa Malaysia today, 3.16 billion shares worth RM2.75 billion were traded. Decliners hammered gainers by 605 to 328 respectively.

Yesterday, the trading volume was 4.58 billion shares.

Source: The Edge

Tuesday, March 21, 2017

Market Daily Report: FBM KLCI rises with KLK, IOI Corp as Asian shares gain

KUALA LUMPUR (March 21): The FBM KLCI rose 5.26 points or 0.3% on late buying of index-linked plantation entities Kuala Lumpur Kepong Bhd (KLK) and IOI Corp Bhd shares. The KLCI had also tracked Asian share gains.

At 5pm, the KLCI closed at 1,754.67 points after falling to its intraday low at 1,748.82 point during its final trading minutes. KLK shares added two sen to RM24.82 while IOI Corp rose two sen to RM4.70.

KLK and IOI Corp shares had earlier fallen with lower crude palm oil prices as a stronger ringgit versus the US dollar made the commodity more expensive for foreign buyers. At 5.37pm, the exchange rate was at 4.4255.

Reuters reported that benchmark palm oil futures for June delivery on the Bursa Malaysia Derivatives Exchange were down 0.3 percent at RM2,772 (US$626.16) a tonne at the midday break. Palm also tracks the movement of other related vegetable oils as they compete for a share in the global edible oils market.

In Malaysia, analysts told the stock market had gained on foreign buying. “The trading volume is still high today, though it is lower compared with yesterday’s trading volume of about six billion shares. I think the trading is also supported by positive sentiment on news that foreign investors are buying,” Mercury Securities Sdn Bhd research head Edmund Tham said.

"If investors are banking on election play, they should focus on government-linked counters as well as construction counters," Tham said.

Across Bursa Malaysia, 4.58 billion shares worth RM3.29 billion were traded. Gainers beat decliners by 496 versus 477 respectively. Yesterday, the trading volume was 6.02 billion shares.

Today, Malaysian shares had also tracked Asian equity gains. Hong Kong’s Hang Seng rose 0.37% while South Korea’s Kospi was 0.99% higher.

Reuters reported that Asian shares hit 21-month highs on Tuesday while the dollar and US bond yields were on the back foot on the prospect of a less-hawkish Federal Reserve policy trajectory.

Source: The Edge

Friday, March 17, 2017

Market Daily Report: KLCI up 8.06pts as Bursa volume nears 5 billion

KUALA LUMPUR (March 17): The FBM KLCI rose 8.06 points or 0.5% as Bursa Malaysia's volume neared five billion shares on expectation of a more moderate pace in US interest rate hikes this year.

Such US rate sentiment augurs well for Asian markets in anticipation of foreign demand for higher-yielding Asian assets. At Bursa Malaysia today, the KLCI closed at 1,745.2 points, after rising 19.78 points yesterday.

Across Bursa Malaysia today, 4.98 billion shares worth RM5.04 billion changed hands. In August 2014, the bourse's volume reached a record high at 7.67 billion shares.

Today, Malaysian shares rose to current levels after the US increased its benchmark interest rate by 25 basis points last Wednesday (March 15) to between 0.75% and 1%.

Reuters reported today that while the Federal Reserve raised interest rates by 25 basis points on Wednesday as widely expected, it kept its original forecast of three rate hikes this year, disappointing investors who were expecting a bump up to four after a string of upbeat US economic data.
In Malaysia, Hong Leong Investment Bank Bhd analyst Loui Low Ley Yee told that the market was "overheated".

MIDF Amanah Investment Bank Bhd deputy research head Mohd Redza Abdul Rahman said in a text message to that the KLCI's rise was due to the "continuous improvement in the health of banks and expectation of better earnings performance this year which has seen the run-up in banking stocks".

KLCI-linked Public Bank Bhd shares rose 30 sen to close at RM20.18 to become Bursa Malaysia's second-largest gainer. Across Bursa Malaysia, gainers outpaced decliners at 591 versus 368 respectively.

Source: The Edge

Thursday, March 16, 2017

Market Daily Report: FBM KLCI up almost 20 points after US rate hike

KUALA LUMPUR (March 16): The FBM KLCI jumped 19.78 points or 1.15% after the US Federal Reserve took a decisive step in tightening monetary policy by raising the key interest rate by 25 basis points.

