Market Daily Report: KLCI down 0.48% after Trump warned China on trade spat

KUALA LUMPUR (July 31): The FBM KLCI fell 7.82 points or 0.48% today to settle at 1,634.87 points after Asian share markets closed down as fresh trade war concerns emerged due to threats from US President Donald Trump to China.

Global investors are also anticipating the widely-expected US intrest rate cut as they evaluated the impact of a no-deal Brexit on currency markets. Across Asian stock indices today, Japan's Nikkei 225 closed down 0.86%, South Korea's Kospi fell 0.69% while Hong Kong's Hang Seng dropped 1.31%.
Reuters reported that Asian shares fell on Wednesday to a six-week trough, rattled by fresh trade war concerns following threats from Trump to Beijing, while increasing worries about a no-deal Brexit kept the pound under pressure.

It was reported that as trade talks between the world's two biggest economies continued in Shanghai on Tuesday, Trump warned China against trying to wait out his first term in office to finalise a deal. It was reported that Trump tweeted that, if he wins re-election in November 2020, the outcome could be no agreement or a harsher one.

On US monetary policy, it was reported that later in the day, the US Federal Reserve is widely expected to cut interest rates for the first time since the financial crisis more than a decade ago.
In Malaysia, Areca Capital Sdn Bhd chief executive officer Danny Wong told theedgemarkets.com that as the US-China trade spat persisted, "no one knows what the outcome will be".

On US monetary policy, Wong said the current US economic condition does not indicatively show that there should be an interest rate cut although bond markets have priced in a rate reduction.
"Either way, it (rate cut or no rate cut) will negatively affect the markets," he said.

Across Bursa Malaysia, Wong observed that investors might have trod a cautious path amid global uncertainties after Bursa decliners led gainers by 499 to 257 respectively on what appeared to be broad-based selling across the exchange.

Top Bursa decliners included KLCI stocks Petronas Dagangan Bhd, Hong Leong Financial Group Bhd and Public Bank Bhd.


Source: The Edge

Market Daily Report: FBM KLCI ends at intraday high, TM falls

KUALA LUMPUR (July 25): The FBM KLCI closed up 4.17 points or 0.25% today at its intraday high after a spike in the final trading minutes following a sharp rise in the share prices of components Press Metal Aluminium Holdings Bhd and Kuala Lumpur Kepong Bhd (KLK). Telekom Malaysia Bhd (TM) shares fell.

At 5pm, the KLCI closed at 1,656.58. Press Metal ended up 20 sen or 4.49% at RM4.65 while KLK rose 18 sen or 0.76% to RM23.82.

From a global viewpoint, the KLCI closed up after volatile trade as anticipation of the US and European Central Bank interest rate cut besides the corporate financial reporting season for the April-to-June quarter moved to the forefront of investor’s minds.

Reuters reported that Asian shares rose after a cautious start, while the euro hovered near two-month lows as soft economic data fuelled hopes the European Central Bank could cut rates at its meeting on Thursday. 

 

In Malaysia, Areca Capital Sdn Bhd chief executive officer Danny Wong told theedgemarkets.com that investors are waiting for news on the US' interest rate decision and at the same time eyeing quarterly corporate earnings announcements before making any big investment decisions.
The US-China trade war also continues to be a key concern, Wong said.

“The US-China trade war is present, and there is newsflow on it every day, but there is no clear direction [in terms of how the trade conflict will continue to develop]” said Wong.

Across Bursa Malaysia today, 2.76 billion shares worth RM2.01 billion were traded. Top gainers included Press Metal and KLK.

TM closed down 35 sen or 7.87% at RM4.10 with some 38 million shares traded.

Shares of TM ended among top decliners and most-active counters after Goldman Sachs downgraded the recommendation on TM to sell from neutral.

Bloomberg reported that Goldman Sachs, however, raised its TM target price to RM3.65 from RM2.85.

TM's share price could have also taken cue from a CIMB Research report today.

CIMB analyst Nick Foo said traders may want to sell TM shares now because CIMB thinks the recent spike in TM's share price had fully reacted to the group's latest quarterly financial results, which showed better-than-expected earnings.

"Share prices surged more than 70% since the stock’s latest quarterly financial results showed better-than-expected earnings. We think that the recent spike in share prices has fully reacted to the said unexpected performance given the negative divergence formation on the indicators.

"Both moving average convergence divergence (MACD) and relative strength index (RSI) are starting to decline, which is in line with the price movements.

Traders may want to sell the stock now, with a stop placed at RM4.70. A break below RM3.91 would send prices down towards RM3.47 next," Foo said.


Source: The Edge

Market Daily Report: FBM KLCI ends in the red but Bursa small caps rise

KUALA LUMPUR (July 24): The FBM KLCI closed 3.26 points or 0.2% lower at 1,652.41 today, possibly on foreign selling and as investors appeared to favour Bursa Malaysia small market capitalisation (small cap) stocks as they evaluated world economic and political newsflow.

Globally, it was reported that prospects of fresh China-US trade negotiations lifted sentiment, while investors awaited a possible US interest rate rate cut this month. Analysts said today Brexit is also among investors' list of concerns.

At 5pm, the KLCI closed down after rising to its intraday high at 1,659.38 and falling to its intraday low at 1,651.36. Bursa's small-cap index ended up 82.1 points or 0.6% at 13,779.4 while the energy index, which tracks oil and gas-related shares, climbed 12.78 points or 1.15% to 1,123.75.

