Market Daily Report: No reprieve seen as FBM KLCI skids to lowest in five years amid Wuhan virus fears

KUALA LUMPUR (Jan 31): No reprieve was seen on the local bourse today as the FBM KLCI recorded losses for the ninth consecutive day as fears deepened across the world after the World Health Organisation declared a global health emergency as the Wuhan coronavirus outbreak's death toll passed the 200-mark, while infection rates surpassed SARS'.

Though the benchmark index started the day with a little rebound and rose to as high as 1,552.46 — up 0.44% from the previous day's close of 1,545.59 — it struggled to maintain the momentum.
At 5pm, it closed 14.53 points 0.94% lower at 1,531.06 — its lowest in more than five years.

Turnover was high at 3.79 billion shares worth RM3.29 billion, with 834 losers versus 150 gainers.
Rakuten Trade Sdn Bhd research vice president Vincent Lau, who described the market as "a sea of red" today, said investors remained cautious.

TA Securities, meanwhile, said in a note today that “increased worries over the economic fallout from the deadly coronavirus outbreak in China should see stocks retrace further as external sentiment deteriorates".

Top decliners dragging the index were Petronas Chemicals Group Bhd, which fell 26 sen or 4.03% to RM6.19; Maxis Bhd, which fell 19 sen or 3.45% to RM5.31; and MISC Bhd, which ended 26 sen or 3.27% lower at RM7.69.

Reuters reported that investors remained on edge over how much the virus could disrupt the global economy, following WHO's declaration of a global health emergency.

WHO director-general Tedros Adhanom Ghebreyesus on Thursday said the greatest concern was the virus' potential spread to countries with weaker healthcare systems, compounded by cases of person-to-person transfer of the virus outside China.

Governments worldwide are now taking precationary measures to help prevent the virus from spreading by advising citizens not to travel to China or temporarily halting incoming flights from the country.

Back in Malaysia, the Sabah Cabinet has suspended all flights from China, with immediate effect. As for the rest of the country, Transport Minister Anthony Loke told reporters earlier today that the Government has yet to decide whether to restrict flights from China to Malaysia.

He added that any decision on the matter should be made jointly by the Cabinet after taking into account the Health Ministry’s directive.




Source: The Edge

Market Daily Report: KLCI extends loss to eighth day on coronavirus fears

KUALA LUMPUR (Jan 30): The FBM KLCI ended 4.88 points or 0.31% lower at 1,545.59, marking the benchmark index’s eighth daily loss, as sentiment across the region remained tepid on growing coronavirus fears.

The broader market was also generally in the red save for the consumer products, REIT and transportation & logistics indices.

The stock market saw a turnover of 2.81 billion shares for RM2.32 billion, with losers dominating.
Malacca Securities Sdn Bhd said the KLCI remains downbeat as investors continue to be cautious on the economic impact from the virus outbreak.

“Gains on Wall Street are also lacklustre as markets are still on the move to find stability,” the firm said in a note to clients today.

Dragging the KLCI down today were Petronas Chemicals Group Bhd (down 1.98% or 13 sen to RM6.45), Petronas Gas Bhd (down 1.84% or 30 sen to RM16) and Digi.com Bhd (down 1.81% or eight sen to RM4.33).

The World Health Organisation will decide later today whether the rapid spread of the virus now constitutes a global emergency, according to its website.

As at the time of writing the death toll from the virus stood at 170, with more than 7,800 confirmed cases.

In Malaysia, the Health Ministry today confirmed one more peson who had been infected with the coronavirus, bringing the total to eight, all of whom are Chinese nationals.

Asian shares were all in the red. Reuters said losses in Japanese shares accelerated after stocks in Taiwan plunged at the open in their first trading session since the Lunar New Year break.

“Taiwan shares ended down 5.75%, the biggest decline since October 2018, in what could be a preview of how Chinese shares will react when their financial markets re-open on Feb 3,” said the news agency.



 Source: The Edge

Market Daily Report: KLCI closes 0.08% lower as market remains tepid on Wuhan virus

KUALA LUMPUR (Jan 29): The FBM KLCI ended 1.17 points or 0.08% lower at 1,550.47 as regional markets rebounded slightly after a steep selloff, though concerns on the economic impact of the Wuhan virus continued to weigh on investors.

While the benchmark index closed in negative territory, the broader market saw a recovery except for glove makers and healthcare stocks which took a breather after yesterday’s rally.

Rakuten Trade Sdn Bhd research vice president Vincent Lau told theedgemarkets.com trading was quite mixed as investors reacted to recent announcements related to the virus.

“The slight dip in the KLCI is probably due to some bargain hunting as investors took opportunity on lower prices. Investors continued to take caution but I believe the impact to the stock market will not be as severe as we think. Even the Dow Jones has recovered overnight (up 0.66% to 28,722.85),” Lau said.

The death toll from the virus outbreak rose sharply to 132 with nearly 1,500 new cases, and countries continued to impose travel curbs and pull out nationals from Wuhan, as fears over the virus grew, Reuters wrote.

The Malaysian Government said it will bring back 78 Malaysians who are currently stranded in Wuhan and Hubei province.

