Market Daily Report: KLCI climbs for five straight days, ends week at above 1,650 level

 
KUALA LUMPUR (May 31): The FBM KLCI has been on an upward trend for the fifth consecutive day today, bucking regional trend as sentiment improves over certain better-than-expected corporate earnings. In addition, some foreign stockbroking houses have upgraded Malaysian stock market.

At market close, the benchmark index climbed 14.26 points or 0.87% to close at its intra-day high of 1,650.76 points.

For the week, the benchmark index has gained 52 points, or 3.28%.

When contacted, CIMB Research analyst Nick Foo Mun Pang told theedgemarkets.com that Malaysian market was oversold at below 1,600 points last week, and it was staging a rebound this week. 

 

"The KLCI went up by 52 points (3.28%) week-on-week, sentiment has improved after foreign research houses like HSBC and UBS upgraded Malaysian market," he said.

"Next week will be a holiday-shortened week, we believe KLCI would be range bound around 1,650 points as we expect the market to have less trading activities," said Foo.

On Wednesday, UBS and HSBC upgraded Malaysian stock market, saying that it displays "defensive" qualities amidst US-China trade war.

Areca Capital Sdn Bhd CEO Danny Wong concurred that the local bourse has staged a rebound from its oversold position last week, coupled with positive surprises from Tenaga Nasional Bhd and Telekom Malaysia Bhd's (TM) earnings.

Reuters reported today that Asian shares extended a month-long slide and sovereign bonds surged on Friday after US President Donald Trump ramped up trade tensions globally by suddenly slapping tariffs on all goods from Mexico, sending the peso tumbling.

Japan's Nikkei fell by 1.63% today, Hong Kong Hang Seng Index also declined 0.79%, while South Korean Kospi rose by 0.14%.

On the home front, Bursa Malaysia saw 2.23 billion shares done, worth RM2.56 billion. There were 395 gainers versus 464 losers, with 383 counters remained unchanged.

Notable gainers include Tenaga, TM, and Digi.Com Bhd, while biggest loser was structured call warrants that track S&P 500 (S&P500-CH).

The top three most actively traded counters are structured warrants that track the Hang Seng Index, namely HSI-C5Q, HSI-H6S, and HSI-C5P.

TM was also the fourth most actively traded counter today, with 64.05 million shares changing hands.


Source: The Edge

Market Daily Report: KLCI up 0.79%, led by Petronas Gas as fund managers window dress

KUALA LUMPUR (May 30): The FBM KLCI finished 12.83 points or 0.79% higher today, led by Petronas Gas Bhd's share price gain and amid fund managers' month-end window dressing.

Fund managers said Malaysia's share market performance today had also taken cue from the current corporate financial reporting season, during which companies such as Tenaga Nasional Bhd and Telekom Malaysia Bhd (TM) reported quarterly results, which had beaten market estimates.

At 5pm, the KLCI settled at 1,636.50 after rising to its intraday high at 1,639.42. Petronas Gas closed up 74 sen or 4.4% at RM17.56 to become the largest-percentage gainer among the 30 KLCI stocks, which included Tenaga.

Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng told theedgemarkets.com that "analysts may review their calls on Tenaga and TM shares following the release of their upbeat earnings".

Earlier today, TA Securities Holdings Bhd wrote in a note that while the KLCI may appreciate further on window-dressing interest ahead of the month end, "caution over US-China trade tensions and other geopolitical developments should restrict upside".

Across Bursa Malaysia, gainers led decliners by 469 to 336. Volume was 2.47 billion shares valued at RM2.67 billion. Top gainer TM closed up 74 sen at RM3.46.

The most-active stock was Bumi Armada Bhd, which saw some 115 million shares traded. Bumi Armada rose one sen or 5% to 21 sen.

US-China trade war concerns continue to be a key theme for world share markets as investors evaluated the impact of the dispute on global economic growth.

In China, the Shanghai Stock Exchange Composite closed down 0.31% while Hong Kong's Hang Seng fell 0.44%. Elsewhere across Asia, Japan's Nikkei 225 declined 0.29%.

Reuters reported that Asian stocks had today tracked Wall Street's overnight losses as the latest exchanges between Beijing and Washington signalled the heightened risk of a prolonged trade war, stoking investors' concerns about the impact on global economic growth.

"We oppose a trade war but are not afraid of a trade war. This kind of deliberately provoking trade disputes is naked economic terrorism, economic chauvinism, economic bullying," Chinese Vice Foreign Minister Zhang Hanhui was quoted as saying, when asked about the trade war with the US.
His comments followed reports from Chinese newspapers that Beijing could use rare earths to strike back at Washington after US President Donald Trump remarked he was "not yet ready" to make a deal with China over trade, according to the newswire.


