Market Daily Report: KLCI retreats on profit taking on final trading day of 2020

 

KUALA LUMPUR (Dec 31): The benchmark index at Bursa Malaysia fell 17.2 points or 1.05% to 1,627.21 points today, as investors took profit on the last trading day of 2020 prior to the extended New Year weekend.

Losers led gainers by 620 to 474, while 501 counters traded unchanged. Some 5.51 billion shares worth RM3.11 billion were traded today.

The losers list was topped by Fraser & Neave Holdings Bhd, which slid 60 sen or 1.84% to RM32.08, Nestle (M) Bhd, which fell 60 sen or 0.43% to RM138.9, and Kuala Lumpur Kepong Bhd, which dropped 52 sen or 2.15% to RM23.68.

Also on the losers list, at the 11th spot, was Sime Darby Plantation Bhd, which lost 18 sen or 3.48% to settle at RM4.99, following news that the United States has banned imports of palm oil from the group.

Meanwhile, Malaysian Pacific Industries Bhd, Toyo Ventures Holdings Bhd and BLD Plantation Bhd were among the top gainers. MPI rose RM1.08 or 4.34% to RM25.96, while Toyo Ventures again hit limit up after surging 39 sen or 30% to RM1.69. BLD Plantation advanced 30 sen or 3.75% to RM8.30.

The most actively traded stocks were led by AT Systematization Bhd, which saw 206.85 million shares traded; followed by Solid Automotive Bhd with a trading volume of 128.22 million shares and Iris Corp Bhd with 122.59 million shares done.

Rakuten Trade Sdn Bhd's head of research Kenny Yee said investors took profit after a year that saw the market climbing up too high and too fast.

“I believe market sentiment will improve on Monday, as local and foreign funds continue to flow into the blue chips,” he told theedgemarkets.com.

The only concern is the continued selling pressure on rubber glove companies, he said.

Most regional markets ended the year on a firmer note. Reuters reported China stocks rose to multi-year highs as investors cheered a Sino-Europe investment deal and Beijing’s policy support for its capital markets.

The Shanghai Stock Exchange Composite Index closed up 1.72% higher at 3,473.07 points; the Shenzhen Component Index also closed 1.89% higher at 14,470.68 points.

 

 

Source: The Edge

Market Daily Report: KLCI settles up after MSCI gauge climbs to record high

 

 

KUALA LUMPUR (Dec 30): The FBM KLCI closed up 9.42 points or 0.58% at 1,644.41 today after MSCI's gauge of Asia-Pacific shares climbed to a record high on world economic recovery bets in anticipation of continued global monetary and fiscal policy support. Fund managers’ portfolio window dressing is also seen contributing to Malaysian share gains.

Across Bursa Malaysia at 5pm, 7.82 billion securities were traded for RM3.65 billion.

"Stocks should return to base building mode to strengthen higher supports pending potential late window-dressing action ahead of the year-end,” TA Securities Holdings Bhd analysts wrote in a note today.

Globally, it was reported that Asian shares hit a record high on Wednesday with investors betting on a strong economic recovery next year, as there is little sign of policymakers winding back massive stimulus efforts aimed at staving off coronavirus-fuelled downturns.

It was reported that MSCI's gauge of Asia-Pacific shares excluding Japan rose 1.2% to hit a record high, led by gains in Chinese shares and bringing its gains so far this year to 18.9%.

"We think continued monetary and fiscal policy support means investors should take risk. Stocks will do better than bonds. Within bonds, corporate bonds should beat government bonds,” Reuters quoted Hiroshi Yokotani, head of Asia-Pacific fixed-income business at State Street Global Advisors, as saying.

A glance across Bursa today shows that notable gainers included Press Metal Aluminium Holdings Bhd and Toyo Ventures Holdings Bhd.

KLCI constituent Press Metal’s share price closed up 50 sen or 6.25% at RM8.50 while Toyo Ventures hit limit up after its share price rose 30 sen or 30% to RM1.30.

 

Source: The Edge

Market Daily Report: FBM KLCI closes higher on better-than-expected November exports data, US fiscal stimulus

 

KUALA LUMPUR (Dec 28): The FBM KLCI today closed 2.73 points or 0.17% higher after the extended Christmas weekend, following the release of the country's better-than-expected November export figures. At 5pm, the local benchmark index closed at 1,643.9 points.

Besides the November export figure — which rose for the third straight month and was up 4.3% year-on-year — progress on the US fiscal stimulus aid also lifted the benchmark index, according to Rakuten Trade Research vice president Vincent Lau.

Reuters reported that US President Donald Trump signed a US$2.3 trillion financial aid and spending bill after initially refusing to approve the legislation, which restores unemployment benefits to millions and averts a partial federal government shutdown.

At the same time, Europe has launched a mass Covid-19 vaccination drive on Sunday, while vaccinations have also begun in Britain and the United States, raising hope that major economies can shake off the drag caused by the spread of the coronavirus, the newswire added.

Among the 30 component stocks, the top gainer was MISC Bhd, which rose 22 sen or 3.38% to close at RM6.72 today. This was followed by Sime Darby Bhd, which closed six sen or 2.69% higher at RM2.29, and CIMB Group Holdings Bhd, which rose 11 sen or 2.63% to RM4.30.

Top losers, on the other hand, were the glove makers, namely Supermax Corp Bhd (down 42 sen or 6.17% to close at RM6.39), Top Glove Corp Bhd (down 23 sen or 3.54% at RM6.26) and Hartalega Holdings Bhd (down 12 sen or 1.12% at RM12.46).

Today, Bursa Malaysia saw 8.71 billion shares, worth RM3.9 billion, traded. Gainers led laggards by 701 to 549, while 407 counters remained unchanged.

Across Asia, Japan's Nikkei 225 grew 0.74% and South Korea's Kospi increased by 0.06%, while Hong Kong’s Hang Seng fell 0.27%.

 

 

Source: The Edge

Market Daily Report: KLCI snaps four-day losing streak on bargain hunting

KUALA LUMPUR (Dec 23): The FBM KLCI snapped a four-day losing streak on bargain hunting today, in line with gains in regional markets.

The index ended the day 0.95% or 15.58 points higher at 1,647.5, reversing almost all of yesterday’s losses.

After opening 0.37 points lower at 1,631.55, the KLCI declined further to 1,627.53 before rebounding to positive territory as bargain-hunting emerged. 

MIDF's head of research Imran Yassin Md Yusof said the market was calmer today after the knee-jerk reaction to news of a new more transmissible variant of the Covid-19 virus in the UK, which had dented market sentiment globally.

The KLCI’s recovery today was mainly due to bargain hunting, he told theedgemarkets.com when contacted.

On the broader market, 841 counters finished higher versus 349 losers, while 446 others were unchanged. 

A total of 6.31 billion securities worth RM3.41 billion were traded, which is lower compared with 7.84 billion securities traded at a total value of RM4.12 billion yesterday.

Heavyweights that helped push up the KLCI today included Genting Bhd (up 22 sen or 5.1% at RM4.53) and Genting Malaysia Bhd (up eight sen or 3.07% at RM2.69).

Index-linked banking stocks also rose after declining yesterday. CIMB Group Holdings Bhd gained nine sen or 2.18% to RM4.21, RHB Bank Bhd rose six sen or 1.11% to RM5.46, Malayan Banking Bhd added nine sen or 1.07% to RM8.49, Public Bank Bhd climbed 14 sen or 0.68% to RM20.60 and Hong Leong Bank Bhd increased four sen or 0.22% to RM18.52.

The day’s top gainers were Hengyuan Refining Co Bhd, KPower Bhd, Carlsberg Brewery Malaysia Bhd and Greatech Technology Bhd.

The top decliner was KESM Industries Bhd, which fell 98 sen or 7.38% to RM12.30. Other decliners included Petronas Gas Bhd (down 18 sen or 1.03% to RM17.30) and Supermax Corp Bhd (down 13 sen or 1.84% to RM6.92).

The actives list was led by Techna-X Bhd (formerly known as Sino Hua-An International Bhd) for the second day running. It closed up half a sen at 15 sen. 

Other actively-traded stocks included FGV Holdings Bhd, Jiankun International Bhd, AirAsia X Bhd, Scope Industries Bhd, Lion Industries Bhd, WMG Holdings Bhd and Bintai Kinden Corp Bhd.

Elsewhere in Asia, Japan's Nikkei 225 rose 0.33%, while Seoul's Kospi gained 0.96%. In China, Hong Kong’s Hang Seng Index climbed 0.86% while the Shanghai Stock Exchange Composite Index closed up 0.76%.

CNBC reported that stocks in Asia were higher despite US President Donald Trump expressing concerns with the new Covid-19 relief package.

 

 

Source: The Edge

Market Daily Report: KLCI drops 0.97% on Covid-19 fears, continued profit taking

 

 

KUALA LUMPUR (Dec 22): The FBM KLCI ended almost 1% lower today on continued profit taking, as sentiment remained jittery on concern over the resurgence of Covid-19 cases.

The benchmark index stayed in negative territory throughout the trading session. It closed 0.97% or 15.97 points down at 1,631.92 after hitting an intra-day low of 1,625.39.

