Market Daily Report: FBM KLCI at year’s low in the absence of positive catalysts

KUALA LUMPUR (March 27): The FBM KLCI continued to head south today in the absence of positive catalysts to spark buying interest.

The benchmark index closed at the lowest level this year at 1,642.73 points today, down 7.21 points or 0.44%, after it had hovered between 1,641.89 points and 1,650.22 points.

Areca Capital Sdn Bhd chief executive officer Danny Wong told theedgemarkets.com that while the Malaysian market is expected to remain volatile in the near term, investors could look for buying opportunities for companies that have a positive outlook.

“The local market remained under pressure despite overnight rebound at Dow Jones Industrial Average, because there is not much catalyst, so the near-term prospect is largely depending on external factors. 

 

“The inverted yield curve is still there and we expect the market to remain volatile for a while, but we see some opportunity now as the market was down from its recent high,” Wong said.

He added that there are undervalued stocks with good fundamentals that are worth a second look.
In the domestic market, Bursa Malaysia saw 2.07 billion shares worth RM1.71 billion traded with 393 gainers versus 404 losers, while 365 counters remained unchanged.

Notable gainers included Lafarge Malaysia Bhd and Rapid Synergy Bhd, while losers included Public Bank Bhd and Genting Bhd.

Iris Corp Bhd was the most actively traded counter today with 97.83 million shares traded.
Reuters reported that most Southeast Asian markets are down today as investors remained concerned about a potential recession in the US, with Philippines declining to a one-week trough.

It added that sentiment remained cautious although the 10-year US Treasuries yield rose as high as 2.432% from Monday's 15-month low.

The inverted yield curve has spooked the global equity markets as such a situation preceded US recessions in the past.

Japan’s Nikkei fell 0.23% today, together with South Korean Kospi, which declined 0.15%, while Hong Kong Hang Seng Index gained 0.56%.



Source: The Edge

Market Daily Report: FBM KLCI rebounds at 11th hour after previous day selldown

KUALA LUMPUR (March 22): The FBM KLCI closed up three points or 0.18% today at 1,666.66 after the index rebounded at the 11th hour, buoyed by sharp increases in component stocks including Maxis Bhd and Petronas Gas Bhd.

At 5pm, Maxis closed up 23 sen at RM5.56 while Petronas Gas added 16 sen to RM17.86.
The KLCI closed higher after staying in negative territory for most of the day. The index, which opened higher, had risen to its intraday high at 1,673.45 before falling to its intraday low at 1,657.01.
Inter-Pacific Securities Sdn Bhd research head Pong Teng Siew told theedgemarkets.com today the continued decline in banking stocks weighed on the KLCI. Pong however said the fall in banking shares was not as significant as that of the previous day. 

 

“Banking stocks continued to fall but it was not an outright disaster. There does not seem to be much reason for a further selldown given that oil prices are steady, so I think things will pick up next week,” he said.

Yesterday, the KLCI slid 20.55 points or 1.22% as investors sold banking shares on expectations that Bank Negara Malaysia may cut interest rates amid lower domestic consumer prices and following the US Fed's announcement of a more dovish monetary stance.

KAF-Seagroatt & Campbell Securities Sdn Bhd analyst Rachel Huang wrote in a note yesterday: "The latest macro news that the US Federal Reserve may take a more accommodative stance on interest rates has now led to new possibility of a interest rate cut on the domestic front. The last time the policy rate was changed was slightly more than a year ago, when there was a 25bps hike in overnight policy rate in January 2018. Prior to this, there was an unexpected rate cut of 25bps in mid-2016.

"We believe sentiments on banks (in Malaysia) were also likely affected by the unexpected turn in direction of interest rate expectations, given that just a year ago, the market was expecting ongoing rate hikes. Overall, we remain cautious on the sector. Maintain Neutral," Huang said.