Source: The Edge

Market Daily Report: KLCI gains 9.1 points as HSBC, UBS upgrades seen bolstering sentiment

KUALA LUMPUR (May 29): The FBM KLCI closed up 9.1 points or 0.56% today, led by Tenaga Nasional Bhd's share price rise and amid apparent optimism on the defensive nature of Malaysian stocks after HSBC and UBS upgraded their calls on local equities amid global trade war concerns.

At 5pm, the KLCI closed at 1,623.67 while Tenaga rose 66 sen or 5.66% to RM12.32 to become the top percentage gainer among the KLCI's 30 stocks. The KLCI exended gains today after yesterday's 13.22-point rise.

CNBC reported today that Swiss financial giant UBS said today it upgraded Malaysian stocks to “overweight” from “neutral.” It was reported that HSBC had yesterday raised its recommendation on Malaysian equities to “neutral” from “underweight."

Today, Adrian Zuercher, head of asset allocation for Asia-Pacific at UBS Chief Investment Office Wealth Management, was quoted as telling CNBC’s “Squawk Box” that “we’re looking for defensive markets, safety. And I think that’s what we want to be positioned in the next couple of months”.
HSBC was quoted as saying in its report that the Malaysian economy appeared resilient with domestic demand strong and manufacturing growth holding up.

"Low earnings growth is a concern but we see limited further downside. Valuations, while not as attractive as other markets in the region, are not particularly expensive. The market has strong defensive qualities, which should reduce downside risks if trade tensions escalate,” HSBC was quoted as saying.
Such defensive sentiment helped Malaysian shares buck the decline in Asian equities as investors evaluated the impact of the US-China trade war on world economic growth.
Japan's Nikkei 225 closed down 1.21% while South Korea's Kospi fell 1.25%.

In China, Hong Kong's Hang Seng sank 0.57% while the Shanghai Stock Exchange Composite erased losses for a 0.16% gain.

Reuters reported that Asian shares fell on Wednesday and bonds rallied as investor sentiment soured over growing worries about world growth with trade tensions between the US and China showing no signs of easing. It was reported that MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.5% after three straight days of gains.


Source: The Edge

Market Daily Report: KLCI up 13.22 points as Bursa share-trade value swells to RM4.52 bil

KUALA LUMPUR (May 28): The FBM KLCI closed 13.22 points or 0.83% higher today at its intraday high, driven by bargain hunting and as world markets took cue from China share gains.

At 5pm, the KLCI closed at 1,614.57 as share-trade value across Bursa Malaysia swelled to RM4.52 billion after 2.4 billion shares changed hands. Yesterday, share trade value and volume stood at RM1.29 billion and 1.6 billion shares respectively.

Today, Malacca Securities Sdn Bhd head of research Victor Wan told theedgemarkets.com: "KLCI advanced today mainly led by bargain hunting and we also reckon that the foreign selling flow of Malaysian equities was showing a muted response.”

Bursa Malaysia top gainers included Nestle (M) Bhd, Public Bank Bhd and Tenaga Nasional Bhd. Top decliners included Hong Leong Bank Bhd, AEON Credit Service (M) Bhd and Tong Herr Resources Bhd.

Across Asia, Japan's Nikkei 225 closed up 0.37% while South Korea's Kospi climbed 0.23%. In China, the Shanghai Stock Exchange Composite ended up 0.61% while Hong Kong's Hang Seng rose 0.38%.

Reuters reported that Asian shares rose on Tuesday, lifted by gains in China and as auto firms climbed on merger news, but broad uncertainties over trade and economic growth kept investor enthusiasm in check. It was reported that MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.38%, and US S&P 500 e-mini futures rose 0.22% to 2,837.25, pointing to gains when US markets reopen on Tuesday after a holiday.


Source: The Edge

Market Daily Report: FBM KLCI posts first gain after three sessions of decline

KUALA LUMPUR (May 27): The FBM KLCI closed up 3.03 points or 0.19% today on bargain hunting amid a volatile market as persistent US-China trade war concerns led to a lack of clarity on global economic growth prospects.

Analysts said such sentiment appeared to have sidelined investors as share trade volume and value across Bursa Malaysia ended lower. At 5pm, the KLCI closed at 1,601.35 points, for its first gain after three sessions of decline during holiday-shortened trading last week.

Today, the KLCI closed up on bargain hunting after falling to its intraday low at 1,597.25.
Across Bursa Malaysia, 1.6 billion shares worth RM1.29 billion were traded today. On Friday, trade volume stood at 1.89 billion shares worth RM1.55 billion. 

 

Today, Public Investment Bank Bhd research head Ching Weng Jin said: "There is still a lack of clarity over global growth prospects as well as the situation with the US-China trade war.

“The US has been saying that it is close to a deal but there needs to be a resolution to the dispute as investors are staying away as they do not know what to expect going forward.”

At Bursa Malaysia, top gainers included Ajinomoto (M) Bhd and KLCI stocks Public Bank Bhd and Sime Darby Plantation Bhd. The most-actively traded stock was Bumi Armada Bhd.

