Market Daily Report: KLCI closes lower on portfolio rebalancing

KUALA LUMPUR (Nov 29): The FBM KLCI closed lower again today as foreign funds’ month-end rebalancing activities saw most reducing their holdings of Malaysian stocks in their portfolios.

The benchmark index ended the day 22.03 points or 1.39% lower at 1,561.74, after having traded within a range of 1,560.72 points and 1,585.70 points, weighed down by Tenaga Nasional Bhd (TNB) — which lost 4.08% to close at RM13.16 after the utility giant was slapped with RM3.98 billion in additional tax assessment by the Inland Revenue Board yesterday.

Overall, market breadth was negative with losers edging gainers by 631 to 295 while 332 counters traded unchanged. Total turnover stood at 2.6 billion shares worth RM2.35 billion.

The most actively traded stock was Pentamaster Corp Bhd, which succumbed to heavy selling on news that the semiconductor firm has been excluded from the shariah-compliant list. The stock closed 21 sen or 4.48% down at RM4.48, with 136.97 million shares crossed, more than 70 times its 200-day trading volume of 1.9 million shares.

Save for a marginal gain in the transportation index, all sectoral indices on the local bourse closed in negative territory, with the most apparent drop seen in the index tracking telecommunications stocks, dragged mainly by Maxis Bhd and Axiata Group Bhd.

Inter-Pacific Securities Sdn Bhd research head Pong Teng Siew described today’s market performance as “unusually bad” resulting from foreign selldown on stocks, not helped by selling pressure in heavyweights like TNB and banking stocks such as AMMB Holdings Bhd, which reported weaker quarterly earnings.

"It is related to the rebalancing exercise of foreign funds at the end of the month. It seems that foreign funds have decided to lower their portfolio allocation here,” he told theedgemarkets.com.

Regional shares also slipped today, knocking a global stock index off its path to hitting an all-time peak as investors turned cautious, fearing a new US law backing Hong Kong protesters could torpedo efforts to end the US-China trade war, Reuters reported.

Markets were sold off due to uncertainty over how US markets will perceive the latest clash between Washington and Beijing over Hong Kong, after China warned the US on Thursday it would take “firm counter measures” in response to US legislation backing anti-government protesters in Hong Kong.

The Hong Kong Hang Seng Index fell 2.03% at market's close, while China’s Shanghai Stock Exchange Composite Index finished 0.61% lower.

Hong Kong’s 2% drop put pressure on markets elsewhere, with Japan’s Nikkei 225 and South Korea’s Kospi losing 0.49% and 1.45% respectively.



Source: The Edge

Market Daily Report: KLCI ends lower as oil price drop dents sentiment

KUALA LUMPUR (Nov 28): The FBM KLCI closed down 3.41 points or 0.21% today while Bursa Malaysia's energy index fell by a larger magnitude as lower crude oil prices hit shares of oil and gas companies here after US said its crude oil output rose to a record high.

At Bursa, the KLCI finished at 1,583.77 as KLCI stocks including Petronas Dagangan Bhd and Genting Bhd fell. They were among Bursa top decliners while the energy index fell 10.84 points or 0.89% to 1,205.22.

Analysts said investors appeared to window dress their portfolios before the year ends. “Traders could look into index (KLCI) heavyweights amid window dressing activities in the month of December. The KLCI may trade within a range of 1,580-1,620,” Hong Leong Investment Bank Bhd head of retail research Loui Low told theedgemarkets.com today.

Globally, crude oil prices fell on Thursday, extending losses from the previous session after official data showed US crude and gasoline stocks rose against expectations as production hit a record, Reuters reported. 

 

It was reported that Brent crude futures were down 18 cents, or 0.3%, at US$63.88 a barrel by 0517 GMT, having dropped 0.3% on Wednesday. It was reported that US West Texas Intermediate crude fell 24 cents, or 0.4%, to US$57.87, after falling 0.5% in the previous session.

"Crude stockpiles in the US swelled 1.6 million barrels last week as production hit a record high of 12.9 million barrels per day (bpd) and refinery runs slowed, the Energy Information Administration said. Analysts in a Reuters poll had forecast a drop of 418,000 barrels. More bearish was a 5.1 million-barrel rise in gasoline stocks, compared with forecasts for a 1.2 million-barrel gain," Reuters reported.

Across Bursa today, turnover stood at 2.13 billion shares worth RM1.44 billion. Top decliners included Genting Bhd subsidiary Genting Plantations Bhd while most-active stocks included oil and gas support services provider Bumi Armada Bhd.

Genting Plantations' share price closed down 16 sen or 1.51% at RM10.44 today after the company said yesterday net profit fell to RM17.96 million in the third quarter ended Sept 30, 2019 (3QFY19) from RM23.51 million a year earlier. For 9MFY19, Genting Plantations said cumulative net profit was lower at RM80.39 million from RM150.63 million a year earlier.

Today, Affin Hwang Investment Bank Bhd analyst Nadia Aquidah said in a note that Genting Plantations’ 9MFY19 core net profit declined 42.2% to RM77.5 million, accounting for 53.4% and 48% of Affin Hwang's and consensus FY19 forecasts respectively.

"This is below our expectation mainly due to the lower-than-expected contribution from the upstream plantation division," Nadia said.



Source: The Edge

Market Daily Report: FBM KLCI ends higher in rebound

KUALA LUMPUR (Nov 27): The FBM KLCI closed a marginal 0.21% higher on Wednesday after recovering from heavy selling in selected blue chips.

