Market Daily Report: KLCI tumbles 26.91 points to intraday low on 2019 final trading day

KUALA LUMPUR (Dec 31): The FBM KLCI lost its footing on the last trading day of 2019. The benchmark index shed 26.91 points or 1.67% to end the year at its intraday low at 1,588.76, after US shares' overnight decline hit Asian market sentiment.

For the year, the KLCI had declined 6.02% or 101.82 points, making it the third-largest percentage decliner among benchmark indices in Asia, after the Laos Securities Exchange Composite and Mongolia Stock Exchange Top 20.

Asia's worst decliner Laos Securities Exchange Composite fell 12.95%, followed by the Mongolia Stock Exchange Top 20's 8.59% drop.

Over the last 10 years, the KLCI had however gained 315.98 points or 24.83% from 1,272.78 on Dec 31, 2009.

In Malaysia today, Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng said weakness in the KLCI today was due to US shares' overnight decline, which affected sentiment across Asian stock markets today.

Reuters reported Asian shares slipped on the last trading day of the decade, echoing falls on Wall Street, as investors locked in gains made since the US and China reached a preliminary trade deal earlier this month.

Today, Wong told theedgemarkets.com: "KLCI was down 6.02% year-to-date, mainly due to the foreign selling amid global and domestic uncertainties."

Across Bursa Malaysia, there were 552 decliners versus 314 gainers. Turnover stood at 2.25 billion shares, worth RM1.75 billion.

Top decliners included KLCI stocks Public Bank Bhd, PPB Group Bhd and Tenaga Nasional Bhd.



Source: The Edge

Market Daily Report: FBM KLCI rises as CPO gains, ringgit strengthens

KUALA LUMPUR (Dec 30): The FBM KLCI closed 5.06 points or 0.31% higher today, led by Tenaga Nasional Bhd and as Bursa Malaysia plantation shares rose with crude palm oil (CPO) prices.
The ringgit strengthened against a weaker US dollar and as crude oil prices rose. At 5pm, the KLCI closed at 1,615.67, led by Tenaga shares' 28 sen or 2.11% gain at RM13.54.

Meanwhile, plantation shares including KLCI components Kuala Lumpur Kepong Bhd (KLK) and Sime Darby Plantation Bhd, finished up as CPO prices stayed above RM3,000 a tonne.
KLK finished up 30 sen or 1.21% at RM25.10, while Sime Darby Plantation was up 10 sen or 1.83% at RM5.56. 

Bloomberg reported CPO advanced to trade near its highest in almost three years, with firmer petroleum and soyoil underpinning the market. At Bursa, palm oil for March 2020 was traded up 0.4% at RM3,084 a tonne at 3:08pm, Bloomberg said.

On the KLCI at 5pm, Public Investment Bank Bhd technical analyst Lee Siao Ping told theedgemarkets.com that the KLCI showed a "bullish turnaround", after rising above the 1,610 resistance level.

"Should the benchmark index remain above the 1,610 level in a short term, it will have a higher tendency to go higher. 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 2.34 billion shares, worth RM1.64 billion. Top gainers include KLK, Sarawak Oil Palms Bhd and IJM Plantations Bhd.

In currency markets, the ringgit strengthened to 4.1070 against the US dollar at the time of writing, amid higher crude oil prices. The ringgit tracks crude oil prices due to Malaysia being a net exporter of the commodity.

Reuters reported global benchmark Brent crude was up 0.31% at US$68.37 per barrel, while U.S. West Texas Intermediate crude added 0.13% to US$61.80, reversing an earlier decline.

"A broad gauge of Asian share markets rose to an 18-month high on Monday as Chinese equities gained, while oil touched three-month highs on a combination of U.S. crude inventory drawdowns, trade optimism and unrest in the Middle East," Reuters said.



Source: The Edge

Market Daily Report: FBM KLCI ends higher on window-dressing activities

KUALA LUMPUR (Dec 23): The FBM KLCI rose to close four points or 0.25% higher on Monday amid thin volumes, buoyed mainly by foreign buying of stocks as part of year-end window-dressing activities.

The benchmark index finished well above its 1,600 psychological level at 1,614.18 at 5pm today, despite retreating from Friday's sharp gains earlier in the day to touch a low of 1,601.23.

Hong Leong Bank Bhd led component stocks with a 2.09% gain, followed by MISC Bhd at 1.91% and Malaysia Airports Holdings Bhd at 1.84%. Meanwhile, decliners included IOI Corp Bhd and PPB Group Bhd, which closed down 4.56% and 0.7% respectively.

