Market Daily Report: FBM KLCI finishes up 16.96 points on US-China trade optimism

KUALA LUMPUR (Aug 30): The FBM KLCI rose 16.96 points or 1.06% today to close at its intraday high as news on US and China's willingness to continue trade negotiations buoyed world markets.

At 5pm, the KLCI closed up at 1,612.14 points amid broad-based buying across Bursa Malaysia. All Bursa indices closed in positive territory save for the ACE Market gauge.
Malacca Securities Sdn Bhd senior analyst Kenneth Leong said the KLCI rose on US-China trade optimism and as investors bargain hunted for selected KLCI stocks on August's final trading day today.

Today also marks the conclusion of the Malaysian corporate financial reporting season for the April-to-June quarter. At a glance today, Bursa top gainers included KLCI components Petronas Dagangan Bhd, Hong Leong Financial Group Bhd and Kuala Lumpur Kepong Bhd. 

 

“The sharp uptick on the key index (KLCI) was also in line with the positive sentiment across its regional peers," Leong told theedgemarkets.com

Reuters reported that Asian shares jumped to a one-week high on Friday as the United States and China showed a willingness to resolve their trade dispute by returning to the negotiating table, though lingering recession fears tempered some of the enthusiasm.

It was reported that China's Commerce Ministry said both sides are discussing the next round of talks scheduled for September, but progress would be determined by whether Washington could create favorable conditions. US President Donald Trump said in a Fox News radio interview that trade talks were scheduled for Thursday "at a different level," but did not provide details, according to Reuters.
Next week, Malaysian markets will be closed on Monday (Sept 2) in lieu of Awal Muharram, which falls on Sunday. Trading resumes on Tuesday (Sept 3).



Source: The Edge

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

KUALA LUMPUR (Aug 29): The FBM KLCI closed up 5.36 points or 0.34% today on bargain hunting and as foreign selling of Malaysian stocks appeared to have tapered off amid more optimistic corporate financial announcements during the current reporting season.

At 5pm, the KLCI closed up at 1,595.18, led by top percentage gainer IOI Corp Bhd, to snap three consecutive days of losses. Today, the KLCI finished higher after falling to its intraday low at 1,584.83 as world recession concerns amid intensifying US-China trade war and the spectre of a no-deal Brexit affected sentiment.

In Malaysia, Inter-Pacific Securities Sdn Bhd research head Pong Teng Siew told theedgemarkets.com that the unbroken spell of foreign selling appears to have tapered off after more optimistic corporate earnings were released.

“The market seems to have also reversed into a gain with Dow Jones Industrial Average futures turning higher, providing a little tailwind. However we must not lose sight that the overall market breadth is still negative due to the ongoing corporate earnings season,” he said.

Among the 30 KLCI stocks, IOI Corp was the leading percentage gainer after the stock closed up 14 sen or 3.32% at RM4.36 followed by Hap Seng Consolidated Bhd. Hap Seng Consolidated added 29 sen or 3.02% to RM9.90.

Globally, Reuters reported that global bond yields flirted with record lows while stocks inched down on Thursday, as global recession worries from intensifying US-China frictions and the spectre of a no-deal Brexit drove investors to safer harbours. It was reported that bond markets around the world painted a gloomier picture, with yields on 30-year US Treasuries and 10-year German bunds yield both hitting record lows - 1.905 percent and minus 0.716 percent on Wednesday.

In the UK, the most serious political crisis in decades deepened after Prime Minister Boris Johnson decided to suspend Britain's Parliament for more than a month before Brexit, Reuters reported.
It was reported that the move will limit the time opponents have to derail a disorderly Brexit but also increases the chance that Johnson could face a vote of no-confidence in his Government, and possibly an election.


Source: The Edge

Market Daily Report: FBM KLCI cuts losses after Tenaga, MISC spike

KUALA LUMPUR (Aug 28): The FBM KLCI closed 1.02 points or 0.06% lower today after US recession fears led to apparent broad-based selling across Bursa Malaysia amid persistent US-China trade war concerns.

