Market Daily Report: KLCI tracks Asian equity gain after China reports better manufacturing PMI data

KUALA LUMPUR (March 31): The FBM KLCI finished up 22.01 points or 1.66% today at 1,350.89, while Bursa Malaysia small market capitalization (small cap) stocks climbed by a larger quantum, as global investors reacted to stronger China manufacturing purchasing managers' index (PMI) data and as they continued to weigh the global economic impact from the Covid-19 pandemic.
Bursa’s small cap index closed up 384.96 points or 4.36% at 9,208.67, as investors concluded equity trades for the last day of 2020’s first quarter today.

According to Areca Capital Sdn Bhd chief executive officer Danny Wong, the KLCI’s performance reflected investor’s reaction to data today on China's official manufacturing PMI, which rose to 52 in March 2020, from a record-low 35.7 in February.

"In addition, the recent sell-down (in Malaysian shares) was too steep,” Wong told theedgemarkets.com.

Today, Malaysian shares tracked gains across Asian equity indices. In China, Hong Kong's Hang Seng closed up 1.85%, while the Shanghai Stock Exchange Composite rose 0.11%. Elsewhere, South Korea’s Kospi gained 2.19%.

Across Bursa today, 3.52 billion shares worth RM2.88 billion were traded across the bourse. A total of 708 counters gained versus 185 decliners.

Top active counters included oil and gas-related Bumi Armada Bhd, Sapura Energy Bhd and Hibiscus Petroleum Bhd, as crude oil prices rose today after falling yesterday to their lowest in 18 years at some US$20 a barrel.

Today, top active stock Bumi Armada registered a volume of some 114 million shares. The stock closed up 0.5 sen or 3.85% at 13.5 sen.

Crude oil prices have reached current levels, as investors weighed the Covid-19 outbreak’s impact on demand for the commodity and as the Saudi Arabia-Russia price war leads to anticipation of higher oil supply in world markets.

Reuters reported crude oil prices rose today, after U.S. President Donald Trump and Russian President Vladimir Putin agreed during a phone call on Monday to have their top energy officials meet to discuss slumping prices.

"Oil prices steadied (today), after diving to the lowest in almost 18 years on Monday, as lockdowns for the virus squeezed demand, even as Saudi Arabia and Russia vied to pump more product. U.S. crude added US$1.12 to US$21.20, while Brent crude futures gained 28 cents to US$23.01 a barrel,” Reuters reported.




Source: The Edge

Market Daily Report: Shares buckle, oil slumps amid Covid-19 jitters

KUALA LUMPUR (March 30): The FBM KLCI closed 14.21 points or 1.06% lower today at 1,328.88 as crude oil prices slumped amid jitters from the Covid-19 pandemic’s global economic impact as countries restrict movement to curb the outbreak.

At 5pm, the KLCI closed at 1,328.88 after falling to its intraday low of 1,317.39, as crude oil prices slumped below U$20 a barrel. Crude oil prices fell on expectation the Covid-19 outbreak will erode demand at a time when the Saudi Arabia-Russia price war leads to anticipation of higher supply of the commodity in world markets.

“The key issue for investors at this moment at this time is how long the pause in economic activity as a result of the virus will continue, and how much of an economic impact will be present.

"What is happening is not just in Malaysia, it is also happening on a global level,” Rakuten Trade Sdn Bhd research vice president Vincent Lau told theedgemarkets.com today.

Across Bursa Malaysia today, 2.83 billion shares were traded for RM1.86 billion.
A total of 511 counters declined while 305 gained. Top active stocks included oil and gas-related counters Bumi Armada Bhd and Hibiscus Petroleum Bhd, which saw some 64 million and 48 million shares traded respectively.

Bumi Armada’s share price closed down 0.5 sen or 3.7% at 13 sen while Hibiscus fell one sen or 3.08% to 31.5 sen.

Globally, Reuters reported that oil prices fell sharply on Monday, with US crude briefly dropping below US$20 and Brent hitting its lowest level in 18 years, on heightened fears that the global coronavirus shutdown could last for months and demand for fuel could decline further.

It was reported that Brent crude, the international benchmark for oil prices, was down US$2.09, or 8.4%, at US$22.84 by 0917 GMT, after earlier dropping to US$22.58, the lowest since November 2002.

US West Texas Intermediate (WTI) crude fell US$1.11, or 5.2%, to US$20.40. Earlier in the session, WTI fell as low as US$19.92, according to Reuters.


Source: The Edge

Market Daily Report: KLCI climbs to highest in two weeks, bolstered by optimism over US$2 tril anti-virus shot in US

KUALA LUMPUR (March 29): The FBM KLCI rose 1.13% or 15 points at the close of trading today, as overnight gains seen on Wall Street following optimism over the US government's US$2 trillion plan to combat the Covid-19 pandemic's fallout lifted regional markets.

Consequently, the benchmark index settled at 1,343.09 — its highest in two weeks — after charting its fourth day of increase.

“The gains on Wall Street have been lifting the FBM KLCI. That said, we have to watch out for development such as the spread of the Covid-19 virus as well,” said Areca Capital Sdn Bhd chief executive officer Danny Wong.

On Thursday (March 26), the Dow Jones Industrial Average posted a 6.38% or 1,351.62 point gain to settle at 22,522.17 points, with the S&P 500 rising 6.24% or 154.41 points to 2,630.07 points.
While the KLCI has jumped 123.37 points or 10% from its 11-year low of 1,219.729 points recorded last week, it is still down by 15.46% on a year-to-date (YTD) basis.

That said, it is the best performing index with the least losses in Asean YTD, as regional peers have suffered over a 20% drop.

Overall, there were 649 gainers versus 234 decliners, while 383 counters were left unchanged after some 4.23 billion shares worth RM2.74 billion were traded across the board.

Index-gainers today were led by Hong Leong Financial Group Bhd, Genting Malaysia Bhd, Genting Bhd, and Hartalega Bhd.

Those who weighed on the index were led by IHH Healthcare Bhd, Sime Darby Bhd and Petronas Gas Bhd.

According to Reuters, Asian stocks saw gains as investors wagered over whether the US government will implement more stimulus measures to combat the Covid-19 virus.

Hong Kong’s Hang Seng closed 0.56% or 131.94 points higher at 23,484.28 points, while the Shanghai Composite climbed 0.26% or 7.29 points to 2,772.20 points.

Japan's Nikkei 225 also finished the trading day higher after gaining 3.88% or 724.83 points, while the Kospi in South Korea rose 1.87% or 31.49.



Source: The Edge

Market Daily Report: KLCI ends higher for third day, investors in trading mode

KUALA LUMPUR (March 26): The FBM KLCI managed to close higher for the third consecutive day today with investors in trading mode ahead of the new COVID-19 stimulus package announcement by Putrajaya tomorrow.