Across Asia, Reuters reported that Asia stocks inched up but remained near four-month lows on Monday amid concerns about US-China tensions while the euro stayed in a narrow range after the weekend's European Parliament elections.

It was reported that MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2 percent, off a four-month low touched on Friday, with market holidays in the US and UK denting trading volumes.



Source: The Edge

Market Daily Report: KLCI ends lower as oil prices tumble

KUALA LUMPUR (May 24): After a volatile trading session, the FBM KLCI sank into negative territory at the eleventh hour, ending the day down 3.55 points or 0.22% at 1,598.32.

The key index closed lower for the third straight session, dragged by selected heavyweights such as Nestle (Malaysia) Bhd, Sime Darby Plantation Bhd and Petronas Dagangan Bhd, said Malacca Securities Sdn Bhd senior analyst Kenneth Leong.

He told theedgemarkets.com that oil and gas stocks such as Petronas Dagangan and Dialog Group Bhd had been affected by the weakness in the price of Brent crude oil, which has fallen below the US$70 per barrel psychological mark. Brent crude was trading at US$68.59 at the time of writing.
On the broader market, a total of 408 stocks closed in the red today versus 328 stocks that recorded gains. Some 1.89 billion shares changed hands for a total of RM1.55 billion.

 

The most actively traded stocks were Vortex Consolidated Bhd, Lambo Group Bhd and Impiana Hotels Bhd.

Across Asia, markets ended the week mixed as investors were torn between fears of heightened US-China trade tensions and hope that the world's two largest economies would reach a settlement soon, Reuters reported.

Japan's Nikkei closed down 0.16% and South Korea's Kospi declined 0.69%. Meanwhile, China's CSI300 rebounded slightly by 0.28%.


Source: The Edge

Market Daily Report: KLCI weighed down by banking, plantations, oil and gas stocks

KUALA LUMPUR (May 23): In line with major regional indexes, the FBM KLCI declined today, falling 1.87 points to close at 1,601.87 points. The drop in the benchmark index was led by Petronas Chemicals Group Bhd, RHB Bank Bhd and AMMB Holdings Bhd.

Commodity prices remain under pressure from an expected escalation in the trade war, which could impact future demand, said Mohd Redza Abdul Rahman, head of research at MIDF.

"Oil price hovers around US$70 per barrel for Brent and the palm oil price is still trading below RM2,000 per metric tonne as the ringgit continues to depreciate, currently at 4.1940 against the US dollar. This was made worse by poorer-than-expected results of companies such as IOI Corp Bhd," he told theedgemarkets.com.

Market breadth was negative by over three times on Bursa Malaysia today as 644 counters declined while only 177 stocks recorded gains. 

 

The most actively traded stocks were Vortex Consolidated Bhd, Sapura Energy Bhd and Dayang Enterprise Holdings Bhd.

Shares in Asia had slumped to multi-month lows on the back of concerns that the trade war would continue to escalate, further hurting global growth and business investment, Reuters reported.

Japan's Nikkei slipped 0.62% while China's CSI300 was down to its lowest point since late February after losing 1.79% today.


Source: The Edge

Market Daily Report: KLCI erases gains to end 1.6pts lower as trade tensions weigh

KUALA LUMPUR (May 21): The FBM KLCI erased gains in the second half of trading today as trade tensions between the US and China weighed on investor sentiment.

The key market barometer closed at 1,603.74, down 1.62 points or 0.1%.

"(In the broader market,) the technology sector suffered the worst decline, with the Bursa Malaysia Technology Index falling 3.5%," said Malacca Securities Sdn Bhd senior analyst Kenneth Leong.

Leong advised investors to keep an eye out for corporate earnings being released towards the end of the month, although the research house does not expect a significant change in market from the earnings releases. 

 

Market breadth was negative as 558 stocks closed in the red, more than two times the number of gainers, at 203.

Trading activity was muted as the day was sandwiched between two public holidays. Some 1.8 billion shares valued at RM1.46 billion changed hands.

Bursa was closed yesterday for the Wesak Day holiday and will be on a break tomorrow for Nuzul al-Quran.

Lambo Group Bhd, Barakah Offshore Petroleum Bhd and Bumi Armada Bhd were the most actively traded stocks today.

Across Asia, most markets regained some ground after being sold down on Monday due to US President Donald Trump's trade restrictions on China's Huawei stoking fears over the trade war between both countries, Reuters reported.

The Shanghai Composite Index climbed 1.23% while South Korea's Kospi gained 0.27%, supported by heavyweight smartphone maker Samsung Electronics, a key Huawei rival.
However, Japan's Nikkei closed in the red as it lost 0.14%.



Source: The Edge

Market Daily Report: FBM KLCI rebounds on local fund buying support

KUALA LUMPUR (May 17): The FBM KLCI closed 6.17 points or 0.39% higher today at 1,605.36 on buying support from local funds and after Bank Negara Malaysia (BNM) announced on Thursday its market liquidity and accessibility enhancement initiatives.