At 5pm, the KLCI closed at 1,589.82 after falling to its intraday low at 1,585.66 in volatile trade when the index vacillated between gains and losses.

The sharp afternoon rise in components Tenaga Nasional Bhd and MISC Bhd's share price mitigated the KLCI's drop.

Bursa's index for small market capitalisation stocks closed down 77.26 points or 0.59% at 12,912.32.

Reuters reported that a deepening of the inversion in the yield curve between the 2-year and 10-year US Treasuries underscored worries about a weakening global economy. 

 

In Malaysia, Hong Leong Investment Bank Bhd head of retail research Loui Low told theedgemarkets.com: “Market participants could be taking it as a sign of a potential slowdown in economic activities moving forward, which led to further profit taking activities."

Across Bursa Malaysia, turnover stood at 1.94 billion shares worth RM1.54 billion. Top gainers included Tenaga, Opcom Holdings Bhd and MISC.

Tenaga shares finished up 14 sen or 1.03% at RM13.74 while Opcom rose 18.5 sen or 41.11% to 63.5 sen.

Tenaga and Opcom's share price rise could be due to news that the Malaysian Cabinet had today approved the implementation of the National Fiberisation and Connectivity Plan (NFCP) over a five-year period from this year to 2023 at a cost of RM21.6 billion.

theedgemarkets.com reported today that Communications and Multimedia Minister Gobind Singh Deo said the NFCP will provide "nationwide digital connectivity that is robust, pervasive, high-quality and affordable" for all Malaysians.

In response to the news, Hong Leong's Low said: "Tenaga  was seen holding up the KLCI, perhaps due to the NFCP, which was approved by the Cabinet.”


Source: The Edge

Market Daily Report: KLCI ends at intraday low as weaker corporate earnings hurt sentiment

KUALA LUMPUR (Aug 27): The FBM KLCI slipped 9.69 points or 0.61% mainly on foreign selling amid weaker Malaysian corporate financial reports and persistent US-China trade war concerns.

At 5pm, the KLCI finished at its intraday low of 1,590.84 after broad-based selling across Bursa Malaysia. The index for small market capitalisation stocks closed down 28.22 points or 0.22% at 12,989.58.

TA Securities Holdings Bhd senior technical analyst Stephen Soo told theedgemarkets.com the local stock market was not inspired by rebounds in Asian bourses due to weaker Malaysian corporate earnings reports during the ongoing reporting season for the April-to-June quarter.

"The market today is seeing quite a fair bit of selling pressure, mostly from foreign selling as caution prevails. It may be the weaker corporate earnings dragging on sentiments. 

 

"With more corporate earnings due to be released over the next few days, the index (KLCI) is expected to trade sideways with a downward bias," Soo said.

Notable corporate financial reports today included those from Alliance Bank Malaysia Bhd and KLCI component Petronas Gas Bhd. Both stocks closed among Bursa top decliners after reporting lower quarterly net profit from a year earlier.

theedgemarkets.com, quoting exchange filings, reported today Alliance Bank announced a 44% drop in net profit to RM76.69 million in the first quarter ended June 30, 2019 (1QFY20) from RM136.37 million in the year-ago quarter, although quarterly revenue came in at RM406.93 million, up 1.5% from RM401.07 million in 1QFY19.

It was also reported that Petronas Gas' second quarter net profit fell 1.26% to RM502.9 million from RM509.33 million a year earlier as a result of higher tax expense. It was reported that revenue rose to RM1.38 billion in the second quarter ended June 30, 2019 from RM1.36 billion.

At 5pm today, Alliance Bank's share price closed down 33 sen or 10.15% at RM2.92 while Petronas Gas fell 34 sen or 2.17% to RM15.36.

Globally, Asian equity indices rebounded today on hopes for a trade deal between the US and China after US President Donald Trump softened his tone against China and predicted the two countries will be able to reach a trade agreement.

China's Shanghai Stock Exchange Composite closed up 1.35%, Japan's Nikkei 225 rose 0.96% while South Korea's Kospi gained 0.43%.