TA Securities Holdings Bhd senior technical analyst Stephen Soo told theedgemarkets.com that worries over a new strain of Covid-19 in Europe affected market sentiment.

He added that the downtrend was also due to profit taking in recovery play on technology, banking and tourism-related stocks.

On the broader market, 1,046 counters finished lower versus 251 gainers, while 395 others were unchanged.

A total of 7.84 billion securities were traded at a total value of RM4.12 billion.

The heavyweights that dragged the KLCI included Genting Malaysia Bhd (down 15 sen or 5.43% at RM2.61) and Genting Bhd (down 24 sen or 5.27% at RM4.31).

Index-linked banking stocks were under selling pressure as well. CIMB Group Holdings Bhd fell 18 sen or 4.19% to RM4.12, Hong Leong Financial Group Bhd fell 3.53% or 64 sen to RM17.50, Public Bank Bhd fell 20 sen or 0.97% to RM20.46, Malayan Banking Bhd fell eight sen or 0.94% to RM8.40 and RHB Bank Bhd fell four sen or 0.74% to RM5.40.

On the other hands, heavyweight glove counters were steadier with Top Glove Corp Bhd closing up seven sen or 1.06% at RM6.69, Hartalega Holdings Bhd up 10 sen or 0.8% at RM12.60 and Supermax Corp Bhd up 16 sen or 2.32% at RM7.05.

Top decliners included Carlsberg Brewery Malaysia Bhd, Heineken (M) Bhd, Dutch Lady Industries Bhd, British American Tobacco (Malaysia) Bhd and Panasonic Manufacturing Malaysia Bhd.

The top active stock was Techna-X Bhd (formerly known as Sino Hua-An International Bhd), which saw 345 million shares traded. It closed down two sen at 14.5 sen.

Other actively-traded stocks included Bintai Kinden Corp Bhd, Iris Corp Bhd, Vivocom Intl Holdings Bhd, Kanger International Bhd, Yong Tai Bhd, XOX Bhd and Borneo Oil Bhd.

Meanwhile KESM topped the gainers list, closing up 78 sen or 6.24%. This was followed by Nestle (M) Bhd (+0.36%), Greatech Technology Bhd (+4.83%) and Batu Kawan Bhd (+1.13%).

Elsewhere in Asia, shares widened losses, extending a pullback from multi-year highs hit last week on fears a highly infectious new strain of Covid-19 that hit Britain could lead to a slower global economic recovery.

Japan's Nikkei 225 fell 1.04% to close at 26,436.39, while Seoul's Kospi tumbled 1.62% to 2,733.68. In China, Hong Kong’s Hang Seng Index fell 0.71% to 26,119.25, while the Shanghai Stock Exchange Composite Index closed down 1.86% at 3,356.78.

 

Source: The Edge

Market Daily Report: KLCI slips 1.31% as investing sentiment sours amid CMCO extension

 

KUALA LUMPUR (Dec 18): The FBM KLCI slipped 1.31% or 21.86 points today, tracking declines in regional peers, while news of the conditional movement control order being extended weighed on domestic investing sentiment.

The benchmark index settled at 1,652.49, with 852 counters in the negative versus 370 that climbed, while 474 were unchanged.

Senior Minister Datuk Seri Ismail Sabri Yaakob announced today that the CMCO will be extended in Selangor, Kuala Lumpur and Sabah till Dec 31, as Covid-19 infections in these places remain elevated. This is the fourth extension of the CMCO that was first imposed on Oct 14 and originally scheduled to end on Oct 27.

The CMCO was also extended till Dec 31 in Seremban and Port Dickson in Negeri Sembilan, and in Johor Bharu, Batu Pahat and Kulai in Johor.

TA Securities Holdings Bhd senior technical analyst Stephen Soo told theedgemarkets.com that window-dressing activities were absent following news about the CMCO extension, which weighed on the sentiment.

Moving onto next week, he expects the benchmark index to continue pulling back ahead of the Christmas holiday week. “Key support for the KLCI will be at 1,590, followed by 1,615, while the immediate resistance is 1,695 and 1,680,” Soo added.

Banking stocks were among the top decliners today, with Public Bank Bhd in the lead after dropping 4% or 86 sen to close at RM20.64. RHB Bank Bhd also fell 2.9% or 16 sen at RM5.39, while Malayan Banking Bhd dropped 2.8% or 24 sen to RM8.46. Also in the decline were Hong Leong Bank Bhd (down 12 sen or 0.6% to RM18.58) and CIMB Group Holdings Bhd (down two sen or 0.5% to RM4.38).

Other top decliners (by value) included Carlsberg Brewery Malaysia Bhd, Hengyuan Refining Co Bhd, Petron Malaysia Refining & Marketing Bhd and Malaysia Airports Holdings Bhd.  

Across Bursa Malaysia, trading volume fell to 8.06 billion units from 9.24 billion shares yesterday, while trading values saw a slight improvement to RM4.4 billion from RM4.33 billion.

Meanwhile, consumer products and services related companies Nestle (M) Bhd, Fraser and Neave Holdings Bhd and British American Tobacco (M) Bhd as well as technology stocks Unisem (M) Bhd and Malaysian Pacific Industries Bhd were among the top gainers today.

The actives, on the other hand, were led by Vsolar Group Bhd, which topped the list after 397.99 million shares were traded. The stock closed half a sen higher at 4.5 sen. Other actively traded stocks included Techna-X Bhd (formerly Sino Hua-An International Bhd), Hiap Teck Ventures Bhd, MNC Wireless Bhd, Puncak Niaga Holdings Bhd, Bintai Kinden Corp Bhd and PA Resources Bhd.

Elsewhere in Asia, Japan's Nikkei 225 fell 0.16 %, while Seoul's Kospi inched up 0.06%. In China, Hong Kong’s Hang Seng Index sank 0.67%, while the Shanghai Stock Exchange Composite Index inched down 0.29%.

Reuters reported that Asian stocks fell slightly on Friday, failing to catch a broader global rally, as investor mood in the region shifted to caution about the economic outlook and as post-Brexit worries weighed.

 

 

Source: The Edge

Market Daily Report: FBM KLCI snaps two-day gaining streak on profit-taking

 

 

KUALA LUMPUR (Dec 17): The FBM KLCI finished 0.42% or 7.06 points lower today at 1,674.35, snapping a two-day gaining streak.

The retreat today was largely on account of declines in Hong Leong Financial Group Bhd, Petronas Dagangan Bhd and RHB Bank Bhd.

Rakuten Trade Research vice president Vincent Lau said the decline was on account of profit-taking and news about the uplifting of the short-selling ban come Jan 1 next year. "It is likely a reaction due to lifting of the ban yesterday, combined with profit-taking activities," he said.

Across the local bourse, decliners dominate with 666 counters dropping versus 422 that saw gains, while 601 went unchanged.

Top actives were Sapura Energy Bhd, Sino Hua-An International Bhd and Bumi Armada Bhd. Top gainers were Kuala Lumpur Kepong Bhd, UWC Bhd and Ralco Bhd. Fraser & Neave Holdings Bhd, Nestle Malaysia Bhd and Carlsberg Brewery Malaysia Bhd were the biggest losers today.

In terms of trading volume, 9.24 billion shares worth RM4.33 billion were traded.

The local benchmark index also swam against the current today, as other key regional indices had posted gains.

The Shanghai Composite was up by 1.13% or 37.89 points at 3,404.87, while the Hong Kong's Hang Seng finished 0.82% or 218.09 points higher at 26,678.38. The Nikkei 225 in Japan was up by 0.18% or 49.27 points at 26,806.67. As for South Korea's Kospi, it dipped  0.05% or 1.36 points to 2,770.43.

Reuters reported that for the most part, stocks worldwide saw gains today as monetary support and hopes of fiscal stimulus in the US gave rise to a festive cheer. “US Federal Reserve Chairman Jerome Powell vowed on Wednesday to keep pouring cash into markets until the US economic recovery is secure,” it wrote.

 

Source: The Edge

Market Daily Report: FBM KLCI rides on overnight Wall Street gains, December window dressing

 

KUALA LUMPUR (Dec 16): The FBM KLCI extended its gain for the second day running, tracking uptrends in regional bourses thanks to positive market sentiment emanating from the overnight surge on Wall Street and supported by ongoing window-dressing activities as well as Budget 2021 being approved by the Dewan Rakyat yesterday.  

At 5pm, the FBM KLCI closed 0.44% or 7.39 points higher at 1,681.41, after moving between 1,679.39 and 1,695.87.

Across Bursa Malaysia today, the sentiment was positive with 830 gainers versus 453 decliners, while 458 counters were unchanged. A total of 11.22 billion securities were traded for RM5.18 billion, higher compared to 9.96 billion units worth RM5.09 billion recorded yesterday.

Reuters reported that Asian stocks were buoyant on Wednesday and the US dollar eased as hopes of effective coronavirus vaccines and the growing prospect of more US fiscal stimulus cheered investors ahead of the Christmas holiday season.