Market breadth was positive with more gainers than losers at 432 versus 424 at the end of today's trading session. Total turnover stood at 1.96 billion shares worth RM1.45 billion, versus 2.17 billion shares, worth RM2.39 billion, traded last Friday.

 

The counters with most shares traded today were oil and gas stocks, namely Bumi Armada Bhd and Sapura Energy Bhd.

Meanwhile, Brahim's Holdings Bhd, although closing only half a sen higher at 32.5 sen, saw 36.63 million of its shares traded on news that the company had signed a heads of agreement (HoA) with frozen food manufacturer MRI VC Bhd for the latter to acquire a substantial stake in the former.
When contacted, Inter-Pacific Securities Sdn Bhd research head Pong Teng Siew attributed the gain in the benchmark index to gains in financial stocks, besides other energy and consumer product counters.

"It would appear that foreigners are doing their buying in the last couple of trading days for the year, which goes to explain the index gain despite the fall in other stocks across the bourse," he explained.
Asian markets idled on Monday as trading volumes weakened ahead of the Christmas holiday break, Reuters reported.

The Hong Kong Hang Seng Index rose 0.13% while South Korea's Kospi finished 0.02% lower, and Japan's Nikkei 225 was up 0.02% at market close.

However, in China, the Shanghai Stock Exchange Composite Index lost 1.4%, its worst single-day drop in six weeks, weighed down by a correction in tech shares after the National Integrated Circuitry Investment Fund planned to cut its stakes in some of these companies, while focus remained on the Sino-US trade deal.

Bursa Malaysia remains open for trading tomorrow (Dec 24) before closing for a day only on Dec 25 in conjunction with Christmas Day.



Source: The Edge

Market Daily Report: Window dressing activities push KLCI to close at four-month high of 1,610.18

KUALA LUMPUR (Dec 20): After hovering below the 1,600 psychological level for a month, the FBM KLCI today closed 14.46 points or 0.91% higher, mainly supported by window dressing activities.

At 5pm, the KLCI closed at an intraday high of 1,610.18 points, the highest in almost four months — surpassing the 1,610 resistance level at the 11th hour.

Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng told theedgemarkets.com that the run-up was largely due to window dressing.

"As expected, with less than ten business days until the year-end, that (gains in the KLCI today) would be due to window-dressing," Wong said. 

 

Going forward, he is also expecting rotational play involving the large-caps or index-linked counters as sentiments begin to improve, with positive development from the trade truce between the US and China, and Brexit.

Among the 30 component stocks, PPB Group Bhd led the top gainers, followed by Petronas Gas Bhd (PetGas) and IOI Corp Bhd.

PPB closed RM1.06 or 5.61% higher at RM19.96 today. PetGas was up 84 sen or 5% to close at RM17.64, while IOI Corp grew 22 sen or 4.78% to settle at RM4.82.

Today, Bursa Malaysia saw 2.17 billion shares, worth RM2.39 billion, traded. Gainers led losers by 385 to 356, while 447 counters remained unchanged.

Across in Asia, Japan's Nikkei 225 dropped 0.2%, South Korea's Kospi grew 0.35% while Hong Kong's Hang Seng was up 0.25%.

Reuters reported that Asian shares snoozed near 18-month highs on Friday as trade thinned just before Christmas and investors seemed content to digest the chunky gains already made so far this month.

Sentiment had been bolstered after US Treasury Secretary Steven Mnuchin said the US and China would sign their Phase One trade pact in early January, the newswire wrote, adding that Mnuchin said it was completely finished and just undergoing a technical "scrub", though Beijing has so far dodged all details of the deal.

The US House of Representatives also overwhelmingly approved a new North American deal that leaves US$1.2 trillion in annual US-Mexico-Canada trade flows largely intact, Reuters added.



Source: The Edge

Market Daily Report: KLCI drifts lower on profit taking after Trump's impeachment

KUALA LUMPUR (Dec 19): The FBM KLCI drifted lower today on profit taking, amid fears of a more uncertain outlook following the impeachment of US President Donald Trump.

At the 5pm closing bell, the KLCI was down 0.21% or 3.39 points at 1,595.72. Rakuten Trade Sdn Bhd vice president of equity research Vincent Lau told theedgemarkets.com that the profit taking came after the strong surge in the benchmark index on Wednesday, which saw it climbed 1.41% or 22.16 points higher to close at 1,599.11.

He also attributed the sluggish performance seen in the KLCI today to the impeachment of Trump, which has cast more uncertainties on outlook. Nevertheless, he said the KLCI should still end the year at no less than 1,600, after factoring in the usual year-end window dressing initiatives.

