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Friday, June 30, 2017

Market Daily Report: FBM KLCI slips into the red amid expectations of OPR hike

KUALA LUMPUR (June 30): The FBM KLCI settled 7.69 points or 0.43% lower at 1,763.67 points today, tracking regional markets as investors turned to profit taking as the mood turned cautious amid expectations that Bank Negara would raise the overnight policy rate (OPR) soon.

“There is an absence of window dressing, not just locally but among regional markets. Apart from that, investors are also booking in profits, particularly on worries that Bank Negara Malaysia would raise [key interest rate] in the second half of this year,” TA Securities Holdings Bhd senior technical analyst Stephen Soo told

“Further, there are other uncertainties such as concerns over how the upcoming general election could affect the Malaysian stock market. In the meantime, investors are closely monitoring the stock market and keeping a cautious outlook,” Soo said.

Soo added that trading for the time being up until the first half of July this year is expected to remain “choppy”, further dragged down by the volatility in commodity prices, and is only likely to recover towards year end.

Across the FBM KLCI, about 1.51 billion shares valued at some RM2.31 billion were exchanged.
Losers outpaced gainers at 477 versus 324, while 448 counters settled unchanged.

The top three gainers of the day were Nestle (Malaysia) Bhd, MSM Malaysia Holdings Bhd and Dutch Lady Milk Industries Bhd. The losing counters were led by Teck Guan Perdana Bhd, Ajinomoto (Malaysia) Bhd and IHH Healthcare Bhd.

Regionally, Japan’s Nikkei 225 fell 0.92%, Hong Kong’s Hang Seng Index declined 0.77%, and the Korea Composite Stock Price Index dropped 0.16%.

 Source: The Edge
Reuters reported that Japan's Nikkei share average fell to two-week lows today on concerns that the days of cheap funding from European central banks may soon be over. The Nikkei declined 0.9% to settle at 20,033.43, having fallen to as low as 19,946.51 — the weakest level seen since June 16 — earlier in the day.

Meanwhile, the index of Japanese real estate investment trusts tumbled to a 16-month low, partly due to concerns over a potential hike in global interest rates, the news agency reported.

Thursday, June 29, 2017

Market Daily Report: FBM KLCI ends flat despite a rebound on Wall Street

KUALA LUMPUR (June 29): The FBM KLCI ended the trading day almost flat, up only 0.13 points to close at 1,771.36 points, although the regional markets had been lifted by the rebound in the United States.

Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng told “Yesterday night, the US market rebounded; ignoring the warning from US Federal Reserve chair Janel Yellen’s that stock valuations are rich in the US.”

“Our side (KLCI) took after the good sentiment from the US,” he added.
Wong noticed that the small- and mid-cap stocks had rebounded but not the big cap counters. Hence, the KLCI ended flattish.

Across the board, some 1.4 billion shares worth RM1.56 billion were traded. There were 490 gainers and 292 decliners.

Over in the US, Dow Jones Industrial Average gained 143.95 points to 21,454.61 on Wednesday — less 75 points from its record high of 21,528.99 points. Meanwhile, S&P 500 was up 21.31 points to 2,440.69 points, which is whisker away from its all time high of 2,453.46 points.
Elsewhere in Asia, Hong Kong’s Hang Seng Index was up 1.1% and South Korea’s Kospi rose 0.55%.

Reuters reported that Japan's Nikkei share average neared two-year highs on Thursday after Wall Street rebounded, with tech shares such as Advantest Corp and Shin-Etsu Chemical outperforming the overall market.

The Nikkei gained 0.45%to 20,220.30, moving closer to 20,318.11 hit last week, the highest level since August 2015, Reuters said.

Tech shares, which stumbled the previous day, rebounded after the Nasdaq overnight posted its best session since Nov 7, Reuters added.

Source: The Edge

Wednesday, June 21, 2017

Market Daily Report: FBM KLCI down on Tenaga as crude oil drop hits Malaysian shares

KUALA LUMPUR (June 21): The FBM KLCI fell 5.14 points or 0.3% on Tenaga Nasional Bhd share losses and as lower crude oil prices hit Bursa Malaysia oil and gas-related shares.

At 5pm, the KLCI closed at 1,775.57 points. Tenaga shares fell 14 sen to RM14.18 to become Bursa Malaysia's 7th largest decliner.