The fresh optimism over the US stimulus package pushed Wall Street higher with the Nasdaq charting a record high as it closed up 1.25% or 155.02 points at 12,595.06, and the Dow Jones Index jumped by 337.76 points or 1.13% to close at 30,199.31.

Elsewhere in Asia, Japan's Nikkei 225 rose 0.26%, while Seoul's Kospi gained 0.54%. In China, Hong Kong’s Hang Seng Index added 0.97%, while the Shanghai Stock Exchange Composite Index inched down 0.01%.

In Malaysia, remisier Jeffry Azizi Jaafar told theedgemarkets.com that the optimism in the local bourse was boosted by the overnight gains in the US markets.

He added that investors’ sentiments were also lifted by news of the lower House passing Budget 2021 yesterday. With the slew of positive news, he believed that investors' mood was also picked up by the year-end window-dressing activities, which he believes will bolster the KLCI’s performance until end-2020. 

The heavyweights that powered FBM KLCI included Top Glove Corp Bhd and Hartalega Holdings Bhd. 

Top Glove closed up 36 sen or 5.62% at RM6.77, on news that its chairman and Tropicana Corp continued to buy up the glove maker's shares. Meanwhile, Hartalega rose 46 sen or 3.84% to close at RM12.44. Both counters were among Bursa’s top ten gainers today.

The positive sentiment also spilt over to other blue chips, such as Genting Bhd and Genting Malaysia Bhd (GenM), which continued their upward momentum and closed at their nine-month highs.

Genting closed up four sen or 0.83% at RM4.84, while GenM closed two sen or 0.71% higher to at RM2.83.

Consumer products and services counters, such as Nestle (M) Bhd, Carlsberg Brewery Malaysia Bhd, Heineken (M) Bhd and Fraser and Neave Holdings Bhd, continued to dominate Bursa’s gainers list.

For actively traded stocks, Sino Hua-An International Bhd appeared on the top again, albeit having a lower trading volume of 759.37 million shares compared to 1.43 billion shares yesterday. The stock closed down 1.5 sen at 19 sen.

Other most actively traded stocks included Tiger Synergy Bhd, AT Systematization Bhd, Mlabs Systems Bhd and Bintai Kinden Corp Bhd.

Meanwhile, oil and gas-related companies, including Petronas Chemicals Group Bhd, Hengyuan Refining Co Bhd, Petronas Dagangan Bhd, Petron Malaysia Refining & Marketing Bhd and Petronas Gas Bhd, fell among Bursa's top decliners.

Top decliner Petronas Chemicals, which is also a KLCI constituent, saw its share price settle down 36 sen or 4.52% at RM7.60, while Hengyuan dropped 29 sen or 4.42% to RM6.27.

 

 

Source: The Edge

Market Daily Report: KLCI bucks regional trends, closes 0.68% higher after Budget 2021 passes final Dewan Rakyat vote

 

KUALA LUMPUR (Dec 15): The FBM KLCI bucked regional trends and closed up 11.28 points or 0.68% at 1,674.02 after news reports indicated that Budget 2021 has passed its final vote at the Dewan Rakyat today.

Rakuten Trade Research vice president Vincent Lau told theedgemarkets.com today the biggest driver of the KLCI’s rise is the passing of Budget 2021 at third reading in parliament this afternoon.

The news reported that the third reading of Budget 2021 was passed in Dewan Rakyat today after the opposition lost another en bloc vote by a razor-thin margin.

A total of 111 Members of Parliament voted in favour of Budget 2021, which was proposed by the Perikatan Nasional government, versus 108 who voted against the budget, while one was absent.

Across Bursa Malaysia today, sentiment was mixed with 657 gainers versus 524 decliners, while 525 counters were unchanged. A total of 9.96 billion securities were traded for RM5.09 billion, lower than the 11.88 billion units worth RM7.09 billion recorded yesterday.

Out of the 29 Bursa indices, 26 closed higher today while three gauges, namely construction, energy and REIT, ended lower.

The heavyweights that lifted the benchmark index included Telekom Malaysia Bhd, Tenaga Nasional Bhd and Public Bank Bhd.

Meanwhile, major glove stocks reversed their fortunes today as Top Glove Corp Bhd closed up 11 sen to RM6.41, Hartalega Holdings Bhd gained two sen to RM11.98 and Supermax Corp Bhd rose three sen to RM6.79.

Among Bursa-listed stocks, top gainers included consumer products and services, technology companies and financial stocks.

The list included Carlsberg Brewery Malaysia Bhd, Heineken (M) Bhd, Dutch Lady Milk Industries Bhd, and British American Tobacco (M) Bhd,

Semiconductor manufacturer Malaysian Pacific Industries Bhd, Unisem (M) Bhd, financial services provider Public Bank and Aeon Credit Service (M) Bhd were also on Bursa’s top gainers list.

Meanwhile, IHH Healthcare Bhd and Petronas Gas Bhd (PetGas) were among the top decliners by value. IHH fell 10 sen or 1.79% to close at RM5.50 while PetGas closed down 20 sen or 1.12% to RM17.60.

Notable decliners included KLCCP Stapled Group (down 20 sen at RM7.14), RHB Bank Bhd (down 16 sen at RM5.69) and Petron Malaysia Refining & Marketing Bhd (down 15 sen at RM5.74).

As for actively traded stocks, Sino Hua-An International Bhd topped the list again today with 1.43 billion shares traded, exceeding yesterday’s trading volume of 1.01 billion shares. It closed up 4.5 sen at 20.5 sen.

Other most actively traded stocks included Yong Tai Bhd, AT Systematization Bhd, XOX Bhd, Trive Property Group Bhd, Iris Corp Bhd, AirAsia X Bhd, P.A. Resources Bhd and Bintai Kinden Corp Bhd.

Elsewhere in Asia, Japan's Nikkei 225 fell 0.17%, while Seoul's Kospi sank 0.19%. In China, Hong Kong’s Hang Seng Index dropped 0.69%, while the Shanghai Stock Exchange Composite Index inched down 0.06%.

CNBC reported that stocks in Asia-Pacific were lower on Tuesday as concerns over a coronavirus surge in multiple countries dulled optimism over the vaccine rollout in the US.

 

Source: The Edge

Market Daily Report: KLCI snaps five-day gaining spree amid political concerns

KUALA LUMPUR (Dec 14): The FBM KLCI declined today after five straight sessions of gains, as investors decided to take profit after the market sentiment was affected by local political developments. 

The index ended down 1.3% or 21.84 points at 1,662.74, moving between 1,662.45 and 1,695.96 in a choppy trading session. On the broader market, more than 900 stocks ended in red.  

Among KLCI component stocks which declined were glove makers Hartalega Holdings Bhd, Supermax Corp Bhd and Top Glove Corp Bhd, as well as Nestle (M) Bhd and Public Bank Bhd.

Bursa Malaysia’s healthcare index, which includes glove makers, was down 5.16% at 3,625.10, its lowest level since Sept 24.

Hartalega fell RM1.76 or 12.83% to RM11.96, Supermax dropped 80 sen or 10.58% to RM6.76 and Top Glove sank 60 sen or 8.7% to RM6.30. Kossan Rubber Industries Bhd, meanwhile, fell 69 sen or 12.8% to RM4.7.

Remisier Jeffry Azizi Jaafar told theedgemarkets.com that the KLCI retreated from early gains amid profit taking in the afternoon trading session, as investors were roiled by the political uncertainty.

Former prime minister Tun Dr Mahathir Mohamad and veteran lawmaker Tengku Razaleigh Hamzah held a joint a press conference today, fueling speculation that seasoned politicians are joining forces after a long rivalry.

On the broader market, there were 958 losers versus 460 gainers, while 375 counters were unchanged. Total volume surged to 11.88 billion units worth RM7.09 billion, from 10.03 billion units worth RM6.19 billion recorded on Friday (Dec 11).

Among active stocks, Sino Hua-An International Bhd topped the list with 1.01 billion shares or 8.5% of Bursa Malaysia’s total trading volume. The stock closed up three sen at 16 sen.

Other actives included AirAsia X Bhd, Iris Corp Bhd, P.A. Resources Bhd, AirAsia Group Bhd, At Systematization Bhd and Bumi Armada Bhd.

Notable gainers included Kumpulan Powernet Bhd (up 35 sen to RM5.88), Malaysia Airports Holdings Bhd (up 33 sen to RM6.16), Ajinomoto (M) Bhd (up 30 sen to RM15.60), Jaycorp Bhd (up 28 sen to RM1.72) and Tenaga Nasional Bhd (up 26 sen to RM10.60).

Elsewhere in Asia, markets were mixed today with Japan's Nikkei 225 up 0.3% and South Korea’s Kospi down 0.28%. In China, Hong Kong’s Hang Seng Index sank 0.44%, while the Shanghai Stock Exchange Composite Index was up 0.66%.

 

 

Source: The Edge

Market Daily Report: KLCI closes higher as banking stocks rally amid vaccine-fuelled optimism

 

 

KUALA LUMPUR (Dec 11): The FBM KLCI closed the day 30.19 points higher at 1,684.58, up 1.83% from the previous day's close, driven by a rally in banking and financial services-related stocks as investors switch to recovery play, boosted by positive sentiment fuelled by vaccine news.

