Market Daily Report: KLCI joins regional markets in retreating ahead of G20 meeting

KUALA LUMPUR (June 27): The FBM KLCI continued its losing streak for the third day in a row due to profit-taking activities in selected heavyweights, in anticipation of the G20 summit this evening.

The benchmark index closed 0.57 points or 0.03% lower at 1,672.13. The index was mostly in the positive territory during the second half of the trading session today, before the last minute selling.
Malacca Securities Sdn Bhd senior analyst Kenneth Leong said the KLCI has erased all its earlier gains in the final trading hour as investors took profits in selected index heavyweights.

"The negative performance today is as investors opt to stay out of the market due to the uncertainty of the Sino-US talks' progress," Leong told theedgemarkets.com. 

 

He noted that the weakness today was also in line with the negative performance across other Asian benchmark indices.

Among decliners, Maxis Bhd fell 23 sen or 3.97% to close at RM5.57.

Overall, some 2.22 billion shares worth RM1.84 billion were traded on Bursa Malaysia. Losers led gainers by 413 to 334, while 450 counters remained unchanged.

Elsewhere in Asia, Japan's Nikkei 225 dropped 0.29%, South Korea's Kospi fell 0.17% and Hong Kong's Hang Seng was down 0.28%.

Reuters reported that Asian shares stumbled today and gold jumped amid rising doubts that the highly anticipated meeting between US President Donald Trump and Chinese President Xi Jinping could lead to an easing of trade tensions.

Uncertainty over whether the talks will produce progress in ending the year-long trade war between the world's two largest economies comes amid signs of rising risks to global growth, the newswire added.



Source: The Edge

Market Daily Report: FBM KLCI closes lower after last-minute selling

KUALA LUMPUR (June 27): The FBM KLCI today closed 0.11% lower due to last-minute selling in selected heavyweights.

This led to the KLCI ending 1.79 points lower at 1,672.7 points.

Hong Leong Investment Bank Bhd's head of retail research Loui Low told theedgemarkets.com that the last-minute selling was within a narrow range as traders have adopted a risk-averse mode ahead of the two-day G20 meeting, which will begin tomorrow.

“The KLCI has been trading sideways over the couple of days ahead of the US-China trade talks. Not much activity has been seen in the market as traders are avoiding the volatility ahead,” said Low. Notably, nearly half of the bluechips settled in the red today, led by Petronas Gas Bhd as the biggest decliner after losing 40 sen or 2.29% to close at RM17.10. Petronas Gas was also the third biggest loser across Bursa Malaysia today.

The local stock exchange saw a total of 1.84 billion shares, worth RM1.9 billion traded throughout the day. Gainers led losers by 367 to 352, while 444 counters remained unchanged.

Across Asia, Japan's Nikkei 225 rose 1.19% while South Korea's Kospi climbed 0.59%. Hong Kong’s Hang Seng also advanced 1.42%.

Reuters reported that Asian shares crept higher on Thursday following a media report that the US and China have tentatively agreed to a truce ahead of a highly-anticipated weekend meeting of the two nations’ leaders in Tokyo.

The South China Morning Post (SCMP), citing sources, said Washington and Beijing were laying out an agreement that would help avert the next round of tariffs on an additional US$300 billion of Chinese imports.

On Wednesday, US President Donald Trump said a trade deal with his Chinese counterpart Xi Jinping was possible this weekend though he was prepared to impose tariffs on virtually all remaining Chinese imports if talks fail, said Reuters, adding that many traders were still circumspect and expected the market to remain in a narrow range until after the weekend meeting of G20 leaders in Osaka, Japan, where Trump is also holding bilateral talks with other nations.



Source: The Edge

Market Daily Report: KLCI falls amid weaker sentiment ahead of G20 summit

KUALA LUMPUR (June 26): The FBM KLCI lost ground today as market sentiment was weak ahead of the G20 summit later this week. The benchmark index closed 2.12 points or 0.13% lower at 1,674.49.

An analyst said he believes the market would not see any big movements in the next two days.
“Investors are turning risk averse ahead of the G20 summit," said Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng. "This is for risk management purpose."

Buyers are not willing to take any position now, Wong told theedgemarkets.com. 