There were more gainers than losers on Bursa Malaysia. The gainers included Malaysia Airports Holdings Bhd (up 4.87% or 31 sen to RM6.68), Axiata Group Bhd (ending 2.38% or 10 sen higher at RM4.30) and Genting Malaysia Bhd (1.32% or four sen higher at RM3.08).

In other Asian markets, Japan’s Nikkei 225 index recovered, rising by 0.71%, while South Korea’s Kospi rose 0.39%.

The Hang Seng index dipped 2.82% to a seven-week low on its first trading day after the lunar new year holidays as investors reacted to the ongoing virus development.



Source: The Edge

Market Daily Report: KLCI drops 1.35% on concern over coronavirus impact

KUALA LUMPUR (Jan 28): The FBM KLCI dropped 21.17 points or 1.35% today, mirroring the downtrend in regional stock markets as investor sentiment was hit by concerns over the impact of the coronavirus that originated in Wuhan, China.

The benchmark index closed the day at 1,551.64, with declining stocks topping gainers by 733 to 158 in the broader market. A total of 3.36 billion shares were traded for a total value of RM2.89 billion.
MIDF Research’s head of research Mohd Redza Abdul Rahman said concerns over the spread of the virus will result in an overreaction in markets, causing shares to retreat at a faster rate than they should.

However, he said it is too early to panic, noting that China has taken various actions to contain the spread of the virus.

“[On the plus side], this presents an opportunity for shrewd investors to look for bargains,” he told theedgemarkets.com.

The KLCI’s decline was led by Malaysia Airports Holdings Bhd (down 46 sen or 6.73% to RM6.37), Sime Darby Plantation Bhd (down 29 sen or 5.49% to RM4.99) and Petronas Chemicals Group Bhd (downl 28 sen or 4.05% to RM6.64).

Healthcare stocks bucked the trend with the healthcare index rising 5.32% to 1,435.29.
Regionally, Asian stocks extended a global selloff as the outbreak in China, which has killed 106 people and spread to several countries, fuelled concern over the damage to the world's second largest economy, Reuters said.

Japan’s Nikkei 225 index fell 0.55%, while South Korea’s Kospi plunged 3.09%. Markets in mainland China and Hong Kong remained closed for the Chinese New Year.


Source: The Edge

Market Daily Report: FBM KLCI dips amid global coronavirus concerns

KUALA LUMPUR (Jan 24): The FBM KLCI closed lower today as coronavirus concerns weigh on regional and global markets.

The local benchmark index closed at 1,572.81 points, down 0.1% or 1.63 points. The index was weighed down by Press Metal Aluminium Holdings Bhd, Kuala Lumpur Kepong Bhd and Genting Malaysia Bhd.

Trading at Bursa Malaysia was limited to the morning session today in conjunction with the Chinese New Year holidays.

Across Bursa, some 1.59 billion shares worth RM1.27 billion were traded. A total of 337 counters saw gains, 378 counters posted declines and 383 counters went unchanged.

Top actives included Impiana Hotels Bhd, DGB Asia Bhd and Supermax Corp Bhd — with the top gainers being Carlsberg Brewery Malaysia Bhd, KESM Industries Bhd and G3 Global Bhd. Top losers included Dutch Lady Milk Industries Bhd, British American Tobacco (Malaysia) Bhd and Fraser & Neave Holdings Bhd.

Reuters reported today that concerns over the coronavirus have been weighing down on equity markets globally — with Chinese stocks seeing the biggest tumble registered in eight months, which had led global equity markets lower on Thursday as concern mounted about the coronavirus outbreak in China.

Millions of Chinese are preparing to travel for the Lunar New Year, which begins on Saturday, increasing the potential for the disease to spread.

The cities of Wuhan and Huanggang, representing a total population of about 18 million people, were put on a travel lockdown to prevent the virus from spreading, a public health measure that the World Health Organization called "unprecedented", Reuters reported.

It added that investors were moving to safe havens such as gold and US Treasuries.

At the time of writing, Hong Kong's Hang Seng was up 0.15% or 40.52 points at 27,949.64 points. Over in Japan, the Nikkei 225 posted a 0.68-point decline to 23,794.76 points.

FXTM Market Analyst Han Tan said in a note that the spread of the viral outbreak will play a part in how equities move in the final week of January.

He noted that should concerns over the coronavirus outbreak continue to dampen risk appetite, the exchange rate between the greenback and the local note could retrace to the 4.10 psychological level.
"Should concerns over the coronavirus outbreak continue to dampen risk appetite, USD/MYR could retrace towards the 4.10 psychological level. In the other direction, support for the currency pair should arrive around the 4.05 region," he noted.



Source: The Edge

Market Daily Report: KLCI falls as OPR cut, China virus dictate sentiment

KUALA LUMPUR (Jan 23): The FBM KLCI closed down 3.54 points or 0.22% today at 1,574.44 in line with weakness across global equities as China’s coronavirus outbreak hit sentiment ahead of the Chinese New Year holidays.

Malaysian shares also took cue from Bank Negara Malaysia's (BNM) overnight policy rate (OPR) cut to 2.75% from 3% yesterday. Today, analysts said the OPR cut is negative for banks but positive for real estate investment trusts (REIT).

China's Wuhan city is the epicentre of the new coronavirus outbreak. Reuters reported today that authorities in Wuhan, the epicentre of the coronavirus outbreak that has killed 17 and infected nearly 600 people, shut urban transport networks and suspended outgoing flights.