Today, analysts said the KLCI had also risen on account of US shares' Thursday overnight rise. Today, TA Securities Holdings Bhd senior technical analyst Steven Soo said the KLCI's rise is due to the overnight recovery in US shares and also an oversold Malaysian stock market.

“Furthermore BNM came out with measures to boost liquidity, so all of these factors combined were seen boosting the domestic market,” Soo said.

The KLCI rebounded today to close up at 1,605.36 after falling 12.24 points On Thursday.
Today, the KLCI jumped to its intraday high at 1,610.96 before paring gains at the 5pm market close. The KLCI pared gains after Asian stock indices ended lower as China-US trade war concerns continued to hit sentiment.

In China, the Shanghai Stock Exchange Composite closed 2.48% lower while Hong Kong's Hang Seng fell 1.16%. Elsewhere across Asia, South Korea's Kospi dropped 0.58%.

Reuters reported today that Asian shares suffered a fresh bout of the shakes on Friday as tough words on trade from China's media drowned out upbeat news on the US economy and corporate earnings. It was reported that Shanghai stocks led the way into the red amid the growing fallout from President Donald Trump's move to block China's Huawei Technologies from buying vital American technology.

According to Reuters, the sense of foreboding grew as the Communist Party's People's Daily used a front page commentary to evoke the patriotic spirit of past wars, saying the trade war would never bring China down.

Overnight in the US, it was reported that shares at Wall Street closed higher on Thursday as upbeat earnings and strong economic data put investors in a buying mood, with technology companies leading the charge. It was reported that the Dow Jones Industrial Average rose 214.66 points, or 0.84%, to 25,862.68, the S&P 500 gained 25.36 points, or 0.89%, to 2,876.32 and the Nasdaq Composite added 75.9 points, or 0.97%, to 7,898.05.

Malaysia will see a holiday-shortened trading session next week in conjunction with the Wesak Day and Nuzul Al'Quran holidays, which fall on Monday (May 20) and Wednesday (May 22) respectively, according to Bursa Malaysia Bhd's website.

Bursa Malaysia said in a statement that the group will be closed on Monday, in lieu of Wesak Day, which falls on Sunday (May 19). "Bursa Malaysia and its subsidiaries will resume operations on Tuesday, 21 May 2019," the bourse operator and regulator said.



Source: The Edge

Market Daily Report: KLCI plunges as Huawei sanctions seen escalating trade war

KUALA LUMPUR (May 16): The FBM KLCI closed down 12.24 points or 0.76% today after news on US sanctions on China-based telecommunication group Huawei Technologies Co Ltd led to anticipation of escalation in the China-US trade war.

The ringgit strengthened sharply after annoucements on Malaysia's first quarter 2019 (1Q19) economic growth numbers and the central bank's initiatives to enhance market liquidity and accessibility.

At 5pm today, the KLCI closed at 1,599.19, its intraday low, after plunging in the final trading minutes. At a glance, the KLCI plunged after 11th-hour selling in shares of KLCI stocks including Nestle (M) Bhd.

According to Areca Capital Sdn Bhd chief executive officer Danny Wong, the current volatility is here to stay until there is a concrete resolution in the trade war between the US and China. Wong said that currently, external headwinds are at play.

“The trade war is still there, you never know how it will develop. Things are still uncertain and volatility will continue to stay until the two [China and the US] decide to sit down and sign anything,” Wong told theedgemarkets.com.

US sanctions on Huawei hit world market sentiment. Reuters reported that Asian shares struggled to find their footing on Thursday as confidence was shaken after the US government hit Chinese telecoms giant Huawei with severe sanctions, threatening to further strain Sino-US trade ties. It was reported that Asian shares had steadied in early trade on news that US President Donald Trump was planning to delay tariffs on auto imports, providing much needed relief to markets hit by a flare-up in trade tensions and weak US and Chinese economic data.

According to Reuters, late on Wednesday, the US Commerce Department said it was adding Huawei and 70 affiliates to its "Entity List" — a move that bans the company from acquiring components and technology from US firms without Government approval.

Across Bursa Malaysia today, 2.03 billion shares worth RM1.71 billion were traded. Top decliners included Nestle, which closed down 30 sen at RM145.30.

The most-active counter was Leong Hup International Bhd, which was listed today at RM1.10. Leong Hup closed unchanged at its RM1.10 issue price with some 215 million shares traded.
In currency markets, the ringgit appreciated sharply against the US dollar to the strongest intraday level at 4.1565 after Bank Negara Malaysia (BNM) said today the country's 1Q19 gross domestic product (GDP) grew 4.5% from a year earlier. Economists said Malaysia's 1Q19 GDP growth had beaten market forecast.

BNM also announced market liquidity and accessibility enhancement initiatives, which include measures to improve repo market liquidity and flexibility besides the delivery mechanism for Malaysian Government Securities futures settlements.