Across Bursa Malaysia today, 2.75 billion shares worth RM2.13 billion were traded. Leading gainers included Carlsberg Brewery Malaysia Bhd, Maxis and Petronas Gas.
The most-actively traded stocks included Berjaya Corp Bhd, Hibiscus Petroleum Bhd and Sapura Energy Bhd.


Source: The Edge

Market Daily Report: FBM KLCI slumps 20.55 points to finish at intraday low

KUALA LUMPUR (March 21): The FBM KLCI slid 20.55 points or 1.22% as investors sold banking shares on expectations that Bank Negara Malaysia may cut interest rates amid lower domestic consumer prices. Plantation and glove manufacturers' shares also fell as the ringgit strengthened.

At 5pm, the KLCI settled at 1,663.66. Among the 30 KLCI stocks, worst hit, in percentage terms, was AMMB Holdings Bhd followed by PPB Group Bhd and Top Glove Corp Bhd.

AMMB closed down 14 sen or 3.04% at RM4.47, PPB fell 50 sen or 2.73% to RM17.82 while Top Glove dropped 12 sen or 2.62% to RM4.46. The ringgit strengthened to 4.0610 against the US dollar at the time of writing after appreciating to its strongest intraday level at 4.0545 following the US' announcement of a more dovish monetary stance.

Reuters reported that the US Federal Reserve's new projection knocked the number of interest rate hikes expected this year to zero from the two forecast in December in the face of an apparent jump in economic risks
.
In Malaysia, Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com: “Notable decliners were banking heavyweights, on expectations that Bank Negara may adopt an easing monetary policy, by trimming its overnight policy rate to combat the slowdown in Malaysia’s economic growth.” 

 

Plantation shares fell due to expectation that a firmer ringgit will make Malaysian palm oil more expensive in world markets. Export-based glove manufacturers' shares dropped as a stronger ringgit means these companies' US dollar-based earnings will be less in ringgit terms.

The Malaysian stock market's performance is also closely watched ahead of the country's February inflation data release after January data showed prices fell into deflationary territory for the first time since November 2009.

February inflation data, as measured by the consumer price index (CPI), is scheduled for release tomorrow (March 22), according to the Statistics Department's website.


Source: The Edge

Market Daily Report: FBMKLCI closes 3.47 points lower on the back of profit taking

KUALA LUMPUR (March 20): The FBMKLCI Index closed 3.47 points lower to 1,684.21 points today on the back of profit taking amid investor caution over Malaysia’s implementation of development strategies in the months ahead after nearly a year of policy uncertainty.

A total of 2.59 billion shares worth RM1.83 billion were traded on Bursa Malaysia.
TA Securities Senior Technical Analyst Stephen Soo is of the view that the market is awaiting a catalyst or stimulus that can propel the economy — and the stock market — forward.

 

 

“We are still in profit-taking mode over the lack of catalysts coming from the second day of Invest Malaysia (conference), as whatever was mentioned by the Prime Minister is more or less the broad policy or strategy,” he said.

He added that the Government’s plan to reduce corruption and improve transparency were well known in the market and that investors are waiting for more concrete developments.
Soo expects the FBMKLCI index to continue to trade sideways at around the 1,680 to 1,700 range.

Last Tuesday, Prime Minister Tun Dr Mahathir Mohamad said at Invest Malaysia that in order for the country to move forward corruption and political appointees in GLCs have to be given the boot. Dr Mahathir also called for private sector workers to be paid more to address income inequality.
Finance Minister Lim Guan Eng urged banks to be more flexible in lending, warning their profits could otherwise be subject to a windfall tax.

The leaders said Malaysia is intent on maintaining friendly international partnerships and that issues with both China and Singapore are being resolved rationally.

Regionally, the trading day was a mixed bag as although the Japanese Nikkei 225 index closed higher by 0.2% or 42.07 points to 21,608.02 points, Hong Kong’s Hang Seng shed 0.49% or 145 points to 29,321, while South Korea’s KOSPI and Shang Hai’s Composite Index finished flat. 