It was reported that the outbreak posed bigger downside risks in China's sequential economic growth, as consumption and the service sector is a bigger part of the economy. "Airline shares continued to weaken, with Air China, China Eastern Airlines and China Southern Airlines dropping more than 3% each," Reuters reported.

In Malaysia, Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com that local shares were mainly impacted by news on the  coronavirus outbreak, which sparked concerns across Asian equities.

“Following the renewed weakness, we may see the (KLCI's) downside persisting as investors opt to lock in any recent gains ahead of the Lunar New Year break,” Leong said.

Across Bursa Malaysia today, 2.3 billion shares worth RM1.75 billion were traded. Top decliners included BLD Plantation Bhd, Petronas Dagangan Bhd and Hong Leong Financial Group Bhd.
Top gainers included Icon Offshore Bhd and KLCCP Stapled Group, which comprises KLCC Property Holdings Berhad and KLCC REIT shares.

Hong Leong Investment Bank Bhd analyst Jeremy Goh wrote in a note today: "Sectorial wise, this (OPR cut) is negative for banks but positive for REITs. Broadly, the 25 bps OPR cut is negative for the KLCI by virtue of the index's heavyweight banking sector (due to) net interest margin compression concerns.

"On the possible sector positives, a dovish setting should generally spur interest in REITs in which we are OVERWEIGHT on. Although data points on the KL-REIT index are limited (only began in Oct 2017), its broad inverse relationship to OPR is still visible," Goh said.

Earlier this month, Hong Leong analyst Nazira Abdullah wrote in a note that the defensive appeal of REITs (via dividends) should stand out, given the uncertainties from external headwinds and risk aversion in the equity market.

"Furthermore, an easing interest rate environment will result in lower borrowing costs for REITs to acquire future assets to encourage more acquisitions," she said.

Today, Bursa's REIT index closed up 3.44 points or 0.35% at 976.57 among a few gaining indices across the bourse as investors looked ahead to the Chinese New Year, which starts on Saturday (Jan 25).

Bursa said in a statement that for tomorrow (Jan 24), trading on the exchange will be opened for the morning session only. "There will be no trading in the afternoon session," it said.

Bursa also said the group and its subsidiaries will be closed on Monday (Jan 27) in place of the Chinese New Year holiday which falls on Sunday (Jan 26).

"Bursa Malaysia and its subsidiaries will resume operations on Tuesday, Jan 28," it said.


Source: The Edge

Market Daily Report: KLCI closes down 0.59% as banking stocks fall following OPR cut

KUALA LUMPUR (Jan 22): The FBM KLCI continued its downward trend since Monday, closing down 9.35 points or 0.59% at 1,577.98 points today, largely due to banking stocks being hit as a result of the overnight policy rate (OPR) cut.

"The banking stocks are the ones bringing the KLCI down today. Other than that, the local stock market is doing pretty well today," Rakuten Trade Sdn Bhd research vice president Vincent Lau told theedgemarkets.com.

The banking stock components of the KLCI that were impacted by the announcement include Hong Leong Bank Bhd (-3.56%), Public Bank Bhd (-2.36%), CIMB Group Holdings Bhd (-1.95%), Malayan Banking Bhd (-0.58%), and AMMB Holdings Bhd (0.52%).

These stocks noticeably took a dip after Bank Negara Malaysia announced at around 3pm that the OPR has been reduced by 25 basis points to 2.75%.

Only RHB Bank Bhd was neutral to the announcement as it closed unchanged.
Across Bursa Malaysia, a total of 3.07 billion shares worth RM2.57 billion were traded.
Top gainers included consumer stocks Carlsberg Brewery Malaysia Bhd and Fraser & Neave Holdings Bhd while leading decliners included Dutch Lady Milk Industries Bhd and Panasonic Manufacturing Malaysia Bhd.

In other markets, a global outbreak of a pneumonia-causing virus, which started in China, dictated world market sentiment.

Reuters reported that China's response to the virus outbreak tempered fears of a global pandemic, although Shanghai shares slipped amid worries about a hit to domestic demand and tourism.
"Fears of contagion, particularly as millions travel for Lunar New Year festivities, [have] pushed stocks from record peaks," the newswire said.



Source: The Edge

Market Daily Report: KLCI retreats, healthcare index jumps as China virus outbreak spooks markets

KUALA LUMPUR (Jan 21): The FBM KLCI closed down 1.55 points or 0.1% at 1,587.33 today after volatile trade while Bursa Malaysia's healthcare index jumped as a global outbreak of a pneumonia-causing virus, which started in China weigh on global markets.

At Bursa, the healthcare index, which tracks shares of rubber glove and pharmaceutical product manufacturers besides hospital operators, jumped 47.39 points or 3.73% to 1,318.95 against such sentiment.

“At this point, from what we can see, the concerns over the escalation of the current viral outbreak in China have weighed on the KLCI. The only real gainers were healthcare and glove makers,” Rakuten Trade Sdn Bhd research vice president Vincent Lau told theedgemarkets.com.

Reuters reported that China reported a fourth death from a new coronavirus on Tuesday as the number of cases continued to rise, sending jitters through Asian markets as hundreds of millions of Chinese prepared to travel for the Lunar New Year holiday.