UOB Group wrote in a note today: "Real GDP rose 4.5% y/y in 1Q19, slower from 4.7% in 4Q18 though a tad higher than ours (4.4%) and Bloomberg market estimates (4.3%). The moderation is in line with other regional peers which recorded weaker-than-expected GDP prints in 1Q.

"The decent headline GDP and stronger current account surplus in 1Q19, as well as measures to support market liquidity and accessibility helped to strengthen the ringgit. At the time of writing (1:30pm KL time), USD-MYR edged below 4.16 after hitting a high of 4.1751 yesterday," UOB Group said.


Source: The Edge

Market Daily Report: KLCI ends with mild drop after rebounding 27 points from day's low at 1,572.03

KUALA LUMPUR (May 14): The FBM KLCI erased 11th-hour gains today to close 1.9 points or 0.12% lower as investors evaluated the impact of the China-US trade tension on world markets.
At 5pm, the KLCI closed at 1,599.19 after rising to its intraday high at 1,603.72 during the final trading hour.

Earlier today, the KLCI fell as much as 29.06 points or 1.82% to its intraday low at 1,572.03 shortly after the 9am opening bell. At the 5pm closing figure of 1,599.19, the KLCI had rebounded 27.16 points from its intraday low.

Hartalega Holdings Bhd and Top Glove Corp Bhd share gains led the KLCI's recovery, in percentage terms, among the 30 components stocks while Sime Darby Plantation Bhd was the top decliner. Sime Darby Plantation closed down 23 sen or 4.68% at RM4.68 while Hartalega rose 16 sen or 3.31% to RM4.99.

“Despite the KLCI recovering most of the intraday losses, the key index remained in the red for the fifth straight session in line with the negative performance across its regional peers," Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com.

At a glance, the KLCI recovered with Asian shares following more optimistic comments from China and the US on the trade war.

Reuters reported that world stocks hovered near two-month lows on Tuesday, although slightly more optimistic comments from US and Chinese officials on trade brought some comfort a day after equities suffered their worst selloff so far this year. It was reported that fears the US and China are spiraling into a fiercer, more protracted trade dispute that could derail the global economy, has rattled share markets in recent weeks, and the selloff accelerated on Monday after China announced plans for retaliatory tariffs.

But the Chinese Government's top diplomat said China and the US both have the "ability and wisdom" to reach a trade deal that is good for both. And US President Donald Trump said he was optimistic about resolving the trade dispute, according to Reuters.

Across Asian stock indices, Japan's Nikkei 225 cut losses to close down 0.59%, while South Korea's Kospi erased losses for a 0.14% rise. In China, Hong Kong's Hang Seng pared losses for a 1.5% drop.


Source: The Edge

Market Daily Report: KLCI cuts losses after slumping below 1,600 points as trade tension hurts sentiment

KUALA LUMPUR (May 13): The FBM KLCI closed 9.18 points or 0.57% lower today at 1,601.09 after slumping below 1,600 as the China-US trade war escalation hurt world market sentiments.
Bursa Malaysia small market capitalisation (small-cap) stocks fell by a larger quantum while the ringgit weakened as global institutional investors sold Malaysian equities.

At 5pm, the KLCI cut losses to close at 1,601.09 after falling to its intraday low at 1,598.6. Bursa Malaysia's small-cap index closed down 326.31 points or 2.49% at 12,762.25.

Globally, Reuters reported that US stock futures and Asian shares fell on Monday on growing anxiety over whether the US and China will be able to salvage a trade deal, after Washington sharply hiked tariffs and Beijing vowed to retaliate. It was reported that the US and China appeared at a deadlock over trade negotiations on Sunday as Washington demanded promises of concrete changes to Chinese law and Beijing said it would not swallow any "bitter fruit" that harmed its interests.

According to Reuters, investors are bracing for threatened "counter-measures" from China in retaliation for Washington's tariff increase on Friday on US$200 billion worth of Chinese goods. It was reported that the move followed accusations by US President Donald Trump that Beijing "broke the deal" by reneging on earlier commitments. 

 

In Malaysia today, Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng told theedgemarkets.com that "the market remained down pending a more concrete outcome" from the China-US trade talks.

Across Bursa Malaysia, decliners led gainers at 757 to 145 after investors sold local equities amid the China-US escalating trade tension and as investors evaluated Malaysia's economic growth outlook.
The ringgit weakened today amid such sentiments. Against the US dollar, the ringgit depreciated to its weakest intraday level at 4.1678. Compared to the euro, the ringgit depreciated to its weakest point today at 4.6817.

Bloomberg reported that the ringgit edged lower for a 10th day as investors shunned risk assets after US-China trade talks stalled and global funds sold Malaysian equities.