Leading the rally was Public Bank Bhd, which announced a four-for-one bonus issue recently. The top gainer across the stock exchange today, it closed 8.42% or RM1.70 higher at RM21.90.

Other financial blue chips that posted gains were Hong Leong Financial Group Bhd, Hong Leong Bank Bhd, Malayan Banking Bhd, AMMB Holdings Bhd (AmBank Group), BIMB Holdings Bhd, AEON Credit Service (M) Bhd, CIMB Group Holdings Bhd and LPI Capital Bhd as well as Allianz Malaysia Bhd.

This drove the Financial Services index up 727.09 points to 16,046.13 points.

Overall, however, losers still outpaced gainers across the bourse today, with 690 in the red versus 626 in the green, while 433 counters were unchanged, after 10.03 billion shares — valued at RM6.19 billion — were traded.

Glove stocks, meanwhile, continued to dominate the top losers list amid the switch-up in thematic play, with Hartalega Holdings Bhd heading the list after falling 64 sen or 4.46% to RM13.72. Also in the red were Kossan Rubber Industries Bhd (down 43 sen or 7.39% to RM5.39) and Supermax Corp Bhd (down 21 sen or 2.7% to RM7.56).

The actives list, on the other hand, was peppered by oil and gas counters, amid news flow that oil prices have pushed past US$50 per barrel. This appeared to have caused strong trading interest in counters like Bumi Armada Bhd, Sapura Energy Bhd, KNM Group Bhd, and Hibiscus Petroleum Bhd.

MIDF's head of research Imran Yassin Md Yusof told theedgemarkets.com that the rally was centred around optimism about an economic recovery.

"Banking stocks led the rally and this was expected, given that banks will be a direct beneficiary in a recovering economy," he said.

However, he believes that the market was moving slightly ahead and may lose steam next week.

"Our view is premised upon the fact that the big price changes came from comparatively low volumes. Also, it seems that our market was the exception today as the regional market appeared to be mixed, despite positive development regarding the vaccine as the US FDA (Food and Drug Administration) advisory panel recommended approval of Pfizer's Covid-19 vaccine for emergency use.

"In addition, other less positive news such as [a delay in] US stimulus talks and Brexit could play a role," he said.

South Korea's KOSPI index gained 0.86% to close at 2,770.06 points today, while Hong Kong Hang Seng Index rose 0.38% to 26,510.9 points. Philippine shares also climbed 1.28% to 7,246.16 points as, according to Reuters, the country's congress approved Budget 2021 that is aimed at boosting its pandemic-hit economy.  

Japanese, Australian and Chinese markets, however, struggled for gains. Japan's Nikkei 225 fell 0.39% to 26,652.52 points, while Australia's All Ordinaries index slipped 0.44% to 6,886.37 points; the Shanghai Composite Index gave up 0.77% to settle at 3,347.19 points.

 

 

Source: The Edge

Market Daily Report: FBM KLCI posts third straight day of gains

 

KUALA LUMPUR (Dec 10): The FBM KLCI continued to advance today, constituting the third consecutive trading day of gains.

The local headline index closed 0.48% or 7.96 points higher at 1,654.39 points, the highest it has been in 18 months.

The counters that lifted the index were banking stocks CIMB Group Holdings Bhd, Hong Leong Financial Group Bhd (HLFG) and rubber glove manufacturer Top Glove Corp Bhd.

CIMB finished 5.68% or 23 sen higher at RM4.28 while HLFG was up 2.27% or 40 sen higher at RM18. As for Top Glove, it finished 2.19% or 15 sen higher at RM6.99.

Conversely the top decliners today were MISC Bhd, Hartalega Holdings Bhd and Petronas Dagangan Bhd (PetDag).

In a note, TA Securities Research said key index heavyweights may continue to rise on economic recovery optimism while the broader market will go on a profit-taking break to consolidate recent strong gains.

“Next immediate index resistance will be 1,660 and then 1,680, with following upside hurdle seen from the July 2019 peak of 1,694. Immediate uptrend supports are from the rising 10-day, recent lows, 100-day and 50-day moving averages at 1,613, 1,580, 1,562, 1,548 and 1,545, respectively,” it noted.

The gains seen among the headline index did not overtly manifest across the broader market, with the number of decliners standing at 567 counters with the gainers numbering at 505 and those that went unchanged at 602 counters.

The total number of shares traded on the local bourse amounted to 8.1 billion shares valued at RM4.83 billion.

Top actives included the likes of XOX Bhd, AirAsia X Bhd and Trive Property Group Bhd. Podium finishes for the top losers list included Malaysian Pacific Industries Bhd, Vitrox Corp Bhd and PetDag. As for the top gainers, Nestle Malaysia Bhd, HLFG and BIMB Holdings Bhd made the top three.

Regional markets were largely in the red. The Hong Kong Hang Seng was 0.35% or 92.25 points lower at 26,410.59 points. Meanwhile, the Nikkei 225 closed 0.23% or 61.70 points lower at 26,756.24 points and the Kospi was down by 0.33% or 9.01 points at 2,746.46 points. In Singapore, the Straits Times Index was down 0.48% or 13.72 points at 2,829.35 points

However, the Shanghai Composite bucked the trend, finishing 0.04% or 1.31 points higher at 3,373.28 points.

A confluence of factors weighed on Asian bourses today. Reuters reported that while Shanghai shares were up following upbeat lending data, South Korean and Singaporean shares fell following changes in the S&P Dow Jones Indices, driven by an executive order from US President Donald Trump — indicating the ratcheting tensions between US and China.

“S&P DJI's move comes after index provider FTSE Russell said last week that it would remove eight Chinese firms from its products to comply with the US executive order,” Reuters reported.

 

 

Source: The Edge

Market Daily Report: Public Bank leads charge among KLCI counters

 

KUALA LUMPUR (Dec 9): Public Bank Bhd lead the charge among counters on the FBM KLCI, which finished 0.91% or 14.83 points higher at 1,646.53 today, its highest in 18 months.

At market close today, Public Bank was the top gainer on the local bourse as well as the benchmark index after it announced its bonus share issue yesterday.

Shares in the bank had finished RM7.58 or RM1.40 higher at RM19.86, valuing it at RM77.10 billion. It saw a trading volume of 19.83 million shares.

Two other banks dominated the top gainers list on the FBM KLCI, namely Hong Leong Bank and RHB Bank Bhd.

Hong Leong Bank was the second top value gainer on the local bourse. Its share price rose 3.62% or 66 sen to RM18.88, yielding a market value of RM40.93 billion.

As for RHB, it gained 3.57% or 20 sen to RM5.80, yielding a market capitalisation of RM23.26 billion.

Conversely, the top laggards on the index are Top Glove Corp Bhd, Telekom Malaysia Bhd and Axiata Group Bhd.

In a note, TA Securities Research said economic recovery plays may pause for a breather given concerns over surging virus cases during wintertime in the US and Europe, as well as profit-taking persisting among the recent strong gains seen.

“Next immediate index resistance remains 1,650 and 1,680, with following upside hurdle seen from the July 2019 peak of 1,694. Immediate uptrend supports are from the rising 10-day, recent lows, 100-day and 50-day moving averages at 1,608, 1,580, 1,562, 1,547 and 1,542, respectively,” the research house said.

However, market breadth was broadly negative, with some 641 counters posting declines against 500 counters posting gains and 549 counters unchanged.

Top actives today included AirAsia X Bhd, XOX Bhd and Sino Hua-An International Bhd. Top gainers included Public Bank, Hong Leong Bank and Fraser & Neave Holdings Bhd. Top losers, on the other hand, included BLD Plantation Bhd, Supermax Corp Bhd and G Capital Bhd.

A total of 11.88 billion shares worth RM6.68 billion were traded on the local bourse today.

The gain seen on the FBM KLCI was not limited to Malaysian shores, as other key regional indices also posted upward movements as well.

Hong Kong’s Hang Seng Index was up by 0.75% or 198.28 points at 26,502.84. The Nikkei 225 in Japan had also advanced by 1.33% or 350.86 points at 26,817.94. The Kospi in Seoul gained 2.02% or 54.54 points to 2,755.47. Across the causeway, the Straits Times Index was 0.75% or 21.31 points higher at 2,846.94.

Meanwhile, the Shanghai Composite Index was down by 1.12% or 38.21 points at 3,371.96.

Reuters reported that a strong overnight finish at Wall Street on progress in Covid-19 vaccines had spillover effects.

“Positive sentiment from a strong finish at Wall Street on progress in coronavirus vaccines spilled over to Asia as most stock markets made big gains,” it noted.

 

 

Source: The Edge

Market Daily Report: FBM KLCI finishes near 18-month high on greater interest in rubber glove stocks

 

KUALA LUMPUR (Dec 8): The FBM KLCI finished stronger today, posting a 0.54% or 8.81-point gain to finish at 1,631.70, as investors return to glove manufacturers' stocks.

The headline index is now the highest it has been since June 2019.