At 5pm, the benchmark index finished 3.31 points higher at 1,587.18, after earlier inching to an intraday high of 1,590.51.

Market breadth was negative with 548 losers to 318 gainers, while 376 counters closed unchanged.
Total turnover stood at 2.51 billion shares worth RM1.66 billion. Solarvest, which made its debut on Bursa Malaysia's ACE Market yesterday at an issue price of 35 sen a share, was again the most actively traded stock today. It added another 6.5 sen today to close at 82 sen. 

 

Malacca Securities Sdn Bhd head of research Victor Wan told theedgemarkets.com that the key index had largely rebounded after losses in the past few trading days. "It appears that the index will be trading range-bound going forward on the lack of catalysts at this point," he said.

Asian stocks were higher on Wednesday after US President Donald Trump said negotiators were close to inking an initial trade deal with China. Expectations that the Federal Reserve will keep rates low also underpinned sentiment, Reuters reported.

Trump said on Tuesday the United States and China are close to agreement on the first phase of a trade deal after top negotiators from the two countries spoke by telephone and agreed to keep working on remaining issues.

The positive mood pushed the Dow Jones Industrial Average up 55.21 points to close at 28,121.68 overnight, even though US economic data for October showed four straight months of contraction in consumer confidence and an unexpected drop in new home sales.

But while Trump said Washington was in the "final throes" of work on a trade deal with Beijing, he also underscored US support for protesters in Hong Kong — a sore point for Beijing, Reuters added.
In China, the Shanghai Stock Exchange Composite Index was down 0.13%, but Hong Kong's Hang Seng was up 0.15% at the end of the trading day.

Elsewhere, Japan's Nikkei 225 eked out a 0.28% gain, while South Korea's Kospi did slightly better, closing 0.31% higher.



Source: The Edge

Market Daily Report: KLCI finishes down as Bursa share trade value swells above RM4.2b

KUALA LUMPUR (Nov 26): The FBM KLCI finished down 7.48 points or 0.47% at 1,583.87 today, as factors including lower crude palm oil (CPO) prices weighed on local share market sentiment.
Share-trade value across Bursa Malaysia rose significantly to RM4.21 billion, as volume increased to above three billion shares, contributed partly by Solarvest Holdings Bhd's impressive debut on Bursa's ACE Market.

Inter-Pacific Securities Sdn Bhd research head Pong Teng Siew said share prices of big market capitalisation plantation companies dived, as lower CPO prices dented market sentiment. Malaysia CPO for Jan 2020 fell RM73 to RM2,631 a tonne at 5:15pm.

"Solarvest was a big feature for today's trade but elsewhere, it's a rather boring day. It's a mixed day across the region, it looks like the markets lost some motivation, despite the latest US-China trade talk progress," he told theedgemarkets.com.

Solar photovoltaic company Solarvest's share price rose as much as 41 sen or 117% to 76 sen, before paring gains.

At 5pm, Solarvest finished at 75.5 sen with some 263 million shares traded, to become Bursa's top-active stock. Solarvest also ended among the exchange's top gainers.

Across Bursa today, turnover stood at 3.41 billion shares, worth RM4.21 billion. Yesterday, turnover stood at 2.52 billion shares, worth RM1.54 billion.

Today, a glance across Bursa's top-active stocks may turn investors' attention to Sime Darby Property Bhd, S P Setia Bhd and Alliance Bank Malaysia Bhd. These stocks ended up possibly in conjunction with their inclusion into the MSCI Global Small Cap Indexes' MSCI Malaysia Index at market close today (Nov 26).

Sime Darby Property rose two sen or 2.61% to 78.5 sen, while SP Setia added two sen or 1.6% to RM1.27. Alliance Bank climbed three sen or 1.14% to RM2.66.



Source: The Edge

Market Daily Report: KLCI down 0.34%, trails Bursa O&G, small-cap share drop

KUALA LUMPUR (Nov 25): The FBM KLCI finished 5.49 points or 0.34% lower today, while Bursa Malaysia indices for oil and gas shares and small market capitalisation (small cap) stocks fell by larger quantums, as global investors weighed US-China trade uncertainties.

In Malaysia, the current corporate financial reporting season for the July-to-September quarter is also seen dictating share-trade sentiment. At 5pm, the KLCI finished lower at 1,591.35.

Bursa's small-cap index lost 136.55 points or 1% to 13,568.18, while the energy index, which tracks oil and gas shares, fell 17.14 points or 1.4% to 1,211.34.

"Given the weaker momentum and trend indications on KLCI's technical indicators following last week's choppy trading sessions, the local market is likely to be encumbered with external uncertainties this week, as doubts linger over the likelihood for an initial US-China trade deal, due to mutual disagreements between the two parties on certain key issues. The lack of any possibility for early resolution in Hong Kong's civil unrest, with the US deemed to be interfering with Hong Kong's domestic politics, should also see market uncertainty remaining elevated," TA Securities Holdings Bhd wrote in a note today.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com that the KLCI started the week on a soft footing and lingered in negative territory the entire trading session, mainly due to selling pressure in selected oil & gas and telecommunication heavyweights.

"Moving forward, the KLCI might remain under pressure, in view of mixed earnings report with key support at the 1,577 level," Leong said.

Across Bursa today, there were more decliners than gainers at 549 versus 337 respectively. Total turnover stood at 2.52 billion shares, worth RM1.54 billion.