“We view that it (US-China trade dispute) is unlikely to have a full resolution [from the G20 meeting],” added Wong, noting that as long as there is no escalating tension between the US and China, then that will be “a good news”.

Among the days's leading decliners were KLCI components Press Metal Aluminium Holdings Bhd and Tenaga Nasional Bhd (TNB). Both closed 1.57% lower at RM4.38 and RM13.78 respectively.
On the broader market, Bursa Malaysia saw 1.83 billion shares worth RM1.55 billion traded. Losers led gainers by 395 to 305, while 447 counters remained unchanged.

Across in Asia, performance was mixed. Japan's Nikkei 225 dropped 0.51%, South Korea's Kospi grew 0.01% while Hong Kong’s Hang Seng was up 0.13%.

Reuters reported that Asian stocks dipped today, and the US dollar inched up from three-month lows, after US Federal Reserve officials tempered expectations in the markets for aggressive monetary easing.

US Fed Chair Jerome Powell has  said that the central bank is insulated from short-term political pressures, pushing back against US President Donald Trump’s demand for a significant rate cut, said the newswire.



Source: The Edge

Market Daily Report: KLCI rebounds on 11th hour bargain-hunting activities

KUALA LUMPUR (June 25): After moving in negative territory for the most of the day, the FBM KLCI closed higher today on 11th hour bargain-hunting activities in selected heavyweight stocks.
The benchmark index ended the day 0.48 points or 0.03% higher at 1,676.61.

Rakuten Trade Sdn Bhd deputy head of research Vincent Lau said the KLCI's higher closing was due to bargain hunting in oversold component index stocks such as Telekom Malaysia Bhd (TM) and Nestle (M) Bhd.

The late buying interest came despite most regional equity markets trading in the red amid a weaker sentiment ahead of the G20 summit later this week, Lau told theedgemarkets.com. 

Japan's Nikkei 225 dropped 0.43% today, South Korea's Kospi fell 0.22% and Hong Kong's Hang Seng was down 1.15%.

On the local front, however, half of the KLCI components were in the green. TM closed 10 sen or 2.47% higher at RM4.15, while IOI Corp Bhd and CIMB Group Holdings Bhd both closed up six sen at RM4.26 and RM5.34 respectively.

Nestle, the day's second top gainer, closed 40 sen or 0.27% higher at RM149.

On the broader market, some 1.78 billion shares worth RM1.75 billion were traded. Losers led gainers by 413 to 364, while 394 counters remained unchanged.

Reuters reported that Asian shares were haunted by trade anxiety today while the risk of more dovish talk from the US Federal Reserve pushed down Treasury yields and the US dollar, propelling gold to fresh six-year peaks.

Investors are waiting anxiously to see if anything comes of Sino-US trade talks later this week and sentiment was not helped by reports US President Donald Trump would be content with "any outcome", the newswire added.

Trump is slated to meet one-on-one with at least eight world leaders at the G20 summit in Osaka, including China's President Xi Jinping and Russia's President Vladimir Putin.


Source: The Edge

Market Daily Report: FBM KLCI snaps four-day rally on profit taking

KUALA LUMPUR (June 24): The FBM KLCI closed 6.1 points or 0.36% lower today on profit taking as Malaysian shares appeared overbought after four straight days of gains. At 5pm, the KLCI closed at 1,676.13.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com that the profit taking today followed the KLCI's more-than-40-point gain last week.

"We see this positive momentum tapering as investors keep an eye on clues regarding the trade dispute between the US and China at the G20 summit later this week," said Leong.

TA Securities Holdings Bhd said today technical momentum indicators on the KLCI are flashing overbought signals following last week's strong rally, implying more potential for profit-taking correction this week to tame the overbought condition.

"Nevertheless, trend indicators signal improving upward momentum, which should counter the short-term overbought condition. Meantime, increasing optimism for a US-China trade deal in the G20 summit this weekend and growing confidence for a rate cut by the US central bank next month on the external front, and keen first-half window-dressing interest on the domestic side should boost market sentiment ahead of the month-end," TA Securities wrote in a note.

Across Asia, Reuters reported that stock markets inched higher on Monday on hopes that US and Chinese leaders will be able to get trade talks back on track this week, while oil prices bounced on political tensions between Tehran and Washington.