Trading volume declined to 2.11 billion shares worth RM1.7 billion from yesterday's 2.5 billion shares worth RM2.03 billion. Market breadth was negative with 538 decliners compared with 262 gainers, while 425 counters traded unchanged. 

 

The top decliners included IHH Healthcare Bhd, Fraser & Neave Holdings Bhd, Lebtech Bhd, Inari Amertron Bhd and Petronas Gas Bhd. Inari also topped the actives list, together with Priceworth International Bhd, KNM Group Bhd, Ekovest Bhd and Yong Tai Bhd.

The gainers, meanwhile, included Nestle (M) Bhd, Dutch Lady Milk Industries Bhd, PPB Group Bhd, Carlsberg Brewery Malaysia Bhd and Heineken Malaysia Bhd.

Elsewhere in Asia, Japan's Nikkei 225 fell 0.29% and Hong Kong's Hang Seng was down 0.30%. While South Korea's Kospi edged up 0.08%.

Reuters reported that Asian shares pulled back from a one-and-a-half year peak on Thursday as investors booked profits ahead of the holidays and awaited further data on the state of the global economy.

Investors were also watching proceedings in Washington where the Democrat-led US House of Representatives voted to impeach Republican's Trump for abuse of power and obstruction of Congress.



Source: The Edge

Market Daily Report: FBM KLCI climbs following trade war clarity

KUALA LUMPUR (Dec 18): The FBM KLCI closed 1.41% or 22.16 points higher today at 1,599.11 points, together with some Southeast Asian peers, following the recent de-escalation in trade tensions between the US and China.

IHH Healthcare Bhd, Maxis Bhd and Malaysia Airports Holdings Bhd contributed to the rise in the local benchmark.

A total of 2.5 billion shares worth RM2.03 billion were traded across the local bourse today, with 382 counters registering gains while 389 counters declined; 481 counters closed unchanged.

Reuters wrote that Southeast Asian financial markets saw gains today, with Thailand leading the charge, after a recent run of upbeat data helped calm recession fears, while "phase-one" of a Sino-US trade deal has given some clarity to investors over their global outlook.

Besides the Thai index, where the climb was underpinned by gains in energy stocks amid firmer overnight oil prices, the news agency noted that Indonesian stocks were set to extend gains for a fourth consecutive session while Singapore tracked broader peers higher following upbeat US housing and manufacturing data. The Philippine benchmark, however, dipped after the central bank signalled further rate cuts amid flagging growth and lean global demand.

In a 2020 strategy note on Tuesday, TA Securities Head of Research Kaladher Govindan said the de-escalation in trade tensions between the two largest economies in the world is a good way to usher in 2020, while an expected recovery and stability in commodity prices will add to market optimism in 2020.

Asia Pacific bourses, however, were mixed. The Shanghai Composite index closed 0.18% or 5.38 points lower at 3,017.04 points, while Hong Kong's Hang Seng Index registered a gain of 0.15% or 40.50 points to 27,884.21 points.

South Korea's Kospi closed 0.04% or 0.92 points lower at 2,194.76 points, while the Nikkei 225 declined 0.55% or 131.69 points at 23,934.43 points.



Source: The Edge

Market Daily Report: KLCI drops on renewed trade worries

KUALA LUMPUR (Dec 16): Malaysian stocks closed lower today, ending a three-day streak of gains, on renewed worries about the phase one trade deal between the US and China.

At 5pm, the FBM KLCI closed 1.81 points or 0.12% lower at 1,569.35. The market has been trading in the range of 1,565.59 to 1,573.41.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong said the KLCI started the week off on a weak note after lingering mostly in the negative territory for the entire trading session today amid fresh worries surrounding the phase one trade deal.

"The decline today was also partially due to the persistent selling from foreign funds, which marks the sixth consecutive week," Leong told theedgemarkets.com, adding that this could be due to the weaker ringgit. 

 

He added that there were also "mild signs of profit-taking" activities.

Among the 30 component stocks of the KLCI, the top three laggards were Hartalega Holdings Bhd, Dialog Group Bhd and Malaysia Airports Holdings Bhd (MAHB).

Hartalega closed eight sen or 1.54% lower at RM5.10 today, while Dialog fell four sen or 1.16% to close at RM3.40 and MAHB closed seven sen or 0.93% lower at RM7.48.

Trading volume fell to 2.29 billion shares worth RM1.77 billion compared with Friday's 2.94 billion shares worth RM2.51 billion. Losers led gainers by 453 to 376, while 404 counters remained unchanged.

