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Friday, May 26, 2017

Market Daily Report: KLCI declines as OPEC disappoints




KUALA LUMPUR (May 26): The FBM KLCI fell 1.66 points or 0.1% to 1,772.30 points at 5pm today, after the Organization of the Petroleum Exporting Countries' (OPEC) output cut extension disappointed investors.

Investors had earlier hoped OPEC would do more to support crude oil prices. They were disappointed by the absence of additional cut in crude oil production by OPEC.

Reuters reported at Thursday's meeting in Vienna that OPEC and some non-OPEC producers agreed to extend a pledge to cut around 1.8 million barrels per day, until the end of the first quarter of 2018. The initial agreement would have expired in June this year.

It was reported Brent futures were up 28 cents at US$51.74 a barrel at 0837 GMT today.
In Malaysia today, JF Apex Securities Bhd research head Lee Chung Cheng told theedgemarkets.com that oil and gas share losses weighed on the KLCI.

“There were some disappointment in the market after OPEC's meeting, a lot of people are expecting a bigger output cut, as you can see there were sell down on the oil and gas stocks, which dragged the whole market sentiment.

“We think this is just temporary; as you can see, oil prices have come up again towards the afternoon, but for next week, we still see sideway trading within the local market,” Lee said.

Bursa Malaysia saw 771 decliners versus 208 gainers. Trading volume was 2.86 billion shares, worth RM2.61 billion.

The biggest decliner was oil and gas entity Petron Malaysia Refining & Marketing Bhd, while Malaysian Pacific Industries Bhd led gainers.


Source: The Edge

Thursday, May 25, 2017

Market Daily Report: KLCI rises with Asian markets on US Fed cue



KUALA LUMPUR (May 25): The FBM KLCI rose 2.95 points or 0.2% to 1,773.96 points with Asian shares after the overnight uptick in US equities. World shares rose after the US Federal Reserve indicated it may postpone interest rate hikes until policymakers get a clearer picture on the economy.

Slower US interest rate hikes bode well for Asian markets like Malaysia in anticipation of foreign demand for Asian assets, which yield higher returns.

Across Asia, Japan's Nikkei 225 added 0.36% while Hong Kong's Hang Seng rose 0.8%.
At Bursa Malaysia, the KLCI pared gains at 5pm after reaching its intraday high at 1,782.54 points. Etiqa Insurance & Takaful research head Chris Eng said the KLCI pared gains due to spillover effects from the selldown in European stock markets.

"The (Malaysian share market) selldown is not really localised; it coincides with the selldown in the European markets, at around 3.55pm today," Eng said.

Reuters reported that European shares opened higher, but quickly dipped into negative territory. The pan-European STOXX 600 index was last down 0.3%, led lower by resources companies after a 4% drop in iron ore on China's Dalian Commodity Exchange.

In Malaysia, Eng told theedgemarkets.com that investor sentiment might have been subdued by the sudden selldown in European markets prompting more selling later in the day despite an overall encouraging financial results by companies, such as index-linked Malayan Banking Bhd.
Bursa Malaysia saw 2.95 billion shares valued at RM3.17 billion traded. There were 377 gainers against 590 decliners.

Newly-listed Inta Bina Group Bhd shares added 5.5 sen to 30.5 sen with some 126 million units traded. Inta Bina, which was listed at 25 sen a share, was Bursa Malaysia's second most-active stock.


Source: The Edge

Wednesday, May 24, 2017

Market Daily Report: KLCI up on bargain hunting, CIMB




KUALA LUMPUR (May 24): The FBM KLCI rose 3.84 points or 0.2% on bargain hunting and as investors bought CIMB Group Holdings Bhd shares after the financial-services provider reported a 46% rise in first quarter net profit from a year earlier.

At 5pm, the KLCI closed at 1,771.01 points after trading between 1,767.22 and 1,776.24 points today. KLCI-linked CIMB rose 14 sen to RM6.13 to become Bursa Malaysia's eighth-largest gainer.
CIMB said net profit rose to RM1.18 billion in the first quarter ended March 31, 2017 from RM813.8 million. Revenue was higher at RM4.36 billion versus RM3.73 billion.

Across Bursa Malaysia, 3.38 billion shares worth RM2.9 billion changed hands. Decliners outran gainers by 546 to 419 respectively.