Top decliners included KLCI components Petronas Dagangan Bhd and Genting Bhd. The list includes shares of oil and gas support services provider Dayang Enterprise Holdings Bhd.

Globally, mixed news headlines on US-China trade appeared to have curbed Southeast Asian share trade sentiment. Reuters reported trading in most Southeast Asian stock markets were subdued on Monday, while Thailand eked out modest gains, as investors await concrete signals of progress in the U.S.-China trade negotiations, amid mixed headlines.

It was reported that investors welcomed signs that talks to resolve the trade row were moving to the next level, after the U.S. national security adviser Robert O'Brien said there was still a possibility of an initial "phase one" deal with China by the end of this year.

"However, he warned that events in Hong Kong, driven by months of anti-government unrest, could overshadow trade talk progress," Reuters reported.




Source: The Edge

Market Daily Report: KLCI finishes down 8.95 points but plantation shares rise

KUALA LUMPUR (Nov 21): The FBM KLCI closed 8.95 points or 0.56% lower as a fresh US-China row on Hong Kong threatened to delay a much-anticipated US-China trade deal. Such sentiment led to weakness across Asian stock markets.

At 5pm, the KLCI closed down at 1,592.19, led by AMMB Holdings Bhd. Across the broader market, Bursa Malaysia plantation shares rose with higher crude palm oil (CPO) prices.

Global shares took cue from the fresh US-China row, which exacerbated both nations' trade war. Reuters reported that global stocks took a beating on Thursday as a fresh row between Washington and Beijing over US legislation on Hong Kong threatened to undermine their trade talks and delay a "phase one" deal that investors had initially hoped to be signed by now.

"The US House of Representatives on Wednesday passed two Bills intended to support protesters in Hong Kong and send a warning to China about human rights. The legislation, which has angered Beijing, has been sent to the White House for President Donald Trump's approval. A person familiar with the matter said Trump was expected to sign it," the newswire said.

 In Malaysia, Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com today that weakness in the KLCI was "mainly due to the US and China trade (talk) progress on reports that the partial trade agreement may not take place this year" after the US House of Representatives passed the two Bills to support protesters in Hong Kong.

Leong however noted that prices of Bursa plantation shares increased as CPO prices rose. CPO prices for Jan 2020 rose as much as RM22 to RM2,664 a tonne today.

Across Bursa, the exchange saw 2.93 billion shares worth RM2.16 billion traded. Top gainers included Sarawak Oil Palms Bhd and Genting Plantations Bhd.

Bursa's plantation index closed up 58.06 points or 0.82% at 7,141.15.

Among the KLCI's 30 components, the biggest percentage decliner was AMMB after the stock slipped 12 sen or 2.87% to close at RM4.06.



Source: The Edge

Market Daily Report: KLCI snaps three days of gains on oil, US-China trade uncertainty

KUALA LUMPUR (Nov 20): The FBM KLCI closed 4.17 points or 0.26% lower today amid US-China trade spat uncertainty and as lower crude oil prices weakened Malaysian share trade sentiment.
At 5pm, the KLCI closed down at 1,601.14 after after three consecutive days of gains. Today, the KLCI was traded entirely in negative territory at between 1,598.32 and 1,604.38 as Asian shares fell.
Reuters reported that Asian shares lost out to safe-harbour bonds on Wednesday as Sino-US trade talks produced nothing but white noise, while concerns about a supply glut left oil prices nursing their biggest one-day loss in seven weeks.

It was reported that figures from the American Petroleum Institute out late Tuesday showed a far larger rise in crude stocks than expected. It was reported that Brent crude futures eased another 10 cents to US$60.81 a barrel, after sliding 2.6% overnight, while US crude dipped 2 cents to US$55.19. "The prospects for progress on trade dimmed when China condemned a US Senate measure on Hong Kong, vowing to take the steps necessary to safeguard its sovereignty and security. The Senate unanimously passed legislation aimed at protecting human rights in Hong Kong.

"Late Tuesday, US President Donald Trump had threatened to raise tariffs further if China would not agree to a deal that he liked. The aggressive tone unsettled Wall Street (in overnight trades) and the Dow ended down 0.36%, while the S&P 500 lost 0.06% and the Nasdaq added 0.24%," Reuters reported.

In Malaysia today, Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng told theedgemarkets.com the decline in the KLCI was in line with weaker sentiment across Asian stock markets.

“I believe that the KLCI will hover around this 1,600-level and at this level, I believe it’s [at a] low enough [level] to attract investors,” said Wong.

He said that Malaysian share market movement will depend on the July-to-September quarterly corporate financial results announced during the current reporting season.

Today, Bursa Malaysia saw 2.9 billion shares worth RM1.98 billion traded across the bourse. Petroliam Nasional Bhd (Petronas)-related counters appeared to have taken cue from lower crude oil prices.

Among the KLCI's 30 components, Petronas Chemicals Group Bhd's share price slid 15 sen or 2.04% to close at RM7.21 to become the KLCI's top percentage decliner followed by Petronas Gas Bhd.
Petronas Gas fell 24 sen or 1.44% to RM16.46. Across Bursa, Petronas Gas and Petronas Chemicals were among top decliners with other oil and gas-related shares like Petron Malaysia Refining & Marketing Bhd and Yinson Holdings Bhd.