Reuters reported that Trump said on Monday that Chinese officials had contacted their US trade counterparts and offered to resume negotiations, an assertion that China declined to confirm. It was reported that his comments helped temper sharp losses in global markets after both sides announced new tariffs on Friday, in the latest escalation in the protracted trade dispute.



Source: The Edge

Market Daily Report: FBM KLCI down 0.6% as China-US trade war escalates

KUALA LUMPUR (Aug 26): The FBM KLCI settled 8.8 points or 0.55% lower at 1,600.53 today, after broad-based selling across Bursa Malaysia, following the US and China's planned additional tariffs on each other's goods in tit-for-tat responses, which led to escalating US-China trade war concerns.

At 5pm, all Bursa indices finished in negative territory except for the real estate investment trust (REIT) gauge. The index for small market capitalisation stocks closed down 124.84 points or 0.95% at 13,017.80.

The KLCI cut losses after falling to its intraday low at 1,590.51. At 5pm, the top percentage decliner among the 30 KLCI-linked stocks was Petronas Chemicals Group Bhd, after the counter closed down 31 sen or 4.29% at RM6.91.

Inter-Pacific Securities Sdn Bhd research head Pong Teng Siew told theedgemarkets.com that the market seems to be taken aback, after the sudden outburst that appears to be an emotive response to tariffs announced by the US.

“This looks like a tit-for-tat [response] and I don’t see an easy resolution to it (the trade war), as there seems to be no middle ground between US and China. It is very unsettling for the market, because there is no direction from day to day," Pong said.

Reuters reported that the US President Donald Trump announced on Friday that Washington will impose an additional 5% duty on US$550 billion worth of Chinese goods, hours after Beijing announced its latest retaliatory tariffs on about US$75 billion worth of US goods in the latest tit-for-tat moves in their bilateral trade dispute.

It was reported that China's commerce ministry said late last week that it would impose additional tariffs of 5% or 10% on a total of 5,078 products originating from the US, including crude oil, agricultural products such as soybeans, and small aircraft.

Today, Asian stock markets fell substantially, amid escalating US-China trade war concerns. In China, the Shanghai Stock Exchange Composite and Hong Kong’s Hang Seng ended down 1.17% and 1.91% respectively.

Elsewhere, Japan's Nikkei 225 fell 2.17%, while South Korea’s Kospi dropped 1.64%.


Source: The Edge

Market Daily Report: FBM KLCI finishes up 7.88 points, led by AmBank

KUALA LUMPUR (Aug 22): The FBM KLCI finished up 7.88 points or 0.49% today, led by AMMB Holdings Bhd share price rise and as investors took cue from overnight US equity gains as they tried to predict the quantum of future US interest rate cuts.

At 5pm today, the KLCI closed up at 1,602.47, led by component AMMB Holdings Bhd's (AmBank) 24 sen or 6.15% rise to RMRM4.14. AMMB was the top percentage gainer among the 30 KLCI stocks.

AMMB shares rose after the financial services provider reported earlier today first quarter net profit climbed to RM391.46 million from RM347.59 million a year earlier. Revenue was higher at RM2.39 billion from RM2.17 billion, AMMB said.

The KLCI closed higher today after falling 8.16 points or 0.51% to 1,594.59 yesterday. Today, Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com there is hope for further recovery in the KLCI after he noted that the index had nearly recovered yesterday's loss.

“Should it continue to hold 1,600 over the near term, the KLCI may stage further recovery, targeting the 1,620 and 1,635 levels,” he said.

Today, the KLCI closed higher following overnight US equity gains. The Dow Jones Industrial Average closed up 0.93%, S&P 500 rose 0.82% while the Nasdaq Composite added 0.9%.

Reuters reported that Wall Street's main indexes rose on Wednesday as upbeat earnings from retailers pointed to strength in US consumer demand, and held gains after minutes from last month's Federal Reserve meeting showed policymakers had debated a more aggressive interest rate cut.