“Expect the KLCI to continue to underperform. However small cap stocks like oil & gas and construction (companies) will continue to garner interest as retailers are more active in the market compared to institutional investors due to valuation and external concerns such as Brexit,” TA Securities Holdings Bhd senior technical analyst Steven Soo told theedgemarkets.com. 

 

The KLCI ended lower, dragged down by components including Petronas Gas Bhd, Petronas Chemicals Group Bhd and Hong Leong Bank Bhd. These stocks finished among Bursa's top decliners.

Leading gainers included KLCI stocks Genting Malaysia Bhd and Genting Bhd.

Top-active stocks included oil and gas-related entities KNM Group Bhd and Velesto Energy Bhd.
Across Asia, Reuters reported that Asian shares crept higher on Wednesday as the prospect of fresh Sino-US trade talks drew a guarded welcome, while the euro hit lows on a range of counterparts amid speculation the European Central Bank was near to easing policy. It was reported that sentiment had been helped by a Bloomberg report that US Trade Representative Robert Lighthizer would travel to Shanghai next week for meetings with Chinese officials.

Reuters said White House economic adviser Larry Kudlow on Tuesday called it a good sign and said he expected Beijing to start buying US agriculture products soon.

In oil markets, it was reported that oil prices nudged higher on Wednesday on rising tensions over Iran, a sharp fall in US crude stocks and positive signs on Sino-US talks, although worries about weak demand kept a cap on gains. Brent crude futures were up 21 cents, or 0.3%, at US$64.04 a barrel by 0719 GMT, after rising nearly 1% on Tuesday, according to Reuters.



Source: The Edge

Market Daily Report: FBM KLCI pares gains on lack of fresh catalysts

KUALA LUMPUR (July 23): The FBM KLCI closed 0.27 point or 0.02% higher at 1,655.67, after Asian share markets rose on expectation the US Federal Reserve and European Central Bank will cut interest rates.

The KLCI had earlier risen to its intraday high at 1,658.35 and fell to its intraday low at 1,654.02. At 5pm, the KLCI pared gains due the lack of fresh catalysts, analysts said, as central bank easing is no longer a fresh theme.

Across Asian stock indices today, Japan’s Nikkei 225 closed up 0.95% while South Korea’s Kospi gained 0.39%. In China, the Shanghai Stock Exchange Composite rose 0.45% while Hong Kong’s Hang Seng climbed 0.34%.

Reuters reported expectations that the European Central Bank and Federal Reserve will cut interest rates, boosted stocks globally, while the pound sagged on worries that likely new prime minister Boris Johnson would lead Britain into a no-deal exit from the European Union.

But with central bank easing no longer a fresh theme, market gains were limited, Reuters reported.
"The likelihood of easing by the Fed is supportive for equity markets, but the probability of a 25 basis point rate cut has already been factored in, for the most part," Soichiro Monji, senior strategist at Sumitomo Mitsui DS Asset Management, was quoted as saying.

In Malaysia, Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com that the KLCI's upside remains capped due to the lack of a fresh catalysts.

“KLCI registered minor gain today, after trading in a lacklustre manner, as gains were capped by the lack of fresh catalysts,” Leong said.

Across Bursa Malaysia today, trading volume stood at 2.77 billion shares, worth RM2.02 billion.
Top gainers included MBM Resources Bhd and Heineken Malaysia Bhd. Top-active counters included NetX Holdings Bhd and Bumi Armada Bhd.



Source: The Edge

Market Daily Report: FBM KLCI closes 0.17% lower amid regional decline

KUALA LUMPUR (July 22): The FBM KLCI index closed a marginal 0.17% lower today to 1,655.40 points, in line with regional markets weathering uncertainties stemming from a number of factors, including the US-China trade war, US Federal Reserve rate cut, and an increase in oil prices.

A total of 2.65 billion shares were traded across Bursa Malaysia today, worth RM1.544 billion.
Top actives included Sapura Energy Bhd, KNM Group Bhd and Green Packet Bhd. Top gainers included Pentamaster Corp Bhd, United Plantations Bhd, and Kuchai Development Bhd, while British American Tobacco (Malaysia) Bhd, Batu Kawan Bhd and Ayer Holdings Bhd topped the losers’ list.

There were 284 advancers and 461 decliners, while 488 counters finished unchanged.
As of 9:05 GMT, WTI Crude rose 1.76% or 98 cents to US$56.72 a barrel.

In China, the Shanghai Composite fell 1.27% or 37.23 points to 2,886.97, while Hong Kong’s Hang Seng Index slipped 1.28% or 48.95 points to 3,773.67.

Smaller declines were posted by Japan’s Nikkei 225 of 0.23% or 50.20 points to 21,416.79, and South Korea’s Kospi Index of 0.05% or 1.02 points to 2,093.34.

Rakuten Trade Sdn Bhd deputy head of research Vincent Lau said the bourse’s dip was in line with regional markets, ahead of the Fed’s Open Market Committee Meeting on July 30-31, 2019.
“Other uncertainties such as the US-China trade war, are also present,” he said.

Reuters had reported Asian stocks had fallen today, as investors now expect more tepid rate cuts by the Feds.

In terms of the quantum of a prospective cut by the Fed, Bloomberg had reported that the Fed is expected to cut US interest rates by 25 basis points, leaving open the possibility of further cuts to sustain the US’ economic expansion.