According to Reuters, the Hong Kong market slipped on the back of US-China trade war concerns, as well as concerns that the US Federal Reserve could implement a rate hike at its next meeting.
Bursa Malaysia’s Energy Index closed 0.21% or 2.23 points higher to 1,039.07, with the most active counters on the bourse, Perdana Petroleum adding 4 sen to 43 sen, and Sapura Energy Bhd finishing half a sen lower to 34 sen.

Oil prices reached a 2019 high of US$67.68 per barrel today, on the back of a proposal for further cuts in production by the Organisation of Petroleum Exporting Countries (OPEC).



Source: The Edge

Market Daily Report: FBM KLCI down at intraday low as investors take profit

KUALA LUMPUR (March 19): The FBM KLCI closed 3.26 points or 0.2% lower today, mainly on profit taking and as investors appeared cautious ahead of Malaysia's February inflation data release on Friday.

At 5pm today, the KLCI finished at its intraday low at 1,687.68 on profit taking after the index rose to its intraday high at 1,694.89. Yesterday, the index closed up 10.4 points or 0.62% at its intraday high at 1,690.94.

Today, TA Securities Holdings Bhd senior technical analyst Stephen Soo told theedgemarkets.com that the market performance was a result of profit-taking interests, which may reflect investors' disappointment from the absence of market catalysts  from the two-day Invest Malaysia Kuala Lumpur 2019 conference, which started today.

"As far as the index is concerned, it is still in consolidation mode. We think it will continue to trade sideways for the remainder of the week," said Soo, adding that the KLCI's immediate support and resistance would be at 1,680 and 1,700 respectively.

The Malaysian stock market's performance is also closely watched ahead of the country's February inflation data release after January data showed prices fell into deflationary territory for the first time since November 2009. 

 

February inflation data, as measured by the consumer price index (CPI), is scheduled for release on Friday, according to the Statistics Department's website. Today, Reuters reported that Malaysian stocks pared early gains as investors exercised caution ahead of the country's February inflation data, which is expected to fall according to a Reuters poll.

It was reported that the CPI in February was forecast to fall 0.3 percent from a year earlier, according to the median estimate among 12 economists surveyed.

It was reported that in January, prices slipped into deflationary territory for the first time since November 2009, with the CPI declining 0.7 percent year-on-year amid a sharp drop in retail fuel prices.

Across Bursa Malaysia, 2.89 billion shares worth RM1.76 billion were transacted. Top decliners included Nestle (M) Bhd, Petronas Dagangan Bhd and Dayang Enterprise Holdings Bhd.

Dayang closed down 24 sen or 14.81% at RM1.38. Hong Leong Investment Bank Bhd had today downgraded its Dayang share recommendation to sell from buy on the belief that the market is pricing in much stronger earnings expectations, which may not be sustainable for the oil and gas support services provider.

"We advocate investors to take profit on the stock," Hong Leong analyst Sean Lim Ooi Leong wrote in a note today.



Source: The Edge

Market Daily Report: FBM KLCI up 0.62% at intraday high ahead of US rate decision

KUALA LUMPUR (March 18): The FBM KLCI closed up 10.4 points or 0.62% today at its intraday high amid speculation of a dovish US interest rate stance ahead of the  Federal Reserve Federal Open Market Committee meeting on Tuesday and Wednesday (March 19 and 20).

Today, the KLCI finished at 1,690.94. Across Bursa Malaysia, 3.26 billion shares worth RM1.92 billion were transacted. Bursa Malaysia's top gainer was Tenaga Nasional Bhd followed by Petronas Dagangan Bhd and Maxis Bhd.

The Malaysian stock market trend was in line with gains across Asian markets amid dovish US interest rate sentiment. Reuters reported that there is much talk that Fed policymakers will lower their interest rate forecasts, or "dot plots", to show little or no further tightening this year.