Source: The Edge

Market Daily Report: KLCI plunges to intraday low as US tariff hike on China goods takes effect

KUALA LUMPUR (May 10): The FBM KLCI closed down 8.26 points or 0.51% today at its intraday low as the tariff hike to 25% from 10% on US$200 billion worth of US-bound cargoes leaving China was announced.

At Bursa Malaysia, the KLCI ended lower at 1,610.27 after plunging in the final trading minutes although China equities erased intraday losses to close higher.

In China, the Shanghai Stock Exchange Composite ended up 3.1% at its intraday high while Hong Kong's Hang Seng rose 0.84%. Elsewhere across Asia, South Korea's Kospi also erased losses to close up 0.29% while Japan's Nikkei 225 fell 0.27% after cutting losses.

Reuters wrote that global stocks made gains on Friday as investors held out hopes for a trade deal between the US and China, even as another round of US tariffs on Chinese goods took effect. It was reported that European stock markets bounced off six-week lows, with Germany's trade-sensitive DAX index leading the charge with a 1% rise.

It was reported that US President Donald Trump's tariff increase to 25% from 10% on US$200 billion of Chinese goods kicked in on Friday, and Beijing said it would strike back. It was reported that top US and Chinese negotiators are in talks to try to rescue a faltering deal aimed at ending a 10-month trade war between the world's two largest economies.

According to Reuters, the White House has said the two sides would resume negotiations on Friday morning in Washington after concluding the first of two days of talks on Thursday. It was reported that the resumption in negotiations encouraged some investors to cling to hopes that the US administration could revoke the new tariff hike once a deal is reached.

In Malaysia, Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng told theedgemarkets.com that while the KLCI fell, the broader market remained stable.
Across Bursa Malaysia, 2.29 billion shares were traded for RM1.84 billion. Top decliners included KLCI stocks Petronas Gas Bhd and Tenaga Nasional Bhd.

“The KLCI closed lower, partly dragged by stocks such as Tenaga," Wong said.
At a glance, the KLCI closed lower after a plunge in the final trading minutes following a sharp drop in Petronas Gas' share price. Petronas Gas ended down 30 sen at RM17 while Tenaga closed 14 sen lower at RM11.80.


Source: The Edge

Market Daily Report: KLCI dips 15.02 points as US tariff threat to China looms

KUALA LUMPUR (May 9): The FBM KLCI dipped 15.02 points or 0.92% today as global markets took caution ahead of the next round of China-US trade talks. The talks are closely watched as a means to avert a planned US tariff hike on Chinese goods on Friday.

At Bursa Malaysia today, the KLCI ended at 1,618.53. In China, the Shanghai Stock Exchange Composite ended 1.48% lower while Hong Kong's Hang Seng dropped 2.39%. Elsewhere across Asia, Japan's Nikkei 225 closed down 0.93% while South Korea's Kospi fell 3.04%.

US stock futures also fell. At 5:37pm, the Dow and Nasdaq futures dropped 0.8% and  0.93% respectively. At 5:38pm, S&P futures fell 0.79%.

Reuters reported that Asian shares fell to eight-week lows on Thursday as investors waited to see whether Chinese and US trade negotiators can salvage a deal to stave off the threat of fresh US tariff increases, which would damage global economic growth.

It was reported that Chinese Vice Premier Liu He is set for talks in Washington on Thursday and Friday with US officials who have complained that Beijing had backtracked on earlier commitments. It was reported that an agreement could avert a sharp increase in US tariffs on Chinese goods that President Donald Trump has threatened to impose on Friday. It was reported that China has threatened to retaliate, raising the risk of a major escalation in the bruising trade war between the world's two largest economies.

It was reported that Trump threatened to raise tariffs on US$200 billion of Chinese goods to 25 percent on Friday from 10 percent. It was reported that he also said he would target a further US$325 billion of Chinese goods with 25 percent tariffs "shortly.

In Malaysia today, Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew said: “Last night, there was a big drop in US (stock) futures. Market is bracing itself for what’s to come. The likelihood for Trump’s tariffs to go ahead is high so expect retaliation from China.”

He said today stocks across Bursa Malaysia were more thinly traded than usual against such sentiment.

Across Bursa Malaysia, 2.14 billion shares were traded for RM2.02 billion.
Yesterday, volume stood at 2.47 bllion shares worth 2.06 billion.


Source: The Edge

Market Daily Report: KLCI falls as trade war fears heighten

KUALA LUMPUR (May 8): The FBM KLCI fell 0.35% today in tandem with the downtrend in Asian markets amid continued fears of a breakdown in US-China trade negotiations.

The benchmark index ended 5.82 points lower at 1,633.55.

Bursa Malaysia's other indices were also in the red save for the telecommunications and real estate investment trust indices. A total of 2.47 billion shares worth RM2.06 billion were traded.

TA Securities technical analyst Steven Soo said trading was quite choppy as the market remained jittery due to the US-China trade deal sentiments. 