Crude oil prices have risen on the back of escalating tensions in the Middle East, following Iran’s seizure of a British tanker in the Strait of Hormuz.



Source: The Edge

Market Daily Report: KLCI snaps three-day losing streak on US rate cut hint

KUALA LUMPUR (July 19): The FBM KLCI closed 9.26 points or 0.56% higher today on bargain hunting and after markets took New York Federal Reserve President John Williams' speech as a hint of a potential US rate cut at the upcoming July meeting.

Higher crude oil prices also supported share price gains across Bursa Malaysia. At 5pm today, the KLCI settled higher at 1,658.19 with Asian share markets.

The KLCI snapped a three-day losing streak on bargain hunting to close higher, helped by gains in index-linked stocks including Tenaga Nasional Bhd, Petronas Chemicals Group Bhd and CIMB Group Holdings Bhd.

Rakuten Trade Sdn Bhd deputy head of research Vincent Lau told theedgemarkets.com that the KLCI’s performance today was "mainly due to bargain hunting and expectations of a rate cut by the US Federal Reserve".

 Across Bursa Malaysia, most-actively traded stocks included Scomi Group Bhd, with a volume of 132.21 million shares. Scomi Group closed up one sen or 11.11 % at 10 sen.

The Edge Financial Daily, quoting Scomi Group’s filing with Bursa Malaysia, reported today that Tan Sri Wan Azmi Wan Hamzah and Gelombang Global Sdn Bhd, a private vehicle of former Renong Bhd managing director Datuk Mohd Zakhir Siddiqy, have committed to investing RM42 million collectively in ailing Scomi Group.

It was reported that the fresh capital will be injected into Scomi Group by underwriting the proposed rights issue which is fixed at 18 sen per share.

Should the cash call be fully subscribed, the two investors will take part in the proposed restricted rights issue, The Edge Financial Daily reported.

Markets were on the rise around Asia on Friday. Japan's Nikkei 225 closed up 2% while South Korea's Kospi finished 1.35% higher. Hong Kong's Hang Seng and the Shanghai Stock Exchange Composite ended up 1.07% and 0.79% respectively.

Asian stocks rose on Friday after Williams cemented expectations of a US interest rate cut later this month, fuelling appetite for riskier assets and keeping a cap on the dollar, Reuters reported. It was reported that Williams said on Thursday that policymakers could not wait for economic disaster to hit before adding stimulus, in a speech read as a strong argument in favour of quick monetary action.
The comments by Williams made it a virtual certainty the Fed would cut interest rates by 25 basis points (bps) at its July 30-31 policy meeting and also revived expectations of an even deeper 50 bps reduction, Reuters reported.

In oil markets, it was reported that oil prices rose on Friday as tensions brewed again in the Middle East after a US Navy ship destroyed an Iranian drone in the Strait of Hormuz, a major chokepoint for global crude flows.

Brent crude futures were up 81 cents, or 1.3%, at US$62.74 a barrel by 0642 GMT, according to Reuters.



Source: The Edge

Market Daily Report: KLCI finishes at intraday low on Trump's new tariff threat

KUALA LUMPUR (July 18): The FBM KLCI finished 8.6 points or 0.52% lower today while small market capitalisation (small cap) stocks fell by a larger quantum as world markets reacted to US President Donald Trump’s renewed threat of imposing more tariffs on Chinese goods.

At 5pm, the KLCI finished at its intraday low at 1,648.93 while Bursa Malaysia's small cap index fell 144.66 or 1.06% to 13,541.35.

Across Bursa, there were more than 500 decliners versus some 200 gainers after broad-based selling across the exchange. Top decliners included KLCI stocks Petronas Chemicals Group Bhd, Tenaga Nasional Bhd and Public Bank Bhd.

Inter-Pacific Securities Sdn Bhd research head Pong Teng Siew told theedgemarkets.com that the Malaysian share market performance today was due to the overnight 115.78-point or 0.42% drop in the US' Dow Jones Industrial Average on worries that the trade tension is here to stay.
 

“Today was not a good day and prospects look very bearish. This has to do with Trump’s off-the-cuff comments, and as the post G20 [summit] euphoria has started to fade again. The market has been building up hopes that there will be a trade deal, until Trump’s statement two days ago took away that optimism,” Pong said. 

 

Across Asian stock markets today, the Shanghai Stock Exchange Composite and Hong Kong's Hang Seng closed down 1.04% and 0.46% respectively. Japan's Nikkei 225 slid 1.97% while South Korea's Kospi finished 0.31% lower.

Global shares slipped on Thursday on growing signs that a trade dispute between the US and China was taking a toll on corporate earnings, with nerves spreading from Wall Street through Asia to European markets, Reuters reported today. It was reported that the MSCI world equity index, which tracks shares in 47 countries, fell 0.2% to their lowest in nine days, while the Euro STOXX 600 slipped 0.5% to its lowest in almost three weeks.

Earlier, Bloomberg reported that Trump reiterated that he could impose additional tariffs on Chinese imports if he wants, after promising to hold off on more duties in a trade-war truce he reached with China’s Xi Jinping last month.




Source: The Edge

Market Daily Report: KLCI down 0.68% amid renewed trade war concerns; i-Stone up

KUALA LUMPUR (July 17): The FBM KLCI closed down 11.41 points or 0.68% today in line with Asian share markets' decline after US president Donald Trump threatened to impose tariffs on another US$325 billion of Chinese goods.

