Market Daily Report: FBM Small Cap tumbles 9.7% amid political turmoil, wider Covid-19 spread

KUALA LUMPUR (Feb 28): The equity rout, which was triggered by the Covid-19 outbreak gathered steam today, especially after the overnight bloodbath on Wall Street; the Dow Jones Industrial Average has tumbled more than 2,000 points this week.

A strong wave of selling has swept across Asia. Malaysia, which is currently embroiled in a political crisis, is not spared from it. The RM20 billion stimulus package that was unveiled by interim Prime Minister Tun Dr Mahathir Mohamad did not entice any investing interest.

The benchmark index FBM KLCI fell 1.52% or 22.95 points to 1,482.64 points. The fall was not as sharp as its regional peers, such as Japan's Nikkei 225, which shed 805.2 points or 3.67%, Thailand’s SET Index, which tumbled nearly 4% or 55.31 points, Singapore’s Straits Times Index, which lost 100.6 points or 3.23%.

Dealers explained the fall on local bourse was not as steep mainly because of lower exposure to foreign funds given that most of them had already sold out of the Malaysian market in the past two years.

On the home front, adding to the cautious sentiment is the political drama that has started since last Sunday (Feb 23). Political risk of the market has heightened instantly, said analysts.

There might not be panic selling as yet; however, the political uncertainties have deterred buying interest, they said.

“The market will not settle until these two matters are resolved – the risk arising from the Covid-19 outbreak, and the uncertainty on the political front,” Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng told theedgemarkets.com.

“The economic stimulus package is a step forward to address the virus outbreak, but [the] impact of some initiatives will come in much later,” said Wong.

For the week, the FBM KLCI went down 3.2% or 48.56 points to the lowest level since December 2011. However, the fall on Bursa Malaysia Small Cap Index was drastic, tumbling 9.72% or 1,371.7 points during the week to 12,736.02 points today.

Across Bursa Malaysia, some 5.09 billion shares valued at RM4.79 billion were traded. Decliners led gainers by 1,055 counters against 126 counters, while 229 traded unchanged.

Malaysia is set to end its fifth day without a federal government, raising the possibility of a snap election being called. The Yang di-Pertuan Agong today called on political parties to again name their prime minister candidate.

Meanwhile, there was renewed pressure on the local currency this week. The local currency weakened to RM4.2150 as at 6pm today against the US dollar compared with RM4.1915 last Friday.

 Source: The Edge

Market Daily Report: KLCI up, small caps down as investors weigh Covid-19, Malaysia's RM20b stimulus

KUALA LUMPUR (Feb 27): The FBM KLCI closed 10.4 points or 0.7% higher today after index-linked stocks rose ahead of interim Prime Minister Tun Dr Mahathir Mohamad's speech on Malaysia's 2020 economic stimulus package and as local equities took cue from the current corporate financial reporting season.

At 5pm, the KLCI ended at 1,505.59 although Bursa Malaysia small market capitalisation (small cap) stocks fell in apparent reflection of global share market sentiment amid the Covid-19 outbreak.
Bursa's small cap index ended down 241.18 points or 1.78% at 13,324.48 after Asian shares tracked US stock futures losses. Among Asian stock indices, Japan’s Nikkei 225 and South Korea's Kospi closed down 2.13% and and 1.05% respectively.

CNBC reported that major Asia Pacific markets were mixed on Thursday as investors remained cautious over the fast-spreading new coronavirus that has infected more than 81,000 people and killed over 2,700. 

 

“Most of the people infected and killed by the disease to date are from China. However, the number of cases outside the country has surged in recent weeks — especially in places like South Korea, Italy, and Iran. That’s led to global sell-off, including in the US where the S&P 500 wiped out US$1.7 trillion in just two sessions,” CNBC said.

In Malaysia today, Rakuten Trade Sdn Bhd research vice president Vincent Lau said "investors' hope that the economic stimulus package will curb the impact of the Covid-19 outbreak on the local economy had a positive effect on the KLCI".

Dr Mahathir said today the stimulus package valued at RM20 billion is anchored on three strategies namely mitigating the impact of COVID-19, spurring people-centric economic growth and promoting quality investments.

Corporate financial results played a role too in supporting the KLCI's gains. Malayan Banking Bhd (Maybank) was one such example after its share price rose 19 sen or 2.28% to close at RM8.52 after the group reported profit growth and proposed a dividend.

Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng said "Maybank's share price gain helped lift the KLCI" as the broader market fell.

Across Bursa today, 3.52 billion shares exchanged hands for RM2.67 billion. A total of 622 counters declined against 264 gainers.

Top gainers included PPB Group Bhd and Maybank while leading decliners included Carlsberg Brewery Malaysia Bhd and KESM Industries Bhd.



Source: The Edge

Market Daily Report: KLCI falls, led by Petronas Chemicals share price slump

KUALA LUMPUR (Feb 26): The FBM KLCI closed 5.69 points or 0.38% lower today at 1,495.19, mainly on Petronas Chemicals Group Bhd's share price slump as investors evaluated Malaysia's corporate financial results during the current reporting season.

Malaysian share trade, which tracked Asian equity losses on persisting Covid-19 concerns, also appeared to have taken cue from interim Prime Minister Tun Dr Mahathir Mohamad's televised address at 4.45pm today when the KLCI rose before closing down at 5pm.