Across Asia, Japan's Nikkei 225 dropped 0.29%, South Korea's Kospi fell 0.1% while Hong Kong's Hang Seng was down 0.65%.

Reuters reported that Asian shares moved higher on Monday as investors welcomed a trade agreement between Beijing and Washington over the weekend, but enthusiasm was capped by lingering scepticism about the deal and ongoing relations between China and the US.
US Trade Representative Robert Lighthizer on Sunday (Dec 15) said a deal was "totally done", notwithstanding some needed revisions, and would nearly double US exports to China over the next two years, said the newswire.

The phase one agreement suspended a threatened round of US tariffs on a US$160 billion list of Chinese imports that was scheduled to take effect on Sunday, said Reuters, adding that the US also agreed to halve the tariff rate, to 7.5%, on US$120 billion worth of Chinese goods.

China will purchase the US goods in exchange for the delay of US tariffs on Chinese goods originally scheduled to take effect on Dec 15 and the reduction of some existing tariffs, but officials in Beijing have been vague about the size of these purchases, the report added.

Market Daily Report: Malaysian stocks end week on positive note

KUALA LUMPUR (Dec 13): Malaysian stocks ended the week on a positive note today in line with regional markets as the US delayed a planned increase in its tariff on billions worth of Chinese-made goods.

The FBM KLCI closed up for the third consecutive day, gaining 3.82 points or 0.24% to settle at its intraday low of 1,571.16. The market was trading between 1,571.16 and 1,579.23 points throughout the day.

The top gainers on Bursa Malaysia were lead by Petronas Gas Bhd (+54 sen to RM16.94), Batu Kawan Bhd (+40 sen to RM17) and United Plantations Bhd (+38 sen to RM26.18). The top three laggards were Nestle Malaysia Bhd (-80 sen to RM144.60), Malaysia Airports Holdings Bhd (-34 sen to RM7.55) and QL Resources Bhd (-33 sen to RM7.55).

Trading volume increased to 2.94 billion shares worth RM2.51 billion compared with yesterday's 2.49 billion shares worth RM2.12 billion. Market breadth was positive with 425 gainers versus 368 losers, while 454 counters were unchanged.

According to Reuters, Southeast Asian shares were lifted today in response to the US agreeing to reduce existing tariffs on Chinese goods and delaying Sunday’s scheduled tariffs. Quoting sources, Reuters reported that China agreed to buy US$50 billion in US agricultural goods in 2020.

The Shanghai Composite Index posted a gain of 1.78% at 2,967.68 points. Meanwhile, Hong Kong’s Hang Seng index ended the day 2.57% higher at 27,687.76 points.

South Korea’s Kospi closed 1.54% higher at 2,170.25 points, while Japan's Nikkei 225 saw a 2.55% gain to 24,023.10 points.



Source: The Edge

Market Daily Report: FBM KLCI continues with marginal gains after US Fed maintains interest rates

KUALA LUMPUR (Dec 12): The FBM KLCI saw marginal gains continue today, rising 0.29% or 4.15 points after the US Federal Reserve decided to maintain interest rates.

As of 5pm, the local benchmark index closed 0.29% or 4.15 points higher at 1,567.34 points.
Rakuten Trade Research vice-president Vincent Lau attributes the modest rise in the stock market partly to the decision to keep interest rates steady.

“Another reason could be bargain hunting as well, with today’s performance in line with regional markets,” he told theedgemarkets.com.

Petronas Gas Bhd, Petronas Dagangan Bhd and MISC Bhd lead the index, while laggards included Malaysia Airports Holdings Bhd (MAHB), RHB Bank Bhd and IHH Healthcare Bhd.

Across Bursa Malaysia, some 2.49 billion shares worth RM2.12 billion were traded. 381 counters saw gains, 399 counters declined while 456 counters remained unchanged.

Top actives included Eco World Development Group Bhd, Sapura Energy Bhd and Ekovest Bhd. The top gainers were PetGas, Malaysian Pacific Industries Bhd and PetDag. The top losers were United Plantations Bhd, MAHB and British American Tobacco (M) Bhd.

According to Reuters, most Southeast Asian markets rose after the US Federal Reserve signalled interest rate would remain steady amid positive projections for the US economy, even as the weekend deadline for US tariffs on Chinese goods on Sunday draws closer.

The US’ moderate economic growth and historically low unemployment are expected to continue through next year’s presidential election and interest rates would remain accommodative.
US President Donald Trump is expected to meet with top trade advisers today to discuss the scheduled December 15 tariffs on some US$160 billion worth of Chinese goods, sources told Reuters.