Malacca Securities Head of Research Loui Low opined that the increase in the headline index was driven by investor interest in rubber glove stocks.

“It is worth noting that Top Glove Corp Bhd’s results will be released tomorrow, so there might be buying in anticipation of their results,” he said.

He pointed out that when there is greater buying interest in the counter, this tends to spill over onto other glove counters as well.

He added that some investors view that rubber glove stocks have more earnings certainty compared to other blue-chip counters amid the pandemic, noting that in the US and in Europe Covid-19 cases are still on the uptrend.

Indeed, the top movers for the FBM KLCI were Top Glove Corp Bhd, Genting Bhd, Petronas Gas Bhd and Hartalega Holdings Bhd. Top Glove in particular finished 7.42% or 49 sen higher at RM7.09 today.

Top actives on the local bourse included AT Systematization Bhd, PA Resources Bhd and Metronic Global Bhd. Meanwhile, top gainers were Nestle (Malaysia) Bhd, Supermax Corp Bhd and Batu Kawan Bhd, with British American Tobacco (M) Bhd, Hengyuan Refining Company Bhd and Solution Bhd constituting the top losers for the day.

In terms of trading volume, a total of 11.26 billion shares worth RM6.39 billion were traded today.

Despite the headline index posting a gain, the number of counters posting declines on the local bourse stood at 605, in comparison to the 524 that posted gains and 577 that went unchanged.

Certainly, the FBM KLCI went against the grain today when it came to regional market performances, which were largely in the red.

Japan’s Nikkei 225 was down 0.30% or 80.36 points at 26,467.08. Hong Kong's Hang Seng had finished 0.76% or 202.29 points lower at 26,304.56. The Shanghai Composite closed 0.19% or 6.43 points lower at 3,410.18. The Kospi also posted a decline, falling 1.62% or 44.51 points to 2,700.93.

Reuters had reported today that most Asian stock markets struggled to make gains today following the latest development in US-Sino ties.

“The mood was downbeat after the United States imposed financial sanctions on some Chinese officials on Monday, raising more fears about relations between the two countries, while losses on Wall Street overnight set the tone in early trading,” it said.

 

Source: The Edge

Market Daily Report: FBM KLCI ekes out 0.06% gain on window-dressing activities

 

KUALA LUMPUR (Dec 7): The FBM KLCI managed to eke out a 0.06% or 1.04-point gain today, rising to 1,622.89.

Malaysia’s headline index had opened slightly higher at 1,622.94 and reached its intra-day high of 1,627.59 at 4.20pm, but pared its gains at the close.

Rakuten Trade Research vice president Vincent Lau noted that the minor gain was the result of window-dressing activities.

The top gainers among the FBM KLCI were Petronas Chemicals Group Bhd, Genting Bhd and Hong Leong Financial Group Bhd.

In terms of total trading volume today, the local bourse saw 16.49 billion shares worth RM7.23 billion traded. This trading volume is the highest seen since Nov 17, 2020.

"Today’s trading volume was on account of greater retail investor participation, which is expected to be vibrant at least in the near term," he noted.

Top actives included Yong Tai Bhd, Top Builders Capital Bhd and PA Resources Bhd. Meanwhile, today’s top value gainers were British American Tobacco (M) Bhd, Heineken Malaysia Bhd and Hengyuan Refining Company Bhd, while Nestle (Malaysia) Bhd, Fraser & Neave Holdings Bhd and PPB Group Bhd were the top decliners.

For the most part, Asian indices were in the red. In Japan, the Nikkei 225 was down by 0.76% or 203.8 points at 26,547.44. Meanwhile, the Shanghai Composite finished lower at 3,416.6 after falling 0.81% or 27.98 points, whereas the Hong Kong Hang Seng concluded the trading day 1.25% or 334.94 points lower at 26,500.98. However, in South Korea, the Kospi was up by 0.51% or 13.99 points at 2,745.44.

The declines seen across regional markets followed reports that the US is preparing to launch sanctions on some Chinese officials over the crackdown in Hong Kong.

“However, other emerging Asian stock markets retreated from highs hit over vaccine optimism and the US$908 billion aid bill in the United States after Reuters reported that President Donald Trump's administration was preparing sanctions on some Chinese officials over the crackdown in Hong Kong,” Reuters reported today.

In a note today, TA Securities Research said a profit-taking correction is likely for the FBM KLCI this week given the “increasingly overbought technical momentum seen on the daily and weekly slow stochastics indicators after the FBM KLCI surged to trade at a fresh 16-month high”.

This would be particularly the case after Fitch Ratings downgraded Malaysia last Friday (Dec 4), it added.

That being said, this correction is expected to be brief and necessary, in order to neutralise excessively overbought conditions and encourage bargain hunting, while vaccine-related and economic recovery plays should prevail given the robust buying momentum witnessed on the broader market, said TA Securities Research.

 

Source: The Edge

Market Daily Report: KLCI eases from 16-month high amid profit-taking activities

 

KUALA LUMPUR (Dec 4): The FBM KLCI scaled back slightly today from the 16-month high it reached yesterday as investors took profit after the strong gains, which saw the benchmark index easing 0.39% to settle at 1,621.85 on market close.

The FBM KLCI, which moved between 1,618.54 and 1,628.82 throughout the day, shed 6.41 points. Market breath was largely negative with losers outnumbering gainers at 732 against 579, while 429 counters were unchanged. In contrast, the index surged 29.54 points or 1.85% to close at 1,628.26 yesterday, with over 900 stocks as gainers.

Besides profit-taking, TA Securities Holdings Bhd senior technical analyst Stephen Soo said the weakness in KLCI today was partly due to the sell-down in glove stocks as the market switched to recovery play amid positive developments in the Covid-19 vaccine space.

Among the heavyweights that dragged the FBM KLCI were Top Glove Corp Bhd (down 13 sen or 1.92% to RM6.65) Supermax Corp Bhd (down 41 sen  or 4.71% to RM8.29) and Hartalega Holdings Bhd (down 16 sen or 1.09% to RM14.50).

The healthcare index, which include the rubber glove makers, was the largest percentage decliner. It sank 1.43% to close at 3,922.73. Also a drag was Kossan Rubber Industries Bhd, which shed 10 sen to close at RM6.10.

Besides the glove makers, other major declines were Petronas Dagangan Bhd (down 88 sen or 4.09% to RM20.62), Axiata Group Bhd (down seven sen or 1.82% to RM3.77), Nestle (M) Bhd (down 50 sen to RM137), and Hong Leong Bank Bhd (down 20 sen to RM18.10).

Across Bursa Malaysia, some 14.22 billion shares were traded today, 15% more than yesterday's trading volume of 12.37 billion shares. Turnover rose 7.1% to RM6.76 billion from RM6.31 billion.

The top gainers, meanwhile, included Petron Malaysia Refining & Marketing Bhd (up 99 sen or 23.24% at RM5.25); Hengyuan Refining Company Bhd (up 89 sen or 19.06% at RM5.56); and oil and gas service provider Yinson Holdings (up 29 sen or 5.47% at RM5.59).

Yong Tai Bhd, meanwhile, topped the most-actively traded stocks with 853.29 million shares done. The counter closed up seven sen or 23.73% at 36.5 sen.

Soo noted that the KLCI experienced a huge swing this week, with the closing points ranging from 1,562.71 to 1,628.26, and that the recent correction has neutralised the buying momentum. Going into next week, he expects the KLCI to further consolidate, with key uptrend support seen at 1,600, and a resistance points kept at 1,650 and 1,680.

Elsewhere in Asia, Japan's Nikkei 225 fell 0.22%, while Seoul's Kospi rose 1.31%. In China, Hong Kong’s Hang Seng Index gained 0.4%, while the Shanghai Stock Exchange Composite Index closed up 0.26%.

Reuters reported that Asian shares scaled a record high on Friday on growing prospects of a large US economic stimulus package, while hopes that coronavirus vaccine rollouts will boost the global economy underpinned investor sentiment.

 

 

Source: The Edge

Market Daily Report: Equities up as Covid-19 cases drop, vaccine news spurs economic recovery bets

 

KUALA LUMPUR (Dec 3): The FBM KLCI rose 29.54 points or 1.85% to 1,628.26 today while trading volume across Bursa Malaysia topped 12 billion securities as fund managers bought shares of Malaysian companies seen as beneficiaries of an anticipated economic recovery following a double dose of good news on the UK’s approval for the Pfizer-BioNTech Covid-19 vaccine and the sharp drop in Malaysia’s new Covid-19 cases.

Across Bursa at 5pm, 12.37 billion securities were traded for RM6.17 billion. Gainers led decliners by 907 to 401 respectively.

Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng told theedgemarkets.com that the vaccine news catapulted the KLCI to its intraday high as fund managers took positions in shares of companies seen as beneficiaries of an expected economic recovery following Covid-19-driven economic weakness due to global restricted movement policies to curb the spread of the outbreak.

“On prospects, owing to low base effect, Bursa’s corporate earnings for next year should look good. For banking stocks, banks have undergone some kitchen-sinking exercises and I believe when the situation improves next year, banks can reverse loan provision.