In Malaysia, Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com that "gains in the local stock market were mainly due to the regional bourses, which were largely positive".

Leong said investors took cue from external factors such as strong gains in US shares on Friday, optimism on China-US trade talks and expectation of dovish US interest rate stance.

In China today, the Shanghai Stock Exchange Composite closed up 2.47% while Hong Kong's Hang Seng was up 1.37%. Elsewhere across Asia, Japan's Nikkei 225 rose 0.62% while South Korea's Kospi was 0.16% higher



Source: The Edge

Market Daily Report: Glove makers lead gains in KLCI

KUALA LUMPUR (March 15): Supported by share price increases in Hartalega Holdings Bhd and Top Glove Corp Bhd, the FBM KLCI gained 6.02 points or 0.36% to close at 1,680.54 points today.

Shares of glove makers had recently been battered due to the depreciation of the ringgit against the US dollar. However, the ringgit appreciated to 4.088 against the dollar today, its first uptick since Tuesday.

The local market’s performance was in line with other Asian markets, buoyed by news of progress in US-China trade talks, according to Reuters.

However, according to Rakuten Trade head of research Kenny Yee, the increase in the benchmark index was likely due to domestic buying as foreign investors have reportedly continued to pull money out of the country.

Market breadth was positive across Bursa Malaysia, with 445 counters up versus 374 decliners. Total volume topped 4 billion shares, valued at RM3.67 billion.

Sapura Energy Bhd, Bumi Armada Bhd and Priceworth International Bhd were the most actively-traded stocks. Top gainers included Nestle (Malaysia) Bhd, Malaysian Pacific Industries Bhd and Hong Leong Bank Bhd.

In other Asian markets, Japan’s Nikkei closed up 0.77%, while the Shanghai Composite Index rose 1.04%. South Korea’s Kospi ended 0.95% higher.



Source: The Edge

Market Daily Report: FBM KLCI down as China industrial output data disappoints

KUALA LUMPUR (March 14): The FBM KLCI closed down 3.72 points or 0.22% at 1,674.52 after Asian share markets stumbled as news of China's slower industrial output growth, which missed analysts' forecasts, raised concerns about the world’s second-biggest economy.

Malaysian oil and gas-related shares rose in active trade to partly help propel volume across Bursa Malaysia higher at 4.77 billion shares amid higher crude oil prices.

As investors closely watch external factors, Lee Cherng Wee, a senior analyst at JF Apex Securities Bhd, told theedgemarkets.com that Malaysian shares are trading at current levels "pending more clarification from the Government to boost sentiment”.

In China markets, the Shanghai Stock Exchange Composite closed down 1.2% while Hong Kong's Hang Seng erased losses to finish up 0.15%. Elsewhere across Asia, Japan's Nikkei 225 closed down 0.02%, while South Korea's Kospi erased losses to gain 0.34%.

Reuters, quoting official data, reported today China's industrial output grew 5.3% in the first two months of this year, the slowest pace of expansion in 17 years. It was reported that analysts polled by Reuters had predicted industrial output growth would slow to 5.5% in January-February from December's 5.7% gain.

Across Bursa Malaysia today, volume rose to 4.77 billion shares worth RM2.75  billion compared with yesterday's four billion shares valued at RM2.39 billion.

Today, the most active shares included oil and gas-related stocks Destini Bhd, Sapura Energy Bhd and Carimin Petroleum Bhd at trade volumes of some 264 million, 222.5 million and 129.5 million respectively.

Destini shares closed up seven sen at 32.5 sen while Sapura Energy rose one sen to 35 sen. Carimin Petroleum added 10.5 sen to 94 sen.