At 5pm, the KLCI closed at 1,657.53 as volume across Bursa Malaysia topped 3.8 billion shares. Volume rose amid broad-based selling across the exchange and as investors bought newly-listed i-Stone Group Bhd shares.

Areca Capital Sdn Bhd chief executive officer Danny Wong said there has been no development on the US-China trade war, which continues to affect investment sentiment.

“The (KLCI) decline is in line with the fall in regional markets (today) and the US markets overnight. The main issues affecting sentiment like the trade war and other uncertainties, are still there and there has been no real development so far,” said Wong. 

 

Malaysia's ongoing corporate reporting season for the April-to-June quarter also led to selling in the stock market amid expectations of poor performance among listed companies here, according to Wong.

The corporate reporting season for the April-to-June quarter starts as early as July although most companies announce their results in August.

“Investors have some insight into how the 2Q (quarterly) results are going to be, so there is some selling activity currently,” he said.

Across Bursa Malaysia today, the exchange saw volume rising to 3.83 billion shares worth RM1.97 billion. Yesterday, volume across Bursa reached 3.32 billion shares worth RM2.09 billion.

Today's broad-based selling led to 550 decliners versus 227 gainers. Top-active stock i-Stone registered a volume of some 448 million shares after the stock closed up 8.5 sen or 53% at 24.5 sen.
i-Stone shares , which were listed today on Bursa's ACE Market at 16 sen each, also ended among Bursa Malaysia top gainers.

Leading decliners included KLCI stocks Petronas Chemicals Group Bhd, Tenaga Nasional Bhd and PPB Group Bhd.

Across Asia, Reuters reported that stock market trade was generally muted with MSCI's broadest index of Asia-Pacific shares outside Japan off 0.25%.

It was reported that Asian shares drifted off on Wednesday as anxious investors awaited more earnings reports from corporate America, while the dollar held firm in the wake of robust US retail data and a Brexit-driven dive in the pound.

It was reported that oil prices also nursed losses on hints US tensions with Iran could be easing and as data showed stockpiles fell by less than expected last week. Not helping the mood was Tuesday's threat from Trump to put tariffs on another US$325 billion of Chinese goods, amid market nervousness over when face-to-face talks would resume, according to Reuters.



Source: The Edge

Market Daily Report: KLCI declines, lower liners up amid external uncertainties

KUALA LUMPUR (July 16): The FBM KLCI closed down 3.43 points or 0.21% as investors appeared to favour Bursa Malaysia's lower liner and small market-capitalisation (small cap) stocks over large cap entities amid external uncertainties.

Analysts said these uncertainties include a potential US interest rate cut and the outlook of the US-China trade dispute. At Bursa, the KLCI closed at 1,668.94 at 5pm while the FBM70 index rose 41.84 points or 0.28% to 14,950.68.

Sector wise, the Energy Index climbed 17.44 points or 1.58% to 1,123.74 to become the largest percentage gainer across Bursa indices as investors grappled with external uncertainties.
"The outlook for the local market is still a bit uncertain. There are a few factors in the background that are affecting investor sentiment, including a potential cut in US interest rates and the US-China trade dispute," said an analyst with a local research house. 

 

Globally, Reuters reported that although most Asian stock markets rose on Tuesday, gains were, however, limited as investors awaited US retail sales data and corporate earnings to gauge the health of the world's biggest economy ahead of a likely US rate cut later this month.

In Malaysia today, analysts said lower liner and small-cap stocks could be in demand as investors evaluated the impact of global uncertainties on the broader market.

Earlier today, TA Securities Holdings Bhd wrote in a note that "the recent strong trading momentum on lower liners and small caps should continue to highlight trading and cushion profit-taking".

Such sentiment on lower liner and small cap stocks helped volume across Bursa reach 3.32 billion shares worth RM2.09 billion. At a glance, energy-related stocks including KNM Group Bhd and Bumi Armada Bhd closed up among the most active counters across the exchange.

KNM and Bumi Armada registered a volume of some 175 million and 127 million shares respectively. KNM closed up 1.5 sen or 3.9% at 40 sen while Bumi Armada ended unchanged at 25 sen.



Source: The Edge

Market Daily Report: KLCI reverses losses at 11th hour after seeing red for most of the day

KUALA LUMPUR (July 15): The FBM KLCI was lifted by last minute gains in index-linked counters, closing 0.17% higher after spending most of the day in the red.

The index had dipped into the red shortly after it opened and had spent the rest of the session slowly inching up towards positive territory, before closing 2.92 points higher at 1,672.37, lifted by increases in blue chip stocks such as Genting Malaysia Bhd and Dialog Group Bhd.

The higher close was in line with gains seen in other Asian markets, supported by encouraging data from China.

Analysts are largely expecting the KLCI to fall this week, amid a lack of catalysts for the local market in the near term.

Hong Leong Investment Bank head of retail research Loui Low said bearish technical indicators are pointing to further consolidation this week and that any technical rebound to be capped.

"Key supports are situated at 1,655, 1,647 and 1,633 territory. Conversely, any technical rebound is likely to be capped at 1,680, 1,694 and 1,700 barriers," wrote Low in a note.

Similarly, JF Apex Securities expects further decline in the KLCI in the near term, also seeing key support at 1,655.