“For the tourism sector and other pandemic-battered stocks, judging from outlook [for next year] they may come back as well,” Wong said.

It was reported that the UK on Wednesday became the first country in the world to approve the Pfizer-BioNTech Covid-19 vaccine for use and said it will be rolled out from early next week. "A vaccine is seen as the best chance for the world to get back to some semblance of normality, amid a global pandemic which has killed nearly 1.5 million people and upended the global economy,” Reuters reported.

In Malaysia, health director general Tan Sri Dr Noor Hisham Abdullah said in statement yesterday (Dec 2) that the country had yesterday recorded 851 new Covid-19 cases, a sharp drop from the 1,472 newly-infected individuals reported a day earlier on Dec 1.

Today, Dr Noor Hisham’s latest update via Twitter showed that the country recorded 1,075 new cases and 11 Covid-19 related deaths.

Meanwhile, Bursa’s trading volume today rose to 12.37 billion securities, from yesterday's 9.22 billion units. The number of gainers today climbed to 907 from 640 yesterday.

A glance across Bursa indicates a broad-based rise across exchange indices, led by the Energy index’s 4.17% gain.

The Energy index, which tracks shares of oil and gas companies, closed higher after crude oil prices settled up more than 1% overnight on Wednesday.

Reuters reported oil prices settled higher on Wednesday, as Britain's approval of a Covid-19 vaccine boosted hopes for a demand recovery and on mounting expectations that oil-producing countries will maintain output limits next year.

Today, such sentiment augured well for Bursa-listed oil and gas companies, as their share prices rose, while trading volume emerged among most-active stocks.

The list included Sapura Energy Bhd and Bumi Armada Bhd. 

Sapura Energy’s share price closed up 0.5 sen or 4.35% at 12 sen, while Bumi Armada added 3.5 sen or 10.94% to 35.5 sen. Sapura Energy saw some 505 million shares traded, while Bumi Armada registered a volume of about 229 million units.

 

 

Source: The Edge

Market Daily Report: KLCI slumps as oil loss offsets Pfizer Covid-19 vaccine approval news

 

 

KUALA LUMPUR (Dec 2): The FBM KLCI closed down 3.54 points or 0.22% at 1,598.72 today after profit taking in the final trading hour following an afternoon rise in an apparent response to news the UK became the first country to approve the Pfizer-BioNTech Covid-19 vaccine. Lower crude oil prices however offset the impact of the Covid-19 vaccine-driven sentiment on equities.

Across Bursa Malaysia at 5pm, 9.22 billion securities were traded for RM5.43 billion.

There were 640 gainers and 557 decliners as investors also weighed Malaysia’s weaker manufacturing data and the economic impact of the Covid-19 pandemic.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com that "weaker manufacturing data released yesterday weighed on market sentiment”.

Globally today, it was reported that Asian shares rose on Wednesday after a strong lead from Wall Street fuelled by hopes for additional US economic stimulus and a coronavirus vaccine, but trade was choppy as some investors booked profits. 

It was reported that the UK on Wednesday became the first country in the world to approve the Pfizer-BioNTech Covid-19 vaccine for use and said that it will be rolled out from early next week. "A vaccine is seen as the best chance for the world to get back to some semblance of normality amid a global pandemic which has killed nearly 1.5 million people and upended the global economy,” Reuters reported.

In commodity markets, it was reported that crude oil prices extended losses on Wednesday, hit by a surprise build in oil inventories in the United States and as OPEC and its allies left markets in limbo by delaying a formal meeting to decide whether to increase output in January. It was reported that Brent crude oil futures were down by 41 cents, or 0.9%, at US$47.01 a barrel by 0358 GMT, while West Texas Intermediate crude was down by 46 cents, or 1%, at US$44.09.

In Malaysia yesterday, IHS Markit said in a news release that the headline IHS Markit Malaysia Manufacturing Purchasing Managers’ Index — a composite single-figure indicator of manufacturing performance — dipped fractionally for the fifth month in a row, down from 48.5 in October to 48.4 in November. 

This reading signalled a further moderation in the health of the manufacturing sector, although the trend appears to be flattening, while the deterioration was considerably less marked than that seen during the first wave of the pandemic, IHS Markit said.

"The recovery in the Malaysian manufacturing sector continued to lose momentum midway through the fourth quarter of the year. Businesses continued to scale back production, while new order inflows moderated. A rise in coronavirus disease 2019 (Covid-19) cases both domestically and around the world has led to reduced demand for Malaysian manufactured goods while supply chains struggled to deliver inputs in a timely manner. Nevertheless, Malaysian manufacturers were increasingly optimistic regarding the year-ahead outlook, with hopes that an end to the pandemic would give rise to a wider recovery in demand,” IHS Markit said.

At Bursa today, the KLCI erased losses at about 3:30pm after news on Pfizer-BioNTech Covid-19 vaccine’s approval in the UK appeared to offer a respite to the 30-stock index, which had earlier fallen as global equities took a cue from lower crude oil prices.

The KLCI, which rose to its intraday high of 1,605.60 after news of the Covid-19 vaccine’s approval, however, closed lower after a final hour slump.   

At 5pm, the KLCI’s 0.22% decline trailed the 1.87% drop in Bursa’s Energy Index, which tracks shares of oil and gas-related companies. 

The Energy Index was the top percentage decliner among Bursa gauges.

Across Bursa, notable decliners included oil and gas-related Petron Malaysia Refining & Marketing Bhd and Hengyuan Refining Co Bhd.

Petron’s share price closed down 12 sen or 2.84% at RM4.11 while Hengyuan fell 11 sen or 2.51% to RM4.28.

Meanwhile, the most-actively traded stock was Bioalpha Holdings Bhd, which saw some 487 million shares traded. Its share price closed down 4.5 sen or 12.68% at 31 sen.

 

 

Source: The Edge

Market Daily Report: KLCI back above 1,600 on strong bargain hunting

 

 

KUALA LUMPUR (Dec 1): The FBM KLCI swiftly rebounded today on strong bargain hunting, reversing almost all of yesterday’s losses caused by a sharp 11th-hour selldown.

The benchmark index closed 39.55 points or 2.53% higher at 1,602.26. It had risen nearly 40 points within the first one-and-a-half hours to breach the 1,600 level.

TA Securities Holdings Bhd senior technical analyst Stephen Soo said external factors, such as China’s manufacturing sentiment that hit a decade high and the acceleration in vaccine development, triggered the optimism in the market.

He said yesterday’s selldown was overdone and exaggerated. “It was anticipated among the investor fraternity that there will be a selldown but not as drastic as yesterday’s,” he told theedgemarkets.com.

Going forward, Soo said the market trend will continue to be choppy and see more vaccine and recovery play. “From the rubber glove players, there will be a rotational play to vaccine and economic recovery play [sectors],” he said.

He saw the KLCI’s resistance levels at 1,618, 1,650 and 1,680, and the support levels at 1,562 and 1,546.

Overall, Bursa Malaysia saw 9.19 billion shares worth RM5.35 billion traded. Gainers outpaced laggards by 760 to 479 while 432 counters remained unchanged.

Among KLCI constituent stocks, Petronas Chemicals Group Bhd led the pack, closing 9.35% or 60 sen higher at RM7.02. This was followed by Tenaga Nasional Bhd (TNB), which closed 7.74% or 78 sen higher at RM10.86, and Axiata Group Bhd, which was up 6.48% or 23 sen at RM3.78.

Banking heavyweights also closed in positive territory, including Hong Leong Bank Bhd (+4.19%), Malayan Banking Bhd (+3.67%), CIMB Group Holdings Bhd (+3.31%), Public Bank Bhd (+2.99%) and RHB Bank Bhd (+2.91%).

Across Asia, all leading indices closed in positive territory. China’s Shanghai Comp grew 1.77%, South Korea's Kospi rose 1.66%, Japan’s Nikkei 225 increased 1.34%, while Hong Kong’s Hang Seng was up 0.86%.

Other Asian share markets too began the new month with a bang, buoyed by the prospect of a Covid-19 vaccine fuelling a global economic recovery, buoyant Chinese factory activity and expectations of continuing fiscal and monetary support.

“What we are seeing today is that upward trend reasserting itself, given the positive news on the vaccine front, China’s growth picking up, and the tremendous faith in the ability of central banks to keep the markets afloat,” Reuters quoted Stephen Miller, market strategist for GSFM Funds Management, as saying.

 

 

Source: The Edge

Market Daily Report: KLCI finishes down 44.88 points after final-hour dive

KUALA LUMPUR (Nov 30): The FBM KLCI closed down 44.88 points or 2.79% at 1,562.71 today after diving in the final trading hour against a confluence of factors including lower crude oil prices and equity losses as investors weighed Malaysia's corporate financial results amid Covid-19 driven economic weakness.

Across Bursa Malaysia at 5pm, 9.02 billion securities were traded for RM7.71 billion.

Bursa’s Financial Services index fell the most in percentage terms at 3.22% among bourse gauges.

Top declining stocks included KLCI entities Petronas Dagangan Bhd, Public Bank Bhd, Tenaga Nasional Bhd, Petronas Chemicals Group Bhd and Malayan Banking Bhd (Maybank).