Oil and gas-related shares rose amid higher crude oil prices. Reuters reported that oil prices nudged higher on Thursday to sit just off a four-month high reached in the previous session as investors focused on global production cuts and supply disruptions in Venezuela. International Brent crude oil futures were at US$67.61 a barrel at 0054 GMT, up 6 cents, or 0.1 percent, from their last close.
"OPEC continues to cut output amid ongoing supply issues, while the situation in Venezuela remains bleak," ANZ Bank was quoted as saying in a research note.


Source: The Edge

Market Daily Report: KLCI defies Asian selldown, up 7pts, led by banks

KUALA LUMPUR (March 13): Led by banking and oil and gas stocks, the benchmark FBM KLCI closed up 6.96 points today to 1,678.24 points, defying a selldown in most major North Asian markets.

"The KLCI was lifted by positive sentiment across banking stocks such as RHB Bank Bhd, CIMB Bank Bhd and Public Bank Bhd," said Malacca Securities Sdn Bhd analyst Kenneth Leong.

Across Bursa Malaysia, energy counters surged as the price of Brent crude oil rose for the fourth consecutive day, Leong said. Most actively traded stocks were Sapura Energy Bhd, Perdana Petroleum Bhd and KNM Group Bhd, with the energy index up 2.6% to a four-month high.

This was despite negative market breadth today with 407 counters finishing lower against 391 higher. A total of 4 billion shares valued at RM2.39 billion changed hands.

Leong opined that the KLCI could continue to rise after "having fallen quite a bit since February".
Reuters reported across Asia, shares ended lower after UK Prime Minister Theresa May's Brexit deal with the European Union was voted down by British lawmakers.

Japan's Nikkei closed down 0.99%, South Korea's Kospi fell 0.41%, the Shanghai Composite dropped 1.09% and Hong Kong's Hang Seng dipped 0.39%.


Source: The Edge

Market Daily Report: FBM KLCI climbs on bargain hunting as Asian stocks rise

KUALA LUMPUR (March 12): The FBM KLCI climbed 6.65 points or 0.4% today to close at 1,671.28 on bargain hunting and as Asian stocks rose after the European Commission agreed to changes in an updated Brexit deal. Stronger oil prices spurred Malaysian oil and gas shares.

According to Kenny Yee, head of research at Rakuten Trade Sdn Bhd, the KLCI closed up on bargain hunting today after the index fell 15.27 points yesterday.

Today, Yee told theedgemarkets.com: "I think oil and gas stocks are the flavour of the day or flavour of the week due to OPEC talks." He said this as crude oil prices rose, spurred by Saudi Arabia Energy Minister Khalid al-Falih's comment that an end to OPEC-led supply cuts was unlikely before June.

Across Bursa Malaysia today, trading volume stood at 3.02 billion shares with a value of RM2.1 billion. Oil and gas counters Sapura Energy Bhd, Bumi Armada Bhd and Velesto Energy Bhd were the most-actively traded stocks. Top gainers included KLCI stocks Public Bank Bhd and Press Metal Aluminium Holdings Bhd.

Across Asian markets, Japan's Nikkei closed up 1.79%, South Korea's Kospi added 0.89% while Hong Kong's Hang Seng rose 1.46%. Reuters reported that the pound and Asian shares jumped on Tuesday after the European Commission agreed to changes in a Brexit deal before a vote in the British parliament on a divorce agreement that has unnerved financial markets over recent months.

It was reported that European Commission head Jean-Claude Juncker agreed to additional assurances in an updated Brexit deal with British Prime Minister Theresa May on Monday, but warned UK lawmakers would not get a third chance to endorse it.

Across crude oil markets, it was reported that oil prices rose on Tuesday, as OPEC's de facto leader Saudi Arabia appeared to deepen the group's supply cuts aimed at tightening markets, although gains were capped by the ongoing surge in US supply and worries over the global economy.

It was reported that US West Texas Intermediate (WTI) crude oil futures were at US$57.08 per barrel at 0746 GMT, up 29 cents or 0.5% from their last settlement while Brent crude futures were at US$66.82 per barrel, up 24 cents or 0.4%.



