Market Daily Report:KLCI trails Bursa ACE drop amid renewed trade war concerns

KUALA LUMPUR (Sept 30): The FBM KLCI closed down 0.23 point or 0.01% today at 1,583.91, while Bursa Malaysia's ACE Market index fell by a significantly larger quantum, as speculation on the US' intention to delist Chinese firms from US stock exchanges led to escalating US-China trade war concerns.

At 5pm, the KLCI closed flat after falling to its intraday low at 1,578.53. The ACE Market index ended down 57.71 points or 1.27% at 4,495.12. Across Bursa Malaysia, 1.86 billion shares worth RM1.5 billion were traded.

Notable gainers included Maxis Bhd, Gamuda Bhd and Cahya Mata Sarawak Bhd, while decliners included PRG Holdings Bhd, Top Glove Corp Bhd and Petronas Gas Bhd.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com that domestic trading sentiment was in line with Asian markets, which was weighed down by news saying China companies may be delisted from US stock exchanges.

“KLCI pared some losses at 4pm today, likely due to bargain-hunting activities, but it was not strong enough to reverse intraday losses," Leong said.

Globally, Reuters reported most Southeast Asian stock markets opened lower on Monday, as fears mounted of an escalation in Sino-U.S. trade tensions, after news Washington is considering de-listing Chinese companies from U.S. stock exchanges.

The U.S. administration is considering delisting Chinese companies to limit U.S. investment in Chinese companies, Reuters reported on Friday (Sept 27), quoting sources briefed on the matter.

Market Daily Report: KLCI down on FTSE Russell warning as China data spurs risk-off mood

KUALA LUMPUR (Sept 27): The FBM KLCI closed down 8.86 points or 0.56% today at 1,584.14 in an apparent response to FTSE Russell’s statement that Malaysia will be retained on its fixed-income watch list for potential downgrade and after China reported that August industrial profits fell 2% on-year.

The KLCI fell with Asian markets amid a risk-averse global environment compounded by news on a whistleblower complaint against US President Donald Trump.

Reuters reported that most Southeast Asian stock markets edged lower on Friday, with Philippines leading the fall, as a slew of political and trade-related concerns kept risk appetite in check.

“A whistle-blower report released on Thursday said Trump not only abused his office in an attempt to solicit Ukraine's interference in the 2020 US election for his benefit, but that the White House tried to 'lock down' evidence about the conduct.

 

“Developments on the trade war front were quite mixed, with the US not budging to extend a temporary waiver that lets American companies work with Huawei. On the other hand, Chinese officials played up Beijing's willingness to buy more US products,” Reuters wrote.

In Malaysia today, Hong Leong Investment Bank Bhd head of retail research Loui Low told theedgemarkets.com that the market closed down in an absence of fresh catalysts and amid investors' risk-off mode.

“There is likely to be more clarity after the Budget (2020) announcement (on Oct 11)," Low said.
Across Bursa Malaysia today, volume stood at 1.88 billion shares worth RM1.33 billion. Top decliners included KLCI stocks Hong Leong Financial Group Bhd, Kuala Lumpur Kepong Bhd and Top Glove Corp Bhd.

Top Glove's share price closed down 15 sen or 3.18% at its intraday low of RM4.57 after the company said yesterday net profit fell to RM370.56 million in the financial year ended Aug 31, 2019 from RM424.36 million a year earlier.


Source: The Edge

Market Daily Report: FBM KLCI drops as banking stocks fall on BNM rate cut bets

 

KUALA LUMPUR (Sept 24): The FBM KLCI pared losses today to close 0.6 point or 0.04% down at 1,592.33 after investors bargain hunted for index-linked stocks including banking entities, which had earlier dropped in anticipation Bank Negara Malaysia (BNM) may further cut the overnight policy rate (OPR) this November, after the 25 basis point (bp) cut to 3% in May this year.