The benchmark index had dipped into the red in the morning session, followed by a swift rebound that tapered off at the final minutes of trading, to end the day 3.59 points or 0.27% higher at 1,328.09.
Trading interest persisted among mid- and small-caps, which are the bigger gainers week-to-date.
Across Bursa Malaysia, 3.53 billion shares valued at RM2.27 billion changed hands.

Among component stocks, gainers were led by Nestle (M) Bhd, Petronas Gas Bhd and IHH Healthcare Bhd, while banking stocks pulled back on profit taking.

Elsewhere, gainers included consumer counters Carlsberg Brewery (M) Bhd, Nestle, Dutch Lady Milk Industries Bhd, Panasonic Manufacturing (M) Bhd and Ajinomoto (M) Bhd.

Decliners were led by blue chips Hong Leong Financial Group Bhd, PPB Group Bhd, Public Bank Bhd, and Kuala Lumpur Kepong Bhd which fell on profit taking after earlier gains this week.

Oil and gas stocks continued leading the actives, topped by Bumi Armada Bhd, Sapura Energy Bhd, and Velesto Energy Bhd as Brent crude oil futures dipped below US$26.50 per barrel in today’s trade.
In other Asian markets, shares ended lower today. Japan’s Nikkei 225 closed down 4.51%, South Korea’s Kospi erased earlier gains to end 1.09% lower, while Hong Kong’ HSI lost 0.74%.

Positive sentiments from the US over its measures against the economic impact of COVID-19 appear to be short-lived, as global COVID-19 infection rates and death tolls escalate.

Spain has overtaken China with a death count of 3,287, trailing behind worst-hit Italy. Global confirmed cases have topped 470,000, with the US trailing behind China and Italy.

Malaysia meanwhile has 23 deaths, with 172 new cases recorded based on latest official data, as total confirmed cases surpassed the 2,000 mark.

At noon tomorrow, Prime Minister Tan Sri Muhyiddin Yassin is scheduled to announce an update to the COVID-19 stimulus package to address a wider segment of the economy, the initial version of which was valued at some RM20 billion targeted at worst-hit sectors like tourism.



Source: The Edge

Market Daily Report: KLCI closes 2% higher on bargain hunting, global uptrend

KUALA LUMPUR (March 25): The FBM KLCI closed higher for the second consecutive day today, riding on the optimism in global equities and as bargain hunting continued from the heavy sell-off earlier this month.

The benchmark index closed up 33.36 points or 2.58% at 1,324.5, after having touched an intra-day high of 1,341.86 in the morning session.

Gainers among component stocks were led by Kuala Lumpur Kepong Bhd, Nestle (M) Bhd and PPB Group Bhd, while RHB Bank Bhd and MISC Bhd slipped.
The broader market saw active trade with 4.33 billion shares worth RM2.83 billion exchanging hands.

Overall, gainers led decliners by 641 versus 267, while 356 counters closed unchanged.
Mid-cap stocks led the rally with the FBM Mid 70 Index — representing the 70 biggest companies after KLCI constituents — up 3.44% while the Small Cap Index rose 3.93%.
Consumer counters led the gainers’ list and they included Carlsberg Brewery (M) Bhd, followed by KLK, Heineken (M) Bhd and Nestle.

Decliners were led by structured warrants SP500-HJ, SP500-HL and FANG-1XI, while BLD Plantation Bhd, Fraser & Neave Bhd and Negri Sembilan Oil Palms Bhd were major losers.
Meanwhile energy stocks — which saw a sector-wide rebound — topped the active counters list, led by Hibiscus Petroleum Bhd, Bumi Armada Bhd and Velesto Energy Bhd.

The market pared some morning gains following news that Malaysia will extend the Movement Control Order for another two weeks to April 14 as new COVID-19 cases and the death toll rose further, but the positive sentiment prevailed.

Elsewhere in Asia, Japan’s Nikkei 225 rose 8.04%, South Korea’s Kospi rose 5.89% and Hong Kong’s HSI rose 3.81%.

The MSCI AC Asia Pacific Index jumped 4.8% tracking Wall Street’s overnight gain on news that the US Congress COVID-19 stimulus package talks has turned out favourably.

US senators and Trump administration officials have reached an agreement on the US$2 trillion economic stimulus Bill, with voting by the Senate and the House of Representatives to be conducted later in the day.

“The US aid package has Main Street’s back, mainly as one critical measure sees the Government paying full salaries and health benefits to laid-off workers for up to four months,” said AxiCorp chief market strategist Stephen Innes in a note.

“This parachute is enormous and provides an excellent safety net for the millions that are lining up at the unemployment window this week,” Innes said.


Source: The Edge

Market Daily Report: KLCI closes up 2.4% in tandem with global rebound, Covid-19 fears linger

KUALA LUMPUR (March 24): Malaysian stocks closed higher today in line with regional markets, as participants gauged the US Federal Reserve's (Fed) assurance to support the economy and the fight against the Covid-19 momentum gain around the world.

At the close of trade, the FBM KLCI was up 31.26 points or 2.48% to 1,291.14, led by gains in banking stocks such as Hong Leong Bank Bhd, Public Bank Bhd and Hong Leong Financial Group Bhd. The benchmark index earlier breached the 1,300-mark in afternoon trade.

The small- and mid-cap stocks, which were worse hit during the massive sell-off earlier this month, also eked out gains, with the FBM ACE Index up 5.97% and the FBM Small Cap rose 5.51%.

Investors turned back to the stock market after the Fed’s Monday announcement that it will buy unlimited amounts of Treasury bonds and mortgage-backed securities to keep borrowing costs at rock-bottom levels — and to help ensure chaotic markets function properly.

Elsewhere, the Euro Stoxx 50 Index rose 4.57%, Japan’s Nikkei 225 rose 7.13%, while Hong Kong’s Hang Seng Index rose 4.46%.

Bloomberg reported that the US dollar retreated against developed and emerging currencies alike, in a tentative sign of reduced stress after the greenback’s steepest appreciation since the global financial crisis.

This includes the ringgit, which traded up 0.3% against the greenback at 4.4335, after trading at 4.4225/4.4480 earlier. However, the Malaysian currency traded weaker against a slew of other currencies including the Singapore dollar, the British pound and the Australian dollar.

When contacted, Philip Capital Sdn Bhd chief investment officer Ang Kok Heng expects the market to remain volatile in the near term and advised investors against getting caught up in the noise.
“Investors could look for the peaking of the Covid-19 outbreak; in China, the cases appear to have peaked in February but there is still some length to go,” Ang told theedgemarkets.com.

Market breadth was positive with 756 gainers versus 155 losers, and 246 counters unchanged. Trading volume increased to 3.17 billion shares worth RM2.18 billion, compared with yesterday’s 2.8 billion shares worth RM2.32 billion.