It was reported that minutes from the Fed's policy-setting meeting on July 30-31, when the Fed cut rates by 25 basis points, showed that policymakers debated cutting rates more aggressively. It was reported that some participants preferred a 50-basis-point cut, but the committee was united in wanting to avoid the appearance of being on a path to further rate cuts.


Source: The Edge

Market Daily Report: KLCI ends at intraday low after 11th-hour plunge

KUALA LUMPUR (Aug 21): The FBM KLCI closed 8.16 points or 0.51% lower today after an 11th-hour plunge following a sharp drop in prices of several component stocks and as investors looked ahead to US interest rate updates this week.

At 5pm, the KLCI closed at its intraday low at 1,594.59 as components including Petronas Gas Bhd, MISC Bhd and CIMB Group Holdings Bhd ended among Bursa Malaysia top decliners. Leading gainers included automotive stock MBM Resources Bhd.

AmInvestment Bank Bhd head of retail research Joseph Chai Lipe Tatt said the research firm expects the KLCI to stay within 1,572 and 1,620 for the rest of this month.

"Only if the KLCI surpasses the 1,620 level can we expect a bigger upside swing. If not, it will stay range bound until towards the end of this month. 

 

"I think the market is engaging on a more thematic play, where the theme for this week is automotive. We can see that tech stocks are taking a breather now, so a lot more attention is given to automotive stocks," Chai told theedgemarkets.com today.

Globally, investors will on Wednesday (Aug 21) take cue from minutes of the US Federal Reserve's most recent meeting for hints on further interest rate cuts. Investors are also looking ahead to the central bank's annual Jackson Hole seminar later this week and a Group of Seven summit this weekend for clues on what additional steps policymakers will take to boost economic growth, according to Reuters.

Reuters reported that Asian shares flatlined on Wednesday as worries about global recession and endless trade wars wrestled with hopes for more monetary and fiscal stimulus to keep growth going.



Source: The Edge

Market Daily Report: FBM KLCI gains 0.39% as stimulus hopes spur markets

KUALA LUMPUR (Aug 20): The FBM KLCI closed up 6.3 points or 0.39% today, after global share markets rose on stimulus hopes in major economies like China and Germany, amid slowdown concerns due to the US-China trade war.

In Malaysia, analysts said investors are also taking cue from the current corporate financial reporting season for the April-to-June quarter. At 5pm today, the KLCI ended at 1,602.75, as components, including Petronas Dagangan Bhd and CIMB Group Holdings Bhd, closed among Bursa Malaysia top gainers.

RHB Investment Bank Bhd regional equity research head Alexander Chia said the market is still looking for more signals to get a sense of how the Malaysian corporate sector will fare this year.
"Investors are likely to remain trading at range-bound (levels), as they evaluate corporate earnings reports released within the next two weeks.

 

"It is still a bit too early to point out any trends, but so far, corporate earnings have been in line or below our expectations. I can't recall any surprises on the upside," Chia told theedgemarkets.com.
Globally, Reuters reported Asian shares rose on Tuesday, as hopes for stimulus in major economies tempered anxiety about a global recession, boosting riskier assets and drawing money from safe-havens such as bonds and gold.

It was reported hopes for additional stimulus are rising after reports Germany is prepared to increase fiscal spending, and after the People's Bank of China took steps to lower corporate borrowing costs.
According to Reuters today, China had on Saturday, set its new one-year loan prime rate at 4.25%, down 6 basis points from 4.31% previously. On Sunday (Aug 18), German Finance Minister Olaf Scholz suggested Berlin could make available up to 50 billion euros (US$55 billion) of extra spending, Reuters reported.



Source: The Edge

Market Daily Report: KLCI, ringgit hit as China devalues yuan after Trump tariff threat

KUALA LUMPUR (Aug 5): The FBM KLCI closed 16.35 points or 1.01% lower, while small market capitalisation (small cap) stocks fell by larger quantum, amid the spectre of a protracted trade war, after US President Donald Trump said the US will impose a 10% tariff on the remaining US$300 billion of Chinese imports.

Such sentiment hit the ringgit after China allowed the yuan to weaken past the key 7-per-US dollar mark on Monday, for the first time in more than a decade, in an apparent response to Trump's tariff threat.