Source: The Edge

Market Daily Report: KLCI plunges 15.27 points to intraday low

KUALA LUMPUR (March 11): The FBM KLCI closed down 15.27 points or 0.91% at its intraday low, led by glove manufacturers Hartalega Holdings Bhd and Top Glove Corp Bhd's share price drop and amid less-optimistic economic cues from China besides the US and eurozone countries.

At 5pm, the KLCI closed at 1,664.63. Hartalega ended down 24 sen or 4.81% at RM4.75 to become the top decliner, in percentage terms, among the 30 KLCI stocks followed by Top Glove, which fell 14 sen or 3.05% to RM4.45. Major decliners included banking stocks CIMB Group Holdings Bhd and Hong Leong Bank Bhd.

"Banking stocks and glove makers dragged the index down," MIDF Amanah Investment Bank Bhd head of research Mohd Redza Abdul Rahman told theedgemarkets.com.

“Sentiment was negative driven by a slew of lower Gross Domestic Product forecasts from (the) eurozone and China, as well as concerns over key macro indicators such as US job numbers that fell below expectations,” Redza said.

In Malaysia, glove manufacturers' share price could have fallen today amid analyst downgrades and a stronger ringgit against the US dollar.

On Hartalega, Maybank Investment Bank Bhd analyst Lee Yen Ling wrote in a note today that near-term sales could be weaker given the competitive environment and Hartalega’s reluctance in reducing its average selling prices (ASPs).

"Though various strategies are in place to ensure sales volume growth/stable margins, we lower our sales volume expectation in view of the increasingly competitive market," said Lee. She said Maybank Investment downgraded Hartalega shares to sell from hold with a lower target price (TP) at RM4.35 versus RM4.90 previously.

On Top Glove, Kenanga Investment Bank Bhd analyst Raymond Choo Ping Khoon wrote in a note today that Kenanga cut Top Glove's TP to RM4.20 from RM4.45 while maintaining the underperform call for the stock.

"Tell-tale signs like normalising demand, swelling capacities and intensified competition are pointing towards a potential slower set of sequential 2Q19 results. Anecdotal evidence suggest that shorter delivery lead time means strong demand is tapering off coupled with competitive pressure and players ramping up production that could result in further ASP compression and these factors are prompting us to cut our FY19E/20E forecasts by 5%/4%," Choo said.


Source: The Edge

Market Daily Report: FBM KLCI pares gains as Asian markets drop

KUALA LUMPUR (March 7): The FBM KLCI closed up 0.13 point today at 1,686.95 after paring gains as investors took cue from losses across Asian stock markets amid global economic growth concerns.

The KLCI pared gains at 5pm after rising to its intraday high at 1,690.23.

Across Asia, Japan's Nikkei 225 closed down 0.65%, South Korea's Kospi fell 0.45% while Hong Kong's Hang Seng fell 0.89%. Reuters reported that Asian shares eased on Thursday, as investors showed caution over the outlook for global growth as they awaited the outcome of Sino-US trade negotiations, while the euro remained under pressure ahead of the European Central Bank meeting.

In Malaysia, Hong Leong Investment Bank Bhd head of retail research Loui Low told theedgemarkets.com that dampened market sentiment does not bode well for heavyweight stocks.

Against such a backdrop, he observed that smaller market capitalisation stocks (small cap) perform better compared to big cap equities. Bursa Malaysia's FBM70 index closed up 58.15 points or 0.41% today at 14,208.29 while the small cap index rose 2.48 points or 0.02% to 12,887.46.

“Construction-related counters are also up possibly due to (potential) revival of the ECRL (East Coast Rail Link project). Expect small cap counters to be still in focus this week,” said Low.
Overall, Bursa Malaysia saw today 3.06 billion shares worth RM2.41 billion traded.
Prestariang Bhd was the most-active stock with some 222 million units traded. Prestariang closed up 10 sen at 54 sen.