Source: The Edge

Market Daily Report: FBM KLCI ends higher on last minute buying

KUALA LUMPUR (Nov 19): The FBM KLCI closed 0.95 point or 0.06% higher today after erasing losses at the last minute on buying interest in index-linked stocks, as world markets took cue from the status of US-China trade talks.
At 5pm, the KLCI closed at its intraday high at 1,605.31, after falling to its intraday low at 1,595.15, as US-China trade uncertainties hit world markets.

Reuters reported Asian share markets were mixed in subdued trade on Tuesday, pending clearer news on whether US-China negotiations will reach a preliminary accord to end the prolonged trade war between the world's two largest economies.

Reuters said CNBC reported the mood in Beijing was pessimistic about prospects of sealing a trade agreement with the US.

In Malaysia, TA Securities Holdings Bhd senior technical analyst Stephen Soo told theedgemarkets.com the KLCI had earlier today fallen due to a correction following yesterday's rise. “It’s very much still a retail play in the market. The institutions are still very cautious,” Soo said today.

Bursa Malaysia saw 2.68 billion shares, worth RM1.63 billion, traded across the exchange.
Top gainers included KLCI stocks Hong Leong Bank Bhd and Public Bank Bhd.
Hong Leong Bank's share price closed 20 sen or 1.19% higher at RM17.


Source: The Edge

Market Daily Report: FBM KLCI ends at intraday high, led by IHH

KUALA LUMPUR (Nov 18): The FBM KLCI closed up 9.61 points or 0.6% today at its intraday high after a spike in the final trading minutes, led by sharp gains in prices of stocks including IHH Healthcare Bhd and Digi.Com Bhd and as fund managers appeared to window dress their portfolios.
Globally, Malaysian shares rose with Asian equities, after China's central bank reduced rates on seven-day reverse repurchase agreements (repo) by five basis points to 2.5%.

At Bursa Malaysia, the KLCI closed at its intraday high of 1,604.36 at 5pm, after erasing losses from its intraday low at 1,592.47.

IHH’s share price closed 21 sen or 3.93% higher at RM5.56 to become the leading-percentage gainer among the 30 KLCI components, followed by Digi.Com. Digi.Com closed up 15 sen or 3.28% at RM4.73.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com today that the KLCI was lifted mainly by IHH, after the company said it remains committed to proceed with the Fortis Healthcare Ltd open offer, once the stay is lifted by the Supreme Court of India.
Leong noted that the KLCI's gain today was also in line with positive sentiment among Asian stock indices.

“There are signs of early window dressing, as we approach towards the year-end,” Leong said.
Bursa Malaysia saw 2.34 billion shares worth RM1.42 billion traded across the exchange, as world markets took cue from China's repo rate cut.

Reuters reported Asian shares ticked higher on Monday, after Beijing surprised markets by trimming a key interest rate for the first time since 2015, stirring speculation further stimulus is on the way for the world's second-largest economy.

It was reported China's central bank cut rates on the seven-day reverse repo by five basis points to 2.5%, a move that nudged the yuan higher, while lowering bond yields.


Source: The Edge

Market Daily Report: KLCI up after volatile trade as investors weigh Malaysia GDP

KUALA LUMPUR (Nov 15): The FBM KLCI closed up 1.2 points or 0.08% after volatile trade as investors weighed Malaysia's economic figures and corporate earnings against the impact of the US-China trade war on global growth.

At the 5pm closing bell, the KLCI closed up at 1,594.75, led by IHH Healthcare Bhd. The KLCI had earlier risen to its intraday high at 1,596.85 and fallen to its intraday low at 1,592.22.

Bank Negara Malaysia's (BNM) announced today that Malaysia's economic growth, as measured by Gross Domestic Product (GDP), moderated to 4.4% in the third quarter of 2019 (3Q19) from a year earlier, after 2Q19's 4.9% on-year expansion.

BNM was quoted as saying 3Q19's slower GDP expansion was primarily due to lower growth in the nation's key sectors and decline in mining and construction activities. Most domestic demand components and net exports also registered slower growth, BNM said.

Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew told theedgemarkets.com that 3Q19's slower GDP expansion might have been reflected in local companies' earnings during the July-to-September quarter.

“As we go into the (corporate financial) results season, looking at the 3Q19 GDP being so weak, it is quite possible it may be reflected in the quarterly earnings as well.

“We are seeing more stocks reporting (a) drop in profit than (those) reporting growth. This is also the reason investors are being cautious. They would rather wait and see the actual earnings being reported and make their investment calls after the results are announced,” Pong said.

Across Bursa Malaysia today, volume was 2.69 billion shares valued at RM1.7 billion.

Among the 30 KLCI components today, IHH, AMMB Holdings Bhd and Sime Darby Bhd were the top three percentage gainers. Leading gainer IHH closed up 11 sen or 2.1% at RM5.35.

The US-China trade war has been a key theme for world markets. Reuters reported that Asian stocks jumped on Friday, lifted by White House comments that suggested the possibility of an imminent trade deal between Washington and Beijing, which revived hopes that their tariff war may be nearing an end.

It was however reported that investor sentiment remains fragile after weak data from China reinforced concerns about the global economy and amid increasing caution about false signs of progress in the Sino-US trade talks.



Source: The Edge

Market Daily Report: FBM KLCI ends lower as China, Japan data disappoints

KUALA LUMPUR (Nov 14): The FBM KLCI closed down 3.67 points or 0.23% today at 1,593.55 as Asian shares took cue from China and Japan's economic data, which missed market forecasts.
From a technical viewpoint, analysts said the KLCI fell because Malaysian shares are in overbought zone.