Tenaga shares fell after the state-controlled utility said the Employees Provident Fund and Permodalan Nasional Bhd cut their respective stakes in Tenaga.

On the broader market, analysts said investors could be taking profit across Bursa Malaysia ahead of the Hari Raya Aidilfitri holidays starting this Sunday (June 25).

Malaysian markets will be closed this Monday and Tuesday (June 26 and 27) for Hari Raya Aidilfitri.
Today, Jupiter Securities Sdn Bhd analyst Benny Lee told “Because of the long weekend for Malaysia, investors might be taking profit, so we might see a downtrend but the market should pick up after Hari Raya.”

Across Bursa Malaysia, 1.69 billion shares valued at RM2.41 billion were transacted. There were 284 gainers and 574 decliners.

Top active counter Hibiscus Petroleum Bhd fell 2.5 sen to 39 sen with 34.2 million shares transacted. Hibiscus could have taken the cue from lower crude oil prices.

Reuters reported that a renewed slump in oil prices to seven-month lows put Asian investors on edge on Wednesday, overshadowing a decision by US index provider MSCI to add mainland Chinese stocks to one of its popular benchmarks.

It was reported that Brent eased 10 cents to US$45.92 a barrel, while US crude futures lost 6 cents to US$43.45.

Source: The Edge

Tuesday, June 20, 2017

Market Daily Report: KLCI falls 8.19 points; Maybank active

KUALA LUMPUR (June 20): The FBM KLCI fell 8.19 points or 0.5% , weighed down by blue-chip stocks like Maxis Bhd and Petronas Gas Bhd.

At 5pm, the KLCI closed at 1,780.71 points. Maxis shares fell 26 sen to RM5.62 while Petronas Gas dropped 22 sen to RM18.66.

Maxis and Petronas Gas were Bursa Malaysia's fourth and sixth-largest decliners respectively.
“The KLCI’s decline was driven by losses sustained by some of the blue-chip stocks, including Maxis," Inter-Pacific Securities Sdn Bhd research head Pong Teng Siew told

Maxis shares fell after the mobile telecommunication network provider said it was placing out 300 million new shares to investors. Petronas Gas shares dropped as crude oil prices fell.

Reuters reported that oil markets held around seven-month lows on Tuesday as investors focused on persistent signs of rising supply that are undermining attempts by OPEC and other producers to support prices.

US West Texas Intermediate crude futures were down three cents at US$44.17 a barrel. They declined 54 cents, or 1.2 percent in the previous session, to settle at US$44.20 per barrel, the lowest close since Nov. 14.

In Malaysia today, Bursa Malaysia saw 1.81 billion shares worth RM2.18 billion traded. Decliners beat gainers at 493 against 303 respectively.

Malayan Banking Bhd (Maybank) was among Bursa Malaysia's most-active stocks. Maybank shares rose one sen to RM9.64 with some 24 million units traded.

According to Inter-Pacific Securities remisier Sam Ng, Maybank drew interest from fund managers as investors might be reorganising their blue-chip  portfolios.

“In my view, the stock (Maybank) is still undervalued, so the attractiveness is there,” Ng told

Source: The Edge

Tuesday, June 13, 2017

Market Daily Report: FBM KLCI falls ahead of US interest rate decision

KUALA LUMPUR (June 13): The FBM KLCI fell 4.45 points or 0.2% to close at 1,784.44 points on profit taking ahead of the closely-watched US interest rate decision this week.

The US Federal Reserve's Federal Open Market Committee will decide on the country's interest rate direction upon conclusion of its two day meeting on Wednesday (June 14). US interest rate decisions are closely watched due to their impact on global fund flow.

In Malaysia today, Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng told : “Overall, the Malaysian market is not having a big fluctuation, investors are still waiting for more clarity from global economic (factors) like UK’s Brexit development and US’ Federal Reserve’s widely-anticipated rate hike."

At Bursa Malaysia, investors took profit after the KLCI reached its intraday high at 1,793.01 points.
Bursa Malaysia saw a total of 2.05 billion shares worth RM2.57 billion change hands. There were 349 gainers versus 557 decliners.

Priceworth International Bhd was the most-actively traded counter with 117.35 million shares traded. The stock rose three sen to 27 sen.

Across Asian share markets, Hong Kong's Hang Seng rose 0.56% while South Korea's Kospi gained 0.71%. Japan’s Nikkei 225 declined 0.05%.