It was reported that health authorities around the world have begun to step up screening of travelers arriving from China. Two cases have already been identified in Thailand, one in Japan and one in South Korea, while the Philippines reported on Tuesday its first suspected case, according to Reuters.
"The virus can cause pneumonia, with symptoms including fever and difficulty in breathing. Health authorities around the world stepped up screening and the World Health Organization called a meeting on Wednesday to consider declaring an international health emergency, as China confirmed the virus spread through human contact.

"Asian shares fell as investors likened the outbreak to the 2002/2003 spread of Severe Acute Respiratory Syndrome (SARS), another coronavirus which broke out in China and killed nearly 800 people in a global pandemic. China's yuan  was down nearly half a percent and on track for its worst day in a month, while airline and travel stocks fell across the region," Reuters reported.

Across Bursa today, 2.66 billion shares worth RM1.93 billion were traded. Top gainers included rubber glove makers Top Glove Corp Bhd and Hartalega Holdings Bhd while leading decliners included Hong Leong Financial Group Bhd and Axiata Group Bhd.

Within the KLCI, Top Glove, which closed up 29 sen or 6.02% at RM5.11, became the top-percentage gainer among the index's 30 stocks. Hartalega was the second-largest gainer after the stock rose 25 sen or 4.5% to RM5.80.



Source: The Edge

Market Daily Report: KLCI ends lower as Bursa tech stocks rise

KUALA LUMPUR (Jan 20): The FBM KLCI closed 6.93 points or 0.43% lower today at 1,588.88 on profit-taking, while Bursa Malaysia technology stocks rose among top gainers, on expectation these companies will report earnings growth.

At 5pm today, the KLCI closed down at 1,588.88 points on profit-taking, after the index rose 7.93 points or 0.5% on Friday (Jan 17).

Today, the KLCI ended lower, led by Petronas Dagangan Bhd, followed by Axiata Group Bhd and Maxis Bhd. Across Bursa Malaysia, investors chased technology stocks including semiconductor-related KESM Industries Bhd and ViTrox Corp Bhd.

KESM closed up 50 sen or 4.85% at RM10.80 to become Bursa's top gainer.
Speaking to theedgemarkets.com, Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng said technology stocks made strides today, on expectation these companies will announce earnings growth during Malaysia's corporate financial reporting season for the October-to-December quarter.

The corporate financial reporting season starts as early as January, although most companies announce their earnings in February.

“It is currently reporting season, generally this time around there is [expected to be] growth in earnings for such stocks,” Wong said today, as global investors evaluated US technology companies' earnings outlook against the US-China Phase 1 trade deal.

Reuters said reports from Netflix, Intel and Texas Instruments may hint at what is to come in the December quarterly earnings season, with some investors wary of possible danger signs that could knock Wall Street, after its latest surge to record highs.

"The S&P 500 has gotten off to a strong start in January, up 3% so far this year, fueled by a truce in the U.S.-China trade war, low interest rates and signs the economy remains healthy. Analysts on average, expect reports to show S&P 500 earnings per share fallen 0.8% in the fourth quarter, with technology earnings seen up 0.6%, according to IBES data from Refinitiv.

"Investors are looking beyond fourth-quarter results at what companies may say about outlooks and plans for investment in light of the recently-signed Phase 1 trade deal between Washington and Beijing. Expectations that the chip industry will soon pick up have fueled a 30% surge in the Philadelphia Semiconductor Index since mid-2019," Reuters reported.



Source: The Edge

Market Daily Report: FBM KLCI ends Friday trading stronger as global sentiment strengthens

KUALA LUMPUR (Jan 17): The FBM KLCI closed in the positive territory today, as investor sentiment globally was buoyed after the release of Chinese growth data which suggest improvements in Chinese business confidence, amid the easing of US-China trade tensions.

The benchmark index settled 7.93 points or 0.5% higher at 1,595.81 at the end of trading hours, with 2.84 billion shares traded for RM2.26 billion.

The rise was supported by Petronas Dagangan Bhd, which rose RM1.34 or 5.97% to close at RM23.80; Axiata Group Bhd, which climbed 24 sen or 5.5% to RM4.60; and Sime Darby Bhd, which gained four sen or 1.8% to RM2.26.

Rakuten Trade Sdn Bhd research vice president Vincent Lau said the signing of the US-China trade agreement and the recent easing of tensions in the Middle East have eased sentiments globally, which has reflected positively on Asian shares.

"Yes, the Chinese data also boosted sentiment, which should support growth for the KLCI given that it is still below the 1,600 level," he told theedgemarkets.com.

According to Reuters, the MSCI world equity index hit a new record high after rising 0.2%, as Chinese growth came in at 6% between October and December and 6% for the whole of last year, which suggested that the country's growth was stabilising.

The data also reinforced signs of an improvement in Chinese business confidence after the US and China signed an initial deal on Wednesday, and fired hopes for a revival in global growth and demand, the news agency wrote.

The MSCI's broadest index of Asia Pacific shares outside Japan gained 0.4%, it added, as shares in Australia and South Korea gained, while Japan's Nikkei reached its highest in 15 months.



Source: The Edge

Market Daily Report: KLCI ends higher amid US-China trade deal optimism

KUALA LUMPUR (Jan 16): The FBM KLCI closed 2.74 points or 0.17% higher today after erasing losses in the final trading hour, partly helped by Axiata Group Bhd and Digi.Com Bhd's share price spike and as world markets cheered the US-China phase one trade deal.