At a glance today, these banking stocks included Malayan Banking Bhd (Maybank) and Public Bank Bhd. At 5pm, the KLCI pared losses after falling to its intraday low at 1,585.58.

MIDF Amanah Investment Bank Bhd head of research Mohd Redza Abdul Rahman told theedgmarkets.com that "banking stocks, mainly Maybank and Public Bank, were affected by a report today that suggested that BNM may cut the OPR in November."

Today, Maybank's share price closed down seven sen or 0.8% at RM8.65 while Public Bank was down four sen or 0.2% at its intraday low at RM20.10.

 

Maybank pared losses after falling to its intraday low at RM8.62.

BNM's website showed that there will be one more Monetary Policy Committee (MPC) meeting this year on Nov 5.

At the latest MPC meeting on Sept 12 this year, BNM said the MPC decided to maintain the OPR at 3%.

On May 7 this year, BNM said the MPC decided to reduce the OPR to 3%. During the previous meeting on March 5 this year, BNM said then that the MPC decided to maintain the OPR at 3.25%.



Source: The Edge

Market Daily Report: KLCI down, oil up amid Middle East geopolitical fears

KUALA LUMPUR (Sept 23): The FBM KLCI closed 4.48 points or 0.28% lower today, as external factors including Middle East political uncertainties and the Hong Kong civil unrest continued to impact global investor sentiment.

At 5pm, the KLCI closed at 1,592.93. Across Bursa Malaysia, 2.03 billion shares worth RM1.39 billion were traded, as Asian shares fell.

Reuters reported most Asian share markets slipped on Monday, as investors waited for more clarity on China-US trade talks, while oil gained more than 1% as Middle East tensions remained elevated.
It was reported that market sentiment was fragile with civil unrest in Hong Kong, tensions in the Middle East and worries a trade deal between the US and China could take a long time to materialise. It was reported that moves were further exaggerated by low volumes, as Japanese markets were shut for a public holiday. 

 

"Tensions in the Middle East have escalated since the attack (on Saudi Arabia's oil facility), and the Pentagon has ordered additional U.S. troops to be deployed in the Gulf region to strengthen Saudi Arabia's air and missile defences. U.S. Secretary of State Mike Pompeo said on Sunday that the troops are for "deterrence and defence" and that Washington aimed to avoid war with Iran," Reuters reported.

In Malaysia today, Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng told theedgemarkets.com that the market is looking for direction and that US-China trade war is no longer fresh news to investors.

“The market is currently looking for direction. It is September, so we are not in reporting season at the moment and the uncertainty over external factors such as the US-China trade war has become stale,” he said.

Earlier today, TA Securities Holdings Bhd wrote in a note saying following further deterioration in the KLCI's technical momentum and trend indicators after last week's uninspiring downward bias trading pattern, "more downward correction potential is indicated this week."

"(In the) meantime, on the US-China trade front, cancellation of planned visits to US farms last Friday by the Chinese trade delegation, which will dampen hopes China would resume purchases of US agricultural goods, should spillover to adversely impact domestic market sentiment. Nevertheless, potential end third quarter window-dressing action should act to cushion downside towards the month-end," TA said.



Source: The Edge

Market Daily Report: KLCI ends higher on last-minute buying as Bursa share trade value doubles

KUALA LUMPUR (Sept 20): The FBM KLCI closed 1.13 points or 0.07% higher after erasing losses in the final trading minutes while share-trade value across Bursa Malaysia more than doubled as world markets cheered major central banks' stimulus measures.

At 5pm, the KLCI closed higher at 1,597.41 on gains in index-linked counters including banking stocks AMMB Holdings Bhd and Malayan Banking Bhd (Maybank). The KLCI, which spent most of the day in the red, fell to its intraday low at 1,590.02.

“Some of the banking stocks rebounded at the last minutes of trading which lifted the KLCI to positive territory, such as AMMB which is a heavyweight,” Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng told theedgemarkets.com.