Yesterday, the KLCI fell 7.78 points to 1,767.17 points after the explosion at the UK's Manchester city hit market sentiment.

Today, Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng said: "KLCI is expected to remain range bound this week, but in the longer term, we still see some more upside. Corporate earnings have been satisfying so far, and they can be better by the next reporting season in August this year."

"Most of the economic indicators have been reflecting that Malaysia's economy is recovering, be it trade, ringgit and oil prices," Wong told theedgemarkets.com.

Malaysian shares rose as news on China's sovereign credit rating downgrade by Moody's Investors Service hit market sentiment. Reuters reported that world stocks inched lower on Wednesday after China's sovereign credit rating was downgraded and as investors eyed a pause in Wall Street's four-day winning streak, the longest in over three months.

In its first downgrade of the country in nearly 30 years, Moody's cut China's rating by one notch to A1 from Aa3, saying it expects the economy's financial strength to erode in coming years as growth slows and debt continues to rise.


Source: The Edge

Tuesday, May 23, 2017

Market Daily Report: KLCI falls 7.78pts as UK blast hits sentiment



KUALA LUMPUR (May 23): The FBM KLCI fell 7.78 points or 0.4% on profit taking and as an explosion in the UK's Manchester city, clouded sentiment.

At 5pm, the KLCI closed at its intraday low at 1,767.17 points, as investors took profit in index-linked Petronas Gas Bhd and Petronas Dagangan Bhd shares.

Petronas Gas fell 62 sen to RM19.18, while Petronas Dagangan dropped 36 sen to RM24.68. Petronas Gas and Petronas Dagangan were the fourth and seventh-largest decliners on Bursa Malaysia, respectively.

Bursa Malaysia saw 2.91 billion shares, valued at RM2.8 billion changed hands. There were 636 decliners versus 292 gainers.

Oil and gas companies' shares could have taken the cue from lower crude oil prices, after the U.S. proposed to sell half of its crude oil inventory.

Reuters reported oil prices fell on Tuesday, weighed down by U.S. President Donald Trump's plan to sell off half of the country's huge oil stockpile, threatening a future glut, even as OPEC and its allies cut output to try and tighten the market. Brent crude ended a run of four days of consecutive gains to trade 36 cents lower at US$53.51 per barrel at 0831 GMT.

In the UK, Reuters reported the sterling slipped on Tuesday after a suspected suicide attack killed at least 22 people and wounded 59 at a pop concert in the English city of Manchester, while the euro held gains made, after German Chancellor Angela Merkel said it was "too weak".

In Malaysia, Mercury Securities Sdn Bhd research head Edmund Tham told theedgemarkets.com that other than the news on the UK explosion, the Malaysian share market also fell on profit taking.
“All (Bursa Malaysia) industry indices were down today, we didn’t see anything other than the (suspected) terrorist attack news so far.

"But we believe there were some profit taking activities going on, as well. The market decline was not entirely due to the (UK) news, which affects sentiment,” Tham said.


Source: The Edge

Friday, May 19, 2017

Market Daily Report: FBM KLCI up on crude oil as U.S. shares recover




KUALA LUMPUR (May 19): The FBM KLCI rose 1.11 points or 0.1% as higher crude oil prices led to oil and gas companies' share gains. Malaysian equities also tracked Asian share gains, following U.S. stocks' overnight recovery.

At 5pm, the KLCI closed at 1,768.28 points, after reaching its intraday high and low at 1,771.50 and 1,767.89 points respectively.

KLCI-linked oil and gas stock Petronas Dagangan Bhd rose 68 sen to RM24.76, while Petronas Gas Bhd ended flat at RM19 after rising to its intraday high at RM19.56. Petronas Dagangan was Bursa Malaysia's top gainer.

Across Bursa Malaysia, 3.27 billion shares, worth RM3.24 billion, were traded. Gainers outpaced decliners at 623 versus 302 respectively.

Reuters reported oil futures rose on Friday to the highest in nearly a month, on growing optimism big producing countries will extend output cuts to curb a persistent glut in crude, with key benchmarks heading for a second week of gains.

Brent crude was up 28 cents or 0.5% at US$52.79 at 0630 GMT. The contract earlier rose to the highest since April 21 and is on track for a nearly 4% climb this week, its second week of gains.
In Malaysia, TA Securities Holdings Bhd senior technical analyst Stephen Soo told theedgemarkets.com: “Oil and gas stocks are rather buoyant now and all eyes will be on these counters soon. The degree of production cuts may be higher than the market’s expectations, but this would mean oil prices will be firmer."