It was reported that Malaysia is facing an unprecedented politicial situation following Dr Mahathir's surprise resignation as its seventh Prime Minister on Monday (Feb 24), and the exit of his political party, Parti Pribumi Bersatu Malaysia, from the Pakatan Harapan coalition. The Yang di-Pertuan Agong had appointed Dr Mahathir as interim Prime Minister, following the resignation.

Today, Hong Leong Investment Bank Bhd head of retail research Loui Low told theedgemarkets.com that “investors need more clarity on the (Malaysian) political developments”. 

 

Petronas Chemicals topped KLCI decliners, in percentage terms, afer the stock closed down 55 sen or 8.59% at RM5.85 following the company's profit drop announcement.

Hap Seng Consolidated Bhd was the second largest-decliner after the stock fell 18 sen or 1.96% to RM9. Public Bank Bhd declined 32 sen or 1.83% to RM17.20.

Petronas Chemicals said today fourth quarter net profit fell 66.34% year-on-year (yoy) to RM340 million from RM1.901 billion. In a statement to Bursa today, Petronas Chemicals said revenue fell to RM4.23 billion in the fourth quarter ended Dec 31, 2019 (4QFY19) from RM5.06 billion.

For the full year, Petronas Chemicals said cumulative FY19 net profit dropped to RM2.81 billion from RM4.79 billion a year earlier while revenue was lower at RM16.37 billion versus RM19.58 billion.

Dr Mahathir's televised address shortly before market close appeared to have generated optimism among investors when the KLCI rose in apparent reaction to his remarks.

Reuters reported that Mahathir said on Wednesday he would return as full-time premier if he had the support of Parliament and that he wanted to form a government that is not aligned with any political party. It was reported that he also apologised for the political turmoil in the country following his unexpected resignation on Monday.



Source: The Edge

Market Daily Report: KLCI up 10.82 points as bear market prompts bargain hunting

KUALA LUMPUR (Feb 25): The FBM KLCI closed 10.82 points or 0.73% higher today at 1,500.88, on bargain hunting, after Malaysian stocks' substantial drop yesterday into a bear market, as investors weighed factors including Malaysian political uncertainties, besides the global Covid-19 outbreak and crude oil price slump.

It was reported that Malaysia is facing an unprecedented politicial situation following Tun Dr Mahathir Mohamad's surprise resignation as its seventh prime minister yesterday, and the exit of his political party, Parti Pribumi Bersatu Malaysia, from the Pakatan Harapan coalition. It was reported that the Yang di-Pertuan Agong has appointed Dr Mahathir as interim prime minister, following the resignation.

Today, Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com that the KLCI rebounded as the "political situation appeared to have slightly stabilised" after Dr Mahathir was appointed as the interim prime minister shortly after he resigned as prime minister.

The KLCI closed up at 1,500.88 on bargain hunting today, after finishing down 41.14 points or 2.69% yesterday at 1,490.06, as Malaysian stocks were seen entering into a bear market, where stock prices record a 20% decline from their recent peak. 

 

Today, Bursa Malaysia saw 3.13 billion shares worth RM2.76 billion traded across the exchange. Top gainers included Carlsberg Brewery Malaysia Bhd, Fraser & Neave Holdings Bhd and British American Tobacco (M) Bhd, as investors appeared to take a defensive approach as they weighed the impact of the global Covid-19 outbreak and crude oil price slump, besides Malaysian political uncertainties on equities.

Crude oil prices rose today, after falling some 4% in overnight trades, amid Covid-19 outbreak concerns.

Reuters reported Brent crude rose 19 cents or 0.3% to US$56.49 a barrel by 0436 GMT today, after slipping 3.8% on Monday, the largest single-day price fall since Feb 3. It was reported that the US crude futures gained 17 cents or 0.3% to US$$51.60, recovering from a 3.7% drop in the previous session.



Source: The Edge

Market Daily Report: KLCI down 2.69% as Malaysia stocks enter into bear market

KUALA LUMPUR (Feb 24): The FBM KLCI closed down 41.14 points or 2.69% at 1,490.06 today, after a sea of red washed over Malaysian stocks amid an unusual confluence of factors including the Covid-19 global outbreak, lower crude oil prices and Malaysia’s political uncertainty.

A local fund manager, who spoke on condition of anonymity, told theedgemarkets.com that the Malaysian stock market has entered into a bear market as investors adopted a "sell-first, think-later" approach, while waiting for political clarity.

The local fund manager said: “If you look at the grand scheme of things, the Malaysian market is certainly bearish at this point, based on the accepted ratio where stocks see a 20% decline from its recent peak.

“It may rebound but everything will depend on the political temperature, which appears to be very fluid at this point, as more events unfold. If there are no developments to the political impasse, markets could fall further. The immediate support level would be 1,480.”

Investors are closely watching Malaysia's political landscape after unexpected talks yesterday (Sunday, Feb 23) between Tun Dr Mahathir Mohamad's Parti Pribumi Bersatu Malaysia and opposition parties to form a new government, which would exclude PKR president Datuk Seri Anwar Ibrahim.

Today, news reports quoting the Prime Minister's Office's statement said Dr Mahathir had submitted his resignation letter as prime minister to the Yang di-Pertuan Agong at 1pm.