Reuters reported that Asian stocks fell on Thursday after soft economic data in China and Japan showed the trade war between Beijing and Washington hitting growth in some of the world’s biggest economies.
It was reported that China’s industrial production growth slowed sharply in October, with the 4.7% year-on-year rise well below forecasts for 5.4%.

Investment growth hit a record low and retail sales also missed expectations, according to Reuters. On Japan, Reuters, quoting preliminary gross domestic product data released by the Government today, reported that the world's third-largest economy grew an annualised 0.2% in the third quarter, slowing sharply from a revised 1.8% expansion in April-June quarter.

"It fell well short of a median market forecast for a 0.8% gain and marked the weakest growth since a 2% contraction in July-September last year," Reuters reported.

In Malaysia, Malacca Securities Sdn Bhd head of research Victor Wan told theedgemarkets.com that the Malaysian stock market is actually overbought, hence it has started to consolidate.

"It will probably be hovering at a tight range between the 1,590 and 1,610 level in the near term. The weak economic data from China and Japan also further weighed down sentiments which opened the door of opportunity for profit-making activities,” Wan said.

Across Bursa Malaysia today, volume stood at 2.2 billion shares worth RM1.68 billion.

Top decliners included Nestle (M) Bhd and British American Tobacco (M) Bhd.

Leading gainers and top-active stocks included JAKS Resources Bhd. JAKS' share price closed up at its intraday high after the stock rose 20 sen or 17.24% to RM1.36.
JAKS saw some 40 million shares traded.


Source: The Edge

Market Daily Report: KLCI down 12.51 points to end below 1,600 as Trump renews trade war concerns

KUALA LUMPUR (Nov 13): The FBM KLCI finished 12.51 points or 0.78% lower at 1,597.22 today with Asian shares after US President Donald Trump's speech failed to add clarity on the status of US-China trade talks. Investors also took cue from Hong Kong's intensifying protest.

At Bursa Malaysia's 5pm closing bell, the KLCI finished lower at 1,597.22 after falling to its intraday low of 1,593.91, partly due to KLCI component Petronas Chemicals Group Bhd's share price drop.

Reuters reported that Asian stocks and Wall Street futures fell on Wednesday, as confusing signals over the extent of progress made in US-China trade talks and concern about intensifying unrest in Hong Kong hurt demand for risky assets.

It was reported that US President Donald Trump had on Tuesday said in his speech at The Economic Club of New York that a trade deal was "close" but gave no new details on when or where an agreement would be signed, disappointing investors in what was billed as a major speech on his administration's economic policies.

"Trump also rattled some investors by threatening China with even more tariffs if they do not sign a deal. Oil prices fell as diminishing prospects for an immediate resolution to a 16-month long trade war between the world's two-largest economies suggested less demand for energy in the future," Reuters reported. 

 

In Malaysia today, Rakuten Trade Sdn Bhd vice president of research Vincent Lau said just when a US-China trade deal seemed certain, "Trump’s speech had caused US-China trade tensions to erupt again".

Lau said Petronas Chemicals' share price drop after reporting weaker quarterly results also weighed the KLCI down. Petronas Chemicals' share price closed down 42 sen or 5.38% at RM7.38 to become the largest-percentage decliner across the 30 KLCI components. Leading KLCI decliners included Axiata Group Bhd and Genting Bhd.

Earlier today, theedgemarkets.com, quoting Petronas Chemicals' Bursa filing, reported that Petronas Chemicals' net profit fell 55% year-on-year to RM553 million in the third quarter ended Sept 30, 2019 (3QFY19) from RM1.21 billion as average product prices decreased in tandem with lower crude oil prices.

It was reported that for 9MFY19, Petronas Chemicals' cumulative net profit fell to RM2.47 billion from RM3.78 billion a year earlier.

Across Bursa today, turnover was 2.14 billion shares valued at RM1.74 billion. There were 503 decliners versus 277 gainers after broad-based selling across the exchange.
All Bursa indices closed down except for the property, transportation and utilities gauges.



Source: The Edge

Market Daily Report: KLCI up on plantation stocks ahead of Trump's speech

KUALA LUMPUR (Nov 12): The FBM KLCI closed 1.58 points or 0.1% higher at 1,609.73 today, with Asian shares ahead of US President Donald Trump's trade policy speech and as Bursa Malaysia plantation counters rose.

Analysts said the KLCI had also closed higher on positive sentiment from Malaysia's improved wholesale and retail trade sales data for Sept 2019. At 5pm, the KLCI pared gains at 1,609.73, after rising to its intraday high at 1,614.21.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com that the KLCI's increase was due to Malaysia's wholesale and retail trade sales data and strong trading interest seen in plantation counters, after crude palm oil (CPO) prices rose to a two-year high yesterday.

Today, Public Investment Bank Bhd analyst Chong Hoe Leong wrote in a note that Public Investment believes CPO prices may surpass RM2,800 a tonne in the coming months, due to the tightening of CPO supplies in global markets.

"This should be a boon to all plantation companies, after suffering from the poor CPO price performance over the last two years.

"It was a big boost to CPO futures, following a series of overwhelming numbers from the (Malaysian) October palm oil statistics. The palm oil inventories unexpectedly shrank 4.1% MoM to 2.3 million tonnes, as production started seeing a decline after peaking in Sept, while exports saw a strong recovery. At the point of writing, CPO futures rallied 2.1% to a 2-year high of RM2,628/mt. Since our upgrade on the sector outlook in early-Oct, CPO futures have rallied by more than 20%," Chong said.