“Further[more], Asian (share) markets are also recovering, following a period of being under pressure on concerns over U.S. interest-rate hike announcements,” Soo said.

Across Asia, Japan’s Nikkei 225 climbed 0.19%, while Hong Kong’s Hang Seng rose 0.15%. In overnight U.S. share trades, the Dow Jones Industrial Average climbed 0.27%, S&P 500 increased 0.37%, while Nasdaq Composite was 0.73% higher.

U.S. shares recovered on Thursday, after closing lower on Wednesday, amid allegations U.S. President Donald Trump tried to influence a federal probe, which sparked talk of his impeachment.
It was reported former Federal Bureau of Investigation chief James Comey said in a memo that Trump had asked him to end a probe into former National Security Adviser Michael Flynn's ties with Russia.


Source: The Edge

Thursday, May 18, 2017

Market Daily Report: KLCI falls with Asian shares as Trump talk hits sentiment




KUALA LUMPUR (May 18): The FBM KLCI fell 8.48 points or 0.5% with Asian markets, after U.S. shares closed lower overnight, amid allegations U.S. President Donald Trump tried to influence a federal probe, which sparked talk of his impeachment.

Reuters reported the S&P 500 and the Dow notched their biggest one-day fall since Sept 9 as investors hope for tax cuts, while other pro-business policies faded after reports Trump tried to interfere with a federal investigation, set off alarm bells on Wall Street.

Former Federal Bureau of Investigation chief James Comey said in a memo that Trump had asked him to end a probe into former National Security Adviser Michael Flynn's ties with Russia, the report said.

In Malaysia, the KLCI closed at 1,767.17 points. Across Asia, Japan’s Nikkei 225 fell 1.32%, South Korea’s Kospi retreated 0.27%, while Hong Kong’s Hang Seng declined 0.62%.
In overnight U.S. share trades, the Dow Jones Industrial Average dropped 1.78%, S&P 500 fell 1.82%. while Nasdaq Composite was 2.57% lower.

In Malaysia today, Inter-Pacific Securities Sdn Bhd research head Pong Teng Siew told theedgemarkets.com: “The KLCI fell in line with U.S. markets that declined on talks of Trump’s impeachment, but I doubt it will come true. The markets have been affected, but I think this would only be a short-term pullback.”

Across Bursa Malaysia, 2.99 billion shares valued at RM2.64 billion were traded. Decliners beat gainers at 625, against 317 respectively.
Aeon Credit Service (M) Bhd led decliners, while British American Tobacco (M) Bhd topped gainers.

The most active stocks included Anzo Holdings Bhd which saw 59.47 million shares exchanging hands. Anzo shares fell two sen to 25.5 sen, after trading between 25 sen and 28.5 sen today. 
Timber product maker Anzo's shares had earlier risen, after it reported a net profit of RM1.27 million in the fourth quarter ended March 31, 2017, versus a net loss of RM3.84 million a year earlier. Full year net loss narrowed to RM4.63 million, from a net loss of RM10.85 million.


Source: The Edge

Wednesday, May 17, 2017

Market Daily Report: FBM KLCI down with S&P 500 mini futures





KUALA LUMPUR (May 17): The FBM KLCI fell 2.5 points or 0.1% as Asian shares tracked U.S. stock futures' losses, on concerns about U.S. President Donald Trump's ability to realise the U.S.' economic growth plans.

Reuters reported the S&P 500 mini futures and the dollar tumbled on Wednesday on worries about more U.S. political turmoil, after media reports said Trump asked then-FBI Director James Comey to end a probe into Trump's former national security advisor.
The reports raised questions over whether obstruction of justice charges could be laid against Trump, weakening confidence in the U.S. president's ability to push through an aggressive stimulus programme that investors had been banking on, since his election in November.

In Malaysia today, the KLCI closed at 1,775.65 points at 5pm. Across Asia, Japan’s Nikkei 225 fell 0.53%, Hong Kong’s Hang Seng dropped 0.17%, while South Korea’s Kospi was down 0.1%.
At 5:08pm, S&P 500 mini futures fell 0.52% to 2,384.50.
In Malaysia, JF Apex Securities Bhd senior analyst Lee Cherng Wee told theedgemarkets.com that the KLCI fell in line with Asian markets, amid a lack of catalysts for Malaysian markets.
“The decline was in line with regional markets. We expect the market to remain sideways in the near-term, below the 1,785 level,” Lee told theedgemarkets.com.