Across Bursa Malaysia, the gainers were led by consumer stocks including Fraser & Neave Bhd, Dutch Lady Milk Industries Bhd and Carlsberg Brewery (M) Bhd, while put warrants for the Hang Seng Index and the S&P 500 led the top losers of the day.

Malaysia, which is undergoing a partial lockdown until March 31, recorded 106 new cases today, bringing the total confirmed cases to 1,624 with 15 deaths. A total of 183 patients have been cured.



Source: The Edge

Market Daily Report: KLCI again closes in the red as deepening pandemic crisis sparks US recession fears

KUALA LUMPUR (March 23): The FBM KLCI closed 3.33% lower on Monday as it tracked losses in Wall Street along with other regional indices, as the Covid-19 pandemic crisis deepens in Malaysia and globally.

At 5pm, the benchmark index further extended earlier losses to close down 43.4 points to 1,259.88 points, as most component stocks went into the red.

The decline came despite news that Putrajaya will announce a more comprehensive economic stimulus package to address the Covid-19 outbreak impact on March 30 next week.

Elsewhere, Hong Kong’s Hang Seng Index fell 4.86%, South Korea’s Kospi fell 5.34% and China’s SSE Composite Index fell 3.11%.

“Asian market follows the trend in the US, where there is a hiccup in the Congress’ rescue talks, raising concerns towards recession risk in the world’s biggest economy,” Danny Wong Teck Meng told theedgemarkets.com, when contacted.

“The market remains volatile, we must follow the trend of new cases globally to determine when the crisis bottoms,” Wong added.

The New York Times reported that futures markets signalled that Wall Street would open sharply lower.

Investors were reacting in part to a political stalemate in the US. Senate Democrats on Sunday blocked an emerging deal to prop up the American economy, halting the progress of a nearly US$2 trillion government rescue package, it reported.

Across Bursa Malaysia, there were 771 decliners against 161 gainers, while 218 counters traded unchanged. Trading volume stood at 2.8 billion shares, valued at some RM2.32 billion.
Decliners were led by consumer counters Fraser & Neave Bhd, Carlsberg Brewery (M) Bhd and Panasonic Manufacturing (M) Bhd.

Gainers were led by Bintulu Port Holdings Bhd, Hong Leong Bank Bhd and MB World Group Bhd.
Meanwhile, the Malaysian ringgit weakened further against the US dollar. At the time of writing, it was trading at 4.4470 to the greenback.

The ringgit remains under pressure as oil prices remain low at the US$25/bbl range, with no respite in sight over the oil price war triggered by Saudi Arabia.



Source: The Edge

Market Daily Report: KLCI jumps 6.85% above 1,300 as RM30b from BNM SRR ratio cut trickles in

 

KUALA LUMPUR (March 20): The FBM KLCI closed up 83.56 points or 6.85% today at 1,303.28 on broad-based buying across Bursa Malaysia as investors weighed the impact of the estimated RM30 billion in additional liquidity for the banking system, following Bank Negara Malaysia's (BNM) 100-basis-point statutory reserve requirement (SRR) ratio cut to 2%.

Across Bursa Malaysia, 5.06 billion shares were traded for RM4.05 billion as Malaysian equities ended higher with world stock markets amid persisting Covid-19 pandemic concerns.

At Bursa, broad-based buying on apparent bargain hunting helped the index for small market capitalisation stocks close up 720.52 points or 9.37% at 8,409.79. Global shares were beaten down in recent days as the Covid-19 pandemic raised the spectre of slower world economic growth as the outbreak disrupts businesses.

"Despite liquidity in the (Malaysian) financial system still appearing stable — based on BNM’s January 2020 data, we believe the recent steep volatilities in the financial markets and outflow of funds in the market have likely sapped a large chunk of liquidity in the system. In addition to providing banks with liquidity to help spur lending, we believe the reduction in SRR could also be a pre-emptive measure to cushion the impact from a potential liquidity tightening scenario due to rising asset quality risks, TA Securities Holdings Bhd analyst Wong Li Hsia wrote in a note today.

"We foresee downside risks in terms of higher consumer and business delinquencies, as prolonged uncertainty fuelled by Covid-19 weighs on the economy. This would result in the risk of defaults on debt payments as well as the banks loaning operations, thus affecting overall liquidity in the system. Furthermore, we believe this 100bps reduction in SRR is also in part an effort to ensure that Malaysia would remain on FTSE Russell’s watch list pending the next interim review in March 2020,” Wong said.

Across Bursa today, there were 895 gainers versus 145 decliners. Top gainers included KLCI stocks Public Bank Bhd and Petronas Gas Bhd. Most active stocks included Sapura Energy Berhad and AirAsia Group Bhd.

AirAsia Group closed up 16 sen or 30.77% at 68 sen. It was reported today that BDO Governance Advisory Sdn Bhd, appointed by the board committee of AirAsia Group Bhd and AirAsia X Bhd to assist in undertaking an independent review on corruption allegations related to the Airbus scandal against their co-founders Tan Sri Tony Fernandes and Datuk Kamarudin Meranun, has given the duo the all clear.

Globally, it was reported that Asian shares made a partial comeback from a global rout on Friday but still nursed massive losses for the week, while bonds rallied and oil extended its gains.

"US S&P 500 e-mini stock futures also pointed to a brighter end to the week, adding 1.7%. In afternoon trade in Asia, MSCI's broadest index of Asia-Pacific shares outside Japan was 4.41% higher, ending a seven-session streak of losses,” Reuters reported.



Source: The Edge

Market Daily Report: Plantation stocks lend support to KLCI as Covid-19 spurs relentless world market sell-off

KUALA LUMPUR (March 19): The FBM KLCI closed down 19.29 points or 1.56% at 1,219.72 today after cutting losses in the afternoon, as oil palm plantation shares rose after the Malaysian government allowed the industry to continue operating during the nation’s 14-day movement control order (MCO) to curb the spread of the Covid-19 infection.

Malaysia’s crude palm oil (CPO) is also seen as a beneficiary of a weaker ringgit, as it makes the commodity cheaper for global buyers as the Covid-19 outbreak led to a global market sell-off on expectation of slower economic growth.

"The Cabinet has given their consent to allow the Malaysian plantation industry to resume operations with immediate effect. This is a relief and did not come as a surprise to us. We had estimated that the stoppage of work could cost the industry around RM1.6bn.

"We continue to view the plantation industry as one of the few industries that will be the least affected by the two-week restricted movement order,” CGS-CIMB Securities Sdn Bhd analysts Ivy Ng Lee Fang and Nagulan Ravi wrote in a note today.

Across Bursa Malaysia, 4.17 billion shares worth RM2.87 billion, were traded.
There were 849 decliners versus 170 gainers.

Top gainers included oil palm related shares PPB Group Bhd and Sime Darby Plantation Bhd, as the ringgit weakened to 4.4085 against the US dollar today.