CNBC.com reported that the Fed will be keeping the median rate steady at 1.6% to 2020, but noted that it is set to increase to 1.9% in 2021.

The Shanghai Composite Index posted a decline of 0.30% or 8.72 points at 2,915.70 points. Meanwhile, Hong Kong’s Hang Seng Index closed marginally higher, registering a 1.31% or 348.71 points to 26,994.14 points.

South Korea’s Kospi also posted a marginal gain of 1.51% or 31.73 points at 2,137.35 points, with the Nikkei 225 in Japan also posting a marginal gain, rising 0.14% or 32.95 points to 23,424.81 points.



Source: The Edge

Market Daily Report: Marginal gain on FBM KLCI as attention back on Sino-US trade war

KUALA LUMPUR (Dec 10): The FBM KLCI ended the trading day on a higher note today, posting a gain of 0.09% as bargain hunting and positive news flow on scheduled US tariffs on Chinese goods swayed investors.

Upon the ring of the closing bell, the local benchmark index closed 1.4 points higher at 1,563.19 points.

According to Rakuten Trade Research vice-president Vincent Lau, some bargain hunting emerged amid hopes that the scheduled tariff hike might be postponed.

"On top of that, regionally there are more green movements than red, and this could be a reaction to (news) reports suggesting that scheduled US tariffs on Chinese goods would be delayed," said Lau. Constituent stocks that saw gains today were Petronas Dagangan Bhd, IHH Healthcare Bhd and Press Metal Aluminium Holdings Bhd. Meanwhile, the laggards of the local benchmark index were Sime Darby Bhd, Tenaga Nasional Bhd and Genting Malaysia Bhd.

Overall, some 2.37 billion shares worth RM1.71 billion were traded across Bursa Malaysia, with 405 counters posting gains, 357 counters posting declines and 420 counters remaining unchanged at the end of the trading day.

Reuters reported that most Southeast Asian markets today were subdued, ahead of the looming tariff deadline for Chinese imports entering the US.

This is despite reports indicating that both Chinese and US trade negotiators are laying the groundwork to delay the fresh US tariffs, which left untouched would come into force on Dec 15 (this Sunday).

Officials from both sides have indicated that this Sunday is not the final date to reach "phase-one" of the deal, as stated in a Wall Street Journal report. However, US President Donald Trump is set to increase tariffs on US$165 billion of Chinese goods come Sunday.

Investors are now suspecting that if Sunday's tariffs are delayed, it could take up to next year before a preliminary deal between the two economic powers is ironed out.

Moreover, markets are awaiting comments from the Federal Reserve's policy meeting, which ends today.

The Shanghai Composite Index gained 0.24% or 7.1 points to 2,924.42 points, while the Hang Seng Index rose 0.79% or 208.81 points to 26,645.43 points.

The Kospi ended the day 0.36% or 7.62 points higher at 2,105.62 points while the Nikkei 225 closed 0.08% or 18.33 points lower at 23,391.86 points.



Source: The Edge

Market Daily Report: FBM KLCI falls as anxieties rise amid tariff uncertainties

KUALA LUMPUR (Dec 10): The FBMKLCI ended the day down 0.06% or 0.92 point lower at 1,561.79, tracking regional markets, as investors become anxious about whether the additional US tariffs on Chinese goods, scheduled to be imposed on Dec 15, will be implemented.

When contacted, Rakuten Trade Research vice-president Vincent Lau told theedgemarkets.com that the decline seen in the local benchmark index was in line with regional markets. “Regional markets were also down today, this is because of worries over uncertainties over US tariffs on Chinese imports,” he said.

Some 2.66 billion shares worth RM1.51 billion were traded across Bursa Malaysia today. A total of 407 counters declined versus 346 that climbed, while 426 counters were unchanged.

The top three most active counters on the local bourse were JAKS Resources Bhd, Sanichi Technology Bhd and TDM Bhd, while top gainers were led by Panasonic Manufacturing Malaysia Bhd, Petronas Dagangan Bhd and Heineken Malaysia Bhd. The top losers' list, on the other hand, were led by Dutch Lady Milk Industries Bhd, Hong Leong Industries Bhd and Kuala Lumpur Kepong Bhd.

According to Reuters, most Southeast-Asian markets saw declines today, as uncertainty surrounding the Dec 15 deadline for fresh US tariffs on Chinese imports looms.

If US President Donald Trump decides to maintain the tariffs, some US$156 billion worth of Chinese goods entering the US will be slapped with tariffs come Sunday (Dec 15).