Bursa Malaysia saw 3.45 billion shares, worth RM2.88 billion traded. Decliners beat gainers at 473 versus 417, respectively.

The top active stock was Priceworth International Bhd, which recorded a trading volume of 282.96 million shares.

Priceworth rose four sen to 29 sen, after the company said its wholly-owned subsidiary Sinora Sdn Bhd would immediately start logging operations within Sabah's Forest Management Unit 5 in Trus Madi, following the state's authorities' approval.


Source: The Edge

Tuesday, May 16, 2017

Market Daily Report: KLCI flat after falling on IHH



KUALA LUMPUR (May 16): The FBM KLCI fell 0.5 point to 1,778.15 points after the index cut losses in the final trading minutes on late buying of Petronas Dagangan Bhd shares.

The KLCI had earlier fallen partly on IHH Healthcare Bhd share losses. At 5pm, Petronas Dagangan rose 34 sen to RM24.40 while IHH fell 25 sen to RM5.92.

Petronas Dagangan was the fourth-largest gainer across Bursa Malaysia while IHH was the fifth-largest decliner.

Bursa Malaysia decliners outpaced gainers at 497 versus 412 respectively. The bourse saw 3.52 billion shares worth RM3.84 billion change hands.

Iskandar Waterfront City Bhd (IWCity) was the most-actively traded with 272.02 million shares transacted. The stock closed 15 sen lower at RM1.98. As Bandar Malaysia-linked stocks like IWCity and Ekovest Bhd hogged the spotlight, analysts, however, said the Malaysian stock market still lacked major catalysts.

Mercury Securities Sdn Bhd head of research Edmund Tham told theedgemarkets.com that economic data such as the Malaysia's first quarter gross domestic product (GDP) numbers might offer investors
notable clues on the stock market's direction.

“There is not any huge catalyst in the stock market. Investors are also waiting for economic data to have a clearer direction, such as the first quarter GDP,” Tham said.

Bank Negara Malaysia will release the first quarter GDP numbers this Friday (May 19). For tomorrow (May 17), the Statistics Department will announce the country's inflation numbers.


Source: The Edge

Monday, May 15, 2017

Market Daily Report: KLCI rises in 11th hour on Genting; IWCity hits limit up




KUALA LUMPUR (May 15): The FBM KLCI rose 2.78 points or 0.2% in the final trading minutes on late buying of Genting Bhd shares and as investors evaluated the impact of higher crude oil prices on the stock market.

At 5pm, the KLCI closed at 1,778.65 points after falling to its intraday low at 1,771.87 points.

KLCI-linked Genting Bhd shares rose seven sen to RM9.96 after 52.84%-owned subsidiary Genting Singapore PLC said net profit rose significantly to S$181.1 million (RM560.58 million) in the first quarter ended March 31, 2017 from S$10.84 million a year earlier.

“The KLCI erased losses when it is nearing the end of the trading hours. The market may consolidate depending on the corporate earnings announcement moving forward,” Areca Capital Sdn Bhd chief executive Danny Wong told theedgemarkets.com.

Bursa Malaysia saw 3.74 billion shares worth RM3 billion change hands. Decliners outpaced gainers at 508 versus 421.

Iskandar Waterfront City Bhd (IWCity) was the most-actively traded counter with 201.73 million shares traded after the stock hit limit up on bargain hunting.

IWCity rose 49 sen or 30% to close at its intraday high at RM2.13
to become the third-largest gainer. The stock had in recent days fallen after Malaysian Government-owned TRX City Sdn Bhd said its planned sale of a 60% stake in Bandar Malaysia Sdn Bhd to IWH CREC Sdn Bhd  was "null and void with immediate effect."

Today, Malaysian shares could have also risen on higher crude oil prices, which led to gains in stocks including KLCI-linked Petronas Dagangan Bhd and Petronas Chemicals Group Bhd.

Reuters reported that oil prices jumped two percent on Monday after the energy ministers of the world's two biggest producers Saudi Arabia and Russia jointly said that a crude production cut would be extended from the middle of this year until March 2018.