The benchmark index closed at 1,737.14 points, its highest level in 12 months.
“The local market has slightly outperformed itself, but this is expected,” said Etiqa Insurance and Takaful’s head of research Chris Eng.

“Expect to see inflow of funds, now that foreign brokers like Credit Suisse and CLSA are generally positive on Malaysia,” Eng told

The FBM KLCI’s rally was in line with the rise on Wall Street, with the Dow Jones Industrial Average gaining 0.54%, and the Standard & Poor’s S&P500 Index rising 0.84%.

Some 3.4 billion shares worth RM3.62 billion were traded on Bursa Malaysia, while gainers outpaced decliners by 666 to 286.

Priceworth International Bhd continued to be the most actively-traded counter with 102.89 million shares changing hands, while gainers were led by British American Tobacco Malaysia Bhd, together with index-linked Hong Leong Financial Group Bhd and CIMB Group Holdings Bhd.

Elsewhere, rallies from stock exchanges in Seoul to Jakarta pushed the MSCI Asia Pacific Index to 145.72, the highest since mid-2015, while European shares rose a second day.

Across the regional market, Japan’s Nikkei225 gained a marginal 0.07%, while China’s CSI300 index rose +0.52%, as the most populous nation followed the Federal Reserve in raising its rates.
Hong Kong’s Hang Seng Index rose 2.08%, jumping the most since May.

Source: The Edge

Wednesday, March 15, 2017

Wall Street sets to go higher ahead of anticipated US Fed rate's hike

The US stock market opened higher ahead of the widely anticipated rate hike by the US Federal Reserve, the first of the anticipated three hikes for 2017.

The recovery in the stock market was buoyed by the rebound in oil prices.

The Dow Jones Industrial Average rose 0.21% to 20,880.15 while the S&P 500 gained 0.36% to 2,373.98. The Nasdaq Composite added 0.18% to 5,867.125.

One of the stock market that we have been keeping an eye on is Microsoft since 2014, which continued to move higher along with the broader market, gaining 0.16% to US $64.51, giving it a market capitalization of US $497.7 billion. 

Tuesday, March 14, 2017

Market Daily Report: FBM KLCI ends the day with marginal gain

KUALA LUMPUR (March 14): Trading of shares on Bursa Malaysia ended on a positive note today, with the country’s equity benchmark index — FBM KLCI — inching up by a marginal 0.55 point or 0.03% on last-minute interest in index-linked Genting Bhd, Genting Malaysia Bhd, Hong Leong Financial Group Bhd and Hong Leong Bank Bhd.

At 5pm today, the FBM KLCI closed at 1,722.47 points, which is the ninth consecutive trading day that it stayed above 1,700 points since March 2, data from Bloomberg showed.

Some 3.92 billion shares worth RM3.25 billion exchanged hands in the local bourse, exceeding the average 2.8 billion shares in the last 20 trading days.

As for market breadth, 444 counters closed higher versus 473 counters that ended lower, while 363 stocks closed unchanged and 23 counters were suspended.

Borneo Oil Bhd was the most actively traded counter with 265.63 million shares traded, after it announced a bonus issue and warrants.

Priceworth International Bhd was the second most traded counter with 198.76 million shares changing hands, while Iskandar Waterfront City Bhd was the third most actively traded counter and the top gainer with 135.62 million shares traded.

Decliners were led by cigarette manufacturer British American Tobacco Malaysia Bhd, which continued its losing streak. It shed 90 sen today.

“The overall market sentiment is very bullish as evident by over three billion shares traded. Investors are just aggressive in (buying) these two days!” a Maybank Investment Bank Bhd chartist told in a brief telephone conversation this evening.

Elsewhere in the region, indices are mostly flat today ahead of the US Federal Reserve Meeting on Tuesday. Investors are expecting the US Federal Reserve to raise the interest rate.

Tokyo’s Nikkei 225 dropped 0.12%, while Hong Kong’s Hang Seng Index ended its trade in the red as it closed at a marginal 0.01% lower. China’s CSI300 index also dipped 0.04%.