Across Bursa today, decliners outstripped gainers by 1,015 to 137 respectively. Trading volume swelled to 4.03 billion shares worth RM3.91 billion today, versus 2.73 billion shares worth RM2.14 billion on Friday (Feb 21).

Top decliners included KLCI stocks Kuala Lumpur Kepong Bhd, Public Bank Bhd and Tenaga Nasional Bhd, after broad-based selling across Bursa.

All Bursa indices ended lower. The construction and energy indices were dealt the largest blow, after they fell 6.07% and 4.06% respectively, as the Covid-19 global outbreak and lower crude oil prices hit world market sentiment.

Reuters reported global shares and oil slid on Monday, while safe-haven gold surged as the spread of the 2019 novel coronavirus (Covid-19) outside China, darkened the outlook for world growth, with infections and deaths rising in South Korea, Italy and the Middle East.

The large spike in Italian cases has especially rattled investors on concerns about the potential for the virus to spread deeper into Europe, and cause economic disruption there.

The selloff in Asian markets and US and European stock futures on Monday was financial markets' first reaction to the weekend news, which analysts described as game-changing developments in the outbreak.



Source: The Edge

Market Daily Report: FBM KLCI ends in the red on renewed Covid-19 concerns

KUALA LUMPUR (Feb 21): The FBM KLCI, which languished in negative territory throughout trading hours today, closed 3.78 points or 0.25% lower amid renewed concerns about the fast-spreading Covid-19's global economic impact.

The benchmark index, which earlier touched an intraday low of 1,527.57 points, down 7.41 points or 0.48% —  pared about half its losses to settle at 1,531.20 at 5pm.

Sime Darby Bhd led the decline among component stocks with a 2.33% drop, followed by Malaysia Airports Holdings Bhd at 1.89%. The gainers included Kuala Lumpur Kepong Bhd, which climbed 1.58% and Genting Bhd, which rose 1.28%. And among the most actively traded were Eduspec Holdings Bhd, XOX Bhd and Perdana Petroleum Bhd.

Across the board, there were more decliners than gainers, at 439 versus 391. Total turnover stood at 2.73 billion shares worth RM2.14 billion across Bursa Malaysia.

 Malacca Securities Sdn Bhd senior analyst Kenneth Leong said the FBM KLCI failed to build onto the gains in its previous sessions as it was bogged down by negative sentiment on Wall Street and renewed concerns over increasing Covid-19 casualties, coupled with the ringgit's recent retreat against the US dollar.

The Dow Jones Industrial Average lost 128.05 points overnight to finish at 29,219.98. At the time of writing, the ringgit was trading at 4.1930 against the US dollar.

“For now, we see the 1,515-level serving as the major support while any gains is expected to be mild towards the 1,545-level. We expect the negative market sentiment to remain in place until the middle of next week when the Government announces its stimulus measures.

“In the meantime, the ongoing release of corporate earnings will also dictate market sentiment,” Leong told theedgemarkets.com.

Likewise, Southeast Asian stocks were mostly down on Friday as the spread of the Covid-19 virus continues to spread outside mainland China and its impact on Asia’s economies dulled the appeal of risk assets.

Reuters reported that Singapore and Japan are on the brink of recession, while South Korea, which has initiated a lockdown on its city of Daegu, said its exports to China slumped in the first 20 days of February as the outbreak upends global supply chains.

China’s ambassador to the Association of Southeast Asian nations Deng Xijun reportedly said Beijing had taken measures to support enterprises involved in Belt and Road projects, including by helping companies prepare to resume their work overseas in an orderly way.

In China, the Shanghai Stock Exchange Composite Index closed up 0.31%, marking its best week since last April as the Chinese Commerce Ministry said on Friday it will speed up studying new fiscal, tax financial, insurance measures to support companies to counter the impact of the epidemic, Reuters wrote.

In contrast, the Hong Kong Hang Seng Index fell 1.09% at its close while Korea’s Kospi and Japan’s Nikkei lost 1.49% and 0.39%, respectively. Closer to home, the Singapore Straits Times Index fell by 0.43% as of press time.


Source: The Edge

Market Daily Report: KLCI up, ringgit weakens as Covid-19 prompts monetary easing, haven buying

KUALA LUMPUR (Feb 20): The FBM KLCI pared gains today to close 0.82 point or 0.05% higher as investors weighed the Covid-19 outbreak's impact on financial markets while evaluating Malaysian corporate financials during the current reporting season. The ringgit weakened.

At 5pm, the KLCI closed at 1,534.98 after volatile trade. The index fell to its intraday low at 1,531.15 before rising to its high at 1,540.18 points.

“Investors are less worried about the outbreak and are seeing that the outbreak could have slowed down,” Hong Leong Investment Bank Bhd head of retail research Loui Low told theedgemarkets.com.

Today, Bursa Malaysia saw 2.96 billion shares worth RM2.27 billion traded across the exchange as investors closely watched companies' financial results for the October-to-December 2019 quarter.
The Malaysian corporate financial reporting season for the October-to-December quarter starts as early as January although most companies report their results in February.

Across Bursa at 5pm today, top gainer was Carlsberg Brewery Malaysia Bhd while leading decliner was Fraser & Neave Holdings Bhd.

The most-active stock was newly listed InNature Bhd, which registered a volume of 143.7 million shares.

The Body Shop International Ltd franchisee's shares closed up 1.5 sen or 2.34% at 65.5 sen against its initial public offering price of 64 sen.