PPB’s share price closed up 30 sen or 1.91% at RM16, while Sime Darby Plantation added 18 sen or 4.42% to RM4.25.

The weaker ringgit could have also helped export-oriented rubber glove manufacturers’ shares rise today. Hartalega Holdings Bhd rose 18 sen or 2.93% to RM6.33 among Bursa top gainers.

Globally, Reuters reported stocks, bonds, gold and commodities fell, as the world struggles to contain the coronavirus outbreak and as investors and businesses scramble for hard cash.

It was reported U.S. stock futures were a hair’s breadth from hitting session down limits. EuroSTOXX 50 futures fell 4%, while FTSE futures fell 3%.


Source: The Edge

Market Daily Report: KLCI ends lower after afternoon slump as US dollar spike hurts ringgit

KUALA LUMPUR (March 18): The FBM KLCI closed down 17.57 points or 1.4% at 1,239.01 today, after slumping in afternoon trades with US stock futures and Asian equities, amid persistent concerns on the economic impact of the global Covid-19 outbreak which has led to movement restrictions in several countries.

In Malaysia, the government has imposed a 14-day movement control order from todayuntil March 31 to curb the spread of the Covid-19 infection. At 5pm, the KLCI ended at 1,239.01, after falling to its intraday low at 1,226.26, as the ringgit weakened past 4.3700 against a strengthening US dollar.
Across Bursa Malaysia, 3.49 billion shares worth RM2.89 billion were traded. There were 745 decliners and 221 gainers. Top decliners included the Public Bank Bhd and Malaysia Airports Holdings Bhd (MAHB).

MAHB's share price closed down 58 sen or 11.15% at RM4.62, as investors weighed Malaysia's  14-day movement control order on the airport operator’s business.

"Going forward, the extent of the (overall economic) impact will depend on the effectiveness of this two-week control order to manage the Covid-19 outbreak and whether more stringent measures or extended restrictions are required. At this juncture, we expect economic growth in the 1Q20 to be negatively affected with potential spillovers to 2Q20. The economic weakness is not confined to just the two-weeks of movement controls as the effects of Covid-19 have been felt by the tourism and retail sectors since February,” UOB Group economists and forex strategists wrote in a note today.

"Other concerns include deepening global risks related to Covid-19 and tightening of USD liquidity. We have revised down our growth outlook for the major economies including US, China, and EU. As such, we are also slashing our 2020 forecasts for Malaysia’s GDP growth to 2.4% (from 4.0% previously).

"Taking into account the expected growth slowdown and lower oil prices, we revise our USD/MYR forecasts to 4.35 in 2Q20 (from 4.11 previously), 4.30 in 3Q20 (from 4.08), 4.27 in 4Q20 (from 4.05), and 4.20 in 1Q21 (from 4.05),” they said.

At the time of writing, the ringgit weakened to 4.3717 against an appreciating US dollar.
It was reported that markets have crumbled this month, as investors liquidated nearly everything for cash — driving up the dollar’s value and the cost of borrowing the greenback abroad.

“It all stems from a shortage of US dollars,” Reuters quoted Gunter Seeger, senior vice president in investment-grade fixed income at New York asset manager PineBridge Investments, as saying.

Malaysia’s crude palm oil (CPO) is seen as a beneficiary of a weaker ringgit, as it makes the commodity cheaper for global buyers. It was also reported that Malaysia's palm oil plantations will stop operations for the next two weeks to comply with the government's 14-day movement control order to curb the Covid-19 outbreak.

The move led to anticipation of less CPO supply, which is good for the commodity’s price.
Hong Leong Investment Bank Bhd analyst Chye Wen Fei is however mindful of the impact from Covid-19 and lower crude oil prices on CPO. Cheaper crude oil at below US$30 a barrel, leads to expectation of lower demand for CPO-based biodiesel.

"We believe the tight near-term palm (CPO) supply could no longer mitigate the potential impact arising from Covid-19 pandemic (which has yet to show signs of easing at the time of writing) and crude oil price slump, which have prompted us to revisit our projected average CPO price assumptions for 2020-2021.

"We lower our average CPO price assumptions by RM150-RM200/tonne to RM2,350/tonne in 2020 and RM2,400/tonne in 2021, to reflect our less sanguine view on palm oil’s demand outlook,” Chye said.




Source: The Edge

Market Daily Report: KLCI down 1.88% as ringgit weakens to 4.35 to US dollar

KUALA LUMPUR (March 17): The FBM KLCI cut losses to close down 24.05 points or 1.88% at 1,256.58 on bargain hunting for beaten down Malaysian shares as investors weighed the economic impact of the Covid-19 pandemic. The ringgit weakened to 4.3500 against a strengthening US dollar.

At 5pm today, the KLCI closed at 1,256.58 after falling to its intraday low at 1,211.95. The KLCI extended its drop today after closing down 64.12 points or 4.77% yesterday at 1,280.63 as investors evaluated the effectiveness of global central banks’ monetary policies to mitigate the economic impact of the Covid-19 pandemic and after China reported its latest industrial output numbers, which fell below market forecast.

Today, the KLCI’s drop did not surprise analysts, who have been anticipating further downside volatility in the local stock market.

"Due to failure of the US central bank and coordinated monetary stimulus from major central bankers to stall a selloff in global financial markets, further downside volatility is on the cards today,” TA Securities Holdings Bhd said in a note.

Across Bursa Malaysia, 4.43 billion shares worth RM3.87 billion were traded. There were 713 decliners versus 267 gainers.

Top decliners included Kuala Lumpur Kepong Bhd, Public Bank Bhd and Maxis Bhd.
Most-active stocks included AirAsia Group Bhd, with some 74 million shares traded. The stock’s price closed down 7.5 sen or 10.71% at 62.5 sen as world markets took cue from the impact of the Covid-19 outbreak.

Globally, it was reported that Asian shares held their ground on Tuesday in a volatile session following one of Wall Street’s biggest one-day routs in history as headlines about the coronavirus outbreak and its global economic impact whiplashed investor sentiment.

"Financial markets cratered on Monday with the S&P 500 tumbling 12%, its biggest drop since "Black Monday" three decades ago, as a series of emergency central bank rate cuts globally only added to the recent sense of investor panic,” Reuters said.

In currency markets, the ringgit depreciated 0.99% to its weakest level today at 4.3500 against a strengthening US dollar at the time of writing.

The US Dollar Index (DXY), which tracks the strength of the US dollar against a basket of major currencies, rose 0.54% to 98.6010.



Source: The Edge

Market Daily Report: KLCI ends below 1,300 after US rate cut as China data disappoints

KUALA LUMPUR (March 16): The FBM KLCI closed down 64.12 points or 4.77% at 1,280.63 today after plunging in afternoon trades with world equities as investors evaluated the effectiveness of global central banks’ monetary policies to mitigate the economic impact of the Covid-19 pandemic and after China reported its latest industrial output numbers, which fell below market forecast.