AMMB closed up eight sen or 1.94% at RM4.21 after a last-minute spike in its share price. Maybank rose nine sen or 1.04% to RM8.73. 

 

Across Bursa today, 3.1 billion shares worth RM3.29 billion were crossed amid oil and gas-related shares' heavy trade volume. Yesterday, Bursa saw 2.28 billion shares valued at RM1.5 billion traded.
Today, top-active stock Bumi Armada Bhd's volume stood at some 425 million shares followed by Sapura Energy Bhd's 106 million shares. Bumi Armada closed down 1.5 sen or 4.35% at 33 sen.
Globally, Reuters reported that world shares rose on Friday as stimulus measures by major central banks eased worries about growth, especially in Asian markets, while oil headed for its best week since January.

It was reported that China cut a key lending rate for the second straight month on Friday, becoming the third major central bank to cut interest rates in recent days, after the European Central Bank and the US Federal Reserve.

"Equity markets have welcomed the central bank moves, although most of the cuts were already priced in and worries about a possible global slowdown still linger. Renewed tensions in the Middle East, after an air attack knocked out a Saudi Arabian oil supply hub last weekend, have also unnerved investors. Oil prices were on track for a weekly gain of 7.6%, their biggest weekly rise since the first week of 2019," Reuters said.



Source: The Edge

Market Daily Report: KLCI ends lower on US rate outlook as CPO prices fall

KUALA LUMPUR (Sept 19): The FBM KLCI ended 3.21 points or 0.2% lower today after the US Federal Reserve cut interest rates on Wednesday but indicated a higher bar to further reductions. The ringgit weakened against such sentiment.

In theory, interest rate cuts are good for the stock market and bad for currencies. At 5pm, the KLCI closed at 1,596.28.

In currency markets, the ringgit weakened to 4.1912 versus the US dollar at the time of writing
Reuters reported that Asian shares extended declines on Thursday after the Federal Reserve signalled a higher bar to further easings, while the Bank of Japan (BOJ) also held off from offering more stimulus as some had hoped. 

 

It was reported that the Fed cut rates for the second time this year as global growth risks intensified, forcing policymakers around the world to step up efforts to stimulate their economies. It was reported that earlier in the day, the BOJ kept policy steady as expected, though there were some expectations the Japanese central bank would ramp up its already massive stimulus.

According to Reuters, Asian equities were already on the back foot after Fed Chairman Jerome Powell took a more guarded approach to any further reductions in borrowing costs.

"The Fed cut interest rates to 1.75%-2% in a 7-3 vote but signalled further cuts are unlikely as the labour market remains strong. The rate cut was widely expected, but the split vote has raised some concern about predicting the future path of monetary policy," Reuters reported.

In Malaysia, Rakuten Trade Sdn Bhd head of research Kenny Yee said the US rate cut was widely expected, but tepid investor sentiment was fueled by factors including uncertainties on the US' future interest rate decisions besides global geopolitical tension.

Yee deemed such uncertainties as “not positive” to the market and believes these are major factors keeping investors on the sidelines.

Across Bursa Malaysia today, top decliners included Hong Leong Financial Group Bhd and Telekom Malaysia Bhd shares. Investors were also mindful of lower crude palm oil (CPO) prices and their impact on plantation-related shares.

At a glance, Bursa's website shows a broad-based drop across Malaysian CPO futures. CPO price for Oct 2019 fell the most after closing down RM16 at RM2,183 a tonne.

Among KLCI-linked plantation counters, Sime Darby Plantation Bhd closed down six sen or 1.22% at RM4.84 while IOI Corp Bhd fell two sen or 0.45% to RM4.40.

MIDF Amanah Investment Bank Bhd analyst Martin Foo Chuan Loong wrote in a note today that at this juncture, pending further development, MIDF is maintaining its negative view on the plantation sector with an unchanged CPO price forecast of RM2,090 a tonne for 2019.