At 5pm, the KLCI closed higher at 1,587.88 after falling to its intraday low at 1,575.77. Axiata ended 20 sen or 4.81% higher at RM4.36 while Digi.Com rose three sen or 0.67% to RM4.54.

Malaysia telecommunication stocks' price rise could be due to news today that Credit Suisse had upgraded the sector to market weight from underweight.

Bloomberg quoted Credit Suisse analyst Danny Chan as writing in a note that Credit Suisse upgraded Axiata shares to outperform from neutral.

Globally, the US-China phase one trade deal that was signed on Wednesday led to share market optimism today. In Malaysia, Rakuten Trade Sdn Bhd research vice president Vincent Lau said the KLCI had today tracked overnight optimism in world share markets following the signing of the trade deal.

Cautious sentiment however remains. “The market is quite mixed. It is still cautious with muted gains. We hope the KLCI can head back to the 1,600 level in the near term as the broader market is generally performing okay,” Lau told theedgemarkets.com.

Meanwhile, the Securities Commission Malaysia has ordered the suspension of trading in Atta Global Group Bhd and Heng Huat Resources Group Bhd securities with effect from 12:08pm today under a directive issued under the Capital Markets and Services Act 2007.
Reuters reported that world stocks inched ahead to a record high on Thursday after the US and China signed the initial deal to defuse their 18-month trade war, though financial markets were wary as a number of thorny issues remained unresolved.
Overnight at the US stock market, the S&P 500 closed at a record high of 3,289.3 points, up 0.19%, with gains fairly small after the market has rallied for months on hopes of a deal, according to Reuters.

Market Daily Report: FBM KLCI pares losses in the final hour to close in positive territory

KUALA LUMPUR (Jan 15): The benchmark FBM KLCI, which has been languishing in the red earlier today, pared losses at the eleventh hour of trading to close in positive territory.

At 5pm, the benchmark index settled 4.54 points or 0.29% higher at 1,585.14, after a total of 2.54 billion shares worth RM1.68 billion were traded.

According to Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng, investors are cautious as they await more news on the upcoming signing of the initial or phase one trade deal between the US and China, which is expected to happen later this evening.

The agreement, which aims to vastly increase Chinese purchases of US manufactured products, agricultural goods, energy and services, will cap 18 months of tariff conflict between the two largest economies in the world, which has roiled financial markets globally and slowed global growth.

"Overall, investors are waiting for new catalysts. And given that the Chinese New Year holidays are around the corner, many will not want to bet their money for now. Expect the KLCI to hover, plus and minus, around the 1,600 level," he told theedgemarkets.com.

Among the stocks that supported the KLCI's performance in the final trading hour today were Press Metal Aluminium Holdings Bhd (up 4.04% or two sen to close at RM5.15), Top Glove Corp Bhd (up 3% or 14 sen to settle at RM4.80), and Public Bank Bhd (up 2.19% or 42 sen at RM19.56).

Reuters, meanwhile, reported that Asian shares fell as investors stayed wary after a top US trade official said current tariffs on Chinese goods would stay for now, prompting investors to lock in profits from recent gains.



Source: The Edge

Market Daily Report: FBM KLCI ends lower with CPO prices

KUALA LUMPUR (Jan 14): The FBM KLCI closed 4.13 points or 0.26% lower at 1,580.60 on profit taking and as Bursa Malaysia plantation shares tracked lower crude palm oil (CPO) prices, amid news on Malaysia and India's row on the commodity.

Analysts said news that Malaysia remains as one of the countries under the US watchlist for potential currency manipulation, could have also weighed on the KLCI. It was reported that Switzerland was added to the monitoring list, while countries including Japan, Germany, Italy, Ireland, Singapore, Malaysia and Vietnam remained.

At Bursa Malaysia today, the KLCI closed down at 1,580.60 at 5pm on profit taking, after rising to its intraday high at 1,587.47.

At 5pm, top decliners included Sarawak Oil Palms Bhd and Sime Darby Plantation Bhd, besides Hong Leong Bank Bhd and Hong Leong Financial Group Bhd.

Bursa's plantation index ended down 74.42 points or 0.97% at 7,602.32, amid lower CPO prices. CPO for March 2020 fell RM79 to RM3,013 a tonne at the time of writing.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong said "recent weakness in CPO prices sent the plantation sector (index) sharply lower" as investors closely-watched the Malaysia-India palm oil row, while the planned signing of the US-China Phase 1 trade agreement on Wednesday (Jan 15), supported world markets today.

Reuters, quoting industry sources familiar with the matter, reported yesterday that Indian palm oil importers have effectively stopped all purchases from Malaysia, after the government privately warned them to shun Malaysian imports.

It was reported that the warning, issued last week, comes almost in parallel with India's move to restrict imports of refined palm oil and palm olein, after Malaysian Prime Minister Tun Dr Mahathir Mohamad criticised India's actions in Kashmir and its new citizenship law.

Elsewhere, Reuters reported today that Asian shares rose, China’s yuan jumped and safe-harbour assets slipped on Tuesday, amid signs of goodwill between China and the US, as the world’s two biggest economies prepares to sign a truce in their bitter trade war.