In theory, interest rate cuts are good for stock markets. However, the drop in US equity futures after the nation’s Sunday 100 basis-point emergency interest rate cut to between 0% and 0.25% appeared to have failed to assure investors that central banks’ measures are enough to mitigate the impact of the Covid-19 outbreak.

"The Dow futures are declining at this juncture after a surprise move by the Fed [to cut] interest rates amid the ongoing worries over the Covid-19 impact on economic activities globally. Hence, we believe the trading tone for Asia’s stock markets will be negative and anticipate selling pressure to persist on the local front. Should the KLCI breach support along 1,300, the next support is located around 1,250,” Hong Leong Investment Bank Bhd wrote in a note today.

Across Bursa, 4.47 billion shares worth RM3.69 billion were traded. There were 1,041 decliners versus 97 gainers after a broad-based selling across Bursa.

Notable decliners included tourism/travel-related shares such as Genting Bhd due to the Covid-19 outbreak.  Genting Bhd shares closed down 44 sen or 11.03% at RM3.55.

CGS-CIMB Securities Sdn Bhd analysts Ivy Ng Lee Fang and Nagulan Ravi wrote in note today: “We recommend investors to consider switching into the sectors most affected by the Covid-19 outbreak (for example, tourism/travel-related) — like the Genting Bhd group and Malaysia Airports Holdings Bhd — once the spread of Covid-19 decelerates globally (potentially in late-2Q20),” they said.

Meanwhile, Bursa top gainers were dominated by equity index-linked put warrants as investors bought these warrants to hedge against broader market losses.

Plantation companies were also among notable Bursa gainers today on news Malaysia cut its export duty for crude palm oil (CPO) to 5% for April from 6% in March and as the ringgit weakened today past the 4.3000 level against the US dollar.

A weaker ringgit bodes well for Malaysia’s CPO as it makes the commodity cheaper for global buyers. At 5pm, Sime Darby Plantation Bhd’s share price closed up 19 sen or 4.74% at RM4.20 while IOI Corp Bhd added four sen or 1.09% to RM3.71.

Asian share markets closed down substantially with US equity futures after the US emergency rate cut.

Japan’s Nikkei 225 closed down 2.46%, South Korea’s Kospi fell 3.19%, Hong Kong’s Hang Seng dropped 4.03% while Australia’s S&P/ASX 200 was down 9.7%.

It was reported today that in an emergency meeting on Sunday, the US Federal Reserve slashed interest rates to near zero and pledged hundreds of billions of dollars in asset purchases, saying the epidemic was having a “profound” impact on the economy.

It was reported that central banks in Australia and New Zealand followed with their own measures, but could not stem a slide in global stocks. "S&P 500 futures tumbled 4.77% to their daily down limit shortly after resuming trading on Sunday night,” Reuters reported.

In China today, Reuters, quoting the country’s National Bureau of Statistics, reported that industrial output fell by a much larger-than-expected 13.5% in January-February from the same period a year earlier.

It was reported that the 13.5% drop was the weakest reading since January 1990 when Reuters records started, and a sharp reversal of the 6.9% growth in December, and that the median forecast of analysts polled by Reuters was for a rise of 1.5%, though estimates varied widely.



Source: The Edge

Market Daily Report: KLCI slumps 5.26% after Covid-19 concerns spark global stock sell-off

KUALA LUMPUR (March 13): The FBM KLCI closed down 74.68 points or 5.26% at 1,344.75 today after broad-based selling across Bursa Malaysia, as concerns over the Covid-19 pandemic and Russia-Saudi Arabia crude oil price war led to a substantial drop in global markets.

Such sentiment hit world equity and crude oil markets as investors weighed the economic impact of the Covid-19 outbreak and as the crude oil price war led to concerns of additional supply of the commodity.

UOB senior economist Alvin Liew and rates strategist Victor Young wrote in a note today that global policymakers are expected to respond to the challenge amid uncertainties over both the magnitude and duration of the growth shock.

"Therefore, monetary policy settings will be highly accommodative for the rest of 2020 in order to stave off liquidity breakdowns during periods of elevated market stress as well as to provide a base for the eventual recovery,” Liew and Young said.



Source: The Edge

Market Daily Report: KLCI slumps 1.69%, glove shares up after WHO declares COVID-19 a pandemic

KUALA LUMPUR (March 12): The FBM KLCI closed down 24.4 points or 1.69% at its intraday low today while Bursa Malaysia’s index for small market capitalisation (small cap) stocks fell by a larger quantum after the World Health Organisation said on Wedesday (March 11) that COVID-19 is now a pandemic due the severity of the outbreak.

Such sentiment hit world equity and crude oil markets as investors weighed the economic impact of the COVID-19 outbreak and as the Russia-Saudi Arabia crude oil price war led to concerns of additional supply of the commodity.

At Bursa’s 5pm close, the KLCI closed down at 1,419.43 while the small-cap index fell 5.74% The sole gainer was the healthcare index after the gauge, which tracks stocks including rubber glove manufacturers, rose 0.15%.

The healthcare index rose as rubber glove manufacturers Top Glove Corp Bhd, Kossan Rubber Industries Bhd and Hartalega Holdings Bhd shares closed up among Bursa top gainers on expectation the COVID-19 pandemic will lead to higher glove demand.

Leading gainer Top Glove rose 23 sen or 3.66% to RM6.51 while Kossan added 18 sen or 3.52% to RM5.30.

"Overall, we advise investors to stay overweight on the glove sector despite its premium valuation, which is premised on strong global glove demand and a favourable operating environment, allowing glovemakers to outshine in terms of positive earnings growth in a volatile KLCI market. Currently, we have 'Add' recommendations for all four glove stocks, with Top Glove and Kossan as our top picks. Downside risks: sharp easing of coronavirus concerns and/or stronger ringgit vs US$,” CGS-CIMB Securities Sdn Bhd analyst Walter Aw wrote in a note today.

Across Bursa, 3.79 billion shares were traded for RM3.07 billion. There were 167 gainers versus 923 decliners.

Top decliners included Carlsberg Brewery Malaysia Bhd, Heineken Malaysia Bhd and Public Bank Bhd.

Across Asian equity indices, Japan’s Nikkei 225 closed down 4.41%, South Korea’s Kospi fell 3.87% while Hong Kong’s Hang Seng was down 3.66%.

It was reported that financial markets reeled on Thursday as stocks dived and oil slumped after US President Donald Trump took the dramatic step of banning travel from Europe to stem the spread of coronavirus, threatening more disruptions to trade and the world economy.

It was reported that with the pandemic wreaking havoc on the daily lives of millions worldwide, investors were also disappointed by the lack of broad measures in Trump’s plan to fight the pathogen, prompting traders to bet on further aggressive easing by the Federal Reserve.