Rakuten Trade Sdn Bhd research vice president Vincent Lau told theedgemarkets.com that the drop in the KLCI today might have just been a minor pullback, after a favourable performance throughout the month of November. 

"It was probably just the month-end rebalancing of portfolios [by investors]. Market sentiment is still okay, even glove stocks have rebounded.  

"Most regional indexes are also trading at a high, so it's unsurprising to see them falling today at the end of the month,” Lau said. 

Globally, it was reported today that world shares paused to assess a record-busting month on Monday as the prospect of a Covid-19 vaccine-driven economic recovery next year and yet more free money from central banks eclipsed immediate concerns about the coronavirus pandemic.

"Markets are overbought and at risk of a short term pause,” Reuters quoted Shane Oliver, head of investment strategy at AMP Capital, as saying. "However, we are now in a seasonally strong time of year and investors are yet to fully discount the potential for a very strong recovery next year in growth and profits as stimulus combines with vaccines,” Oliver said.

On commodity markets, it was reported that crude oil prices tumbled on Monday, as investors waited for a decision by producer group OPEC+ whether to extend large output cuts to balance global markets, but vaccine hopes helped keep benchmarks on track to rise more than a fifth in November.

It was reported that January Brent crude futures, which will expire later on Monday, dropped US$1.01, or 2.1%, to US$47.17 a barrel by 0749 GMT. 

The more actively traded February Brent contract was at US$47.29 a barrel, down 96 cents, while US West Texas Intermediate crude futures for January fell 86 cents, or 1.9%, to US$44.67 a barrel.

At Bursa today, a glance at the KLCI showed that the 30-stock index started erasing intraday gains in the afternoon as investors weighed companies' quarterly financial results including those of AMMB Holdings Bhd and MAHB, which announced their financials during Bursa’s 12:30pm break today.

Asian equity indices, which ended lower, and the crude oil price drop, could have also precipitated the KLCI’s plunge before Malaysian markets closed at 5pm.

A closer observation showed KLCI stocks, which saw a sharp price drop, included Petronas Chemicals Group Bhd, Maybank and MAHB.

At 5pm, Petronas Chemicals closed down 44 sen or 6.41% at RM6.42, MAHB dropped 33 sen or 5.96% to RM5.21, while Maybank fell 39 sen or 4.7% to RM7.90.

As market observers watched the big drop in the KLCI shortly before trading ended, they would have also noticed Maybank’s share price plunge about 15 minutes before the closing bell today. 

Source: The Edge

Market Daily Report: KLCI eases from 11-month high, but persistent interest in penny stocks pushes FBM Small Cap Index to two-year high

 

 

KUALA LUMPUR (Nov 27): The FBM KLCI eased from its 11-month high, dropping 0.28% as profit-taking emerged. Still, the benchmark index ended the week above the 1,600-point level at 1,607.59 points — the highest weekly closing since July 31. 

Across the board, persistent interest in penny stocks, which dominated the actively traded list today with handsome gains, lifted the FBM Small Cap Index to 14,588.15 points — the highest closing since end-August 2018. 

The trading interest in penny stocks also boosted the trading volume in the local bourse to more than 10 billion at 10.36 billion shares. The last time that Bursa Malaysia’s trading volume exceeded 10 billion shares was more than a week ago on Nov 18, when it was at 14.41 billion shares.

Gainers outnumbered losers by 621 versus 605, while 406 counters remained unchanged.

TA Securities Holdings Bhd senior technical analyst Stephen Soo said there were some profit-taking activities today in the local bourse following the strong ending yesterday.

Looking into next week, Soo expects the KLCI to enter into consolidation mode following the strong gains this week.  

While the market momentum is still healthy, fuelled by strong retail participation, he opined that the benchmark index needed a fresh catalyst to uplift it further, especially more certainty needed from the political front.  

The upcoming debates for Budget 2021 which will take place next Monday (Nov 30) are expected to generate some concerns for investors, he noted.

“Should the market sentiment improve from here, the psychological resistant levels to watch are the 1,650 level, and this is followed by 1,680. While the key support levels to look at are 1,600 and 1,578,” he added.

Axiata Group Bhd emerged on the top gainers list after the group said its net profit nearly doubled to RM352.99 million in the third quarter ended Sept 30, 2020 (3QFY20), from RM179.27 million in 2QFY20. It closed up 38 sen or 11.34% to RM3.73.

Technology companies KESM Industries Bhd and Vitrox Corp Bhd are also on the top gainers list.

Kanger International Bhd topped the actively traded list after some 729.39 million shares exchanged hands. It closed at 18.5 sen, down half a sen or 2.78%.

Other actively traded stocks included AT Systematization Bhd, Bintai Kinden Corp Bhd, Key Alliance Group Bhd, Metronic Global Bhd, Iris Corp Bhd and Vivocom Intl Holdings Bhd.

Across Asia, Japan's Nikkei 225 rose 0.4%, while Seoul's Kospi climbed up 0.29%. In China, Hong Kong’s Hang Seng Index gained 0.39%, while the Shanghai Stock Exchange Composite Index closed up 1.14%.

CNBC reported that stocks in Asia-Pacific nudged higher on Friday as investors reacted to data on China’s industrial profits for October.

“Markets also scrutinized concerns over the Oxford-AstraZeneca vaccine candidate, with results and methods used in their phase three vaccine trials under criticism from experts in the US,” it added.

 

Source: The Edge

Market Daily Report: KLCI up 14.53 points to end at intraday high after Parliament approves Budget 2021

 

KUALA LUMPUR (Nov 26): The FBM KLCI closed up 14.53 points or 0.91% at its intraday high of 1,612.11 today after news reports indicated that Parliament had approved the Malaysian government's proposed Budget 2021 and as local equities took a cue from the global stock market rise.

MIDF Amanah Investment Bank Bhd research head Imran Yassin Yusof told theedgemarkets.com today the biggest driver for the KLCI’s rise is the Parliament’s approval for Budget 2021.

Across Bursa Malaysia today, sentiment was positive with 816 gainers versus 412 decliners. A total of 8.87 billion securities were traded for RM4.68 billion as global stocks took cue from encouraging news on Covid-19 vaccine trials and updates on the US Government transition to President-elect Joe Biden’s administration.

It was reported today that Asian shares advanced on Thursday as market euphoria over Covid-19 vaccines and expectations that a Biden administration would deliver more economic stimulus and political predictability overrode a slate of weak US economic data. It was reported that the rally started after Biden's US election victory earlier this month raised hopes for more government spending to support the pandemic-hit economy and for more policy predictability after four years of Donald Trump's presidency.

"Reduced policy uncertainties are helping markets. It will be easier for companies to make capital expenditures,” Reuters quoted Arihiro Nagata, general manager of global investment at Sumitomo Mitsui Bank as saying.

It was reported that Prime Minister Tan Sri Muhyiddin Yassin won Parliamentary approval for his government's 2021 Budget on Thursday, avoiding a potential political crisis in the midst of other crises brought on by the coronavirus pandemic.

It was reported that Parliament passed the Budget by a voice vote, leaving it unclear exactly how many of the 222 lawmakers supported the Government's first Budget since Muhyiddin emerged as the leader of a new coalition in March.

“He (Muhyiddin) would likely get a political respite, as the Opposition would likely not be able to muster a majority to topple him in the short term," Oh Ei Sun, a senior fellow with Singapore’s Institute of International Affairs, was quoted as saying by Reuters.

At a glance, the Parliamentary approval for Budget 2021 could have mitigated expectations of political uncertainty in Malaysia, hence the broad-based buying across Bursa today at a time when the nation is still contending with the economic impact of the Covid-19 pandemic.

Out of the 29 Bursa indices, 26 closed higher today while three gauges, namely, the Energy, Financial Services and REIT gauges ended lower.

Among Bursa-listed stocks, top gainers included technology companies and rubber glove manufacturers.

The list included semiconductor manufacturer Malaysian Pacific Industries Bhd (MPI) besides glove manufacturers Supermax Corp Bhd, Top Glove Corp Bhd and Hartalega Holdings Bhd

MPI topped the gainers list today after its share price closed up RM1.88 or 7.97% at RM25.48. The stock pared gains at 5pm after rising to its record high at RM26 earlier today.

MPI’s share price rise had partly contributed to Bursa’s Technology index’s 3.02% rise when markets closed. The index was the top percentage gainer among Bursa indices today.

 

 

Source: The Edge

Market Daily Report: Bullish sentiment on Wall Street spills over to Bursa, KLCI climbs 1.22%

 

 

KUALA LUMPUR (Nov 25): The FBM KLCI climbed 1.22% today, buoyed by the overnight record closing on Wall Street amid news that the Trump administration agreed to start the transition process for President-elect Joe Biden to the White House. 

Furthermore, the optimism the economic landscape will turn more favourable underpinned the positive sentiment. 

The FBM KLCI rose 19.19 points to 1,597.58, after moving between 1,582.31 and 1,600.20.