Source: The Edge

Market Daily Report: KLCI closes 0.42% lower as trading sentiment remains cautious

KUALA LUMPUR (Jan 13): The FBM KLCI fell 6.73 points or 0.42% to 1584.73 today, as investors remained cautious on external developments and continued to participate in profit-taking activities.
The benchmark index was amongst the few trading negatively around the region, as the rest closed in green territory on optimism ahead of the signing of the Phase 1 trade deal between the United States and China this week.

Hong Leong Investment Bank Bhd head of retail research Loui Low said profit-taking is likely to continue, ahead of the Chinese New Year holidays.

“On the other hand, despite investors taking profit in the big cap companies, the technology index remained in positive territory, closing 1.36% higher,” he told theedgemarkets.com.

Loui noted this is in tandem with the performance of technology counters in China, which rose higher today on optimism of the trade deal.

Dragging the KLCI lower were Hong Leong Bank Bhd which closed 2.05% lower to RM17.20, Petronas Chemicals Group Bhd closing 1.93% lower to RM7.10, and Public Bank Bhd which fell 1.64% to RM19.22.

A total of 2.61 billion shares, worth RM1.65 billion, were traded.

Elsewhere in Asia, Japan's Nikkei 225 index closed 0.47% higher, South Korea's Kospi rose 1.04%, while China's Hang Seng index climbed 1.11% and the Shanghai Composite index rose 0.75%.
China and the United States are scheduled to sign the trade agreement on Jan 15, and the Trump administration has invited at least 200 people to the White House for the ceremony, Reuters reported.

The agreement eases the 18-month long trade dispute between the countries and aims to alter China’s trade and economic practices, but it will still leave in place, tariffs on about US$370 billion worth of Chinese imports per year.



Source: The Edge

Market Daily Report: KLCI dips, tech stocks up as overall sentiment stays cautious

KUALA LUMPUR (Jan 10): The FBM KLCI closed 4.19 points or 0.26% lower today at 1,591.46 on profit taking while the technology index rose the most among Bursa Malaysia indices.

Bursa's technology index, which tracks semiconductor-related companies' shares, closed up 0.4 point or 1.04% at 39.03 as US-China trade optimism and apparent de-escalation of US-Iran tension led to anticipation of growth in the global technology industry.

Overall sentiment, however, stayed cautious as there were no indications on how the US-Iran tension would further develop, analysts said. According to Hong Leong Investment Bank Bhd head of retail research Loui Low, the KLCI fell today on profit taking as the broader market saw investors adopting a conservative approach.

“Looking at all this, it may be good to trade on conservative factors such as REITs, utilities and high dividend yield stocks,” said Low. 

 

Across Bursa today, 2.74 billion shares worth RM1.6 billion were traded. Top gainers included semiconductor-related companies KESM Industries Bhd and Malaysian Pacific Industries Bhd.
Leading decliners included KLCI stocks Petronas Dagangan Bhd, Hong Leong Financial Group Bhd and Axiata Group Bhd.

Globally, Reuters reported that the world’s shares hit a record high on Friday as relief over de-escalation of US-Iranian tensions quickly prompted investors to bet on faster global growth, especially in the technology sector.

It was reported that MSCI’s broadest gauge of the world’s stocks in 49 countries rose a tad to hit an all-time high and its index of Asia-Pacific shares outside Japan rose 0.18%.

"Asia’s gains followed record-setting in the pan-regional STOXX 600 index in Europe and the three major stock indexes on Wall Street. The S&P 500 gained 0.67%, with its technology sector rising more than 1%. Apple gained 2.1%, helped by news that sales of its iPhones in China in December jumped more than 18% year-on-year.

"Investors welcomed the report as a prelude to the upcoming visit by China’s Vice Premier Liu He, head of the country’s negotiation team in Sino-US trade talks, to Washington next week to sign a trade deal with the US," Reuters reported.



Source: The Edge

Market Daily Report: FBM KLCI ends higher as US-Iran hostility cools down

KUALA LUMPUR (Jan 9): The FBM KLCI ended up 6.55 points or 0.41% today at 1,595.65 with Asian shares as fears over a further escalation in Iran-US hostility subsided.

Reuters reported that US President Donald Trump responded to an Iranian attack on US forces with sanctions, not violence. It was reported that Iran offered no immediate signal it would retaliate further over a Jan 3 US strike that killed a senior military commander.

In Malaysia today, Rakuten Trade Sdn Bhd research vice president Vincent Lau told theedgemarkets.com the temporary de-escalation in the tension between the US and Iran in the Middle East contributed to more positive investor sentiment.

"The cool-down in US-Iran tensions contributed to today's (KLCI) rise, which was in line with key regional markets," said Lau. 

 

Across Bursa Malaysia, 2.83 billion shares worth RM1.89 billion were traded today. A total of 601 counters gained versus 254 decliners.

Top gainers included Hong Leong Financial Group Bhd and Kuala Lumpur Kepong Bhd. Leading decliners included Petronas Chemicals Bhd and Tomei Consolidated Bhd.

Across Asian stock markets, Japan's Nikkei 225 closed up 2.31% while South Korea's Kospi rose 1.63%.

In China, the Shanghai Stock Exchange Composite closed 0.91% higher while Hong Kong's Hang Seng added 1.68%.