That being said, both the US and China have made efforts to reconcile their differences. Chinese officials have said that the middle kingdom hopes to make a trade deal as soon as possible, while Trump said the US is doing well in crafting an agreement with China.

Markets in China meanwhile saw mixed results as the Shanghai Composite saw gains, while Hong Kong’s Hang Seng declined. The first closed the trading day at 2,917.32 points, up 0.10% or 2.84 points higher, while the latter lost 0.22% or 58.11 points to end the day at 26,436.62 points.

South Korea’s Kospi was 0.45% or 9.35 points higher at 2,098 points, while Japan's Nikkei 225 finished the trading day 0.09% or 20.51 points lower at 23,410.19 points.



Source: The Edge

Market Daily Report: KLCI dragged by declines at Top Glove, TNB and banking stocks

KUALA LUMPUR (Dec 9): The FBM KLCI closed 0.37% or 5.73 points lower at 1,562.71 today, weighed down by Top Glove Corp Bhd and Tenaga Nasional Bhd (TNB), while banking constituents declined.

In particular, AMMB Holdings Bhd, Public Bank Bhd, RHB Bank Bhd, Hong Leong Bank Bhd and CIMB Group Holdings Bhd retreated. But plantation stocks climbed, noted Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng.

Some 2.62 billion shares worth RM1.62 billion crossed on the local bourse today, with the most actively traded counters being Tiger Synergy Bhd, Sanichi Technology Bhd and TDM Bhd.
Top gainers were Nestle Malaysia Bhd, Kuala Lumpur Kepong Bhd and Batu Kawan Bhd, while the biggest losers of the day were Sungei Bagan Rubber (Malaya) Bhd, Heineken Malaysia Bhd and TNB.

A total of 389 counters saw gains, while 421 counters recorded declines, and 417 counters were unchanged.

Reuters reported today that most Southeast Asian markets were subdued following weak Chinese export data, signalling weakness from the regional Asian economy, which has offset the positive Wall Street performance on the back of solid US jobs numbers.

Chinese exports, it noted, shrank for the fourth consecutive month, implying that the Sino-US trade war is taking a toll on the middle kingdom.

While some Asian markets did get some uplift from US equity indices, as investors reacted positively to a 10-month high in US job growth in November, uncertainty over the US-China trade war lingers as US President Donald Trump has yet to decide on whether to implement a new set of tariffs against Chinese goods entering the US that is set to come into force on Sunday (Dec 15), the news wire wrote.

The Shanghai Composite closed 0.09% or 2.46 points higher at 2,914.48 points, while Hong Kong’s Hang Seng saw a 0.01% decline to 26,494.73 points. Meanwhile, South Korea's Kospi gained 0.33% or 6.8 points to end at 2,088.65 points, while Japan’s Nikkei 225 rose 0.33% or 76.3 points to 23,340.7 points.



Source: The Edge

Market Daily Report: Malaysian stocks end higher on optimism of US-China trade deal

KUALA LUMPUR (Dec 6): Malaysian stocks closed higher today, after opening lower, as investors became optimistic on signs of the US and China striking a deal in their ongoing trade war.
The FBM KLCI closed 4.86 points or 0.31% higher at 1,568.44. The benchmark index was traded between 1,561.58 and 1,569.01 points today.

Hong Leong Investment Bank Bhd head of retail research Loui Low told theedgemarkets.com that the positive statements coming from both the US and China over the last two days have lifted the positive sentiment in the market.

He added that crude palm oil (CPO) prices hovering at above the RM2,800-level have also contributed to the gains in the benchmark index.

“Hopefully that the window dressing activities may sustain until the end of December,” said Low.
Reuters reported that Asian stocks gained on Friday as investors took heart from the US President Donald Trump saying trade talks with China were “moving right along”, and US oil prices sat near 2-1/2-month highs after the Organization of the Petroleum Exporting Countries and other producers agreed to cut output.

Trump’s upbeat tone in comments on Thursday was enough to spark buying, despite a lack of agreement between Washington and Beijing over whether existing tariffs should be dropped as part of a preliminary deal to end their trade war, the report added.

Investors were hoping that the two sides will reach a compromise to at least avoid their worst fears that the US will go ahead with its final batch of tariffs on about US$156 billion of Chinese exports.
Of the 30 components of the KLCI, Sime Darby Plantation Bhd was the top gainer, rising 13 sen or 2.52% to close at RM5.28.

Plantation stocks were among the day’s big gainers on the broader market, led by Kuala Lumpur Kepong Bhd which closed 46 sen or 1.94% higher at RM24.20, followed by United Plantations Bhd which rose 10 sen or 0.38% to settle at RM26.10.