"The oil palm industry has been in the limelight due to various sustainability issues. This includes being labelled as the main cause of rapid deforestation and wildlife extinction, especially from the EU. The negative perception has put palm oil in a less favourable position compared to the other rival crops despite the fact that palm oil is the most efficient and versatile oil crop," Foo said.



Source: The Edge

Market Daily Report: FBM KLCI ends lower ahead of US rate decision

KUALA LUMPUR (Sept 18): The FBM KLCI settled down 4.81 points or 0.3% today at 1,599.49 as investors exercised caution ahead of the US interest rate decision and as crude oil prices fell.

Reuters reported that with a 25-basis point US rate cut seen as near-certain upon conclusion of the US Federal Reserve's Federal Open Market Committee two-day meeting on Wednesday (Sept 18), investors will look at the Federal Reserve's statements for clues on the future policy direction of the central bank.

It was reported that crude oil prices cooled on Wednesday as Saudi Arabia said full oil production would be restored by month's end following an attack on the nation's oil facilities. It was reported that caution ahead of an expected US interest rate cut kept wider financial markets in tight ranges.

"Brent crude futures dipped 0.26% to US$64.38 a barrel, having conceded about 65% of their gains made after the weekend attack on Saudi Arabia's oil facilities. US West Texas Intermediate crude lost 0.5% to US$59.06 per barrel, paring back around half of its gains after Saturday's attack," Reuters reported. 

 

In Malaysia today, Rakuten Trade Sdn Bhd vice president Vincent Lau told theedgemarkets.com that investors were holding back as they waited for the Federal Reserve's interest rate decision.
"The benchmark index (KLCI's drop) is underpinned by a cautious tone ahead of the US Federal Reserve's decision as well as easing oil prices,” Lau said.

Earlier today, TA Securities Holdings Bhd wrote in a note that Malaysian shares were likely to remain range bound as oil and gas-related stocks and global crude oil prices stayed volatile.
TA said such sentiment was against a backdrop of "increased geopolitical risks in the Middle East" and as investors contemplated the US' monetary policy decision.



Source: The Edge

Market Daily Report: KLCI ends higher as Saudi Arabia attack spurs O&G share demand

KUALA LUMPUR (Sept 17): The FBM KLCI closed 3.05 points or 0.19% higher at 1,604.30, while Bursa Malaysia's energy index rose by a larger quantum, as investors bought shares of oil and gas (O&G)-related companies.

This followed the surge in crude oil prices after the attack on Saudi Arabia's oil facilities over the weekend led to world oil supply concerns. At 5pm today, Bursa's energy index rose 30.47 points or 2.79% to finish at 1,122.58.

Among the 30 KLCI stocks, Petronas Chemicals Group Bhd was the top percentage gainer, after closing 36 sen or 4.86% higher at RM7.77. Leading gainers included Petronas Gas Bhd, after the stock rose 18 sen or 1.11% to RM16.42.

“The gains in the KLCI was mainly led by Petronas Chemicals, Petronas Gas and Petronas Dagangan Bhd, due to Saudi’s oil production (disruption) after the drone attack. This also contributed to gains across the broader market, particularly in O&G counters,” Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com today. 

 

At 5pm, the KLCI closed up after erasing losses in the final trading minutes. The KLCI had earlier fallen to its intraday low at 1,597.09.

Global crude oil prices fell on Tuesday, after a spike on Monday. Reuters reported oil dropped on Tuesday, although the market remains on tenterhooks over the threat of a military response to attacks on Saudi Arabian crude oil facilities that cut the kingdom's output in half and sent prices soaring by the most in decades.

It was reported that the Saturday attack raised the prospect of a major supply shock in a market that in recent months had focused on demand concerns, due to erosion of global growth, amid the ongoing US-China trade dispute. Saudi Arabia is the world's top oil exporter and has been the supplier of last resort for decades.