The ringgit weakened with the yuan after China cut its benchmark lending rate on Thursday as widely expected to support its economy against the impact of the Covid-19 outbreak. World currencies also took cue from a stronger US dollar, which is deemed a haven in times of economic uncertainty.

At the time of writing, ringgit weakened to 4.1820 against the US dollar after China's one-year loan prime rate was lowered by 10 basis points to 4.05% from 4.15%, while the five-year tenor fell 5 basis points.

Reuters reported that emerging markets stocks faltered on Thursday on fears of a global spread of the coronavirus after a spike in new cases in South Korea, while currencies in the developing world reeled under pressure from safe-haven buying of the US dollar.

"Investors dumped emerging market assets as research suggested that the pathogen is more contagious than initially thought. It has now infected some 75,000 people and killed about 2,100.
"The yuan weakened to a more than two-month low against the dollar on Thursday after China lowered its lending benchmark rate to prop up an economy hit by the coronavirus outbreak. The benchmark loan prime rate was cut, as widely expected on Thursday, but many investors expect authorities to roll out more powerful monetary easing measures in the near-term to support business and factory activity," Reuters reported.



Source: The Edge

Market Daily Report: KLCI slips 0.19% as glove counters fall amid slowdown in Covid-19 infections

KUALA LUMPUR (Feb 19): The FBM KLCI slid 0.19% on Wednesday, weighed down by glove counters following a declining trend in new cases of Covid-19 infections.

The benchmark index erased early gains to close 2.92 points lower at 1,534.16, dragged by profit-taking in Top Glove Corp Bhd and Hartalega Holdings Bhd.

Trading interest was concentrated on mid- and small-caps, with 2.54 billion shares valued at RM1.95 billion changing hands.

PublicInvest Research analyst Lee Siao Ping said the market trailed yesterday’s movement, when small-cap stocks fell by a larger quantum after broad-based selling.

Lee observed that investors are also cautious “as they await the fourth quarter and full-year financial results later this month”.

Across Bursa Malaysia, decliners marginally led gainers, while 400 counters traded unchanged.
Gainers were led by consumer stocks Carlsberg Brewery (M) Bhd, Dutch Lady Milk Industries Bhd and Fraser & Neave Holdings Bhd. Decliners were led by Panasonic Manufacturing (M) Bhd, Top Glove Corp Bhd and Nestle (M) Bhd.

As China’s virus-hit industrial cities are starting to loosen travel curbs and resume production, its National Health Commission reported the lowest daily rise in new infections since Jan 29, or 1,749 new confirmed cases, Reuters reported.

At press time, the number of global confirmed cases stood at 75,205 with 14,733 cured, while the official death toll stood at 2,012.

Across Asia, markets were generally mixed, as investors digested the lower-than-expected decline in Japan’s trade data and Singapore’s expansionary budget to tackle the virus outbreak.

Japan’s Nikkei 225 rose 0.89%, Singapore’s STI climbed 0.53%, and Hong Kong’s HSI rose 0.46% while China’s Shanghai SSE Index slid 0.32%.



Source: The Edge

Market Daily Report: KLCI trails Bursa small-cap drop amid Covid-19 caution

KUALA LUMPUR (Feb 18): The FBM KLCI closed 0.04 point lower at 1,537.08, while Bursa Malaysia small market capitalisation (small cap) stocks fell by a larger quantum after broad-based selling, following a substantial drop across global equity and commodity prices amid the Coronavirus disease 2019 (Covid-19) outbreak concerns.

Malaysia share-trade dynamics also took cue from the current corporate financial reporting season for the October-December 2019 quarter. At Bursa today, the KLCI closed at 1,537.08 at 5pm, after falling to its intraday low at 1,532.89.

The Bursa small cap index ended down 168.36 points or 1.2% at 13,916.12.
“As it is still (the) earlier part of the week, it seems like investors are having a cautious stance and is holding back,” TA Securities Holdings Bhd senior technical analyst Stephen Soo told theedgemarkets.com.

Across Bursa, the exchange saw 2.78 billion shares worth RM2.06 billion traded, as decliners led gainers by 598 to 254 respectively. Top decliners included Kuala Lumpur Kepong Bhd and Hengyuan Refining Co Bhd, while leading gainers included Carlsberg Brewery Malaysia Bhd and Petronas Gas Bhd.

The most active stock was Icon Offshore Bhd, with some 169 million shares traded. Icon's share price closed down 5.5 sen or 31.43% at 12 sen.

Asian share indices fell substantially. Japan's Nikkei 225 closed down 1.4%, while South Korea's Kospi fell 1.48%. In China, Hong Kong’s Hang Seng ended down 1.54%, while the Shanghai Stock Exchange Composite erased losses for a 0.045% gain.

Reuters reported Asian shares fell and Wall Street was poised to retreat from record highs on Tuesday, after Apple Inc said it would miss its March quarter revenue guidance, as the coronavirus slowed production and weakened demand in China.

It was reported that warning from the most valuable US company sobered investor optimism that stimulus from China and other countries would protect the global economy from the effects of the epidemic.

"Oil prices fell by more than 1% on Tuesday, tracking losses in financial markets on lingering concerns over the economic impact of the coronavirus outbreak in China and its effect on oil demand. Brent crude was at US$56.88 a barrel, down 79 cents or 1.4% by 0746 GMT, while US West Texas Intermediate crude fell 57 cents or 1.1% to US$51.48 a barrel," Reuters reported.