It was reported that investors are nervously awaiting an expected meeting between presidents Donald Trump and Xi Jinping later this week for any signs of a de-escalation in a trade war that is damaging the global economy and souring business confidence. It was reported that the leaders will meet on the sidelines of the G20 summit in Japan.

In Malaysia today, crude oil price gains partly drove share trade volume as top-active stocks Bumi Armada Bhd and Sapura Energy Bhd prices rose in tandem with oil markets.

Across Bursa Malaysia, 1.81 billion shares worth RM1.68 billion were traded.

Bumi Armada rose 0.5 sen to close at 21 sen, with 65 million shares traded while Sapura Energy settled 0.5 sen higher at 31 sen, with a volume of 59 million shares.

In oil markets, it was reported that Brent futures were up 11 cents, or 0.17%, at US$65.31 a barrel by 0845 GMT while West Texas Intermediate crude was up 40 cents, or 0.7%, at US$57.83 a barrel.

Source: The Edge

 

Market Daily Report: KLCI makes further gains, may see profit taking before weekend

KUALA LUMPUR (June 20): The FBM KLCI closed at its intraday high of 1,675.43 points today as positive external factors continue to support market sentiment, but an analyst does not rule out profit taking activity tomorrow ahead of the weekend.

At market close, the benchmark index settled 8.89 points or 0.53% higher.

When contacted, Malacca Securities Sdn Bhd head of research Victor Wan told theedgemarkets.com that the increment in KLCI this week was largely sentiment-driven, and investors seem to have overbought amidst optimism over US-China trade talks.

"With the recent uptrend, Malaysian market is very much fairly valued now, maybe there will be some profit taking tomorrow before the weekend," he said.

Reuters reported that Asian stock markets rallied on Thursday while the US dollar dropped and global bond yields plunged, with the 10-year US yield falling below 2%, after the Federal Reserve signalled possible interest rate cuts later this year.

Japan's Nikkei gained 0.6% today, Hong Kong's Hang Seng Index went up 1.23%, and South Korea's Kospi rose 0.31%.

In Malaysia, total market trading volume was 2.27 billion, worth some RM2.28 billion.
Market breadth was positive, with 468 gainers versus 353 losers, while 380 counters remained unchanged.

Notable gainers include Tenaga Nasional Bhd and Yinson Holdings Bhd, while Sime Darby Plantation Bhd was the second largest decliner, after Shangri-la Hotels (M) Bhd.

Greatech Technology Bhd was the most actively traded counter with 104.34 million shares done.



Source: The Edge

Market Daily Report: KLCI’s ascent lags behind regional peers as global sentiment turns positive

KUALA LUMPUR (June 19): The FBM KLCI rose on the back of positive global market sentiment, boosted by optimism on US-China trade talks ahead of the G20 summit as well as Eurozone’s fresh stimulus signal.

However, the KLCI climbed at a slower pace compared with its regional peers, to close 13.78 points or 0.83% higher at 1,666.54.

Japan’s Nikkei index went up 0.72%, Hong Kong Hang Seng rose  2.56% and South Korea’s Kospi gained 1.24%.

 
CIMB Research analyst Nick Foo Mun Pang said that apart from the optimism on US-China trade talks and the European Central Bank’s (ECB) stimulus programme, Asian stocks were poised for positive performance ahead of a widely expected US policy rate cut.

However, Foo said there is “too much” optimism in the market that a US-China trade deal would be reached at the G-20 meeting.

“If nothing good is going to happen at the G-20 summit that begins next week in Japan, the buying momentum will likely taper off,” he said when contacted by theedgemarkets.com.

Nevertheless, Foo said the local sentiment remains positive at this juncture as Bursa Malaysia may gradually gain momentum on mid-year window-dressing activities.

“From a technical standpoint, the FBMKLCI index surpassed the 1,657 high yesterday. Barring any unforeseen circumstances, the key index could potentially rise further to test the 1,670-1,680 territory,” he said.

Reuters reported that Southeast Asian stock markets rose today following comments by ECB President Mario Draghi indicating the possibility of fresh rate cuts or asset purchases which fuelled talk of a worldwide wave of central bank stimulus.