"Market worries were compounded by the threat of a flood of cheap supply as Saudi Arabia promised to raise oil output to a record high in its standoff with Russia.

"Brent crude was trading down US$1.91, or 5.3%, at US$33.88 by around 0339 GMT, slightly above earlier lows. The contract fell nearly 4% on Thursday. US crude was down US$1.74, or 5.3%, at US$31.24 after dropping 4% in the previous session. Oil is down around 50% from highs reached in January,” Reuters said.



Source: The Edge

Market Daily Report: KLCI bucks Asia share drop as crude oil prices rise

KUALA LUMPUR (March 11): The FBM KLCI closed up 13.36 points or 0.93% after paring gains in afternoon trades as Asian equities fell in tandem with US stock futures amid persisting concerns over the global Covid-19 outbreak. Crude oil prices rose.

At 5pm, the KLCI closed up at 1,443.83 on gains in KLCI-linked stocks like MISC Bhd, Kuala Lumpur Kepong Bhd and PPB Group Bhd, all of which ended among Bursa Malaysia’s top gainers.
"The local market should extend recovery on hopes further stimulus measures from major global economies could cushion the adverse economic impact from the coronavirus outbreak,” TA Securities Holdings Bhd wrote in a note today.

The KLCI, which earlier today rose to its intraday high of 1,454, stood out after closing higher among Asian equities, which ended lower. Japan’s Nikkei 225 fell 2.27%, South Korea’s Kospi dropped 2.78% while Hong Kong’s Hang Seng was 0.63% lower.

Across Bursa Malaysia today, 4.47 billion shares were traded for RM2.86 billion.

Among top gainers, MISC is closely watched amid the Russia-Saudi Arabia crude oil price war and as crude oil prices rebounded. MISC’s share price closed up 48 sen or 6.84% at RM7.50.

Hong Leong Investment Bank Bhd’s research team wrote in a note today that "MISC emerges as our top pick for its resilient earnings profile backed by long-term time charters, while its spot tankers are potential beneficiaries from higher oil trading.”

Reuters reported that oil prices climbed for a second day on Wednesday as hopes that US producers would cut output lent support, but gains were capped by growing doubts about Washington’s stimulus package to fight the coronavirus, which continues to spread globally.

It was reported that Brent crude futures rose US$1.26, or 3.4%, to US$38.48 a barrel by 0418 GMT, while US West Texas Intermediate crude gained US$0.91, or 2.7%, to US$35.27 a barrel.

"They have recouped nearly a half of Monday’s 25% loss, which was triggered by the clash of oil titans Saudi Arabia and Russia,” Reuters reported.




Source: The Edge

Market Daily Report: KLCI ends higher as crude oil prices rebound

KUALA LUMPUR (March 10): The FBM KLCI closed up 6.31 points or 0.44% today at 1,430.47 on bargain hunting while crude oil prices rebounded as investors weighed the impact of the Saudi Arabia-Russia crude oil price war and global Covid-19 outbreak.

At 5pm today, the KLCI closed up on bargain hunting after ending down 58.94 points or 3.97% yesterday at 1,424.16.

Today, Malaysian shares rose with Asian equities. Reuters reported that Asian stocks bounced, and bond yields rose from record lows on Tuesday on hopes that global policymakers would introduce co-ordinated stimulus to cushion the economic impact of the coronavirus outbreak.

In commodity markets, it was reported that crude oil prices bounced 8% on Tuesday from the biggest one-day rout in nearly 30 years, as investors eyed the possibility of economic stimulus amid a price war between Russia and Saudi Arabia and as new virus cases slowed in China.

It was reported that Brent crude futures rose by US$2.85, or 8.3%, to US$37.21 a barrel by 0605 GMT, while US West Texas Intermediate crude gained US$2.46, or 7.9%, to US$33.59 a barrel.
"Both benchmarks plunged 25% on Monday, dropping to their lowest since February 2016 and recording their biggest one-day percentage declines since Jan 17, 1991, when oil prices fell at the outset of the US Gulf War,” Reuters reported.

In Malaysia today, RHB Investment Bank Bhd analyst Alexander Chia and economist Peck Boon Soon wrote in a note that the sudden collapse in crude oil prices was another blow for equity markets, amid the Covid-19 outbreak and Malaysia’s political upheavals.

"Risks are weighted on the downside in the near term, as all three variables continue to play out without a near-term resolution in sight. Nonetheless, we expect political risks to remain elevated. The investment climate remains firmly risk-off,” Chia and Peck said.

They said RHB has lowered its end-2020 KLCI target to 1,530 points from 1,600. "The elevated risks and uncertainty means that, in the near term, the priority for investors is the preservation of capital — with core holdings in defensive sectors, resilient high-yield stocks, glove makers and more reasonably-priced consumer names,” they said.

Across Bursa Malaysia today, 4.42 billion shares were traded for RM3.21 billion. Top gainers included KLCI stocks MISC Berhad and Public Bank Bhd.

Dayang Enterprise Holdings Bhd emerged among leading decliners and most-active stocks. Dayang’s share price closed down 20 sen or 13.16% at RM1.32 with some 150 million shares traded.



Source: The Edge

Market Daily Report: KLCI finishes down 3.97% as 30% oil price slump jolts markets

KUALA LUMPUR (March 9): The FBM KLCI closed down 58.94 points or 3.97% today after broad-based selling as global equities took cue from the crude oil price's over 30% drop to some US$30 a barrel after OPEC failed to strike a deal with its allies regarding production cuts amid the Covid-19 outbreak.

At 5pm, the KLCI closed at 1,424.16 while Bursa Malaysia’s index for small market capitalisation stocks fell 1,273.21 points or 10.16% to 11,260.83.

Worst-hit was the energy index, which tracks oil and gas-related share prices after the gauge dropped 256.97 points or 25.39% to 754.95.

Across Bursa Malaysia today, 6.66 billion shares were traded for RM3.63 billion. Bursa registered its all-time high trading volume on Aug 20, 2014 when the exchange saw 7.67 billion shares transacted.
Today, there were 1,139 decliners across Bursa versus 120 gainers. Top decliners included Petronas Dagangan Bhd and Petronas Chemicals Group Bhd while most-active stocks included Sapura Energy Bhd and Hibiscus Petroleum Bhd.

Hibiscus’ share price hit limit down after the stock closed down 30 sen or 42.25% at 41 sen. The stock saw some 222 million shares traded.

Across Asian stock markets, Japan Nikkei 225 closed down 5.07% while South Korea’s Kospi fell 4.19%. In China, Hong Kong’s Hang Seng ended down 4.23% while the Shanghai Stock Exchange Composite dropped 3.01%.

Reuters reported that global share markets tumbled on Monday as panicked investors fled headlong to bonds to hedge the economic trauma of the coronavirus, and oil plunged more than 30% after Saudi Arabia opened the taps in a price war with Russia.