A total of 3.01 billion shares worth RM1.65 million were crossed today, with market breadth remaining negative as 378 counters closed lower against 369 gainers.

The gainers were led by British American Tobacco (Malaysia) Bhd, Nestle (Malaysia) Holdings Bhd and Malaysian Pacific Industries Bhd, while the decliners were led by Dutch Lady Milk Industries Bhd, Panasonic Manufacturing Malaysia Bhd and KESM Industries Bhd. The most actively traded stock was Bumi Armada.

Regionally, Japan's Nikkei increased 0.2%, Hong Kong's Hang Seng rose 0.29% and China's Shanghai Composite Index rose 0.4%, while South Korea's Kospi fell 0.2%.

Reuters said Asian shares advanced today as investors breathed a sigh of relief after encouraging Chinese data suggested the world's second-biggest economy may be starting to stabilise thanks to ramped-up stimulus from Beijing.

While second quarter economic growth slowed to 6.2%, the slowest pace in 27 years, China's industrial output and retail sales had beat forecasts, suggesting the effectiveness of the stimulus measures.

MSCI's broadest index of Asia-Pacific shares outside Japan reversed earlier losses to be 0.2% higher. It fell a little more than 1% last week, ending five straight weeks of gains, Reuters reported.


Source: The Edge

Market Daily Report: FBM KLCI tumbles as investors take profit, CIMB falls

 
KUALA LUMPUR (July 12): The FBM KLCI today closed 9.81 points or 0.59% lower on profit taking in an overbought Malaysian stock market and as investors took cue from US equity gains. CIMB Group Holdings Bhd shares fell.

At 5pm, the KLCI closed down at 1,669.45 on profit taking after the KLCI rose to its intraday high at 1,682.04.

“The market is using Wall Street as a guideline as it has set new highs. So, investors are now in a profit-taking position,” Hong Leong Investment Bank Bhd head of retail research Loui Low told theedgemarkets.com today.

Earlier today, TA Securities Holdings Bhd wrote in a note: "While blue chips trade sideways on overbought momentum, resurgent trading interest in oil & gas related lower liners and small caps should encourage retail participation."

Across Bursa Malaysia, the exchange saw 2.94 billion shares worth RM2.28 billion traded. Among the KLCI's 30 component stocks, CIMB was the biggest percentage decliner followed by Dialog Group Bhd.

CIMB shares closed down 14 sen or 2.62% at RM5.20 with some 43 million units traded. Dialog fell nine sen or 2.59% to RM3.38 with about 14 million shares done.

CIMB shares fell amid earnings dilution concerns after news reports indicated that Khazanah Nasional Bhd is seeking US$500 million (about RM2.06 billion) selling zero-coupon bonds exchangeable into CIMB shares.

Bloomberg, quoting terms for the deal, reported that CIMB, Credit Suisse and JPMorgan are arranging the sale of the five-year bonds.



Source: The Edge

Market Daily Report: FBM KLCI ends higher on 11th hour bargain hunting

KUALA LUMPUR (July 11): The FBM KLCI rebounded to close in positive territory today on bargain hunting at the eleventh hour.

The benchmark index recovered from its intraday low of 1,674.70 in the afternoon session, before settling at 1,679.26 for a gain of 0.29 points or 0.02% from yesterday.

Inter-Pacific Securities Head of Research Pong Teng Siew said the US Federal Reserve's suggestive rate cuts may have provided a positive backdrop for investors looking to get back in the market.

"It is the last minute bargain hunting that helped push the index up," Pong told theedgemarkets.com.
Top gainers among index-linked stocks included Dialog Group Bhd and Maxis Bhd, which rose 2.66% and 1.77% respectively.

Pong pointed out that the overall market breadth was positive with more gainers than losers at 501 versus 329. Total volume was also higher at 3.18 billion shares worth RM2.21 billion.

Most actively traded stocks were energy-related, including KNM Group Bhd, Sapura Energy Bhd and Bumi Armada Bhd, which together accounted for nearly one-fifth of the total market turnover.

The gains on the local market was in line with other Asian markets, which cheered the dovish views of US Federal Reserve Chairman Jerome Powell, who reinforced prospects for a US interest rate cut later this month.

Hong Kong's Hang Seng Index and the Shanghai Stock Exchange Composite Index gained 0.81% and 0.08% respectively at end of the trading day.

In Tokyo, the Nikkei 225 closed 0.51% higher while South Korea's Kospi finished 1.06% higher.
In his first day of testimony before Congress on Wednesday, Powell confirmed that the US economy was still under threat from disappointing factory activity, tame inflation and a simmering trade war, Reuters reported.



Source: The Edge

Market Daily Report: KLCI falls as investors await US rate cut hint; Petronas stocks down

KUALA LUMPUR (July 10): The FBM KLCI closed 3.9 points or 0.23% lower today at 1,678.97 on profit taking and as global investors awaited Federal Reserve chairman Jerome Powell remarks during his two-day testimony starting Wednesday (July 10) before Congress. Petronas-linked counters led the KLCI's drop.

In the US, the Federal Reserve is also scheduled to announce on Wednesday its June policy meeting minutes. Powell's remarks and the meeting minutes will be closely watch for hints on the confirmation and extent of the widely-expected US interest rate cut this July 30 and 31.