Source: The Edge

Market Daily Report: KLCI finishes down amid Japan, Singapore recession spectre

KUALA LUMPUR (Feb 17): The FBM KLCI retreated 7.34 points or 0.48% to close at 1,537.12 today, as global investors weighed the spectre of recession in Japan and Singapore amid persisting concerns over the 2019 novel coronavirus disease (Covid-19) outbreak.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com that the KLCI's fall today was due to weaker-than-expected Japan economic data. Japan's Nikkei 225 closed down 0.69%.

Reuters, citing Japan government data, reported Japan's economy contracted at an annualised pace of 6.3% in October-December, shrinking at the fastest pace since the second quarter of 2014. It was reported that the preliminary reading for the fourth-quarter gross domestic product was much worse than economists' median estimate of a 3.7% contraction in a Reuters poll.

"Trade-dependent Singapore downgraded its 2020 economic growth forecast and is set to unveil measures to cushion the blow from the epidemic on Tuesday. Singapore Prime Minister Lee Hsien Loong said on Friday that a recession was a possibility," Reuters reported.

Across Bursa Malaysia today, the bourse saw 2.91 billion shares, worth RM1.9 billion, traded. Top decliners included Tenaga Nasional Bhd, Top Glove Corp Bhd and Maxis Bhd.

Notable stocks included Icon Offshore Bhd. Icon's share price closed down six sen or 25.53% at 17.5 sen, among most-active stocks, after plunging in afternoon trade.

Earlier today, Icon shares hit limit up after surging as much as 30 sen or 127.66% to 53.5 sen in morning trade, following Bursa’s decision to uplift the offshore support vessel provider's designated securities status today.

The designated securities status was intended to mitigate excessive speculation observed in the trading of Icon securities, according to Bursa.




Source: The Edge

Market Daily Report: KLCI spikes to intraday high after Guan Eng's economic stimulus statement

KUALA LUMPUR (Feb 14): The FBM KLCI closed up 5.3 points or 0.34% at its intraday high today following a final-hour spike in an apparent reaction to Finance Minister Lim Guan Eng's statement that Prime Minister Tun Dr Mahathir Mohamad will announce an economic stimulus package on Feb 27 to mitigate the Covid-19 outbreak's impact on Malaysia.

At 5pm today, the KLCI closed at 1,544.46, supported by sharp 11th-hour gains in prices of index-linked stocks including Maxis Bhd and Digi.Com Bhd.

"The stimulus intends to mitigate the adverse external economic impacts of the Covid-19 outbreak on Malaysia while preserving the welfare of the rakyat (people)," Lim said in the statement.
Across Bursa Malaysia, 2.67 billion shares exchanged hands for RM2.26 billion. A total of 465 counters gained against 330 decliners.

Maxis closed up 13 sen or 2.36% at RM5.63 while Digi.Com rose eight sen or 1.83% to RM4.45.
Fund managers said Malaysian shares will also take cue from the ongoing corporate financial reporting season for the October-to-December 2019 quarter (4Q19).

“The ripple is still there. Let’s see the corporate results over the next few weeks and see if the weakness of the 4Q19 GDP (Malaysia gross domestic product numbers) translated (into weakness) across the market or (the impact is) concentrated within certain sectors,” Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng told theedgemarkets.com today.




Source: The Edge

Market Daily Report: KLCI closes 3.78 points down on renewed fears over Covid-19 outbreak

 

KUALA LUMPUR (Feb 13): The FBM KLCI closed 0.24% lower today, dragged by a sell-off in tourism and banking stocks following renewed fears of the Covid-19 outbreak arising from a sudden jump in death toll announced by China today.

The benchmark index erased early gains to close 3.78 points lower at 1,539.16, from a selldown in Malaysia Airports Holdings Bhd, Hong Leong and CIMB stocks.

TA Research analyst Stephen Soo said he expects the KLCI to drift lower towards the weekend amid renewed fears over the Covid-19 outbreak coupled with the recently-announced weak GDP numbers for Malaysia for 4Q19.

“There was some bargain hunting amongst mid- and small-cap stocks but the market had not priced in any upside from the upcoming economic stimulus package from the Government pending more details,” Soo told theedgemarkets.com.

The global death toll from Covid-19 topped 1,300 today, after health authorities at the outbreak centre in Hubei, China announced 242 new deaths — representing the largest single day rise since the epidemic began and almost 10 times the number of cases confirmed the previous day, CNN reported.
At the time of writing, there were 60,392 confirmed cases with 1,369 deaths and 6,081 cured cases.

Across the wider Bursa Malaysia, buying interest persisted with 452 counters in the green against 361 decliners, while 415 counters closed unchanged.

Throughout the day, the bourse saw 2.74 billion shares valued at RM2.3 billion traded.
Gainers were led by Carlsberg Brewery (M) Bhd, which hit a record high of RM35.66 — up RM2.26 — as it was included in the MSCI Global Standard Index today.

On the contrary, British American Tobacco (M) Bhd led the decliners after it was removed from the MSCI Global Index and placed in the MSCI Malaysia Small-Cap Index. The counter closed 72 sen lower at RM11.60.

Among other Asian indices, China’s SSE Composite Index retreated 0.71%, Hong Kong’s Hang Seng Index slid 0.34% while Singapore’s Strait Times Index fell 0.2%.