At Bursa Malaysia, the KLCI closed at its intraday low at 1,610.41, while  the small cap index fell 294.23 points or 2.2% to 13,080.16, after major Asian stock indices ended substantially lower.

In China, the Shanghai Stock Exchange Composite closed down 1.62%, while Hong Kong’s Hang Seng fell 2.85%. Elsewhere across Asia, Japan's Nikkei 225 dropped 1.74%, while South Korea's Kospi fell 2.56%.

In currency markets, the ringgit weakened to 4.1785 versus the US dollar at the time of writing, as China's stance led to expectation of a currency war in the form of competitive devaluation among trade-dependant nations to preserve their export competitiveness.  

 

Reuters reported that Asian shares suffered their steepest daily drop in 10 months on Monday, as Sino-U.S. trade friction sent the yuan slumping to a more-than-a-decade trough and stampeded investors into safe harbours, including the yen, bonds and gold.

It was reported that markets have been badly spooked since Trump abruptly declared he would slap 10% tariffs on US$300 billion in Chinese imports, ending a month-long trade truce. China vowed on Friday to fight back.

China's yuan burst beyond the psychological 7-per-dollar threshold, in a move that threatened to unleash a whole new front in the trade hostilities — a currency war, according to Reuters.

In Malaysia today, TA Securities Holdings Bhd senior technical analyst Stephen Soo told theedgemarkets.com that Trump’s announcement on the US' new tariff threat on China had significantly impacted global currencies and broader financial markets.

Taking into account the spectre of a currency war and existing geopolitical issues impacting crude oil prices, Soo noted that the KLCI, as well as world stock markets, are expected to see more losses ahead.

“I believe that it will be a negative week, unless there is some kind of truce between the two largest economies, but this seems unlikely,” Soo said.

Across Bursa Malaysia today, the exchange saw 2.67 billion shares, worth RM1.86 billion, traded. There were close to 700 decliners versus some 170 gainers.

Among the KLCI's 30 components, Genting Malaysia Bhd was the biggest percentage decliner, after the stock closed 14 sen lower or 3.73% down at RM3.61, followed by Petronas Chemicals Group Bhd.
Petronas Chemicals fell 20 sen or 2.69% to RM7.23.



Source: The Edge

Market Daily Report: KLCI finishes up after falling as US dents rate cut bets

KUALA LUMPUR (Aug 1): The FBM KLCI closed up 4.2 points or 0.26% today at 1,639.07 on bargain hunting after falling earlier with Asian share markets as the US Federal Reserve dampened market expectation of more interest rate cuts following a 25 basis point reduction on Wednesday.

Reuters reported today that Asian shares slipped to six-week lows on Thursday while the dollar jumped to two-year highs as the Federal Reserve rattled markets by signalling that its first rate cut in more than a decade was not the start of a lengthy easing cycle.

It was reported that investors were pricing in more than 100 basis points of easing from the Fed over the next year, sending world equities soaring to record highs in recent days. But Fed Chair Jerome Powell dented those bets, sounding far more circumspect about the need for further policy easing.

In Malaysia, Rakuten Trade Sdn Bhd deputy head of research Vincent Lau told theedgemarkets.com there might have been some bargain hunting on the first day of the month today.

"The KLCI has been dropping for so long — particularly a heavy sell-off was observed yesterday — so today might be an opportunity for some portfolio rebalancing," Lau said.

 At 5pm today, the KLCI closed up after falling to its intraday low at 1,627.95.

The KLCI ended higher as components including Press Metal Aluminium Holdings Bhd and Tenaga Nasional Bhd rose among Bursa Malaysia top gainers.

Across Bursa Malaysia, 2.45 billion shares were crossed for RM2.02 billion as decliners led gainers by 426 counters against 319 respectively.

Top-active stocks included newly listed Tashin Holdings Bhd with some 53 million shares traded. Tashin's share price closed down 9.5 sen or 16% at 48.5 sen against the stock's issue price of 58 sen.



Source: The Edge