 

"This Friday is the deadline. In terms of trading, there will be squaring off on short-term trades pending more solid cues on the US-China situation. Given the time difference, Malaysia would know by Saturday. So expect things to be clearer next week for us," he said.

In the meantime, Soo said the market is expected to remain weak for the rest of the week.
Reuters reported that investors are now focused on the trade talks on Thursday and Friday in Washington, where Chinese Vice Premier Liu He will try to salvage a deal that would avoid a sharp increase in tariffs on Chinese goods ordered by US President Donald Trump.

Trump had said on Sunday that he would raise tariffs on US$200 billion worth of Chinese goods to 25% from 10%, while US trade negotiators said late on Monday that China had backtracked from commitments made earlier.

Among other Asian indices, Japan's Nikkei 225 fell 1.46% and South Korea's Kospi dropped 0.41%. The Shanghai Stock Exchange Composite closed down 1.12% and Hong Kong's Hang Seng fell 1.23%.




Source: The Edge

Market Daily Report: KLCI up, ringgit weakens after BNM rate cut

KUALA LUMPUR (May 7): The FBM KLCI closed 6.57 points or 0.4% higher today, led by share gains in Axiata Group Bhd and Digi.Com Bhd. Financial services providers' shares fell while the ringgit weakened after Bank Negara Malaysia (BNM) cut the overnight policy rate (OPR) to 3% from 3.25%.

At 5pm, the KLCI closed at 1,639.37. Axiata ended 60 sen or 14.85% higher at RM4.64 while Digi.Com rose 28 sen or 6.2% to RM4.80 to become the top and second-largest percentage gainers respectively among the 30 KLCI stocks.

Axiata and Digi.Com shares rose following news on the proposed merger of Axiata and Telenor Group's Asian operations within their Asean and South Asian markets. Telenor is Digi.Com's major shareholder.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com "the boost (in the KLCI) followed news on the proposed merger between Axiata and Norway-based Telenor."
"BNM's interest rate cut also was a positive sentiment,” Leong said.

Across Bursa Malaysia today, 3.02 billion shares were traded for RM2.25 billion as investors evaluated the impact of the OPR cut on the ringgit and Malaysian shares.

Bursa Malaysia's financial services index closed down 180.79 points or 1.07% as the OPR cut is perceived to be negative for banks' profits. Public Bank Bhd closed down eight sen or 0.35% at RM22.48 while Alliance Bank Malaysia Bhd fell six sen or 1.5% to RM3.94.

In currency markets, the ringgit depreciated to its weakest point today against the US dollar at 4.1497 on expectation that lower interest rates in Malaysia will lead to capital outflow.

FXTM market analyst Han Tan wrote in a note today that the US dollar/ringgit (USDMYR) exchange rate showed little initial reaction to the interest rate cut given that markets had largely priced in today’s monetary policy decision.

"Major moves in the ringgit’s performance of late still demonstrate that MYR remains primarily swayed by external factors, including the uncertain outcome over US-China trade negotiations. Should there be a deterioration in trade ties between the world’s two largest economies, that will significantly curtail risk appetite and may in turn weaken Asian and emerging market currencies. Such an event may also see USDMYR breaking above its 4.15 ceiling, with potential gains for the ringgit harder to come by given the expected resilience of the greenback," Tan said.



Source: The Edge

Market Daily Report: FBM KLCI falls with Asian markets after Trump’s tariff threat

KUALA LUMPUR (May 6): The FBM KLCI closed 4.5 points or 0.27% lower amid weaker Asian stock markets after US President Donald Trump threatened to raise US tariffs on Chinese goods.

At 5pm, the KLCI closed at 1,632.8 after falling to its intraday low at 1,623.61. Across Bursa Malaysia, 2.79 billion shares worth RM1.7 billion were traded as decliners outdid gainers by a stark 684 to 162.

In China, the Shanghai Stock Exchange Composite closed down 5.58% while Hong Kong's Hang Seng fell 2.9%. Elsewhere across Asia, South Korea and Japan markets were closed today for public holidays.

US stock futures were also lower. At 5:39pm, the S&P and Dow futures fell 1.79% and 1.91% respectively while Nasdaq futures dropped 2.28%. 

 

Reuters reported today that Trump stunned global markets with a tweet late on Sunday announcing he would hike US tariffs on US$200 billion worth of Chinese goods this week and target hundreds of billions more soon, saying trade talks with China were going too slowly.

It was reported that he would raise tariffs on the US$200 billion of Chinese goods to 25 percent on Friday from 10 percent. It was reported that he also said he would target a further US$325 billion of Chinese goods with 25 percent tariffs "shortly".

In Malaysia today, Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng told theedgemarkets.com: “Our market is defensive, therefore, less selling pressure.

“Though factors that will be looked at are policy direction on economic growth as well as certain industries such as infrastructure, we still need a clearer picture on this.”