Malaysia's Sept 2019 wholesale and retail trade sales grew 5.6% from a year earlier. Earlier today, theedgemarkets.com, quoting the Statistics Department, reported Malaysia's wholesale and retail trade sales grew 5.6% to RM110.6 billion in Sept 2019, from a year earlier, led by retail trade's 7.2% expansion.

It was reported that sales value of the wholesale trade and motor vehicle sub-sectors rose 4.7% and 4.4% respectively.

Across Bursa, turnover ended at 2.49 billion shares, valued at RM1.82 billion.
Top gainers included KLCI-linked plantation stocks: Sime Darby Plantation Bhd and Kuala Lumpur Kepong Bhd.

Sime Darby Plantation closed up 17 sen or 3.41% at RM5.15, after the stock's price jumped to its intraday high at RM5.18 in afternoon trades.

Globally, anticipation of Trump's crucial trade policy speech later on Tuesday, supported Asian stock market gains. Reuters reported Asian share markets edged higher on Tuesday and Europe looked set to follow, as investors awaited a speech by Trump on US trade policy and on news he will likely delay a decision on whether to slap tariffs on European autos.

It was reported that European Union (EU) officials said Trump was expected to announce this week that he was delaying the tariff decision on cars and auto parts imported from the EU, likely for another six months.

"The news boosted expectations about Trump's speech later in the day about his administration's long-running trade war with China," Reuters said.



Source: The Edge

Market Daily Report: KLCI falls on profit taking amid trade war, HK protest uncertainty

KUALA LUMPUR (Nov 11): The FBM KLCI closed 1.58 points or 0.1% lower today on profit taking and as investors weighed fresh violence in the Hong Kong protest and watched the progress of US-China trade talks.

At Bursa Malaysia, the KLCI closed at 1,608.15, after paring losses sharply in the final trading hour from its intraday low at 1,601.99. The KLCI, which opened higher, had earlier risen to its intraday high at 1,611.43.

Rakuten Trade Sdn Bhd vice president of research Vincent Lau told theedgemarkets.com that profit taking in the KLCI followed buying of KLCI-linked stocks over the last few days.
 

"The negative performance of the KLCI today was in line with regional markets, due to uncertainty," Lau said. 

 

Globally, Reuters reported Asian shares sank on Monday, the safe haven yen rose and gold jumped following a fresh escalation of violence in Hong Kong, while uncertainty still remained over whether the US and China could end their damaging trade war.

It was reported US President Donald Trump told reporters on Saturday that talks with China had moved more slowly than he would have liked, but added Beijing wanted a deal more than he did. That was a more upbeat tone than just a few days earlier, when he had stressed the White House would not agree to a full rollback of existing tariffs, remarks that hit stock prices and the dollar, according to Reuters.

Today, Bursa saw 2.37 billion shares worth RM1.64 billion traded across the exchange. Top decliners included Kuala Lumpur Kepong Bhd, PPB Group Bhd and Malaysia Airports Holdings Bhd (MAHB).

Among the 30 KLCI stocks, MAHB was the largest-percentage decliner, after the stock closed down 14 sen or 1.65% at RM8.35.



Source: The Edge

Market Daily Report: KLCI flat after spike on Bank Negara SRR ratio cut

KUALA LUMPUR (Nov 8): The FBM KLCI ended up 0.4 point or 0.02% at 1,609.73 today after paring gains shortly following a spike in the final trading hour.

The KLCI spike followed Bank Negara Malaysia's (BNM) announcement that the statutory reserve requirement (SRR) ratio for banks will be lowered from 3.5% to 3% effective from Nov 16.
BNM said today in a statement the move aims to maintain sufficient liquidity in the domestic financial system. At Bursa Malaysia, the KLCI spiked to its intraday high at 1,614.19 in the final trading hour after falling to its intraday low at 1,606.02.

Analysts said banking shares reacted positively to the news as a lower SRR ratio means financial insitutions will have more money to lend to borrowers.

Nomura head of equity research for Malaysia Tushar Mohata told theedgemarkets.com the KLCI was boosted at the 11th hour mainly by banks' share price rise.

The list includes KLCI-linked banks Public Bank Bhd and CIMB Group Holdings Bhd.
“The slight pick up seen in the KLCI today was due to BNM cutting the SRR ratio from 3.5% to 3%,” the analyst said.

At Bursa, a late jump in Public Bank's share price, helped the stock reach its intraday high of RM20.20. At the 5pm market close, Public Bank pared gains at RM19.94 for an eight sen or 0.4% rise.

Across Bursa, turnover stood at 3.11 billion shares worth RM2.15 billion. Top gainers included VSTECS Bhd and CIMB Group Holdings Bhd as world markets took cue from the status of US-China trade talks.

Reuters reported that Asian stocks retreated from six-month highs on Friday as conflicting signals from China and the US on progress made in trade talks deflated market hopes of a near term truce to end their damaging tariff war.

It was reported that Friday's market moves contrast with Thursday's surge of optimism in global markets on news Beijing and China have agreed to roll back tariffs on each others' goods as part of the first phase of a trade deal.

"Multiple sources familiar with the talks said the plan faced fierce internal opposition at the White House and from outside advisers. Worries the pact could fall apart as there was still no specific agreement for a phased rollback prompted some investors to sell heading into the weekend," Reuters reported.