Source: The Edge

Market Daily Report: Banks drag KLCI into the red amid weak GDP data

KUALA LUMPUR (Feb 12): The FBM KLCI retreated 0.55% today to erase early gains, following weaker-than-expected GDP growth data for Malaysia in the fourth quarter of 2019.

The benchmark index rose to a high of 1,555.66 points today, before retreating from noon onwards to close 8.54 points lower at 1,542.94 as banking stocks dragged.

Earlier today, Bank Negara Malaysia announced that Malaysia's 4Q19 GDP growth came in at 3.6% — the lowest in 10 years and lower than market consensus — bringing full-year 2019 growth to 4.3%.

BNM governor Datuk Nor Shamsiah Mohd Yunus told a press briefing that the central bank has “ample room” for rate cut, after a 25-basis-point cut in January.

“The weak numbers is for 4Q19, even before the impact of the coronavirus outbreak,” Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng noted.

“While this month is the 4Q19 results seasons for listed companies, the data could also mean that the results for the first quarter of 2020 may not be so good,” said Wong.

Across Bursa Malaysia, 419 counters posted gains versus 405 decliners while 417 counters traded unchanged. Trading volume stood at 2.81 billion shares valued at RM2.78 billion.

Gainers were led by Fraser & Neave Holdings Bhd, Kumpulan Powernet Bhd and Scientex Bhd. Decliners were led by Hong Leong Bank Bhd, Public Bank Bhd and Chin Teck Plantations Bhd.
Elsewhere in Asia, China’s SSE Composite Index rose 0.87% — its sixth consecutive trading day of gains — as concerns about the coronavirus outbreak abated.

Similarly, Hong Kong’s Hang Seng Index rose 0.87%, while Japan’s Nikkei 225 climbed 0.74% and Singapore’s Strait Times Index rose 1.39%.



Source: The Edge

Market Daily Report: KLCI up alongside regional markets on China signal to minimize Wuhan virus impact

KUALA LUMPUR (Feb 11): The FBM KLCI Index rose 0.56% alongside gains in the regional markets, on a stronger stance by China to minimize the impact of the novel coronavirus (2019-nCoV) a.k.a. Wuhan virus outbreak on its economy.

The benchmark index hit its intra-day high of 1,554.67 points before settling at 1,551.48, still up 8.68 points from previous close.

Gainers in the index were led by Petronas Chemicals Group Bhd and Hap Seng Consolidated Bhd, supported by bargain hunting, following a slump in their share prices late last month.

After the slump, investors may be using the opportunity to buy some shares ahead of the quarterly results release that would go full swing this month, said HLIB Research analyst Loui Low Ley Yee when contacted.

“There are expectations of better results in select sectors for 4Q19,” Low said, adding the market may have priced in most of the impact from the coronavirus outbreak, considering some slowdown in the negative news flow.

Market sentiment improved today, following the first public appearance of Chinese President Xi Jinping since the coronavirus outbreak on Monday evening.

Xi, who visited a community health centre in Beijing, reportedly called for “greater efforts to minimize the impact of the epidemic on the economy” and for attention to be paid to “preventing large-scale layoffs”.

He said China would strive to meet economic and social targets for the year, Reuters reported.
The improved sentiment helped China’s Shanghai Stock Exchange Composite Index rise 0.39%, as it eked out gains for its fourth consecutive trading day. Similarly, the Shenzhen Stock Exchange Composite Index rose 0.37%.

Hong Kong’s Hang Seng Index rose 1.26%, whereas Singapore’s STI rose .
Malaysia’s stock market saw 462 counters posting gains against 372 decliners, while 367 counters traded unchanged.

Across Bursa Malaysia, gainers were led by Carlsberg Brewery (M) Bhd, while decliners were led by Malaysian Pacific Industries Berhad. Some 2.77 billion shares were traded across Bursa Malaysia, valued at RM2.26 billion.

At the time of writing, global cured cases of the Wuhan virus stand at 4,184. Data shows there has been a gradual slowdown in the number of confirmed cases in February. The outbreak has resulted in over 43,000 individuals infected, with death toll at 1,013 since the outbreak was announced since the end of last year.



Source: The Edge

Market Daily Report: KLCI snaps four-day streak on renewed Wuhan virus fears

KUALA LUMPUR (Feb 10): The FBM KLCI closed 0.75% lower today amid renewed fears on the Wuhan coronavirus outbreak, as death toll climbed.

The benchmark index snapped its four days of consecutive gains, as it retreated 11.69 points to 1542.80, dragged by Hong Leong Financial Group Bhd, Sime Darby Bhd and Genting Malaysia Bhd.
Rakuten Trade vice president of research Vincent Lau, when contacted, maintained that “the focus remains on the coronavirus outbreak”, where the death toll has surpassed that of the severe acute respiratory syndrome (SARS) outbreak in 2003 over the weekend.

At press time, the virus has infected over 40,000 individuals in 28 countries, with 910 officially dead.
Meanwhile, foreign investors are reported to have continued to sell Malaysian equities. Foreign investors disposed of RM327.4 million net of local equities last week, the third weekly foreign net outflow so far in 2020.

Acoss Bursa Malaysia, some 2.42 billion shares valued at RM1.92 billion exchanged hands. Decliners led gainers by 597 to 285.