Source: The Edge

Market Daily Report: KLCI drops 21.94 points after Iran retaliates against US

KUALA LUMPUR (Jan 8): The FBM KLCI dropped 21.94 points or 1.36% today along with global equities after Iran fired missiles at US military bases in Iraq in retaliation to the US air strike, which killed top Iranian commander Qassem Soleimani on Friday.

At 5pm today, the KLCI closed down at 1,589.1 after broad-based selling across Bursa Malaysia, where volume ended higher at 3.86 billion shares. The small-cap index finished down 310.01 points or 2.18% at 13,882.4.

"The local market was impacted by the strike from Iran [against the US]. That's the main reason for the market-wide sell down today," Rakuten Trade Sdn Bhd head of research Kenny Yee told theedgemarkets.com.

Across Bursa today, 3.86 billion shares worth RM2.23 billion were traded. Yesterday 2.99 billion shares worth RM1.8 billion were transacted.

Today, 161 counters gained against 795 decliners across Bursa. Top decliners included Nestlé (M) Bhd, PPB Group Bhd and Hong Leong Financial Group Bhd.

Top gainers included jewellers Poh Kong Holdings Bhd and Tomei Consolidated Bhd amid higher gold prices at above US$1,600 per ounce.

Globally, Reuters reported that Asian shares tumbled on Wednesday, while oil, safe-haven Treasury prices and gold shot higher after Iran fired rockets at US-led forces in Iraq, stoking fears of a wider conflict in the Middle East.

It was reported that Iran's missile attacks on the Ain Al-Asad air base and another in Erbil, Iraq, early in the day came hours after the funeral of the Iranian commander whose killing in a US drone strike has intensified tensions in the region.

It was reported that overnight on Tuesday, shares on Wall Street had pulled back amid worries over US-Iran tensions. The Dow Jones Industrial Average fell 0.42%, the S&P 500 lost 0.28% and the Nasdaq Composite dropped 0.03%, according to Reuters.



Source: The Edge

Market Daily Report: KLCI gains 13.28 points as Middle East conflict appears to ebb

KUALA LUMPUR (Jan 7): The FBM KLCI gained 13.28 points or 0.83% to close at 1,611.04 today, as the apparent easing of the Middle East geopolitical tension following the US' air strike in Iraq, supported global shares' rise.

Crude oil prices however fell, amid apparent easing of the geopolitical tension.

According to Rakuten Trade Sdn Bhd research vice president Vincent Lau, the KLCI's gain today was on account of investors tempering their expectations that the US' drone strike which killed top Iranian commander Qassem Soleimani on Friday, will become a full-blown war.

Reuters reported Asian shares rebounded on Tuesday, as investors' reassessed the risk of an all-out conflict between the US and Iran, while Wall Street battled back to the black, as tech stocks climbed.
It was reported that oil surrendered hefty gains, as some speculated Iran would be unlikely to strike against the US in a way that would disrupt supplies, and its own crude exports. It was reported that Brent crude fell as much as 1.5% to US$67.86 a barrel and was at US$68.39, down 52 cents at 0737 GMT.

In Malaysia, Lau told theedgemarkets.com: “Today’s (KLCI) performance is also in line with gains posted in other key regional markets. In addition, the price of oil has slightly dipped."

At 5pm today, the KLCI closed up after falling 13.62 points or 0.85% to 1,597.76 yesterday, as the US' air strike in Iraq dented global equity investor sentiment.

Across Bursa Malaysia, 2.99 billion shares worth RM1.8 billion were traded. A total of 441 counters registered gains, while 388 declined.

Top gainers included KLCI stocks PPB Group Bhd, Axiata Group Bhd and RHB Bank Bhd.
Most-active stocks included oil and gas-related Alam Maritim Resources Bhd and Sapura Energy Bhd.

Top-active stock Alam Maritim registered a volume of some 192 million shares. Its share price closed down 0.5 sen or 2.7% at 18 sen.


Source: The Edge

Market Daily Report: KLCI down 13.62 points as Middle East tension takes its toll on world equities

KUALA LUMPUR (Jan 6): The FBM KLCI fell 13.62 points or 0.85% to close at 1,597.76 today, as the US' recent air strike in Iraq dented global equity investor sentiment. Prices of commodities including gold and crude oil however, rose again amid such heightened Middle East geopolitical tension.

At Bursa Malaysia today, the KLCI closed down at 1,597.76 at 5pm, after broad-based selling across Bursa Malaysia where the energy and REIT indices were the only gainers among the bourse's indices.
Amidst other decliners, the FBM Small Cap index closed down 120.04 points or 0.84% at 14,158.27.
The energy index, which tracks oil and gas-related shares, ended up 27.13 points or 2.15% at 1,291.25, after crude oil prices rose past US$70 a barrel, amid heightened Middle East geopolitical tension.

The energy index rose to its record high earlier today at 1,300.83 since its inception in September 2018.

Today, Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng said the KLCI's decline is the result of investor concerns that the recent US drone strike that killed top Iranian commander Qassem Soleimani on Friday, "will trigger a war in the Middle East".