"Brent crude futures were down $12.23, or 27%, at $33.04 a barrel by 0552 GMT, after earlier dropping to $31.02, their lowest since Feb 12, 2016. Brent futures are on track for their biggest daily decline since Jan 17, 1991, at the start of the first Gulf War.

"US West Texas Intermediate (WTI) crude fell by $11.88, or 29%, to $29.40 a barrel, after touching $27.34, also the lowest since Feb 12, 2016. The US benchmark was potentially heading for its biggest decline on record, surpassing a 33% fall in January 1991,” Reuters reported.

It was reported that China’s efforts to curtail the coronavirus outbreak has disrupted the world’s second-largest economy and curtailed shipments to the biggest oil importer.

It was reported that the spread of the virus to other major economies such as Italy and South Korea and the growing number of cases in the US have increased concerns that oil demand will slump this year.

Economists and analysts are mindful of the effects of lower crude oil prices on the global economy and the oil and gas (O&G) sector.

OCBC Bank economist Howie Lee wrote in a note today that the Betrand economic model of competition suggests crude oil prices will fall to the lower cost of production. This level appears to be US$30 a barrel, which is the average cost of production in OPEC, according to Lee.
He said OCBC expects global deflation if oil prices stay at US$30 a barrel for an extended period of time.

"Oil prices play a crucial role in direct inflation inputs and have secondary effects in the cost of production in almost all goods and services.

"Oil at US$30/bbl is almost certain to push inflation in developed countries, which are already struggling with very low inflation rates, into negative territory. This will have an impact on monetary policy, as policymakers see the space and impetus to further loosen monetary policy as they try to keep prices from spiralling into an uncontrollable deflationary cycle,” he said.

CGS-CIMB Securities Sdn Bhd analyst Raymond Yap said the research firm, which maintained its “overweight” rating on the Malaysian O&G sector, had also highlighted risks from the free fall in crude oil prices.

“The implications are generally negative for the Malaysian O&G sector. In the 2014-16 oil price downturn, Petronas cut its operating costs at the expense of its suppliers and contractors,” Yap said.



Source: The Edge

Market Daily Report: KLCI ends lower amid persisting COVID-19 concerns

KUALA LUMPUR (March 6): The FBM KLCI closed down 7.93 points or 0.53% at 1,483.1 today with Asian stock indices amid persisting concerns on COVID-19’s rapid spread across the globe and its outbreak's impact on the world economy.

The COVID-19 outbreak, which started in China, has spread to other countries including South Korea and the US. Such sentiment has prompted global central banks including the US Federal Reserve and Bank Negara Malaysia (BNM) to cut interest rates to mitigate COVID-19’s impact on the world economy.

"While hope for stimulus by global central bankers to pacify financial markets in the wake of the coronavirus outbreak should lift market sentiment in the near-term, stronger buying momentum and liquidity boost is crucial to promote sustained (stock market) rise to higher ground," TA Securities Holdings Bhd said in a note today.

On Tuesday, the US Federal Reserve's Federal Open Market Committee lowered the federal funds rate by 50 basis points. After the cut, the federal funds rate ranged from 1% to 1.25%, the Federal Reserve said.

"The fundamentals of the US economy remain strong. However, the coronavirus poses evolving risks to economic activity," the Federal Reserve said in a statement.

BNM shared the same sentiment when it said on Tuesday that its monetary policy committee decided to reduce the overnight policy rate (OPR) by 25 basis points to 2.5% to provide a more accommodative environment to support the projected improvement in Malaysia's economic growth amid the global COVID-19 outbreak.

Today, Hong Leong Investment Bank Bhd wrote in a note that Malaysian banks' net interest margin slippage is seen to return in the first quarter of 2020 given the recent OPR cut.

"However, recovery would ensue in the following 3-6 months from downward deposit repricing (lagged impact),” Hong Leong said.

Across Bursa Malaysia today, 2.65 billion shares were traded for RM2.29 billion. Top decliners included Public Bank Berhad and Malaysia Airports Holdings Berhad while leading gainers included rubber glove manufacturers Top Glove Corporation Bhd and Hartalega Holdings Bhd.

Globally, Reuters reported that Asian shares and US stock futures tumbled on Friday as disruptions to business from the coronavirus worsened, stoking fears of a prolonged global economic slowdown.

It was reported that the spread of the coronavirus has accelerated so much in Europe, Britain and North America that investors who once played down the virus or thought it would be largely confined to Asia are now re-assessing the risks, which means more volatility in financial markets.



Source: The Edge

Market Daily Report: KLCI up after falling with US stock futures

KUALA LUMPUR (March 5): The FBM KLCI closed up 1.08 points or 0.07% at 1,491.03 today after falling in afternoon trades with US stock futures as global investors weighed the impact of the Covid-19 outbreak, which has killed more than 3,000 people in China.

At 5pm today, the KLCI closed up after volatile trade in the afternoon when the index fell to its intraday low at 1,486.35.  The KLCI had earlier risen to its intraday high at 1,497.31 as Asian stock indices tracked US equities’ Wednesday overnight rise.

Across Bursa Malaysia at 5pm today, 2.78 billion shares worth RM2.07 billion were traded. Top gainers included Petronas Chemicals Group Bhd and Gamuda Bhd.

On US markets, CNBC reported that as of 1:27 am ET Thursday, Dow Jones Industrial Average futures were down 141 points, signalling an implied opening drop of 247.86 points at the open.
"The moves came amid a roller coaster week for stocks on Wall Street, which saw the 30-stock Dow swinging 1,000 points or higher two times within three days.

"A series of factors have been driving investor sentiment, ranging from developments around the coronavirus outbreak that continues to spread globally to former (US) Vice President Joe Biden’s major wins during Super Tuesday,” CNBC reported.

In Malaysia, Hong Leong Investment Bank Bhd wrote in a note today that should the headlines on COVID-19 continue to worsen, the research firm expects profit taking to emerge in US equities.
"With the Federal Reserve introducing the 50 basis points cut (on Tuesday), coupled with US$8 billion emergency fund being passed by the lawmakers to combat the COVID-19 outbreak in the US, we believe the sentiment has stabilised and the Dow could remain positive over the near term. The next major event that traders will be monitoring will be the FOMC meeting that will be held on 17-18 March. Meanwhile, should the headlines on COVID-19 continue to worsen, we expect profit taking to emerge,” Hong Leong said.

Reuters, quoting China's National Health Commission, indicated today that China reported a rise in new confirmed cases of coronavirus, reversing three straight days of declines, because of a spike in new infections in Wuhan, the city at the center of the outbreak.

It was reported today that China had 139 new confirmed cases as of Wednesday, bringing the total accumulated number of cases to 80,409.