"Brent crude was down 30 cents or 0.4% at US$68.72 a barrel by 0631 GMT, and West Texas Intermediate was down 57 cents or 0.9% at US$62.33 a barrel. Earlier, the crude benchmarks both fell by around 2%.

"On Monday, the prices surged nearly 20% in intraday trading in response to the attacks, the biggest jump in almost 30 years, before closing nearly 15% higher at four-month highs," Reuters said.



Source: The Edge

Market Daily Report: KLCI flat after Asian share rise on ECB rate cut

KUALA LUMPUR (Sept 13): The FBM KLCI closed up 0.25 point or 0.02% at 1,601.25 after Asian shares ended higher as investors took cue from the European Central Bank's (ECB) interest rate cut and as the US-China trade war appeared to ebb.

Reuters reported that Asian stocks advanced on Friday as hints of progress in US-China trade talks and aggressive stimulus from the ECB helped counter worries about a global economic slowdown. It was reported that the ECB delivered bigger-than-expected stimulus, cutting interest rates by 0.1 percentage point to minus 0.5%, promising that rates would stay low for longer and restarting bond purchases of 20 billion euros a month from November.

According to Reuters, the US on Thursday welcomed China's renewed purchases of US farm goods while maintaining the threat of US tariff hikes as the world's two largest economies prepared for talks aimed at breaking their trade war impasse. US President Donald Trump was quoted as saying he preferred a comprehensive trade deal with China but did not rule out the possibility of an interim pact, even as he said an "easy" agreement would not be possible.

In Malaysia today, Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng told theedgemarkets.com that investors are still taking cue from "external factors, mainly from the development of the trade talks between the US and China, as well as the progress of Brexit."
At Bursa Malaysia today, the KLCI closed higher after falling to its intraday low at 1,596.33. Across Bursa, volume settled at 2.1 billion shares worth RM1.5 billion.

Top gainers included British American Tobacco (M) Bhd and Petronas Dagangan Bhd.
FXTM market analyst Han Tan wrote in a note today that major central banks potential monetary easing will be closely watched.

"With the Federal Reserve and the ECB having lowered their respective benchmark interest rates this year, global investors will also be eyeing whether the Bank of Japan and Bank of England will join the monetary easing party. China’s new Loan Prime Rate will also be closely watched, as more policy stimulus feeding through China could prop up economic conditions across the region, while offering some measure of support for Asian currencies," Tan said.

Next week, Malaysian markets will be closed on Monday (Sept 16) in conjunction with the Malaysia Day holiday, Bursa said on its website.
Trading resumes on Tuesday.


Source: The Edge

Market Daily Report: KLCI falls, ringgit strengthens after BNM rate decision

KUALA LUMPUR (Sept 12): The FBM KLCI finished 1.3 points or 0.08% lower today at 1,601 after volatile trade in the final trading hour in an apparent  reaction to Bank Negara Malaysia's (BNM) decision to maintain the overnight policy rate (OPR) at 3%. The ringgit strengthened.

BNM's decision may have disappointed stock market investors, who had earlier anticipated an interest rate cut. In theory, interest rate cuts are good for the stock market and bad for currencies.
Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com that the "KLCI's pullback followed BNM's statement" at 3pm today that that its monetary policy committee (MPC) decided to maintain the OPR at 3%.

At 5pm, the KLCI closed in the red after rising to its intraday high at 1,608.39.

 

Across Bursa Malaysia, turnover settled at 1.89 billion shares worth RM1.74 billion. Top decliners included KLCI components Petronas Dagangan Bhd and Tenaga Nasional Bhd.

In currency markets, the ringgit strengthened to 4.1648 against the US dollar at the time of writing amid higher crude oil prices and a stronger yuan. At a glance, the ringgit also appeared to take cue from BNM's decision to maintain the OPR at 3%.