Reuters reported that Asian stocks rebounded on Tuesday despite a further slide in US tech shares, while the Canadian dollar soared on the possibility interest rates might go up sooner than expected.

Source: The Edge

Friday, June 9, 2017

Market Daily Report: KLCI remains trapped below 1,800, lacking catalysts

KUALA LUMPUR (June 9): The FBM KLCI gained 3.32 points or 0.19% to close at 1,788.89, but remains trapped below the 1,800 resistance level amid a lack of catalysts and the uncertainty surrounding recent global developments.

On a week-on-week basis, the benchmark index has risen 11.94 points or 0.67% since it closed at 1,776.95 on June 2.

Kenanga Investment Bank Bhd research head Chan Ken Yew said the market is still consolidating following the developments in the US and UK, adding that there was not much catalyst for the local market currently.

“The market still seems to be consolidating below the 1,800 level. If it breaks the 1,787 to 1,800 ceiling, that would drive further increases in the index,” he said.

Meanwhile, Chan said investors are keeping an eye on the happenings in the US, UK and the Middle East, but said it is unlikely to have a significant impact on the local market.

Across the board, a total of 1.91 billion shares worth RM2.22 billion were traded. Gainers edged losers at 476 against 396, while 382 counters were unchanged.

Leading the gainers were Hartalega Holdings Bhd’s warrant stock HARTA-CU, while the decliners were led by Dutch Lady Milk Industries Bhd. The top active stock was Frontken Corp Bhd.
Elsewhere in Asia, Japan’s Nikkei gained 0.52%, South Korea’s Kospi increased 0.77% while Hong Kong’s Hang Seng fell 0.13%.

Reuters reported that the sterling pound spiralled lower today as British elections left no single party with a clear claim to power, sideswiping investors who had already weathered major risk events in the United States and Europe.

MSCI's broadest index of Asia-Pacific shares outside Japan were all but flat, it said.

Source: The Edge

Thursday, June 8, 2017

Market Daily Report: KLCI ends flat amid external uncertainties

KUALA LUMPUR (June 8): The FBM KLCI closed 0.35 point or 0.02% lower at 1,785.57, as investors keep an eye on global events, including the UK elections, the upcoming testimony by former FBI director James Comey and the developments in the Middle East.

Public Investment Bank Bhd head of research Ching Weng Jin said market participants are taking a wait-and-see attitude, amid the various global uncertainties.

“Investors are not taking any risks amid the UK elections, Comey’s testimony in the US and the diplomatic row in the Middle East. With all these external uncertainties, people are not willing to take any chances,” he said.

Ching noted the low volume of trades today, but said these external factors should not significantly impact the local market.

Across the board, some 1.95 billion shares, worth RM2.15 billion, were traded. Decliners beat gainers at 459 versus 419, while 389 counters were unchanged.

United Plantations Bhd led decliners, while Hartalega Holdings Bhd was top gainer. The top actively-traded counter was AT Systematization Bhd.

Elsewhere in Asia, Hong Kong’s Hang Seng rose 0.34%, South Korea’s Kospi gained 0.15%, while Japan’s Nikkei fell 0.38%.

Reuters reported Asian shares wobbled today, as investors braced for surprises from the UK election, a European Central Bank policy meeting and Comey’s testimony.

MSCI's broadest index of Asia-Pacific shares outside Japan was little changed, though China edged up on unexpectedly solid trade data.

Source: The Edge

Wednesday, June 7, 2017

Market Daily Report: KLCI eases as investors become more risk averse

KUALA LUMPUR (June 7): The FBM KLCI fell slightly today as investor sentiment was affected by foreign institutional funds becoming more risk averse, amid the Middle East political rift and ahead of events like the UK general election, European Central Bank policy meeting and former FBI director James Comey's Senate testimony.

The benchmark index settled at the day’s low of 1,785.92, down 5.09 points or 0.28% from yesterday. Its intra-day high was 1,792.65.

Mercury Securities Sdn Bhd head of research Edmund Tham said there was some profit taking in the market, as some investors do not see substantial upside to their investment.

“Investors are waiting for more clarity from these events, especially the foreign funds, they are more sensitive to global news development,” he told

“So when there is uncertainty, the KLCI would be capped and some local investors will be affected by this kind of sentiment and start taking profit,” he said.

Reuters reported other Southeast Asian stock markets were up today, as investors priced in chances of a victory for the ruling party in the UK election and a rate increase by the U.S. Federal Reserve next week.