In the Malaysian market, there were 2.42 billion shares worth some RM2.34 billion traded. Market breadth was positive, with 474 gainers versus 330 losers, while 405 counters remained unchanged.

Malaysia Airports Holdings Bhd was the biggest gainer today. Other notable gainers included Tenaga Nasional Bhd, which closed higher for the third consecutive day. The biggest loser was Hong Leong Bank Bhd.

Ekovest was the most actively traded counter, with 238.73 million shares done, followed by Iskandar Waterfront City Bhd, with 214.15 million shares traded.


Source: The Edge

Market Daily Report: FBM KLCI up 0.88% on bargain hunting ahead of US rate decision

KUALA LUMPUR (June 18): The FBM KLCI closed up 14.36 points or 0.88% today with Asian stock indices amid anticipation of the US Federal Reserve's interest rate decision ahead of the conclusion of its Federal Open Market Committee's two-day meeting on Wednesday (June 19).

At 5pm today, the KLCI closed at its intraday high at 1,652.76 as world equity markets priced in potential US interest rate cuts this year. Across Asian stock markets today, South Korea's Kospi closed up 0.38% while Hong Kong's Hang Seng was up 1%.

It was reported that the US central bank may leave interest rates unchanged during the two-day meeting, which is deemed crucial for investors looking for US rate cut hints in 2019. Lower US interest rates bode well for Asian markets in anticipation that global fund managers will shift their money into higher-yielding Asian assets such as stocks, bonds and currencies.

In Malaysia, Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com that the KLCI's positive performance today "mirrors gains across regional peers as investors monitor the US Federal Reserve policy meeting".

Reuters reported that most Asian stock markets rose on Tuesday but gains were capped by investor caution ahead of the US Federal Reserve policy decision, while crude oil prices dipped as global growth worries overshadowed supply concerns. It was reported that the Fed, facing fresh demands by US President Donald Trump to cut interest rates, begins a two-day meeting later on Tuesday.

According to the newswire, the central bank is expected to leave borrowing costs unchanged this time but will possibly lay the groundwork for a rate cut later this year.

Across Bursa Malaysia, 2.03 billion shares worth RM1.72 billion were traded.
Top gainers included KLCI stocks Hong Leong Bank Bhd, Tenaga Nasional Bhd and Axiata Group Bhd after the shares rose on bargain hunting.

The most-active stock was newly-listed Mestron Holdings Bhd, which registered a trade volume of some 368 million shares. Mestron closed up 0.5 sen at 16.5 sen.


Source: The Edge

Market Daily Report: KLCI ends lower after 11th-hour plunge amid thinner Bursa volume

KUALA LUMPUR (June 17): The FBM KLCI closed 0.23 point or 0.01% lower today while Bursa Malaysia's small market capitalisation (small cap) and technology stocks fell by a larger quantum as US-China trade war concerns sidelined investors further in Malaysia's already thinly-traded equities market.

Investors are also closely anticipating the US Federal Reserve's interest rate decision following the conclusion of its Federal Open Market Committee's two meeting on Wednesday (June 19).

At 5pm today, the KLCI closed at 1,638.40 following an 11th-hour plunge on profit taking after rising to its intraday high at 1,644.04. "Now that the KLCI comes below the level of 1,650 points, we foresee further downside selling pressure to around 1,630 points, as there are no other catalyst," Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com.

Bursa's small cap index ended down 104.87 points or 0.82% at 12,741.18 while the technology gauge fell 0.42 point or 1.35% to 30.78.

 

Bursa technology stocks' decline today could have taken cue from news on Friday that a warning from Broadcom Inc of a broad weakening in global demand weighed on US chipmakers.

On Friday, Reuters reported that US stocks ended lower as investors were cautious going into this week's Federal Reserve meeting, while a warning from Broadcom of a broad weakening in global demand weighed on chipmakers and added to US-China trade worries.

It was reported that shares of Broadcom fell 5.6% after it cut its full-year revenue forecast by US$2 billion, blaming the US-China trade conflict and export curbs on Huawei Technologies Co Ltd. According to the newswire, other chip companies, which both source product and sell heavily in China, dropped sharply while the Philadelphia Semiconductor index tumbled 2.6%.