Trading volume increased to 2.49 billion shares worth RM1.54 billion, compared with Thursday's 2.39 billion shares worth RM1.7 billion. Gainers led losers by 497 to 355, while 363 counters remained unchanged.

Across in Asia, Japan's Nikkei 225 rose 0.23%, South Korea's Kospi grew 1.02% while Hong Kong’s Hang Seng was up 1.07%.



Source: The Edge

Market Daily Report: FBM KLCI up, led by Sime Darby stocks

KUALA LUMPUR (Dec 5): The FBM KLCI closed 2.65 points or 0.17% higher today while Bursa Malaysia's palm oil plantation index rose by a significantly larger quantum after crude palm oil (CPO) prices rose past RM2,800 a tonne.

Globally, Malaysian shares tracked Asian equity gains on expectation the US and China may soon seal a phase one deal to end their 17-month trade war.

At Bursa, the KLCI closed up at 1,563.58, led by Sime Darby Bhd and Sime Darby Plantation Bhd share gains.

“On the broader market, we are seeing strong gains in the plantation sector after CPO prices rallied towards the RM2,800 per tonne mark on reports that stockpiles in Malaysia (could have headed) towards a two-year low and production falling to a five-month low in November,” Malacca Securities Sdn Bhd senior analyst Kenneth Leong said. 

 

Across Bursa today, 2.39 billion shares worth RM1.71 billion were traded. Gainers led losers by 529 to 305 respectively.

Among the KLCI's 30 component stocks, Sime Darby Bhd was the top percentage gainer after the stock closed up four sen or 1.74% at RM2.34 followed by Sime Darby Plantation Bhd which closed eight sen or 1.58% higher at RM5.15.

Bursa's palm oil plantation index finished up 645.71 points or 4.62% at 14,626.25 after CPO prices rose to RM2,808 a tonne today. CPO for Feb 2020 rose as much as RM35 to RM2,808 a tonne before paring gains at RM2,799 at 5:14pm.

Genting Plantations Bhd and KLCI component Kuala Lumpur Kepong Bhd (KLK) were among Bursa top gainers. KLK's share price closed up 20 sen or 0.85% at RM23.74.

Public Investment Bank Bhd analyst Chong Hoe Leong wrote in a note on Wednesday (Dec 4) that the research firm is overweight on the Malaysian plantation sector outlook with higher CPO price assumptions.

"Since our upgrade on the sector outlook in early-October, CPO futures have rallied by more than 27% to RM2,760/mt. We believe CPO prices may surpass RM2,800/mt level in the coming months due to tightening CPO supplies in the global markets.

"This will be a boon to all plantation companies after suffering from the poor CPO price performance over the last two years. We revise up our average CPO price assumption to RM2,600/mt (from RM2,400/mt previously). We also rerate the PE multiple for the respective plantation companies under our coverage to reflect the bullish sentiment," Chong said.



Source: The Edge

Market Daily Report: Trump's renewed tough trade and tariff rhetoric nudge benchmark down

KUALA LUMPUR (Dec 4): US President Donald Trump's renewed tough trade and tariff rhetoric nudged the FBM KLCI down 0.09% or 1.34 points to the 1,560.93 level.

Malacca Securities Head of Research Victor Wan told the theedgemarkets.com that Trump's trade tariff talk had affected both global and regional markets.

"There is a spillover from regional markets," he said, adding that recent corporate earnings had not been particularly encouraging either, leading to an absence of catalysts in the local stock market.
A total of 2.14 billion shares worth RM1.7 billion were traded across the bourse today. Top actives included Impiana Hotels Bhd, Mudajaya Group Bhd and Bumi Armada Bhd.

 Top gainers included IGB Bhd, Aeon Credit Service (M) Bhd and Tenaga Nasional Bhd. Among the top losers were Nestle (M) Bhd, Dutch Lady Milk Industries Bhd and Chin Teck Plantations Bhd.
According to Reuters, global markets have been spooked by Trump's comments that a prospective US-China trade deal would only possibly materialise after the 2020 US Presidential Election. In addition, US tariffs on Brazilian and Argentine aluminium and steel imports also cast a dark cloud on global equity markets, as did trade tensions between the US and France over potential US tariffs on French goods.

In regional markets, the Shanghai Composite fell by 6.58 points or 0.23% to 2,878.12 points while Hong Kong's Hang Seng declined by 328.74 points or 1.25% to 26,062.56 points.

South Korea's Kospi fell 0.73% or 15.18 points to 2,068.89 points, while Japan's Nikkei shrank 1.05% or 244.58 points to 23,135.23 points.