The KLCI bucked Asian equities rise amid ebbing US-China trade war concerns.
Reuters reported that Asian stocks advanced to a six-week high on Thursday on hopes for a thaw in US-China trade relations and expectations that the European Central Bank would kick off another wave of monetary easing by global central banks.

It was reported that Chinese stocks rose and the yuan hit a three-week high after US President Donald Trump agreed to delay an additional increase in tariffs on Chinese goods by two weeks at the request of China's Vice Premier Liu He "as a gesture of good will". US stock futures rose 0.38% and safe havens such as the yen, US Treasuries, and gold weakened in a sign of improving appetite for risk, Reuters said.


Source: The Edge

Market Daily Report: KLCI ends 0.4% up ahead of Bank Negara OPR decision

KUALA LUMPUR (Sept 11): The FBM KLCI finished up 6.45 points or 0.4% today at its intraday high amid ebbing US-China trade war concerns and as investors looked ahead to Bank Negara Malaysia's (BNM) interest rate decision tomorrow.

At 5pm today, the KLCI closed at 1,602.3, mainly on Petronas Dagangan Bhd's share price spike in the final trading minutes. Petronas Dagangan ended up RM1.68 or 7.57% at RM23.88 to become Bursa Malaysia's top gainer.

"As it is, sentiments on global indices are calmer as the US-China trade war is showing some signs of ebbing that is also giving some leeway for equities to head higher," Malacca Securities Sdn Bhd wrote in a note today.

Across Bursa, turnover stood at 2.33 billion shares worth RM1.78 billion. Top gainers included Magni-Tech Industries Bhd and Hong Leong Financial Group Bhd.

Metronic Global Bhd topped Bursa’s most-active list with 157.26 million shares traded. The stock closed down 1.5 sen or 21.43% at 5.5 sen.

Globally, Reuters reported that bond yields climbed and stock markets held firm on Wednesday, as hopes of easing US-China tensions and diminished risk of a no-deal Brexit prompted buying of out-of-favour value stocks before key central bank meetings. It was reported that oil prices also firmed, underpinned by a big drop in US crude stockpiles, after slipping the previous day.

It was reported that China announced exemptions for 16 types of US products from additional retaliatory duties, in a move that comes as trade negotiators from the two countries prepare to meet later this month to try and de-escalate their protracted tariff row. The exemptions will apply to US goods including some anti-cancer drugs and lubricants, as well as animal feed such as whey and fish meal, Reuters quoted the Ministry of Finance as saying in a statement on its website on Wednesday.
BNM's interest rate decision tomorrow will also be closely watched. Reuters, citing its poll, reported that BNM is expected to keep its benchmark interest rate unchanged at a policy review on Thursday, as it keeps room for potential easing later should global growth fall sharply.

"Nine out of 11 economists polled saw BNM keeping its overnight policy rate (OPR) at 3%, after the country reported stronger-than-expected second quarter growth and a recovery in exports. The other two in the poll expect the central bank to cut its key rate by 25 basis points to 2.75%," Reuters said.



Source: The Edge

Market Daily Report: KLCI dragged down by selloff in Axiata and Digi after merger talks fall through

KUALA LUMPUR (Sept 10): The FBM KLCI closed lower today, dragged down by heavy selling of shares of Axiata Group Bhd and Digi.Com Bhd, following the termination of merger talks between Axiata and Telenor ASA.

The benchmark index ended the day 8.62 points or 0.54% lower at 1,595.85.

“The index today was dragged down by the termination of the Axiata-Telenor merger, with selling present for Axiata and Digi shares,” Nomura head of equity research Tushar Mohata told the theedgemarkets.com.

Telenor ASA (which is the biggest shareholder of Digi) and Axiata, called off their proposed merger last week, citing complexity of the transaction involved.

Axiata was the biggest loser on Bursa Malaysia, while Digi was the fifth largest loser.
A total of 2.19 billion shares, worth RM1.93 billion, were traded across the bourse.

In a note today, JF Apex Securities Research said the KLCI could move sideways above the 1,600-level.