Elsewhere, Japan’s Nikkei inched up 0.02%, while Hong Kong Hang Seng index declined 0.09%, and South Korea’s Kospi fell 0.36%.

Over at Bursa Malaysia, total volume stood at 2.36 billion shares, worth some RM2.36 billion. There were 395 gainers versus 459 losers, while 390 counters remained unchanged.

Top gainers included Nestle (M) Bhd, while the biggest loser was Bursa Malaysia Bhd. Frontken Corp Bhd was the most actively-traded counter, with 151.75 million shares exchanging hands.

The ringgit strengthened against the U.S. dollar, trading at 4.2645 at the time of writing.

Source: The Edge

Monday, June 5, 2017

Market Daily Report: KLCI up 0.62%, trails U.S. market rally from last week

KUALA LUMPUR (June 5): The FBM KLCI rose 0.62% today, trailing last week’s rally in the U.S. stock market and supported by higher commodity prices.

The benchmark index rallied throughout the day to close up 11 points at 1787.95. On the broader market, 2.48 billion shares, worth RM2.64 billion were traded with 542 gainers against 382 decliners, while 353 counters closed unchanged.

Inter-Pacific Research head Pong Teng Siew said the local market was boosted by the bullish sentiment seen in the U.S. market, which closed at record highs last Friday, lifted by finance and technology stocks.

Both the S&P 500 and the Dow Jones Industrial Average closed at record highs of 2,349.07 and 21,206.39 respectively.

Back home, gainers included Hong Leong Financial Group Bhd, KESM Industries Bhd, United Plantations Bhd and Petronas Dagangan Bhd. Decliners included Kluang Rubber Co (M) Bhd and Manulife Holding  Bhd.

Pong said the KLCI “has no problem breaching the 1,800-level soon”, but raised concerns on over-valuation of companies. “The average price-earnings ratio (P/E) in KLCI is at 15.9 times, fast approaching the trading levels in 12-month forward basis.

“This tells you that we are near the peak of valuation in P/E terms.

“We have not been able to break the level during the previous cycles of stock market rally and during the 2008 financial crisis, so it remains to be seen [as to] how far the shares will climb,” he added.

Oil prices rose to an intra-day high of US$50.71 earlier today, following news Saudi Arabia, Bahrain, the United Arab Emirates and Egypt cut ties with Qatar on terrorism concerns, Reuters reported. Meanwhile, crude palm oil prices continued to recover from last week’s losses, thanks to higher demand in the spot market.

Among Asian stock indices, Japan’s Nikkei 225 closed down 0.03% to stay well above the 20,000 level. South Korea’s KOSPI lost 0.13%, whereas Hong Kong’s HSI closed 0.24% lower.

Source: The Edge

Friday, June 2, 2017

Market Daily Report: FBM KLCI up 13.84pts on strong US jobs numbers

KUALA LUMPUR: The FBM KLCI rose 13.84 points or 0.78% to close at 1,776.95 as market sentiment was boosted by the strong overnight performance on Wall Street on positive jobs data.
"Payroll numbers in the US were better than expected, so the market's performance was riding on that momentum and the anticipation of what should be a positive US jobs report to be released later this evening," said Etiqa Insurance head of research at Chris Eng.

Reuters said ADP reported private payrolls grew by 253,000 last month, beating analysts' median forecast of a 185,000 increase. If the US government's payroll report for May were to show another solid pickup in hiring, it would cement expectations that a rate hike in less than two weeks is a done deal.

"The big, medium and small cap indexes saw positive performance today as well," Eng added.
The broader market saw gainers leading losers at 732 to 247, with 318 counters closing unchanged.
Some 2.46 billion shares valued at RM2.58 billion changed hands.

Top gainers included Dutch Lady Milk Industries Bhd, Hong Leong Bank Bhd and Hong Leong Financial Group Bhd, while top losers were Nestle (M) Bhd, British American Tobacco (M) Bhd and Ajinomoto (M) Bhd.

Elsewhere in Asia, Japan's Nikkei share average broke through the 20,000-point level for the first time since December 2015 as strong US economic data and a weaker yen boosted investor confidence, Reuters reported.

South Korea's KOSPI rose 1.16% to 2,371.72 while Hong Kong's Hang Seng Index was up 0.44% at 25,924.05.

Source: The Edge