"Investors are bracing for next week's (this week's) Fed meeting in light of recent market expectations that the US central bank could cut interest rates as much as three times this year. Some strategists say stocks are primed for a selloff should the Fed fail to take an even more dovish tilt," Reuters reported.
At Bursa today, trade war concerns and expectation of the US interest rate decision could have led to thinner trade volume at 1.62 billion shares worth RM1.43 billion.

On Friday, trade volume stood at 1.75 billion shares worth RM1.67 billion.



Source: The Edge

Market Daily Report: KLCI extends losses on continued correction

KUALA LUMPUR (June 14): The FBM KLCI finished lower for the fourth straight day, as the market continued to undergo a correction after rallying last week.

The benchmark index closed 0.31% or 5.11 points lower at 1,638.63.

The KLCI opened 5.68 points higher at 1,649.42 and hovered between 1,636.32 and 1,649.57, while cooling off from an overbought situation.

“The weakness in the benchmark index today is well expected, due to the  overbought situation from the rally last week,” Malacca Securities Sdn Bhd head of research Victor Wan told theedgemarkets.com.

Wan added that the downside pressure was also contributed by the rising geopolitical tensions, after two oil tankers were reportedly attacked yesterday in the Gulf of Oman.

Across Bursa Malaysia, 1.75 billion shares worth RM1.67 billion exchanged hands. Losers beat gainers 463 to 276, while 403 counters traded unchanged.

Top decliners included Nestle (Malaysia) Bhd, British American Tobacco (M) Bhd, Public Bank Bhd and Carlsberg Brewery Malaysia Bhd.

United Plantations Bhd, Malaysia Airports Holdings Bhd, Apex Healthcare Bhd and Shangri-la Hotels (M) Bhd were among top gainers.

The most active counter was Greatech Technology Bhd, followed by Ekovest Bhd, Iskandar Waterfront City Bhd and Inari Amerton Bhd.

Across Asia, Japan's Nikkei 225 closed up 0.40%, while South Korea's Kospi fell 0.37%. In China, the Shanghai Stock Exchange Composite ended 0.99% lower and Hong Kong's Hang Seng sank 0.65%.

Reuters reported Asian stocks sagged today, ahead of key Chinese data that could provide more clues on how heavily the U.S.-Sino trade war is weighing on the economy, while oil prices were supported by supply concerns, after attacks on tankers in the Gulf of Oman.

“China will release May industrial production along with retail sales and investment numbers at 0700 GMT, and analysts expect any improvement from April’s downbeat readings will be mostly marginal,” the report added.


Source: The Edge

Market Daily Report: Malaysia stocks end lower for third consecutive day

KUALA LUMPUR (June 13): Malaysia stocks finished lower for the third straight trading session today amid lingering US-China trade woes and lack of fresh catalysts.

The FBM KLCI fell 7 points or 0.42% to end at 1,643.74. The benchmark index was trading between 1,640.30 and 1,646.22 throughout the day.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com that the KLCI has breached its estimated immediate support level of 1,650.

“The weakness in the KLCI today mirrors the weaker performance across regional markets, given the external headwinds arising from the US-China trade war concerns and lack of fresh catalysts on the local front,” he said. 

With the breakout of the support level, Leong foresees some weaknesses for the benchmark index in the near term, with its new immediate support level being 1,630. However, the resistant level is expected to remain at 1,665.

Greatech Technology Bhd, Sapura Energy Bhd, Ekovest Bhd and Priceworth International Bhd were among most active stocks on Bursa Malaysia.

Trading volume increased to 2.04 billion shares worth RM1.98 billion compared with yesterday's 1.76 billion shares worth RM1.6 billion. There were 379 gainers versus 340 decliners, while 451 counters remained unchanged.

Regionally, Reuters reported that Asian shares closed lower on Thursday as the Hong Kong market fell for the second consecutive session following a day of massive street protests, while oil prices flirted with five-month lows due to higher US crude inventories and a bleak demand outlook.

“Hopes that the US and China will clinch a deal on the sidelines of a Group of 20 summit meeting in Osaka on June 28 and 29 have been fading, also hurting sentiment and driving bond yields down,” the report added.