“Following the mixed performance in the US and Europe, the FBM KLCI could hover sideways above the support of 1,600 points,” the research house said.

Among other Asian benchmark indexes, South Korea’s KOSPI rose 12.53 points or 0.62% to 2,032.08, while Japan’s Nikkei closed 73.68 points or 0.35% higher to 21,392.10 points.

In China, the Shanghai Composite closed 3.54 points or 0.12% lower to 3,021.20 points, while Hong Kong’s Hang Seng closed 2.28 points or 0.01% higher at 26,683.68.

Most Asian stocks swung lower today, as they are weighed down by the Chinese markets, after mainland factory-gate prices shrank at their fastest pace in three years, Reuters reported.

Official data showed China’s producer price index fell 0.8% in August year-on-year. This constitutes the sharpest decline since August 2016, signalling waning international and domestic demand, Reuters said.



Source: The Edge

Market Daily Report: FBM KLCI ends at week’s high but trading remains lacklustre

KUALA LUMPUR (Sept 6): Trading on the local bourse remained lacklustre amid lack of strong buying impetus.

The FBM KLCI moved in a tight range between 1,599 points and 1,606 points. It managed to end in positive zone to close at 1,604.47 points — the highest level for the week. The benchmark index was up 0.3%.

Week-on-week, however, the FBM KLCI fell 0.48% from its closing of 1,612.14 on Aug 30.
Across the bourse, a total of 1.65 billion shares were traded, valued at RM1.43 billion. The low trading volume indicates the current poor appetite for Malaysian stocks. Market breadth turned positive, as 364 gainers outnumbered 309 decliners, while 478 counters were unchanged.

The ringgit strengthened to 4.1790 against the greenback at the time of writing, continuing its recovery since touching a three-year low of 4.2203 on Sept 3.

Hong Leong Investment Bank (HLIB) sees that the FBM KLCI has formed a base at the 1,600 level having been through the consolidation phase moving between 1,580 and 1,620 over the past month.
“We still believe that the FBM KLCI has stabilised around the 1,580 — 1,600 levels, where the downside risk could be limited.

“The KLCI may retest the 1,620 level,” said the research house in a note.

The gainers were led by British American Tobacco (Malaysia) Bhd, MISC Bhd and Shangri-La Hotels (M) Bhd, while Nestle (M) Bhd topped the decliners. The most actively traded stock was Priceworth International Bhd .

Similarly, markets in the region rose amid easing trade war concerns. Japan’s Nikkei 225 rose 0.54%, South Korea’s Kospi gained 0.22%, while the Shanghai Composite Index increased 0.46%.

Reuters reported that Asian stocks gained on Friday, joining a global trend as investors took heart from firm US economic data and hopes a meeting between US and Chinese negotiators next month signals an easing in trade tensions.

MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.4%, putting it on track for a 2.2% weekly gain — which would make it the best week since mid-June, it said.


Source: The Edge

Market Daily Report: News of fresh trade talks fails to lift KLCI as foreign selling continues

KUALA LUMPUR (Sept 5): News of a fresh round of trade talks between the US and China early next month failed to spur buying interest on Bursa Malaysia. The FBM KLCI was flat today no thanks to the foreign funds’ selling spree amid absence of buying impetus and disappointment on earnings performance for the quarter ended June 30.

The benchmark index had earlier slipped 7.05 points to a low of 1,592.84 earlier today before finishing at 1,599.75 at market close today, still lower by 0.14 points from its Wednesday close.
Meanwhile, the index for small market capitalisation stocks closed down 24.5 points or 0.19% at 12,872.33.

Market breadth was negative with more losers than gainers at 431 versus 308 at the end of the trading day. Total turnover remained below the two billion mark at 1.85 billion shares worth RM1.58 billion.
Priceworth International Bhd continued to top Bursa Malaysia’s most active list, after the company announced Innoprise Corp Sdn Bhd would surface as a 30% stakeholder in the company pursuant to a log supply agreement that has been signed.