US rate cuts are seen boding well for Asian markets, in anticipation that fund managers will shift their money into higher-yielding Asian assets like currencies, stocks and bonds. But anticipation of a smaller-than-expected US rate cut tempers such positive sentiment.

Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng told theedgemarkets.com that investors are holding back as they wait for clues, which will confirm the widely-expected US interest rate cut and quantum of the reduction.

“Investors are waiting for the minutes from the US central bank’s meeting to be out. There is a possibility that the US Fed may defer the rate cut which the market has priced in for July, which will affect the equity market,” said Wong.

Reuters reported that Asian shares pulled ahead on Wednesday while rising Treasury yields lifted the dollar as investors waited anxiously to hear if the world's most powerful central banker would confirm or confound expectations for US easing this month.

It was reported that a worrying lack of inflation globally is one reason investors are counting on Powell to sound suitably dovish when testifying to Congress on Wednesday. According to Reuters, futures are still fully priced for a 25-basis-point cut at the Fed's July 30-31 meeting, but have abandoned wagers on a half-point move. It was reported that investors rushed to scale back Fed rate cut expectations following unexpectedly strong gains in US jobs for June.

At Bursa Malaysia today, the KLCI closed down on profit taking at 1,678.97 after ending 5.23 points or 0.31% higher yesterday.

Among the 30 KLCI component counters today, Petronas-linked counters were the biggest percentage decliners.

Top percentage decliner Petronas Chemicals Group Bhd closed down 19 sen or 2.21% at RM8.41 followed by Petronas Dagangan Bhd.
Petronas Dagangan fell 54 sen or 2.11% to RM25.


Source: The Edge

Market Daily Report: FBM KLCI snaps four-day losing streak

KUALA LUMPUR (July 9): The FBM KLCI has closed 5.23 points or 0.31% higher today on bargain hunting, after four straight days of losses as world markets trimmed expectations on the pace of US interest rate cuts.

In Malaysia, stock bargain hunting appeared to coincide with improved sentiment after Bank Negara Malaysia maintained the overnight policy rate (OPR) at 3% today. At 5pm, the KLCI closed at its intraday high of 1,682.87 after a spike in the final trading minutes.

"The rebound today in the KLCI should be because of the improved sentiment in the market as the central bank has maintained the OPR at 3%," Rakuten Trade Sdn Bhd deputy head of research Vincent Lau told theedgemarkets.com.

Among the 30 KLCI component stocks, Maxis Bhd was the top percentage gainer, closing 11 sen or 1.96% higher at RM5.71, followed by Press Metal Aluminium Holdings Bhd, which ended up six sen or 1.4% at RM4.36.

Malaysian shares had today bucked Asian equity market losses as world markets trimmed expectations on the pace of US interest rate cuts.

US rate cuts are seen boding well for Asian markets, in anticipation that fund managers will shift their money into higher-yielding Asian assets like currencies, stocks and bonds. But anticipation of a smaller-than-expected US rate cut tempers such positive sentiment.

Reuters reported that Asian stocks hovered around two-and-a-half week lows on Tuesday as expectations waned for a hefty interest rate cut by the US Federal Reserve (Fed) later this month, while technology companies retreated on Apple Inc's overnight drop. It was reported that investors rushed to scale back Fed rate cut expectations following unexpectedly strong gains in US jobs for June.


Source: The Edge

Market Daily Report: https://www.theedgemarkets.com/article/fbm-klci-down-markets-trim-us-rate-cut-forecast

KUALA LUMPUR (July 8): The FBM KLCI closed 4.89 points or 0.29% lower today at 1,677.64, after news on strong US jobs data trimmed market expectation on the pace of US interest rate cuts. Such sentiment hit markets across Asia.

US rate cuts are seen boding well for Asian markets, in anticipation fund managers will shift their money into higher-yielding Asian assets like currencies, stocks and bonds. But anticipation of a smaller-than-expected US rate cut tempers such positive sentiment.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com that the KLCI dropped today, in tandem with the fall across Asian stock markets.

Leong noted weaker regional sentiment weighed on the KLCI down today, amid "factors, including the Japan-South Korea trade spat and Hong Kong protest".

The KLCI cut losses at 1,677.64 at the 5pm market close, after falling to its intraday low at 1,672.88.
Globally, Japan's Nikkei 225 closed down 0.98%, while South Korea's Kospi sank 2.2%. In China, the Shanghai Stock Exchange Composite declined 2.58%, while Hong Kong’s Hang Seng dipped 1.54%.

Reuters reported Asian shares were a sea of red on Monday, after strong US job gains tempered expectations that the Federal Reserve will deliver a large rate cut, while the Turkish lira hovered near two-week lows, on worries about central bank independence. It was reported share sentiment was also dampened by US investment bank Morgan Stanley's decision to reduce its exposure to global equities, due to misgivings about the ability of policy easings to offset weaker economic data.

According to Reuters, since the start of the year, global equities have generally been bolstered by expectations that central banks will keep interest rates at or near record lows to boost economic growth. It was reported that those expectations were tempered by the US labour report on Friday that showed non-farm payrolls jumped 224,000 in June, beating forecasts for 160,000, in a sign that the world's largest economy still had fire.

"Given the strength shown in that data, investors now expect U.S. Federal Reserve Chairman Jerome Powell to go slow on rate cuts this year. Bets for aggressive Fed easings are already off, with the market now pricing a 27 basis points easing this month, from 33 basis points prior to payrolls," Reuters reported.