Across Bursa today, 3.4 billion shares worth RM1.64 billion were traded. There were 269 gainers versus 646 decliners. Top decliners included Maxis Bhd, PPB Group Bhd and Tenaga Nasional Bhd.
Oil and gas-related stocks emerged among top gainers and leading active stocks.

Top gainers included Hengyuan Refining Co Bhd and Petron Malaysia Refining & Marketing Bhd, while leading active stocks including Alam Maritim Bhd and Hibiscus Petroleum Bhd.

Wong said the energy index’s rise was on account of higher crude oil prices, which are expected to benefit downstream oil and gas (O&G) players and upstream O&G service providers.

Globally, Reuters reported tensions in the Middle East after the killing of the top Iranian general by the US, pushed an index of Asian shares off an 18-month high on Monday, as investors pushed safe-haven gold near a seven-year high, and oil jumped to four-month peaks.

It was reported that the US detected a heightened state of alert by Iran's missile forces, as President Donald Trump warned that the US would strike back, "perhaps in a disproportionate manner", if Iran attacked any American person or target.

"Spot gold gained 1.6% to US$1,579.55 per ounce in jittery trade to reach its highest since April 2013. Oil prices extended gains on fears any Middle East conflict could disrupt global supplies. Brent crude futures rose US$1.90 to US$70.50 a barrel, while US crude climbed US$1.50 to US$64.57," Reuters reported.



Source: The Edge

Market Daily Report: KLCI ends 8.88 points higher after Brent oil jumps nearly US$3

KUALA LUMPUR (Jan 3): The FBM KLCI closed 8.88 points or 0.55% higher today at 1,611.38, amid higher crude oil prices and after US shares ended at record highs in overnight trades.

Today, Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com that the "KLCI's gain was mainly attributed to Petronas-linked counters, as oil prices surged."

Reuters reported Brent crude futures jumped nearly US$3 on Friday to their highest since September, after a US air strike killed key Iranian and Iraqi military personnel, raising concerns escalating Middle East tensions may disrupt oil supplies.

It was reported that Brent, the international benchmark, hit an intraday high of US$69.16 a barrel, its highest since Sept. 17, before easing to US$68.21, up US$1.96, or 3%, by 0618 GMT.
Across Bursa Malaysia, 3.58 billion shares worth RM2.36 billion were traded.

Gainers led decliners by 492 to 447 respectively.

Top gainers included Carlsberg Brewery Malaysia Bhd, Hong Leong Financial Group Bhd and Petronas Gas Bhd.

Petronas Gas closed up 20 sen or 1.18% at RM17.16.

Across global share markets, Reuters reported Asian shares slipped on Friday, erasing early gains, while gold shone and oil prices spiked after US air strikes in Iraq killed a top Iranian commander, heightening geopolitical tensions.

Overnight on Thursday in the US, it was reported that the Dow Jones Industrial Average closed up 330.36 points or 1.16% at 28,868.8, while the S&P 500 gained 27.07 points or 0.84% to 3,257.85 and the Nasdaq Composite added 119.59 points or 1.33% to 9,092.19.



Source: The Edge

Market Daily Report: KLCI finishes up 13.74 points on first trading day of 2020

KUALA LUMPUR (Jan 2): The FBM KLCI closed up 13.74 points or 0.86% today while the ringgit strengthened as investors anticipated a US-China trade deal and after China eased monetary policy to support its economy.

Across Bursa Malaysia, 3.36 billion shares worth RM1.86 billion were traded at 5pm. Gainers led decliners by 614 to 308 respectively.

Malaysian markets resumed trading today after markets were closed yesterday (Jan 1) for the New Year holiday.

Among the KLCI's 30 component stocks today, Public Bank Bhd was the biggest percentage gainer after the stock closed up 46 sen or 2.37% at RM19.90 followed by Press Metal Aluminium Holdings Bhd, which ended 10 sen or 2.15% higher at RM4.75. 

 

The KLCI closed up at 1,602.50 today after falling 26.91 points or 1.67% on Tuesday (Dec 31) to 1,588.76.

Today, Rakuten Trade Sdn Bhd head of research Kenny Yee said the KLCI's rise was expected, given that selling was overdone on Tuesday.

Yee told theedgemarkets.com today there were no reasons for the KLCI's "intense sell down" on Tuesday. Today, he said Rakuten expects buying interest in the KLCI to continue on factors including US-China trade optimism and the ringgit's strength.

In currency markets today, the ringgit appreciated to its strongest point against the US dollar at 4.0813. At the time of writing, the exchange rate was 4.0890.

Bloomberg reported today the ringgit appreciated to its strongest level against the US dollar since April 2019 with sentiment buoyed by an improving global trade outlook and data suggesting Malaysian manufacturing may be on the mend.

Globally, Reuters reported that Asian shares kicked off 2020 on a strong note on Thursday, spurred by Chinese markets after Beijing eased monetary policy to support the slowing economy.

Investors were cheered after China's central bank on Wednesday said it would cut the amount of cash that banks must hold as reserves, releasing around 800 billion yuan (US$114.9 billion) in funds for lending, effective Jan 6.

"Investors also cheered news that the US and China will sign a trade pact soon after months of volatile negotiations between the world's two largest economies. US President Donald Trump said on Tuesday that Phase 1 of trade deal with China would be signed on Jan 15 at the White House, though uncertainty surrounds details about the agreement," Reuters reported.



Source: The Edge