"Authorities reported 119 new cases the previous day and 125 the day before that. The death toll from the outbreak in Mainland China had reached 3,012 as of the end of Wednesday, up by 31 from the previous day. Hubei accounted for all of the new deaths. In Wuhan, 23 people died,” Reuters reported.



Source: The Edge

Market Daily Report: KLCI up, ringgit strengthens after US emergency rate cut

KUALA LUMPUR (March 4): The FBM KLCI closed up 11.31 points or 0.76% while the ringgit strengthened in an apparent reaction to Malaysia and the US' interest rate cuts to mitigate the economic impact from the global Covid-9 outbreak. The emergency US rate cut is seen prompting money flow from US dollar-based assets to Asian markets for better returns.

At Bursa Malaysia, the KLCI closed up at 1,489.95 at 5pm. In currency markets, the ringgit strengthened to 4.1790 against a weakening US dollar at the time of writing.

On Tuesday (March 3), the US Federal Reserve's Federal Open Market Committee lowered the federal funds rate by 50 basis points. After the cut, the federal funds rate ranges from 1% to 1.25%, the Federal Reserve said.

"The fundamentals of the US economy remain strong. However, the coronavirus (Covid-19) poses evolving risks to economic activity," the Federal Reserve said in a statement.

Bank Negara Malaysia shares the same sentiment when it said on Tuesday (March 3) that its monetary policy committee decided to reduce the overnight policy rate by 25 basis points to 2.5% to provide a more accommodative environment to support the projected improvement in Malaysia's economic growth amid the global Covid-19 outbreak.

Across Bursa today, 2.99 billion shares worth RM2.37 billion were traded.

Top gainers included Petronas Chemicals Group Bhd and Hartalega Holdings Bhd.
Most active stocks included Eden Inc Bhd with some 49 milion shares traded. Eden shares closed up two sen or 8.7% at 25 sen.

Besides interest rate cuts and the Covid-19 outbreak, Malaysian share trade dynamics also took cue from the nation's political uncertainties, according to analysts.

"While stocks should recover further on optimism coordinated stimulus from major global central bankers should offset the negative economic impact from the coronavirus outbreak, persistent worries over domestic political stability is likely to cap gains," TA Securities Holdings Bhd wrote in a note today.

Malaysia has delayed its Parliament sitting by more than two months, forcing former leader Tun Dr Mahathir Mohamad to wait until May for a no-confidence vote against new premier Tan Sri Muhyiddin Yassin.

It was reported that Parliament will be in session from May 18 to June 23, from March 9 initially, with this year’s second and third sitting also delayed to July 27 and September 28, respectively.

"The delay will give Muhyiddin extra time to shore up support and prove his majority in the divided Parliament. It’s also set to extend the period of uncertainty following the political turmoil that saw the former ruling coalition implode last week," Bloomberg reported.



Source: The Edge

Market Daily Report: KLCI up 0.8% as banking stocks rebound despite OPR cut

KUALA LUMPUR (March 3): The FBM KLCI tracked gains in regional markets today, while investors also turned to equities following another round of interest rate cut announced by Bank Negara Malaysia this afternoon.

The benchmark index rebounded from its intra-day low of 1,466.9 to close up 11.7 points or 0.8% at 1,478.64, led by gains in banking stocks like Public Bank Bhd, Hong Leong Bank Bhd and RHB Bank Bhd.

The gains in banking stocks were despite the overnight policy rate (OPR) cut of another 25 basis points to 2.5%, the second rate cut this year, “to provide a more accommodative monetary environment” amid the Covid-19 outbreak.

“The market has largely expected the rate cut, and considering the prices of banking stocks have been depressed — for multiple reasons — today’s movement is more of a technical rebound,” said HLIB Research analyst Chan Jit Hoong when contacted.

Reuters reported that Southeast Asian stock markets rose sharply today, with Indonesia posting its biggest intraday gain in over four years, as expectations grew that global central banks will ease policies to cushion the economic impact from a fast-spreading coronavirus.

Investors turned to stocks, which are seen as more attractive in a low interest rate environment.
Across Bursa Malaysia, gainers led decliners with 456 against 410 counters, while 396 counters traded unchanged. Some 3.09 billion shares were traded, valued at RM2.49 billion.

Gainers were led by brewery and tobacco stocks on bargain hunting following the steep sell-off last week.

Decliners were led by Batu Kawan Bhd, Aeon Credit Service (M) Bhd and CIMB Group Holdings Bhd.

Elsewhere, Japan’s Nikkei 225 fell 1.22%, China’s SSE Composite Index rose 0.74%, while South Korea’s Kospi rose 0.58%.



Source: The Edge

Market Daily Report: KLCI down 15.7 points; O&G shares fall

KUALA LUMPUR (March 2): The FBM KLCI closed down 15.7 points or 1.06% after cutting losses, while Asian stocks ended higher amid expectation world central banks will initiate monetary measures to mitigate Covid-19 outbreak's impact on their economies. Oil and gas (O&G)-related shares fell.

At 5pm, the KLCI settled at 1,466.94, after falling to its intraday low at 1,456.08. The KLCI pared losses on price gains in index-linked stocks like Tenaga Nasional Bhd and PPB Group Bhd.

At a glance, the KLCI's drop at 5pm was in contrast to global share indices, which rose after erasing intraday losses. Notable global share indices which erased their intraday losses include Japan's Nikkei 225 and South Korea's Kospi, which ended up 0.95% and 0.78% respectively.

Reuters reported Asian shares regained a measure of calm on Monday, as markets bounced after a searing sell-off last week and as investors pinned hopes on a likely coordinated global monetary response to help soften the economic blow of the 2019 novel coronavirus (Covid-19) outbreak.

"Markets being what they are, they are usually responsive to the prospect of monetary accommodation. The question is, how long this lasts and how much of a boost it gives us," Rob Carnell, head of Asia-Pacific research at ING was quoted as saying.

Across Bursa Malaysia today, 4.34 billion shares worth RM3.28 billion were traded, as investors sold O&G-related shares after crude oil's price drop at below US$50 a barrel.

Bursa's energy index, which tracks prices of O&G companies' shares, closed down 45.33 points or 4.28% at 1,013.51 to be the top percentage decliner among Bursa indices.

Among oil and gas stocks, Petronas Dagangan Bhd closed down 90 sen or 3.94% at RM21.94, while Sapura Energy Bhd fell 2.5 sen or 13.51% to 16 sen.

Bursa top-active stock Sapura Energy saw some 267 million shares traded.

Actively-traded stocks included property developer Thriven Global Bhd, with some 70 million shares transacted. Thriven's share price settled up 9.5 sen or 43.18% at 31.5 sen.

Thriven's annual report shows Datuk Fakhri Yassin Mahiaddin owns an indirect 27.16% stake in the company via Ketapang Capital Sdn Bhd.

Fakhri is Prime Minister Tan Sri Muhyiddin Yassin's son, according to news reports.


Source: The Edge