Brent crude was at US$51.88 per barrel at 0655 GMT, up US$1.04, or 2.1 percent, from its last close at a level last seen in early May.


Source: The Edge

Friday, May 12, 2017

Market Daily Report: FBM KLCI erases losses on late buying of Genting, Maybank and CIMB




KUALA LUMPUR (May 12): The FBM KLCI rose 0.48 point to 1,775.87 points on last minute buying in index-linked Genting Bhd besides banking stocks Malayan Banking Bhd (Maybank) and CIMB Group Holdings Bhd.

The KLCI erased losses after falling on declines in Petronas Gas Bhd, Petronas Dagangan Bhd and Petronas Chemicals Group Bhd shares. The KLCI rose to its intraday high at 1,778.64 points before falling to its intraday low at 1,773.15 points.

“There was a high selling pressure in index-linked Petronas Chemicals and Genting Malaysia Bhd since the noon market break today. But clearly, the market remains buoyant and flush with liquidity as investors continue to search for hidden gems,” Maybank Investment Bank Bhd chartist Nik Ihsan Raja Abdullah told theedgemarkets.com.

At 5pm, Genting Bhd shares rose 16 sen to RM9.89, Maybank added seven sen to RM9.38 while CIMB climbed four sen to RM5.95. Genting Bhd was the seventh-largest gainer across Bursa Malaysia.

Bursa Malaysia saw 2.7 billion shares worth RM2.18 billion change hands. Decliners outpaced gainers at 516 versus 424 respectively.

Top decliner Petronas Gas fell 52 sen to RM18.60.

Source: The Edge

Thursday, May 11, 2017

Market Daily Report: FBM KLCI up 8.83 points on crude oil price rise




KUALA LUMPUR (May 11): The FBM KLCI rose 8.83 points or 0.5%
as higher crude oil prices buoyed world share gains. Such sentiment led to buying in KLCI-linked Petronas Gas Bhd and Petronas Dagangan Bhd shares.

At 5pm, the KLCI closed at 1,775.39 points. Petronas Gas rose 62 sen to RM19.12 to become Bursa Malaysia's third-largest gainer. Petronas Dagangan climbed 28 sen to RM24.28.

Across Asian share markets, Japan's Nikkei 225 closed up 0.31%, while Hong Kong's Hang Seng rose 0.44%.

Reuters reported that world stocks held near all-time highs on Thursday, helped by a rebound in energy shares as oil prices rose after US fuel inventories declined and Saudi Arabia cut supplies of crude to Asia more than expected.

It was reported that Brent crude rose another 1.3 percent following a 3 percent gain in the previous session. The advance helped Brent regain the US$50 level and reverse all of last week's losses.
In Malaysia, Maybank Investment Bank Bhd chartist Nik Ihsan Raja Abdullah told theedgemarkets.com that "clearly, there is ample liquidity in the market."

"The benchmark index (KLCI) also tracked the slight recovery in oil prices, which gained 3% overnight," Nik Ihsan said.

Across Bursa Malaysia, 3.55 billion shares valued at RM3.48 billion changed hands. Gainers outpaced decliners at 560 versus 376 respectively.

Top gainers included oil and gas-based Petron Malaysia Refining & Marketing Bhd and Hengyuan Refining Co Bhd. NetX Holdings Bhd was the most-active counter.


Source: The Edge

Tuesday, May 9, 2017

Market Daily Report: KLCI pares losses on Axiata, Westports




KUALA LUMPUR (May 9): The FBM KLCI fell 1.59 points or 0.1% as the index pared losses on Axiata Group Bhd and Westports Holdings Bhd share gains.

At 5pm, the KLCI closed at 1,766.56 points after falling to its intraday low at 1,765.14 points. Investors took profit after the KLCI rose to its intraday high at 1,770.43 points.

Yesterday, the index climbed 5.41 points to 1,768.15 points as Emmanuel Macron's win in France's presidential election improved world market sentiment.

Today, Maybank Investment Bank Bhd chartist Nik Ihsan Raja Abdullah told theedgemarkets.com that the KLCI had fallen on Genting Bhd, Genting Malaysia Bhd, MISC Bhd and Malayan Banking Bhd (Maybank) share losses.

Genting Bhd fell eight sen to RM9.72, Genting Malaysia dropped two sen to RM5.74, MISC declined nine sen to RM7.35 while Maybank was three sen lower at RM9.36.