Leading the climb on the KLCI today were banking stocks Public Bank Bhd, which surged 54 sen or 2.94% to RM18.892, and CIMB Group Holdings Bhd, which climbed 14 sen or 3.85% to RM3.78.

Meanwhile, Hong Leong Bank Bhd rose 20 sen or 1.19% to RM17.04, Hong Leong Financial Group Bhd went up 60 sen or 3.77% to RM16.50, Malayan Banking Bhd increased nine sen or 1.11% to RM8.22 and RHB Bank Bhd rose seven sen or 1.41% to RM5.05.

In contrast, Top Glove Corp Bhd continued to be under selling pressure as the world’s largest glove maker has to shut down its manufacturing plant after the Covid-19 outbreak in its worker dormitories in Meru, Klang. The stock was among the top losers today. It dropped 15 sen or 2.21% to RM6.65.

Remisier Jeffry Azizi Jaafar commented that the FBM KLCI's performance was tracking the overnight gains in Wall Street on Joe Biden’s transition to the White House which provided investors more clarity on the US prospects and policies moving forward.

Meanwhile, he said there is rotational play into oil and gas stocks today given the promising vaccine candidate spurred hopes of a quicker recovery in economic growth and oil demand.

Nonetheless, he opined the local sentiment remains wary of a sharp spike in daily local Covid-19 cases.

Overall, the market was mixed as there were 653 gainers versus 496 decliners, while 483 remained unchanged. A total of 8.91 billion securities were traded for RM4.22 billion, compared to trading volume of 8.36 billion securities and turnover of RM4.28 billion recorded yesterday.

Among indices, the energy index led the gain by percentage, up 4.52% to 810.43, on the back of better oil future prices. At time of writing, Brent crude oil was up 1.15% at US$48.33 per barrel, while West Texas Intermediate crude oil also climbed 1% at US$45.35 per barrel.  

Some oil and gas stocks were actively traded today, such as Sapura Energy Bhd, Bumi Armada Bhd, KNM Group Bhd and Hibiscus Petroleum Bhd.

EA Holdings Bhd topped the most-actively traded list today, after some 718.93 million shares changed hands. It dropped 0.5 sen to three sen.

Other actively traded stocks included AT Systematization Bhd, Kanger International Bhd, Key Alliance Group Bhd and Vsolar Group Bhd.

Gets Global Bhd topped the gainers list today after it closed up 68 sen or 29.82% at RM2.96. The rebound came after the stock retreated for a few sessions from its recent high of RM3.97 on Nov 16 after the stock exchange advised investors to exercise caution in trading the stock's shares.

Other gainers included Malaysia Pacific Industries Bhd, Nestle (Malaysia) Bhd, Petronas Dagangan Bhd, Press Metal Aluminium Holdings Bhd and Batu Kawan Bhd.

The decliners included Carlsberg Brewery Malaysia Bhd, Heineken (M) Bhd, Greatech Technology Bhd, TIME dotCom Bhd, Scientex Bhd, Dutch Lady Industries Bhd and Quality Concrete Holdings Bhd.

Bloomberg reported that a rally in global equities cooled Wednesday as investors balanced optimism spurred by vaccines and political developments against a challenging economic outlook amid the pandemic. The US dollar steadied.

A gauge of Asia-Pacific shares gave up an earlier climb of about 1%. South Korean and Chinese stocks turned lower, while those in Japan posted modest gains. US and European futures ticked higher.

The S&P 500 index earlier closed at a record and the Dow Jones Industrial Average topped 30,000. Treasury yields dipped, oil held above US$45 a barrel and copper touched the highest since 2014.

 

 

Source: The Edge

Market Daily Report: KLCI retreats, Bursa decliners top 1,000 on Covid-19 resurgence, Budget 2021 vote

 

KUALA LUMPUR (Nov 24): The FBM KLCI closed down 19.09 points or 1.2% at 1,578.39 today while the number of Bursa Malaysia decliners rose sharply to above 1,000 as the surge in the country’s new Covid-19 cases to a record high weighed on investor sentiment. Anticipation on the Budget 2021 vote in Parliament this Thursday (Nov 26) also led to profit taking in the stock market today.

Analysts and remisiers said today the spike in the number of new Covid-19 cases in the country has increased the level of uncertainty over the outlook for the nation's economic growth. 

"Stocks are likely to trade sideways ahead of the highly anticipated vote to pass Budget 2021 by Parliament this Thursday, with the uncertainty causing investors to be sidelined,” TA Securities Holdings Bhd analysts wrote in a note today.

Across Bursa today, there were 1,093 decliners versus 250 gainers. A total of 8.36 billion securities were traded for RM4.28 billion.

Top decliners included KLCI stocks Petronas Dagangan Bhd and Top Glove Corp Bhd.

Top Glove’s share price closed down 55 sen or 7.48% at RM6.80 today after the company said yesterday it will work closely and cooperate fully with the relevant authorities to implement the temporary stoppage by stages of its manufacturing facilities within Meru in Klang, Selangor.

"The safety and well-being of our employees and local community is of our utmost priority towards containing the situation and to flatten the Covid-19 curve,” Top Glove said.

For now, the Covid-19 situation across Malaysia appears discouraging after health director-general Tan Sri Dr Noor Hisham Abdullah said in a statement today that the country recorded for the first time today over 2,000 new Covid-19 cases at a record high of 2,188.

Dr Noor Hisham said the nation's total number of active Covid-19 cases as at today stood at 14,353.

Yesterday, Dr Noor Hisham said there were 1,884 new Covid-19 cases across the country. 

Today, the number of Bursa decliners topped 1,000 compared to 674 yesterday.

At a glance today, Malaysian stocks’ trading dynamics showed a stark contrast to global equities' performance. It was reported that stocks, crude oil and risk currencies gained on Tuesday as the formal go-ahead for US President-elect Joe Biden to begin his transition burnished a November already boosted by Covid-19 vaccines.

"European markets tracked gains in Asian and US equities, with the broad-based STOXX 600 index opening 0.8% higher and Brent crude climbing to its highest level since March at US$46.38 a barrel. Safe haven assets such as gold fell,” Reuters reported.

CNBC reported that stocks in Japan led gains among Asia-Pacific markets on Tuesday as investors in the region reacted to more positive coronavirus vaccine news, as well as Biden’s choice of former Federal Reserve Chair Janet Yellen as Treasury Secretary.

“Investors continued to monitor positive momentum surrounding the race for a coronavirus vaccine. AstraZeneca said Monday interim analysis showed its coronavirus vaccine has an average efficacy of 70% in protecting against the virus. That follows other encouraging vaccine results in recent weeks, with late-stage trial readouts from Pfizer-BioNTech and Moderna showing their respective Covid-19 vaccine candidates were about 95% effective,” CNBC reported.

 

 

Source: The Edge

Market Daily Report: KLCI advances cautiously ahead of Budget 2021 vote as crude oil price rise offers fillip to energy index

 

KUALA LUMPUR (Nov 23): The FBM KLCI closed up 3.73 points or 0.23% at 1,597.48 today to trail Bursa Malaysia’s Energy index’s 5.55% gain as the Brent crude oil price rose past the US$45 (RM184.07) per barrel level following news of successful Covid-19 vaccine trials. 

The KLCI’s gain was, however, limited by investors' caution ahead of Malaysia's parliamentary voting on the proposed Budget 2021 on Wednesday (Nov 25), according to analysts.

Malacca Securities Sdn Bhd head of research Loui Low told theedgemarkets.com that higher crude oil prices lifted sentiment on the local bourse and helped the KLCI close in positive territory today. 

"The gain in the KLCI, however, was seen capped as local investors stayed wary as they were waiting for the final result of the Budget 2021 vote this week," he said.

Across Bursa today, 9.43 billion securities were traded for RM4.52 billion as oil and gas (O&G)-related shares rose among the top gainers.

Petronas Dagangan Bhd topped the gainers' list after its share price closed up RM2.48 or 12.64% at RM22.10.

Hengyuan Refining Company Bhd was up 32 sen or 10.22% at RM3.45, while Petron Malaysia Refining & Marketing Bhd gained 23 sen or 6.07% to RM4.02.

Notable gainers included Asia Brands Bhd after the lingerie and baby product retailer’s share price closed up 30 sen or 61.22% at its intraday high of 79 sen.

Asia Brands’ share price rose today after the company announced last Friday that its net profit jumped to RM5.35 million for the second quarter ended Sept 30, 2020 (2QFY21) from RM1.32 million a year earlier. For the first half ended Sept 30, 2020 (1HFY21), Asia Brands said its cumulative net profit climbed to RM9.58 million from RM5.91 million a year earlier.

Globally, it was reported that crude oil prices extended gains today as traders eyed a recovery in crude demand, thanks to successful coronavirus vaccine trials, although prices were contained by renewed lockdowns in several countries.

It was reported that sentiment was also bolstered by hopes that the Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers, a group known as OPEC+, will keep crude output in check. It was reported that Brent crude futures were 21 cents, or 0.5%, higher at US$45.17 a barrel by 0436 GMT, while US West Texas Intermediate (WTI) crude had gained 10 cents, or 0.2%, to US$42.52 a barrel.

 

 

Source: The Edge