“It is a bit of mystery that oil prices are so low when global stock prices remain relatively supported. But one thing is certain. Weaker oil prices will curb inflation and boost rate cut expectations,” the report quoted Hirokazu Kabeya, chief global strategist at Daiwa Securities, as saying.



Source: The Edge

Market Daily Report: FBM KLCI lower as HK protests, trade war dent sentiment

KUALA LUMPUR (June 12): The FBM KLCI finished 0.46 point or 0.03% lower today at 1,650.74 amid persisting US-China trade war concerns and as mass protests in Hong Kong dented markets. Analysts said weaker crude oil prices had also sidelined investors.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com that the KLCI retreated amid negative performance across Asian stock indices, bogged down by the prolonged US-China trade standoff, besides Hong Kong's mass protests, during which protesters clashed with police in demonstration against laws that would allow citizens to be extradited to China.

“Back home (in Malaysia), the lack of fresh catalysts and weakness in crude oil prices sent investors retreating to the sidelines with trading volume below the two billion mark," Leong said.

At 5pm, the KLCI pared losses at 1,650.74 after falling to its intraday low at 1,642.11. Across Bursa Malaysia, turnover stood at 1.76 billion shares worth RM1.61 billion amid weaker crude oil prices.
Reuters reported that oil prices fell nearly 2% on Wednesday, weighed down by a weaker demand outlook and a rise in US crude inventories despite growing expectations of ongoing OPEC-led supply cuts. It was reported that Brent crude futures, the international benchmark for oil prices, were down US$1.16, or 1.86%, at US$61.13 a barrel by 0616 GMT.

Across Asian stock markets, Hong Kong's Hang Seng and the Shanghai Stock Exchange Composite closed down 1.73% and 0.56% respectively. In Japan, the Nikkei 225 closed 0.35% down while South Korea's Kospi finished 0.14% lower.

Reuters reported that Asian share markets were in a defensive stance on Wednesday as the White House took a tough line on trade talks with China. It was reported that US President Donald Trump said on Tuesday he was holding up a trade deal with China and had no interest in moving ahead unless Beijing agrees to four or five "major points" which he did not specify.

In Hong Kong, it was reported that financial markets came under pressure on Wednesday, with stocks falling and demand for cash surging, as tens of thousands of protesters clashed with police in a demonstration against legislation that would allow citizens to be extradited to China.



Source: The Edge

Market Daily Report: Mild profit taking pulls FBM KLCI into negative zone

KUALA LUMPUR (June 11): The FBM KLCI dropped 0.26% today, bucking the regional upward trend, as profit taking emerged on selected index-linked counters, for instance banking stocks.

The benchmark index dropped 4.27 points at 1,651.20 points from 1,655.47 points on Monday. The benchmark index hovered between 1,649.81 and 1,657.36 throughout the trading session.

Across the board, trading volume is lower today at 2.24 billion shares worth RM2.03 billion compared with 2.28 billion shares worth RM1.79 billion yesterday.

Overall market breadth was positive, with 387 gainers versus 324 losers, while 493 counters remained unchanged. 

 

"The FBM KLCI underperformed its regional peers (today) due to profit taking in selected heavy weights, such as Tenaga Nasional Bhd, Hong Leong Bank Bhd, RHB Bank Bhd and Malayan Banking Bhd (Maybank)," Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com.

"The immediate resistant level (for FBM KLCI) is at 1,665 points while the support level is 1,640 points," he added.

Tenaga topped the loser list in terms of value. The utility stock shed 2.2%, or 28 sen, to RM12.48.
Meanwhile, banking stocks also fell, with Hong Leong Bank down by 1.25% or 24 sen to RM18.98, RHB Bank sank 1.03% or six sen at RM5.79, while Maybank fell 0.55% or five sen at RM8.99.

Meanwhile, across the region, Japan's Nikkei 225 was up 0.33% today along with South Korea's Kospi, which gained 0.59%. China's Shanghai Stock Exchange Composite climbed higher by 2.58% while the Hong Kong's Hang Seng Index gained 0.76%.

Reuters reported that Asian stocks, led by Chinese shares, gained on Tuesday as markets basked in relief following the US decision to hold off from imposing import tariffs on Mexico as the two governments agreed a deal to combat illegal migration from Central America.