Today, Inter-Pacific Securities research head Pong Teng Siew told theedgemarkets.com the market was sluggish as there was continued foreign selling after a fairly disappointing set of corporate earnings that concluded last week.

“Foreign selling is playing a big role in the market’s continued softness. Also, money supply growth is seen as slowing, indicating that liquidity is not growing as fast as the economy, leaving players in the economy thinking there is less money around to lubricate economic transactions,” he explained.
Asian shares were mostly higher Thursday after China said it will hold trade talks with the US in early October, raising hopes they can de-escalate their trade war before it inflicts further damage on the global economy, Reuters reported.

In Tokyo, the Nikkei 225 gained 2.12% at its close and South Korea’s Kospi finished 0.82% higher, while the Shanghai Stock Exchange Composite Index is up 0.96%.

The Hong Kong Hang Seng Index is down 0.03% on profit-taking after it jumped nearly 1,000 points yesterday, ahead of Hong Kong announcement of withdrawing its contentious extradition bill that ignited months of protests.


Source: The Edge

Market Daily Report: KLCI reverses losses to end 8.37pts up

 
KUALA LUMPUR (Sept 4): The FBM KLCI today pared earlier losses to close higher — albeit just below the 1,600 psychological level — buoyed by July trade data as exports returned to positive territory.

At 5pm, the benchmark index closed 8.37 points or 0.53% up to 1,599.89, led by Petronas Dagangan Bhd, which rose 4.48% to RM22.38, and Petronas Gas Bhd, up 2.45% at RM15.92.

All sub-indices, save for the barometers tracking Malaysian REITs and utilities, ended higher. The small-cap index rose 109.06 points or 0.85% to finish at 12,896.83 points.

Market breadth was positive with more gainers than losers — 479 versus 308 — while total turnover stood at 2.49 billion shares worth RM1.73 billion. 

 

Bursa Malaysia's most actively traded stocks included Priceworth International Bhd, which signed a memorandum of understanding with Innoprise Corp Bhd for the supply of logs. The proposal will also see Innoprise, which is the investment holding vehicle of Yayasan Sabah, taking up a 30% stake in Priceworth.

Reuters reported that Malaysian stocks inched higher, boosted by the finance index after exports rose unexpectedly in July, rebounding from a drop in the previous month owing to solid demand for manufactured goods and higher shipments to China.

Malaysian exports increased 1.7% to RM88 billion in July from a year earlier, on higher sales of electrical and electronic goods, liquefied natural gas, refined petroleum products, natural rubber, and timber-based items, data provided by the Malaysian Statistics Department showed.

Various research houses today cut their respective KLCI year-end targets in view of the lacklustre corporate earnings in the just-concluded second quarter.

"We are cutting our end-2019 FBM KLCI target to 1,680 points (pts) based on 17x our revised 2020F earnings projection at a discount to its 5-year historical average of about 18x. This compares with 1,820pts based on 18x our previous 2020F earnings projection.

"We now hold the view that the FBM KLCI is unlikely to trade in line with its historical average, at least over the immediate term, as we believe the risk-off trade will prevail over the rest of 2019.

 Investors are likely to continue to lighten their positions in high-risk asset classes, i.e. equities and emerging market (EM) assets, while seeking refuge in safe-haven asset classes, i.e. developed market (DM) bonds and even zero-yielding precious metals," said AmInvestment Bank research analyst Joshua Ng.

Regional bourses closed mostly higher with Japan's Nikkei up 0.12% and South Korea's Kospi finishing with a 1.16% gain.

Hong Kong's Hang Seng Index jumped 3.9% after the media reported that the government would formally withdraw the proposed extradition bill that had sparked three months of protests in the former British colony.

In China, the Shanghai Stock Exchange Composite Index rose 0.93% on upbeat service sector data.


Source: The Edge