Top gainers included cement manufacturer Lafarge Malaysia Bhd. The stock closed 35 sen higher at RM2.35 after rising 60 sen or 30% to its intraday high at RM2.60.


Source: The Edge

Market Daily Report: KLCI rebound trails small cap gains amid rotational play

KUALA LUMPUR (March 6): The FBM KLCI closed up 1.2 points or 0.07% today while small market capitalisation (small cap) stocks rose by a larger quantum amid a rotational play from big cap equities to smaller entities across Bursa Malaysia.

At 5pm, the KLCI closed higher at 1,686.82 on bargain hunting while Bursa Malaysia's small cap index rose 158.29 points or 1.24% to 12,884.98. The KLCI saw bargain hunting after losses in recent days on China's economic growth forecast revision and as investors sold Malaysian shares after analysts said corporate earnings for 2018's fourth quarter were weak and disappointing.

Today, TA Securities Holdings Bhd senior technical analyst Stephen Soo told theedgemarkets.com: “There is some rotational play going on mainly on the small cap companies for sectors such as oil and gas.”

Such sentiment helped Bursa Malaysia register a larger share trade volume and value today compared with a day earlier. Today, share trade volume rose to 3.16 billion units worth RM2.53 billion from yesterday's 2.57 billion shares valued at RM2.11 billion.

Today, the most active stocks included MY E.G. Services Bhd (MYEG) and Sapura Energy Bhd with share trade volumes at some 264 million and 202 million respectively. MYEG closed up 18 sen at RM1.19 while Sapura Energy rose 0.5 sen to 32 sen.

Globally, China markets were closely watched after shares there closed higher amid hopes the country will pursue more stimulus this year to support the cooling economy as investors evaluated China-US trade talks.

The Shanghai Stock Exchange Composite closed 1.57% higher while Hong Kong's Hang Seng finished up 0.26%. Elsewhere across Asia, Japan's Nikkei 225 shed 0.6% while South Korea's Kospi fell 0.17%.

Reuters reported that Asian stocks held their ground on Wednesday as Chinese equities rallied on stimulus hopes, although a resurgence in regional tensions capped broader gains with North Korea opting to restore part of a missile test site it had started dismantling earlier.


Source: The Edge

Market Daily Report: KLCI extends losses as China revises economic growth forecast

KUALA LUMPUR (March 5): The FBM KLCI closed down 8.37 points or 0.5% today following China's economic growth forecast revision announcement and as investors continued selling Malaysian shares after analysts said corporate earnings for 2018's fourth quarter (4Q18) were weak and disappointing.

At 5pm, the KLCI closed at 1,685.62 after KLCI stocks Nestle (M) Bhd, Tenaga Nasional Bhd and Hartalega Holdings Bhd were among Bursa Malaysia's top decliners. The KLCI extended losses today after falling 6.77 points yesterday.

Globally today, Reuters reported that Asian shares took cue from China after the country lowered its economic growth target for this year to between 6% and 6.5%, as expected, from around 6.5% last year.

It was reported that China offered more stimulus, including cuts in taxes and social security fees, increases in infrastructure investment and lending to small firms.

In Malaysia, Malacca Securities Sdn Bhd senior analyst Kenneth Leong said the KLCI extended losses today on China economic growth forecast downgrade concerns.

Amid continued selling of Malaysian shares after disappointing set of corporate earnings for 4Q18, Leong told theedgemarkets.com over telephone that "we may see further weaknesses (in the KLCI) this week”.


Source: The Edge

Market Daily Report: FBM KLCI tumbles as Malaysia corporate earnings dissappoint

KUALA LUMPUR (March 4): The FBM KLCI had today closed 6.77 points or 0.4% lower, after analysts said Malaysia's corporate earnings for 2018's fourth quarter (4Q18) were weak and disappointing.