"Relief that the US had stepped back from an immediate imposition of tariffs on Mexico encouraged buyers, though US Secretary of State Mike Pompeo warned the United States could still slap tariffs on Mexico if not enough progress was made on its commitment to stem illegal immigration.

"While global markets have been given some reprieve, fresh US trade threats against China were seen limiting any major boost to investor sentiment," it added.

"The US President Donald Trump said on Monday he was ready to impose another round of punitive tariffs on Chinese imports if he cannot make progress in trade talks with Chinese President Xi Jinping at the G20 summit.

"The US president has repeatedly said he expected to meet Xi at the June 28-29 summit in Osaka, Japan, although China is yet to confirm any such meeting," it further added in the report.



Source: The Edge

Market Daily Report: FBM KLCI up 0.37% on US rate cut speculation

KUALA LUMPUR (June 10): The FBM KLCI closed up 6.14 points or 0.37% today, tracking Asian stock market gains amid US interest rate cut speculation and after the US suspended plans to impose tariffs on Mexican imports.

At 5pm, the KLCI settled at 1,655.47. Across Asia, Japan's Nikkei 225 closed up 1.2% while South Korea's Kospi gained 1.31%. In China, the Shanghai Stock Exchange Composite climbed 0.86% while Hong Kong's Hang Seng gained 2.27%.

In Malaysia, Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew told theedgemarkets.com that "market speculation on US rate cut led to gains in the KLCI today as well as global markets".

Lower US interest rates bode well for Asian markets in anticipation that global fund managers will shift their money into higher-yielding Asian assets such as stocks, bonds and currencies. 

 

Reuters reported that Asian shares, European and US stock futures rose on Monday after the United States shelved plans to impose tariffs on Mexico and as global investors hoped for lower US interest rates on the back of lacklustre jobs data.

It was reported that a Labor Department report showed nonfarm payrolls increased by 75,000 jobs last month, much smaller than the 185,000 additions estimated by economists in a Reuters poll, suggesting the loss of momentum in economic activity was spreading to the labor market. As a result, traders raised bets for a rate cut in July followed by two more rate cuts by year-end, according to the newswire.

Across Bursa Malaysia today, 2.28 billion shares worth RM1.79 billion were traded. There were 550 gainers versus 260 decliners.

Top gainers included Fraser & Neave Holdings Bhd, Malaysia Airports Holdings Bhd and Genting Bhd.



Source: The Edge

Market Daily Report: Bursa Malaysia finishes day in festive mood

KUALA LUMPUR (June 7): Festive cheer helped to lift the mood, with Malaysian stocks closing in positive territory today.

The FBM KLCI closed 0.32% higher after the two-day Hari Raya Aidilfitri break, but sell-side analysts see limited upside following less than encouraging corporate earnings in the first quarter of this year.

At 5pm, the benchmark index settled 5.24 points higher at 1,649.33 points, after moving between 1,646.80 and 1,651.99 throughout the day.

Malacca Securities Sdn Bhd head of research Victor Wan told theedgemarkets.com that the KLCI uptrend since May 24 has largely reflected the market’s fair value. 

 

“The uptrend over the past one to two weeks has pretty much reflected the market’s fundamental. Things are looking stable, with very little room left for market upside. Further upside has to be driven by corporate earnings, which have not been very encouraging thus far,” he said.

Trading volume increased to 1.55 billion shares worth RM1.53 billion compared with Tuesday's 1 billion shares worth RM1.01 billion. Market breadth was positive with 487 gainers versus 306 losers. A total of 349 counters remained unchanged.

Notable gainers included Maxis Bhd and Petronas Chemicals Group Bhd, while losers included Malaysia Airports Holdings Bhd and RHB Bank Bhd.

Metronic Global Bhd was the most actively traded counter, with 103.07 million shares changing hands.

Regionally, Reuters reported that Asian shares were slightly higher on Friday on expectations that global central banks will soon embark on an easing cycle in the face of international trade frictions and fears of a world recession.

Japan’s Nikkei gained 0.53% today, while Hong Kong's Hang Seng Index was up 0.26%. South Korean Kospi also rose by 0.16%.