Source: The Edge

Market Daily Report: KLCI falls 8.28 points on foreign selling, new trade war concerns

KUALA LUMPUR (Dec 3): The FBM KLCI declined 8.28 points or 0.53% to close at 1,562.27 with Asian shares, after US President Donald Trump restored tariffs on steel and aluminum imports from Brazil and Argentina and as investors evaluated US factory data.

Trump's latest move on Brazil and Argentina added fresh global trade war concerns, amid the existing US-China dispute.

In Malaysia, fund managers said the KLCI declined today, possibly on foreign selling, as institutional investors rebalanced their Malaysian equity portfolios.

“It is the year-end, so may be foreign funds want to unwind certain positions. However, this might change later, once they have looked at the portfolios,” Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng told theedgemarkets.com.

 

The KLCI pared losses at 1,562.27 at 5pm market close, after falling to its intraday low at 1,556.17.
Across Bursa Malaysia at 5pm, 2.34 billion shares worth RM1.74 billion were traded. Top decliners included  Nestle (M) Bhd, Fraser and Neave Holdings Bhd and Hong Leong Financial Group Bhd.
Top gainers included Carlsberg Brewery Malaysia Bhd, VSTECS Bhd and IGB Bhd. Leading active stocks included Ekovest Bhd, PUC Bhd and Khee San Bhd.

Globally, Reuters reported most Southeast Asian stock markets on Tuesday tracked global equities lower, on concerns about weak US manufacturing data and signs of new fronts in the tariff scenario, posing an additional risk to the global economic outlook.

It was reported that a report from the Institute for Supply Management (ISM) showed US manufacturing activity contracted in November for the fourth consecutive month, stoking concerns that the longest period of economic expansion in US history could be losing steam.

It was reported that Trump said on Monday that he would restore tariffs on US steel and aluminium imports from Brazil and Argentina. "Trump's tariff threat overshadowed encouraging data from euro zone economies and China — Southeast Asia's biggest trading partner," Reuters reported.



Source: The Edge

Market Daily Report: KLCI ends 8.81 points up on technical rebound, China PMI

KUALA LUMPUR (Dec 2): The FBM KLCI closed up 8.81 points or 0.56% today on technical rebound and as prices of crude oil and global shares rose on news the Caixin/Markit Manufacturing Purchasing Managers' Index (PMI), which tracks China manufacturing activity, climbed to 51.8 in November 2019 from 51.7 in the previous month.

Reuters reported today that the PMI's November reading marks the fastest expansion in China manufacturing activity since December 2016.

At Bursa Malaysia today, the KLCI closed at its intraday high of 1,570.55 at 5pm. Analysts said the KLCI showed a technical rebound, after Friday's 22.03 point or 1.39% drop.

"Following last week's sharp correction, most technical indicators on the KLCI stayed oversold and signaled higher possibility for mild technical rebound upside this week. However, downside risks remain, with sustained foreign selling and renewed uncertainty over the ongoing trade dispute between Washington and Beijing, clouding the immediate term outlook," TA Securities Holdings Bhd wrote in a note today.

Across Bursa today, the exchange saw 2.04 billion shares, worth RM1.41 billion traded. Top gainers include Nestle (M) Bhd, Petronas Dagangan Bhd and Kuala Lumpur Kepong Bhd. Among Bursa indices, the energy gauge, which tracks oil and gas shares, closed up 12.27 points or 1.02% at 1,213.13.

Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew told theedgemarkets.com Malaysian stocks rebounded today, after declining last week on foreign selling.
“After this sell down, there is some rebound. Other factors include regional markets moving upwards as well,” he said.

Reuters reported global shares shuffled marginally higher on Monday to stand just short of the record peak struck in January 2018, with buyers encouraged by upbeat China manufacturing surveys and hopes China and the US will agree a preliminary trade deal.

In crude oil markets, it was reported that oil prices rose more than 1% on Monday, as signs of rising manufacturing activity in China pointed to increasing fuel demand, while hints OPEC may deepen output cuts at its meeting this week indicated supply may tighten next year.

"Brent crude futures rose 66 cents or 1.1% to US$61.15 a barrel by 0727 GMT. West Texas Intermediate (WTI) futures rose 75 cents or 1.4% to US$55.92 a barrel, having risen by more than US$1 earlier. On Friday (Nov 29), WTI futures settled 5.1% lower, while Brent plunged 4.4% on concerns that talks to end the trade war between the US and China, the world's two biggest oil users, would be disrupted by US support for protesters in Hong Kong," Reuters reported.



Source: The Edge