“Investors were battering down these four counters today but the losses were mitigated by continued support in Axiata and Westports today," Nik Ihsan said. Axiata rose three sen to RM5.25 while Westports added six sen to RM3.92.

Across Bursa Malaysia, 3.23 billion shares worth RM2.74 billion exchanged hands. A total of 427 counters ended higher versus 455 decliners.

Iskandar Waterfront City Bhd (IWCity) was the most-active stock with 237.62 million shares traded. The stock fell 55 sen to RM1.61 to become the second-largest decliner.

Tomorrow (May 10), Malaysian markets will be closed for the Wesak Day holiday. Markets reopen on Thursday (May 11).

On Thursday, the Statistics Department will announce the country's industrial output numbers at 12 noon. The Malaysian Palm Oil Board will announce the sector's output, inventory and export figures at about 12:30pm.


Source: The Edge

Monday, May 8, 2017

Market Daily Report: KLCI rises with Asian markets after Macron win




KUALA LUMPUR (May 8): The FBM KLCI climbed 5.41 points or 0.3% along with Asian share markets as Emmanuel Macron's win in France's presidential election lifted investor sentiments.

Investors cheered Macron's win as the pro-European Union (EU) candidate's policies were seen bringing stability to world markets. At 5pm, the KLCI settled at its intraday high at 1,768.15 points.
Across Asia, Japan’s Nikkei 225 gained 2.31% while Hong Kong’s Hang Seng climbed 0.41%.

Reuters reported that the euro hit a six-month high against the dollar on Monday while Asian shares gained and US stock futures briefly touched a record high, on investor relief after centrist Macron comfortably won the French presidential election.

Macron's emphatic victory brought comfort to investors and European allies alike, who had been nervous about the risk of another populist upheaval, following Britain's vote to quit the EU and Donald Trump's election as US president — neither of which had been predicted by pollsters or bookmakers.

In Malaysia, Areca Capital Sdn Bhd chief executive Danny Wong told theedgemarkets.com the local bourse was relieved from uncertainties, which put downward pressure on prices last week.

“There were a lot of uncertainties such as the status of Bandar Malaysia, slipping oil prices, anticipation on the French election and US jobs data, but you can see the number of companies with strong fundamentals bouncing back,” Wong said.

Across Bursa Malaysia today, there were 546 gainers against 388 decliners. A total of 4.01 billion shares worth RM2.43 billion changed hands.

TIME dotCom Bhd led gainers while Iskandar Waterfront City Bhd was the top decliner.

Source: The Edge

Friday, May 5, 2017

Market Daily Report: KLCI rebounds after selldown, gains 0.23%



KUALA LUMPUR (May 5): The FBM KLCI rebounded 0.23% today after seeing a sell down yesterday, bucking the decline in regional markets.

The benchmark index closed 4.07 points or 0.23% higher at 1,762.74. On a weekly basis, the KLCI fell 0.3% since its closing of 1,768.06 on April 28.

Etiqa Insurance & Takaful research head Chris Eng said the index rebounded after its decline yesterday, following news surrounding the termination of the Bandar Malaysia deal.

“The KLCI rebounded from the recent sell down, despite the decline in regional markets,” Eng said, adding that the French election has triggered some profit-taking in global markets.

“If it’s a positive outcome, there could be an uptrend in global markets including Malaysia, but it would probably not be a significant climb for the KLCI,” he added.

On corporate earnings, Eng said the market has priced in expectations of earnings growth in some sectors such as automotive and consumer products, which could weigh on the index if earnings disappoint.

However, he expects a mixed-bag of earnings as some sectors such as technology could surprise, amid strong export numbers, adding that other sectors like banking, telecommunication and oil and gas could also outperform.

The bourse saw a total of 3.57 billion shares, worth RM2.49 billion traded. Gainers beat decliners at 617 against 327, while 361 counters were unchanged.

Panasonic Manufacturing Malaysia Bhd led the gainers, while Petronas Gas Bhd headed the decliners. The top active counter was NetX Holdings Bhd.

Across the region, Japan’s Nikkei 225 rose 0.7%, South Korea’s Kospi climbed 0.97%, while Hong Kong’s Hang Seng fell 0.84%.