At 5pm today, the KLCI closed at 1,693.99. The KLCI ended down despite gains across world stock markets amid signs the US and China were close to reaching a deal to end their trade war.

In Malaysia, Malacca Securities Sdn Bhd head of research Victor Wan told theedgemarkets.com that the KLCI was down mainly due to weaker corporate results announced recently. “News reports suggested that the [US-China trade war] is close to finding a resolution and if it is, it is definitely going to be good news for the market. Having said that, the Malaysian market has not really reacted, which is in a way a surprise,” said Wan.

Earlier today, CIMB Research analyst Ivy Ng Lee Fang wrote in a note that Malaysia's 4Q18 corporate earnings were disappointing, as 39% of companies under CIMB's coverage missed their earnings projections.

"The weak corporate earnings and huge impairments suggest an operating environment for businesses that is more challenging than anticipated. We lower our KLCI earnings growth to 5% for 2019F (vs 6% previously) but maintain our 6% earnings growth for 2020F. Corporate earnings delivery remains one of the key concerns for the Malaysian market," Ng said.

Across Bursa Malaysia today, 3.14 billion shares worth RM2.16 billion were traded. Top decliners included Nestle (M) Bhd and Petronas Dagangan Bhd.

China shares rose amid signs of a trade deal. The Shanghai Stock Exchange Composite closed up 1.12% while Hong Kong’s Hang Seng rose 0.51%. Elsewhere across Asia, Japan's Nikkei 225 climbed 1.02%.

Reuters reported that Asian shares started the week on the front foot on signs the US and China were close to striking a tariff deal to end their protracted trade war while the dollar eased as traders wagered Federal Reserve policy would remain accommodative. The Wall Street Journal reported on Sunday that Washington could lift most or all of its tariffs on Beijing while a summit between US President Donald Trump and his Chinese counterpart Xi Jinping to sign a final trade deal could happen later this month.



Source: The Edge

Market Daily Report: KLCI dips 1.2% this week on concerns over sluggish corporate earnings

KUALA LUMPUR (March 1): The FBM KLCI closed down for a fourth consecutive trading day today to end the week at 1,700 — a key psychological level, as investors grow wary of corporate earnings prospects following a string of weaker quarterly results.

The benchmark index recovered from an intraday low of 1,696.71 points to finish at 1,700.76 points at 5pm, down 6.97 points or 0.41% from Thursday's close. Some 20.66 points or 1.2% was shed over the trading week.

Market breadth was largely negative before reversing ahead of market close, with 486 gainers versus 460 losers at the end of the day. A total of 329 counters were unchanged.

Total turnover stood at 2.90 billion shares worth RM2.35 billion. 

 

Top gainers included VS Industry Bhd, while Tenaga Nasional Bhd and MNRB Holdings Bhd were among top decliners.

Areca Capital Sdn Bhd CEO Danny Wong Teck Meng said this week's weakness was largely because of growing concerns over corporate earnings following sluggish results for the three-month period ended Dec 31, 2018.

He said although corporate results for the quarter were within his expectations, some of the bigger caps did not perform as well as the small and mid caps. Company CEOs have also been talking down their prospects, which added to the index movement.

"However, big caps do tend to have a traditionally weak quarter in the fourth quarter given that they may have to book in provisions and foreign exchange translations at the year-end," he explained.
Asian shares edged up today after index publisher MSCI announced it would raise the weight of Chinese mainland shares in its global benchmarks, while strong US economic data lifted the dollar, Reuters reported.

In China, the Shanghai Stock Exchange Composite Index closed 1.8% higher while Hong Kong's Hang Seng Index finished 0.63% up. Japan's Nikkei 225 gained 1.02%.

The gains in Asia were a contrast to Wall Street's weaker finish on Thursday. The Dow Jones Industrial Average fell 0.27%, after US President Donald Trump fuelled concerns over the current US-China trade talks when he said he could walk away from a trade deal with China if it was not good enough for the US.


Source: The Edge