The Shanghai SSE Composite Index rose 0.51% as mainland China loosened travel restrictions, as its population returned to work. The Shenzen SZSE Component Index, too, rose 1.1%.

Elsewhere, markets were mixed as sentiment remained jittery due to the virus outbreak. Hong Kong’s Hang Seng Index slid 0.59%, South Korea’s KOSPI retreated 0.49%, whereas Japan’s Nikkei 225 fell 0.6%.



Source: The Edge

Market Daily Report: KLCI reverses losses at 11th hour to close with 0.11% gain

KUALA LUMPUR (Feb 7): The FBM KLCI, which languished in the red throughout most of the trading session today, eventually settled 0.11% higher, lifted by last-minute gains in index-linked counters.

At 5pm, the benchmark index was 1.72 points higher at 1,554.49, as Hong Leong Financial Group Bhd (HLFG), CIMB Group Holdings Bhd and Maxis Bhd recorded gains.

HLFG closed 6.93% or RM1.12 higher at RM17.28, giving it a market capitalisation of RM19.79 billion, while CIMB ended 13 sen or 2.59% higher at RM5.15, which gave it a market value of RM51.10 billion. Maxis climbed 5 sen or 0.93% to RM5.45, for a market capitalisation of RM42.62 billion.

Across the local exchange, there were 343 gainers versus 424 losers, while 445 stocks remained unchanged. A total of 2.74 billion shares worth RM2.17 billion were transacted, compared with yesterday's 3.08 billion shares worth RM2.48 billion.

TA Securities senior technical analyst Stephen Soo, when contacted, said market sentiment remains cautious due to the Wuhan coronavirus outbreak.

There was also clear profit-taking activities seen today, following the "rally" of over 1% recorded in the local bourse yesterday after China announced it would cut tariffs on US imports, Soo said.

"The uncertainty is still high [as investors are still] concerned about the [coronavirus ] outbreak. I believe the latest [concern for the outbreak] was coming from the cruise ship from Japan, which triggered caution [for the investors] on the outbreak," he said.

"For the next week, the market should be trading sideways, but with some potential downside, depending on [further] developments of the virus outbreak and US-China trade progress," he said, adding the KLCI's immediate resistance level would be at 1,565, with support at 1,517.

It was reported today that another 41 people on a cruise ship off the coast of Japan have tested positive for the new coronavirus, bringing the total number of cases on board the 3,700-filled boat to 61. This brings the number of confirmed cases in Japan to 86, the second highest figure after China. Those on board have now been quarantined in Yokohama, Japan, according to BBC News.

Reuters, meanwhile, reported that Asian share markets fell on Friday while oil price gains stalled, as the growing death toll and economic damage from the coronavirus outbreak snuffed out a late-week rally.

The total death toll from the virus has now reached 636, while the number of infections stood at 31,513.

Japan's Nikkei closed the day 0.19% lower, while Hong Kong's Hang Seng fell 0.33% and South Korea's Kospi declined 0.72%. China's Shanghai Composite Index, on the other hand, rose 0.33%.



Source: The Edge

Market Daily Report: Oil jumps 3% on reports of effective Wuhan virus drug

LONDON (Feb 5): Oil prices jumped by more than 3% on Wednesday on reports that scientists have developed an effective drug against the fast-spreading coronavirus that has weighed heavily on global economic activity.

News that the Organization of the Petroleum Exporting Countries (OPEC) and its producer allies are considering further output cuts to counter a potential squeeze on global oil demand further supported that had collapsed by more than 20% since early January.

Both Brent crude oil futures and US West Texas Intermediate (WTI) crude jumped by more than 3% in morning trade. By 0947 GMT Brent was up US$1.44, or 2.6%, at US$55.40 a barrel and (WTI) was up US$1.19, or 2.4%, at US$50.80.

China's Changjiang daily reported on Tuesday that a research team at Zhejiang University had found two new drugs that can effectively "inhibit coronavirus".

Separately, Sky News reported that a British scientist has made a significant breakthrough in the race for a vaccine by reducing part of the normal development time from two to three years to only 14 days.

A vaccine will be too late for the current virus but the breakthrough will be crucial if there is another outbreak, Sky said.

The economic slowdown resulting from the virus outbreak is expected to reduce 2020 global demand growth by 300,000-500,000 barrels per day (bpd), roughly 0.5% of global demand, BP's Chief Financial Officer Brian Gilvary said on Tuesday.

"The (Chinese) economy will be weakened for some time to come as quarantines, social distancing and travel restrictions remain in place," BNP Paribas analyst Harry Tchilinguirian told the Reuters Global Oil Forum.

"But as financial markets are anticipatory, one can see how favourable news in relation to potential medical solutions, or indications that we have reached a turning point in the progress of the virus outbreak, are likely to be interpreted positively."

OPEC and allies led by Russia, a group known as OPEC+, weighed the impact on global oil demand and economic growth from the coronavirus outbreak at a meeting on Tuesday, hearing from China's envoy to the United Nations in Vienna.

Producers are considering further output cuts and moving a planned policy meeting to February rather than March.

"This is a critical time for oil prices and even if we see OPEC+ deliver deeper production cuts, an extended shutdown of China will destroy demand for crude's top importer," said Edward Moya, an analyst at broker OANDA.