Source: The Edge

Market Daily Report: KLCI spikes, ringgit strengthens as China, US agree to cancel tariffs

KUALA LUMPUR (Nov 7): The FBM KLCI closed up 6.08 points or 0.38% at its intraday high as news on China and the US agreeing to cancel, in phases, tariffs on each other's goods spurred world share markets.

The ringgit strengthened with the yuan against such US-China trade sentiment.

At Bursa Malaysia, the KLCI closed at 1,609.33 at 5pm after a spike in the final trading hour. The sharp 11th hour rise in share prices of KLCI components including Kuala Lumpur Kepong Bhd (KLK) and Hong Leong Financial Group Bhd (HLFG) supported KLCI's spike.

The KLCI closed up at 1,609.33 after falling to its intraday low at 1,601.18.

At a glance across Asia, the KLCI's spike mirrored the jump seen in Hong Kong's Hang Seng. Reuters reported that Hong Kong stocks ended higher on Thursday as signs of progress in the China-US trade negotiations triggered a rally during the final 30 minutes of trading.

It was reported that the the Hang Seng index ended up 0.6% at 27,847.23, while the China Enterprises Index closed 0.7% higher at 10,935.89 points.

CNBC reported that China’s Commerce Ministry had agreed with the US to lift existing trade tariffs between the two nations in phases after their months-long trade war. The Ministry spokesperson was quoted as saying that the tariff cancellation was an important condition for a limited trade agreement and both the US and China must remove the same amount of charges at the same time.

“Fresh hopes of a 'phase one' trade agreement prompted US stock index futures to rally Thursday morning, with Dow futures poised to open up more than 120 points,” CNBC said.

In Malaysia today, Rakuten Trade Sdn Bhd vice president of research Vincent Lau told theedgemarkets.com that the KLCI was boosted by positive market sentiment amid optimism over US-China trade talks.

He said Rakuten foresees "these positive sentiments to continue fueling the rally in the KLCI going forward".

From a technical viewpoint, Public Investment Bank Bhd technical analyst Lee Siao Ping said if the KLCI continues to hold above the 1,600 level tomorrow (Nov 8), this suggests that the KLCI will be in a "bullish turnaround" in the near term.

“Support can be found at 1,600 and 1,580. Conversely, resistance can be identified at 1,622 and 1,636,” he said.

Across Bursa, turnover stood at 2.62 billion shares worth RM1.895 billion. Top gainers included KLK and HLFG. KLK closed up 60 sen or 2.69% at RM22.92 while HLFG added 28 sen or 1.63% to RM17.48.

In currency markets, the ringgit strengthened to 4.1240 against the US dollar at the time of writing as the yuan appreciated against the US dollar.

Reuters reported that China's onshore and offshore yuan strengthened past the key 7 per dollar level on Thursday afternoon, driven up after the Commerce Ministry said both Beijing and Washington have agreed to cancel the additional tariffs imposed during their months-long trade war in different phases.

"Onshore yuan jumped to a high of 6.9840 at one point, the strongest level since Aug 2. It traded at 6.9908 as of 0752 GMT, when its offshore counterpart was changing hands at 6.9924. China's Commerce Ministry also said both sides must simultaneously cancel some existing tariffs on each other's goods to reach a 'phase one' trade deal," Reuters reported.



Source: The Edge

Market Daily Report: FBM KLCI down as Asia tracks US equity futures

KUALA LUMPUR (Nov 6): The FBM KLCI pared losses to finish 3.49 points or 0.22% lower today as Asian shares tracked US equity futures amid growing enthusiasm over a US-China trade deal.
At 5pm, the KLCI, which had earlier declined to its intraday low of 1,597.18, finished at 1,603.25 after US equity futures erased losses. Among US stock futures, the Dow Jones mini rose eight points or 0.03% to 27,429 at 5:31pm after falling to its intraday low.

Reuters, quoting latest reports, reported today China is pushing President Donald Trump to remove more tariffs as part of the “phase one” deal, which may be signed this month.

In Malaysia, Inter-Pacific Securities Sdn Bhd research head Pong Teng Siew told theedgemarkets.com Asian stock markets including Bursa Malaysia had earlier tracked lower US equity futures, which led to cautious profit taking across Asian shares.

"All in, it is more of a 'down day' than an 'up day' for the Asian stock markets," Pong said.
Across Bursa, turnover stood at 2.71 billion shares worth RM1.72 billion as a stronger ringgit appeared to dictate Malaysia share-trade dynamics.

Top decliners included KLCI stocks Top Glove Corp Bhd and Petronas Chemicals Group Bhd, possibly as investors evaluated the impact of a stronger ringgit against these companies' US dollar-based earnings.

Top Glove closed down 13 sen or 2.89% at RM4.37 while Petronas Chemicals fell 10 sen or 1.3% to RM7.60.

Top Glove's share price had earlier dipped to its intraday low of RM4.35 as the company is also seen to be at risk of being removed from the KLCI, according to AllianceDBS Research Sdn Bhd.

In currency markets, the ringgit was traded at 4.1390 against the US dollar at the time of writing today. Over the last one year, the ringgit strengthened to current levels after depreciating to its weakest point at 4.2280.



Source: The Edge

Market Daily Report: KLCI up as ringgit strengthens after BNM maintains OPR

KUALA LUMPUR (Nov 5): The FBM KLCI closed 3.18 points or 0.2% higher today, as the ringgit strengthened after Bank Negara Malaysia (BNM) maintained the overnight policy rate (OPR) at 3%.