He said this today as investors looked ahead to Bank Negara Malaysia's (BNM) monetary policy statement tomorrow. At its latest monetary policy committee meeting in March, BNM said the committee decided to maintain the overnight policy rate at 3.25%.



Source: The Edge

Market Daily Report: KLCI rises on Axiata gain as Ekovest tops construction gauge

KUALA LUMPUR (May 3): The FBM KLCI today closed 5.06 points or 0.31% higher led by gains in telecommunication stocks Axiata Group Bhd and Digi.Com Bhd.

Ekovest Bhd topped Bursa Malaysia's construction index gainers.

At 5pm, the KLCI closed up at 1,637.30 after falling to its intraday low at 1,625.56.

Axiata closed up nine sen or 2.28% at RM4.04 while Digi.Com rose eight sen or 1.8% to RM4.52 to become the top percentage gainers among the 30 KLCI stocks.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com that the KLCI advanced, led by bargain hunting in Axiata and Digi.Com shares. “Both companies contributed close to two points to KLCI's gain today,” said Leong.

Across Bursa Malaysia, 2.82 billion shares worth RM2.11 billion were traded.

Top-active stock Ekovest saw some 214 million shares traded after closing up 13 sen or 15.76% at 95.5 sen. Ekovest's sister company Iskandar Waterfront City Bhd (IWCity) saw some 88 million shares traded after closing up 10.5 sen or 11.11% at RM1.05.

Ekovest was the largest-percentage gainer among Bursa Malaysia's construction index's 49 stocks. The construction index ended up 3.11 points or 1.47% at 214.04 to become the top percentage advancer among Bursa Malaysia indices.

Ekovest and IWCity's share gains and active trade could be due to newsflow on the planned Bandar Malaysia property project here.

On April 19, the theedgemarkets.com, quoting the Prime Minister's Office's statement, reported that the joint venture to take up 60% of Bandar Malaysia Sdn Bhd was awarded to a consortium, IWH-CREC Sdn Bhd. It was reported that IWH-CREC is a 60:40 joint venture between Iskandar Waterfront Holdings Sdn Bhd (IWH) and China Railway Engineering Corp (M) Sdn Bhd (CREC).
IWH, Ekovest and IWCity are sister companies by virtue of Tan Sri Lim Kang Hoo being a common major shareholder in these companies. Lim is also a major shareholder in PLS Plantations Bhd and Knusford Bhd.

On Tuesday (April 30), Kenanga Investment Bank Bhd analyst Adrian Ng wrote in a note that Kenanga reckoned that it is highly likely that IWH would need to look for funding from new investors, which might reactivate a rationalisation and restructuring exercise, which IWH explored back in 2017 that involved IWCity.

"Hence, we do not rule out a mega restructuring exercise that could potentially involve its sister companies — IWCity, Ekovest, PLS and Knusford in the future," Ng said.


Source: The Edge

Market Daily Report: KLCI tumbles 10.05 points as weaker ringgit dampens sentiment

KUALA LUMPUR (May 2): The FBM KLCI had today closed 10.05 points or 0.61% lower while Bursa Malaysia's small market capitalisation (small cap) index fell by a larger quantum as investors took cue from less-optimistic views on local financial markets and the ringgit and after US stocks fell overnight on Wednesday.

At 5pm today, the KLCI closed at 1,632.24 while the small cap index fell 173.72 points or 1.27% to 13,447.39.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong said today investors might have take cue from market views, including one from DBS Bank Ltd which wrote in a note on Tuesday (April 30) that it had changed its view on Malaysian Government Securities (MGS) from bullish to neutral.

"MGS valuations are no longer cheap and risks around performance have risen. Technicals could be less supportive ahead. Risks and uncertainties around FTSE Russell’s September review is clouding the outlook; MGS and MYR (ringgit) could trade more volatile," DBS said.

Today, Leong told theedgemarkets.com that the KLCI exhibited bearish technical indicators amid weaker sentiment and as investors evaluated the impact of the weakening ringgit on Malaysian stocks.

“The fall in the KLCI is also partly due to the depreciation of the ringgit against the US dollar,” said Leong.

At the time of writing, the ringgit weakened to 4.1380 against the US dollar.

Over the last one year, the ringgit had weakened to current levels from its strongest point against the US dollar at 3.9330.

Across Bursa Malaysia today, 2.68 billion shares worth RM1.95 billion were traded. There were over 600 decliners versus about 220 gainers. Top decliners included KLCI stocks Digi.Com Bhd and Press Metal Aluminium Holdings Bhd.

Malaysian shares resumed trading today after markets were closed on Wednesday for the Labour Day holiday.

Today, Malaysian shares fell following US shares' overnight drop on Wednesday.

Reuters reported that US stocks ended lower on Wednesday and the S&P 500 snapped a three-day streak of record high closes as comments from Federal Reserve Chairman Jerome Powell appeared to dampen hopes the central bank could move later this year to cut interest rates.



Source: The Edge