Reuters reported Asian stocks declined for a third consecutive day today, as fresh falls in commodities raised concerns about the health of the global economy, though the euro bucked broad weakness on receding concerns about France's presidential election.

MSCI's broadest index of Asia-Pacific shares outside Japan extended its decline to be down 0.8% today and was trading at its lowest level since April 25.


Source: The Edge

Thursday, May 4, 2017

Market Daily Report: FBM KLCI down 13.84pts after Bandar Malaysia stake sale nulled, U.S. Fed cue



KUALA LUMPUR (May 4): The FBM KLCI declined 13.84 points 0.8% after Malaysian Government-owned TRX City Sdn Bhd said its planned sale of a 60% stake in Bandar Malaysia Sdn Bhd to IWH CREC Sdn Bhd is "null and void with immediate effect".

The Government via the Finance Ministry owns TRX, a former unit under 1Malaysia Development Bhd (1MDB). The Government also owns 100% of 1MDB.

Iskandar Waterfront Holdings Sdn Bhd and China Railway Engineering Corporation (M) Sdn Bhd (CREC) jointly own IWH CREC. TRX said "IWH CREC failed to meet the payment obligations" under the share sale agreement.

Analysts said news on termination of TRX's plan to sell its 60% equity interest in the Bandar Malaysia real estate project here had affected investor sentiment. At 5pm, the KLCI settled at 1,758.67 points, while the ringgit weakened to 4.3300 against the U.S. dollar.

JF Apex Securities Bhd senior analyst Lee Cherng Wee told theedgemarkets.com that concerns surrounding the Bandar Malaysia aborted stake sale was one of other factors driving decline in the KLCI today, on top of ongoing profit-taking activity.

“The index might have also been impacted by concerns on 1MDB, following development on the Bandar Malaysia stake sale. If you recall, the market and ringgit were affected a while back due to the 1MDB issue, but had gradually recovered.

“Now with the Bandar Malaysia issue, all these concerns are resurfacing and it is affecting investor sentiment on the local market,” Lee said.

Across Bursa Malaysia, 3.45 billion shares worth RM2.89 billion were traded. Decliners outnumbered gainers at 824 against 185.

Besides the Bandar Malaysia and 1MDB factors, Malaysian shares could have also taken cue from anticipation of near-term U.S. interest rate hikes. Such sentiment followed the U.S. Federal Reserve's latest monetary policy statement.

Reuters reported the Federal Reserve kept interest rates unchanged on Wednesday and downplayed weak first-quarter economic growth, while emphasising strength of the labour market, in a sign it was still on track for two more rate rises this year.


In a bullish statement following the end of a two-day policy meeting, the central bank also said consumer spending continued to be solid, business investment had firmed and that inflation has been "running close" to the Fed's target.


Source: The Edge

Tuesday, May 2, 2017

Market Daily Report: FBM KLCI rises on recovery in banking sector




KUALA LUMPUR (May 2): The FBM KLCI rose today on bullish sentiment, following signs the banking sector is on its way to recovery.

The benchmark index closed 10.41 points or 0.59% higher at 1,778.47.

“The latest loan growth as well as interest margin will be pointing towards stronger earnings growth this quarter for the banks,” said Areca Capital Sdn Bhd chief executive officer Danny Wong told the edgemarkets.com.

He said he hopes to see a re-rating of the banks by research houses, which would depend on the banks’ upcoming results.

Wong said the banks’ performances over the past two quarters indicated that they have bottomed, and they are expected to attract foreign investors, amid the current recovery. “The banking sector remains the main magnet for foreign investors," he said.

Bursa Malaysia saw a total of 3.88 billion shares, worth RM3.48 billion, traded today. There were 594 gainers and 411 decliners.

Reuters reported Japan's Nikkei share average rose to six-week highs today in a holiday-shortened week, getting a lift from robust earnings and gains on Wall Street.

“Wall Street climbed on Monday, boosted by gains in Apple and other big technology stocks that more than offset weak U.S. economic data, and pushed the Nasdaq Composite to another record high,” it added.

The Nikkei finished 0.7% higher at 19,445.70, its highest close since March 21. It added 1.3% for the week. Tokyo markets will be closed for three days from tomorrow for a string of holidays known as Golden Week.

Meanwhile, South Korea’s Kospi rose 0.65%, while the Hong Kong Hang Seng Index was up 0.33%.

Source: The Edge