Globally, Malaysian shares could have also tracked Asian equities' rise on US-China trade deal hopes. Such sentiment helped US shares post record closing highs overnight on Monday.

At Bursa Malaysia today, the KLCI closed at its intraday high at 1,606.74 at 5pm, after erasing losses at the last minute. The KLCI had earlier fallen to its intraday low at 1,597.76.

In currency markets, the ringgit strengthened to 4.1315 against the US dollar at the time of writing, in an apparent response to BNM' rate decision announcement at 3pm today.

In theory, interest rate cuts are bad for currencies, due to capital outflow concerns.

On the KLCI, Rakuten Trade Sdn Bhd vice president of research Vincent Lau told theedgemarkets.com that the "KLCI was boosted at the 11th hour by positive sentiment, following BNM's decision to retain the OPR at 3%".

BNM said in a statement today that it expects Malaysia's economic growth to be within projections in 2019. BNM said it expects the economic growth pace to be sustained going into 2020.

"This projection remains subject to downside risks, mainly stemming from uncertainties in global economic and financial conditions, as well as weakness in commodity-related sectors," BNM said.
Across Bursa today, the exchange saw 2.62 billion shares, worth RM2.25 billion traded. Top gainers included Kuala Lumpur Kepong Bhd and Mega First Corp Bhd.

US-China trade deal hopes, spurred global shares. Reuters reported Asian shares vaulted to six-month highs on Tuesday, surpassing their July peaks, as hopes Washington may roll back some of the tariffs it has imposed on imports from China, shored up optimism on the global economic outlook.

It was reported that the MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.5% to reach levels last seen in early May, led by gains in Chinese shares.

"China is pushing US President Donald Trump to remove more tariffs imposed in September, as part of a “phase one” US-China trade deal, expected to be signed later this month, people familiar with the negotiations said on Monday," Reuters reported.



Source: The Edge

Market Daily Report: KLCI ends at intraday high after breaching 1,600 points

KUALA LUMPUR (Nov 4): The FBM KLCI closed up 10.22 points or 0.64% today, after world share markets rose amid US-China trade talks optimism and as investors evaluated news that the US' October job growth slowed less than expected.

At Bursa Malaysia, the KLCI closed at its intraday high at 1,603.56 at 5pm today, led by top percentage gainers Hartalega Holdings Bhd and Top Glove Corp Bhd.

Malacca Securities Sdn Bhd head of research Victor Wan said the positive sentiment across US shares traded at Wall Street on Friday, spilled over to Asian equities today.

“It (KLCI) has a good run up already over the past few sessions. It has gone overboard. The 1,600 level seems to be new resistance for KLCI,” Wan told theedgemarkets.com today. 

 

Across Bursa today, 2.56 billion shares worth RM1.86 billion were traded. Among KLCI's 30 components, Hartalega closed 17 sen or 3.17% higher at RM5.54 to be the index's top percentage gainer, followed by Top Glove.

Top Glove shares were up 12 sen or 2.73% at RM4.52.

In currency markets, the ringgit strengthened to 4.1505 against the US dollar at the time of writing today, ahead of Bank Negara Malaysia's (BNM) interest rate decision tomorrow (Nov 5).

BNM's monetary policy committee (MPC) will hold their final 2019 meeting tomorrow. At the latest meeting on Sept 12, the MPC decided to maintain the overnight policy rate at 3%.

Today, world share markets took cue from US-China trade talks and the US' jobs data. Reuters reported Asian shares surged on Monday with a broad regional gauge hitting more than 14-week highs, as growing optimism over US-China trade talks and upbeat US job data boosted global investors’ appetite for riskier assets.

It was reported that the US and China both said on Friday that they had made progress in talks aimed at defusing their protracted trade war, and US officials said a deal could be signed this month.
"US job growth slowed less than expected in October and hiring in the prior two months was stronger than previously estimated, data from the Labor Department showed on Friday," Reuters reported.



Source: The Edge

Market Daily Report: KLCI falls as Thursday's buying seen overdone

KUALA LUMPUR (Nov 1): The FBM KLCI closed 4.64 points or 0.29% lower at 1,593.34 today on profit taking after yesterday's substantial rise on buying which analysts deemed overdone due to the absence of fresh catalysts.

Today, Rakuten Trade Sdn Bhd head of research Kenny Yee said the decline in the KLCI was “expected”, given that “buying was overdone” yesterday.

Yee told theedgemarkets.com today there were no new catalysts to support yesterday’s buying of KLCI-linked shares.

Yesterday, the KLCI closed up 17.98 points or 1.14% at 1,597.98 as Malaysian stocks tracked Asian share gains after the US cut interest rates on Wednesday.

Across Bursa Malaysia today, 2.79 billion shares worth RM1.64 billion were traded. Top decliners included Public Bank Bhd, Pharmaniaga Bhd and Gamuda Bhd.

Yee was also mindful of the ringgit's strength today amid an inflow of foreign funds into Malaysian assets ahead of Bank Negara Malaysia's (BNM) interest rate decision on Tuesday (Nov 5).

Yee said today should BNM maintain the overnight policy rate on Tuesday following the US rate cut, the market may see a further inflow of foreign funds into Malaysian assets.

“We are seeing more foreign funds flowing in as we see ringgit strengthening over the last two days,” said Yee. At the time of writing, the ringgit appreciated to 4.1648 against the US dollar.


Source: The Edge