Across Bursa Malaysia today, top gainer was KLCI component Tenaga Nasional Bhd, while the most active stock was Ekovest Bhd, which registered  a volume of some 163 million shares.
Ekovest closed down 6.5 sen or 7.47% at 80.5 sen today. Tenaga ended up 22 sen or 1.62% at RM13.82.



 Source: The Edge

Market Daily Report: FBM KLCI lower on profit taking, TNB falls

KUALA LUMPUR (July 5): The FBM KLCI closed 4.95 points or 0.29% lower today at 1,682.53 after profit taking marked the course of the trading day against a backdrop of an overbought Malaysian stock market. Tenaga Nasional Bhd (TNB) shares fell.

TA Securities Holdings Bhd senior technical analyst Steven Soo told theedgemarkets.com that profit taking was present among KLCI stocks as investors and traders sought to secure their investment positions before Bursa Malaysia closes for the weekend.

Soo said the Malaysian stock market is slightly overbought.
The US jobs data, due later in the day, was also a factor that was being watched closely by investors, according to him. 

 

“A rate cut has been priced in by the market. What the jobs data will indicate is the quantum by which the Federal Reserve cuts interest rates,” he said.

US rate cuts are seen boding well for Asian markets in anticipation that fund managers will shift their money into higher-yielding Asian assets like currencies, stocks and bonds.

Reuters reported that Asian shares hovered near two-month highs on Friday as investors braced for the US employment data, a key release that could stoke or temper market expectations about aggressive policy easing by the Federal Reserve.

It was reported that trade across global markets was expected to remain subdued following the Independence Day holiday in the US on Thursday and ahead of the non-farm payrolls report. According to Reuters, all eyes were now on US non-farm payrolls, which are expected to have jumped by 160,000 in June compared with 75,000 in May.

Across Bursa Malaysia today, 2.58 billion shares worth RM1.83 billion were traded. Top decliners included KLCI components TNB and Petronas Dagangan Bhd.

State-controlled utility TNB shares closed down 54 sen or 3.82% at RM13.60 on news the Government is studying a proposal to liberalise the country's electricity retail sector.
TNB shares cut losses at the 5pm closing bell after the stock fell as much as 70 sen or 5% today.


Source: The Edge

Market Daily Report: FBM KLCI extends losses amid weaker oil prices

 
KUALA LUMPUR (July 4): The FBM KLCI closed 2.57 points or 0.15% lower today on continued profit taking in an overbought Malaysian stock market and as lower crude oil prices hit local shares.

At 5pm, the KLCI closed down at 1,687.48 on profit taking after rising to its intraday high at 1,690.81. The KLCI closed lower today to extend losses after yesterday's 0.95 point or 0.06% drop.

Today, analysts said Malaysian shares exhibited overbought momentum after recent gains. "The local market should consolidate due to overbought momentum after recent gains and as investors await further leads from data on slowing global economies and US trade policies," TA Securities Holdings Bhd wrote in a note today.

Lower crude oil prices did not help either. Malacca Securities Sdn Bhd senior analyst Kenneth Leong said the KLCI extended losses today amid renewed volatility in crude oil prices. 

 

“This is also coupled with the uncertainly over global trade,” Leong told theedgemarkets.com today.
Reuters reported that oil prices fell more than 0.5% on Thursday, weighed down by data showing a smaller-than-expected decline in US crude stockpiles and worries about the global economy.

It was reported that front-month Brent crude futures, the international benchmark for oil prices, were down 1% at US$63.21 per barrel by 0538 GMT after closing up 2.3% on Wednesday. According to Reuters today, US West Texas Intermediate crude futures were down 1% at US$56.78 per barrel after closing up 1.9% on Wednesday.

Across Bursa Malaysia today, the exchange saw 2.84 billion shares worth RM1.82 billion traded. Top decliners included Petronas Gas Bhd after the stock closed 18 sen or 1.03% lower at RM17.36.
Oil and gas-related shares which ended lower included Petron Malaysia Refining & Marketing Bhd. The stock fell four sen or 0.65% to RM6.16.



Source: The Edge

Market Daily Report: FBM KLCI retreats as investors take profit

 
KUALA LUMPUR (July 3): The FBM KLCI today closed 0.95 point or 0.06% lower on profit-taking after Asian stock indices fell as investors evaluated global trade conflicts between the US and its major trading partners China and Europe.

At 5pm, the KLCI closed at 1,690.05 points after cutting losses in the final trading minutes. The KLCI had earlier fallen to its intraday low at 1,683.24.

“There is nothing much to be worried about, especially after the last couple of days of upside,” Rakuten Trade Sdn Bhd head of research Kenny Yee told theedgemarkets.com today.

Yesterday, the KLCI closed up 7.38 points at 1,691 on expectation of a trade truce between the US and China and as higher crude oil prices supported market sentiment. The KLCI extended gains yesterday after rising 11.49 points on Monday (July 1).

Today, the KLCI could have also taken cue from Asian stock indices' drop. Japan's Nikkei 225 closed down 0.53%, South Korea's Kospi fell 1.23% while Hong Kong’s Hang Seng was down 0.07%.

 Reuters reported that Asian shares fell on Wednesday as initial enthusiasm over the latest US-China trade truce was overtaken by fresh concerns over Washington's threat of tariffs on additional European goods.