The US Energy Information Administration (EIA) will release its weekly report later on Wednesday.
Data from the American Petroleum Institute showed on Tuesday that US crude oil stocks rose by 4.2 million barrels to 432.9 million barrels in the week to Jan 31, well above analyst expectations for a build of 2.8 million barrels.



Source: The Edge

Market Daily Report: KLCI ends 13.85 points higher, first rise after ten days of losses

KUALA LUMPUR (Feb 4): The FBM KLCI closed 13.85 points or 0.91% higher at 1,535.80 today, to mark its first rise after ten consecutive trading days of losses

Today, broad-based buying was seen across Bursa Malaysia on bargain hunting, after local shares were beaten down, amid China Wuhan coronavirus outbreak concerns. Malaysian shares could have also tracked global equity gains today.

At 5pm, the KLCI closed up at 1,535.80 after rising to its intraday high at 1,542.59. The KLCI ended higher today after ten consecutive trading days of losses since Jan 20, when the index closed down at 1,588.88.

Today, Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com: “The recovery seen in the KLCI and global indexes today was mainly due to bargain-hunting activities among investors [after the sell-down on virus fears].

Across Bursa, 3.05 billion shares worth RM2.56 billion were traded. Top gainers included Heineken Malaysia Bhd, Petronas Gas Bhd and Fraser & Neave Holdings Bhd.

Top decliners included Public Bank Bhd, Panasonic Manufacturing Malaysia Bhd and AirAsia Group Bhd.

AirAsia Group, which closed down 13 sen or 10.16% at RM1.15, also ended among Bursa's most active stocks. AirAsia Group saw 135 million shares traded.

Global shares rose. Reuters reported Asian stocks bounced on Tuesday, with Chinese markets reversing some of their previous plunge amid official efforts to calm virus fears, although investor sentiment remained fragile with oil near 13-month lows.

It was reported that MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.5%, led by gains in South Korea and Australia, after US stocks ended higher in Monday overnight trades.
"U.S. stocks rallied on Monday, boosted by heavyweight technology shares and on surprise strength in U.S. manufacturing activity, following a sharp selloff last week on concerns about the economic impact from the fast-spreading coronavirus out of China," Reuters said.




Source: The Edge

Market Daily Report: FBM KLCI slips to nine-year low amid mounting Wuhan virus concerns

KUALA LUMPUR (Feb 3): The FBM KLCI today extended its losses for the 10th consecutive trading day in tandem with the regional bourses as investors have turned cautious while assessing the possible impacts of the Wuhan virus outbreak.

Dealers do not foresee any strong recovery in the near term until there are signs of certainty in containing the spread of the Wuhan virus that has reached over 20 countries currently.

The benchmark index, which has been in the negative zone throughout the entire trading day, fell 9.11 points or 0.6% to close at 1,521.95 points — the lowest level since January 2011. It hit a low of 1,517.61 points today. Year to date, the KLCI has shed 4.83%.

In China, the Shanghai Composite Index declined 7.72%, and an estimated US$370 billion of market capitalisation has evaporated after the panic selldown on the first trading day after the Lunar New Year break.

On Bursa Malaysia, losers outnumbered gainers by 738 to 281, while 327 counters remained unchanged. Trading volume stood at 3.98 billion shares, worth RM2.85 billion.

AirAsia Group Bhd hogged the limelight. The stock succumbed to heavy selldown following the news that broke over the weekend, on the bribery and corruption allegations against two executives in the low-cost carrier and its sister airline AirAsia X Bhd.

AirAsia Group skidded 10.5% or 15 sen to RM1.28 today, with 57.67 million shares changing hands. AirAsia X dropped one sen to an all-time low of 12 sen today.

TA Securities Holdings Bhd senior technical analyst Stephen Soo noted that the selling pressure has yet to ease, no thanks to concerns brought by the rising death toll on Wuhan virus outbreak.

"The stocks may be trying to bottom out, but it's still too early to tell. Even recent gainers, especially those in the sectors that benefit from the coronavirus have seen some profit taking," Soo told theedgemarkets.com, adding that consumer stocks are also down.

In terms of performance, blue chips are likely to be under selling pressure for a while, said Soo. However, he expects some bargain hunting to emerge among the lower liners.

Noting that more significant buying is yet to return in the local market, Soo said should there be further weakness or a sharp correction in the US Dow Jones, he foresees a spillover into the Asian region.

Among the 30 component stocks, the top losers are Hap Seng Consolidated Bhd, which slid 23 sen or 2.36% to close at RM9.50 today, followed by Axiata Group Bhd, which fell 10 sen or 2.33% to close at RM4.20.

Elsewhere, Japan's Nikkei 225 dropped 1.01%, and South Korea's Kospi fell 0.01%, while Hong Kong's Hang Seng was up 0.17%.

Reuters reported that Asian shares were dragged to near two-month lows on Monday by Chinese markets, which plunged on their first trading day after a long break on fears the coronavirus epidemic would hit demand in the world's second-largest economy.

Aiming to head off any panic, the Chinese government took steps to shore up an economy hit by travel curbs and business shut-downs because of the virus, added the newswire.

"While China's losses were heavy, they were mostly a product of selling pressure that had built up over the Lunar New Year break, not a reflection of new market fears. In contrast, futures for the US and European shares inched up, oil pared early losses while safe havens Japanese yen and gold stepped back from recent highs," Reuters wrote.





Source: The Edge