Source: The Edge

Market Daily Report: Trading activities remain muted ahead of Hari Raya, KLCI retreats 0.68%

KUALA LUMPUR (June 4): The FBM KLCI declined by 0.68% today, as overall market sentiment remained muted as expected.

At market close, the benchmark index settled 11.22 points lower at its intra-day low of 1,644.09 points. The index went as high as 1,655.89 points during the half-day trading today.

Bursa Malaysia opened for half-day trading until 12:30pm today, the usual practice on the eve of Hari Raya Aidilfitri.

When contacted, CIMB Research analyst Nick Foo Mun Pang told theedgemarkets.com that disappointing corporate earnings for the first quarter and global trade concern, made investors risk-averse.

“Overall sentiment remained muted as expected; the KLCI ended the half day trading on a weaker tone ahead of the Hari Raya break. Moreover, the disappointing corporate earnings for the first quarter and global trade tension [are] likely to have kept traders off risky bets today.

“Come Friday, the KLCI is likely to remain lacklustre, because the holiday mood would potentially [be] still in the air. Next week, we expect the cautious sentiment to still prevail, due to the ongoing trade dispute globally,” he said.

“From a technical standpoint, the KLCI appears to have formed a bearish reversal candlesticks pattern, following recent strong gains; therefore the index may take a breather in the near term, with immediate support at 1,628 points to 1,633 points territory. However, if the index goes up, upside will be capped in the 1,670 points and 1,680 points territory,” he added.

Reuters reported today that Asian shares fell on Tuesday, following a volatile Wall Street session, as weak economic indicators and an intensifying Sino-US trade war inflamed concerns about global growth, supporting safe-haven assets such as bonds.

At 12:16pm, Japan’s Nikkei was trading 0.04% lower, as Hong Kong Hang Seng Index also declined 0.33%, while South Korean Kospi fell 0.01%.

In Malaysia, total trading volume was 1.003 billion shares, worth RM1.007 billion, while market breadth was negative with 334 gainers versus 344 losers, with 349 counters remaining unchanged.
Notable losers included Genting Bhd, Public Bank Bhd, Bursa Malaysia Bhd and Hartalega Holdings Bhd, while gainers included Can-One Bhd and Dolomite Corp Bhd.

Hang Seng Index Structured put warrants (HSI-C5K) was the most actively-traded counter today, with 63.64 million units done, followed by Lambo Group Bhd, with 49.83 million shares exchanging hands.



Source: The Edge

Market Daily Report: KLCI rebounds at 11th hour despite gloomy sentiment amid intensifying trade tension

KUALA LUMPUR (June 3): The FBM KLCI rebounded into positive territory at the 11th hour today, believed to be driven by foreign buying activities, after remaining subdued below its previous close for most of the day.

At 5pm, the benchmark index closed 4.55 points or 0.28% higher at 1,655.31 points, with a day range between 1,642.66 points, and 1,656.68 points.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com that market sentiment earlier today was dampened by intensifying trade tension between US and Mexico, and US and China.

“The market was relatively quiet today, due to the mid-week Hari Raya break, and volume was lower as well. 

 

"The climb in the final hour today was likely to be foreign buying, we are still waiting for today’s market participation details from Bursa, but foreign funds have been recording net buying since last Thursday,” he noted.

Earlier, Reuters’ report on the Southeast Asian market mentioned that the Philippine shares climbed for the fifth straight session on Monday after the Central Bank governor's promise of further policy easing on Friday, while other Southeast Asian equities declined due to heightened Sino-US tensions over the weekend.

In the Asian region, Japan’s Nikkei fell 0.92%, Hong Kong Hang Seng declined 0.03% while South Korea Kospi gained 1.28%.

Back home, total volume traded on Bursa Malaysia was 1.6 billion worth RM1.55 billion. There were 266 gainers versus 577 losers, with 355 counters remaining unchanged.

Notable gainers included Malaysia Airports Holdings Bhd and Tenaga Nasional Bhd, while losers included Telekom Malaysia Bhd and Allianz Malaysia Bhd.

Hang Seng Index Structured Put Warrant (HIS-H6S) was the most actively traded counter with 87.46 million shares done, followed by Hibiscus Petroleum Bhd with 47.74 million shares traded.



Source: The Edge