It was reported that global growth concerns also weighed on investor confidence, with South Korea the latest trade-reliant economy to cut its economic growth and export targets, a day after weaker factory readings worldwide.

Across Bursa Malaysia today, the exchange saw 3.01 billion shares worth RM1.82 billion traded.
The most-active stock was Sumatec Resources Bhd, which registered a trade volume of 563.64 million shares. The stock closed up 2.5 sen or 250% at 3.5 sen.

Another active stock was Datasonic Group Bhd after RHB Investment Bank Bhd raised its target price for the shares to 77 sen from 65 sen. Datasonic rose 4.5 sen or 6.87% to 70 sen with some 43 million shares traded.



Source: The Edge

Market Daily Report: FBM KLCI up again as builders support broader market

KUALA LUMPUR (July 2): The FBM KLCI closed up 7.38 points or 0.44% today at 1,691 on expectation of a trade truce between the US and China and as higher crude oil prices supported market sentiment.

Across Bursa Malaysia, positive newsflow on the local construction sector involving the proposed East Coast Rail Link (ECRL) supported broader market sentiment, according to analysts.

"At this juncture, the market is generally more optimistic following news from the G20 meeting, pointing [out] that both presidents (from the US and China) may continue trade talks," Hong Leong Investment Bank Bhd head of retail research Loui Low told theedgemarkets.com today.
The KLCI extended gains today after rising 11.49 points yesterday. 

 

Today, Low also said investors are looking beyond external factors as newsflow on the Malaysian construction sector indicates a more exciting outlook for the second half of this year.

"On the local front, domestic catalysts such as the contract awards for the ECRL project have boosted investors' sentiment on the broader market," he said.

Bursa's construction index rose 2.38 points or 1.06% to close at 226.95 to be the largest percentage gainer among indices across the exchange.

Overall, 2.82 billion shares worth RM2.57 billion were traded across Bursa today as oil and gas-related counters closed up among the top actives and leading gainers list amid higher crude oil prices.
KNM Group Bhd was the top-active stock after the counter registered a volume of some 288 million shares. The stock rose 0.5 sen or 1.7% to 30 sen.

KLCI component Petronas Dagangan Bhd ended up 22 sen or 0.87% at RM25.60 among Bursa's leading gainers.

Reuters reported that oil gained on Tuesday as producer club OPEC agreed to extend supply cuts until next March, although prices were pressured by worries demand could ease amid hints of a slowdown in the global economy.

It was reported that Brent crude futures for September delivery were trading up 17 cents, or 0.3%, at US$65.23 a barrel by 0706 GMT, after falling to US$64.66 earlier, while US crude futures for August were up 9 cents at US$59.18 a barrel, after touching their highest in over five weeks on Monday.



Source: The Edge

Market Daily Report: KLCI rises 11.49 points as US-China trade reprive spurs relief rally

KUALA LUMPUR (July 1): The FBM KLCI had today closed 11.49 points or 0.69% higher, as trade volume across Bursa Malaysia topped three billion shares amid what appeared to be a global relief stock market rally, after the US and China agreed to restart trade talks at the G20 meeting in Japan over the weekend.

At Bursa Malaysia today, the KLCI closed up at its intraday high at 1,683.62, led by Petronas Chemicals Group Bhd, while the index for small market capitalisation stocks rose 282.78 points or 2.18% to 13,278.84.

Broad-based buying across Bursa Malaysia saw the the exchange registering a volume at 3.32 billion shares, worth RM2.18 billion. There were over 600 gainers versus some 200 decliners across the exchange.


Malacca Securities Sdn Bhd head of research Victor Wan told theedgemarkets.com that the KLCI saw a "relief rally" after US-China's agreement to resume trade negotiations, supported Asian share gains.

China's Shanghai Stock Exchange Composite closed up 2.22%, while Japan's Nikkei 225 added 2.13%.

Reuters reported today that stocks rallied and bonds retreated in Asia on Monday, as the US and China agreed to restart trade talks, leading investors to pare wagers on aggressive policy-asing by major central banks. It was reported that the US and China agreed on Saturday (June 29) to resume trade negotiations, after President Donald Trump offered concessions to his Chinese counterpart Xi Jinping when the two met at the sidelines of the G20 summit in Japan.

It was reported that these included no new tariffs and an easing of restrictions on tech company Huawei, in order to reduce tensions with Beijing. According to Reuters, China agreed to make unspecified new purchases of U.S. farm products and return to the negotiating table.

At Bursa Malaysia today, Petronas Chemicals was the biggest percentage gainer among the KLCI's 30 component shares, after the stock closed up 34 sen or 4.05% at RM8.74.

Bursa Malaysia's most active stocks included oil and gas-related KNM Group Bhd and Bumi Armada Bhd, both of which registered a trade volume of some 395 million and 228 million shares respectively.

KNM and Bumi Armada's share price rose, amid higher global crude oil prices. KNM closed up four sen at 29.5 sen, while Bumi Armada rose one sen to 22.5 sen.

Reuters reported oil prices rose more than US$1 a barrel on Monday, with OPEC and its allies on track to extend supply cuts until at least the end of 2019, at their meeting in Vienna this week. It was reported that front-month Brent crude futures for September touched an intraday high of US$66.63 a barrel, and were up US$1.72 or 2.7% at US$66.46 a barrel by 0639 GMT.


Source: The Edge