Market Daily Report: Bursa trade value soars to record high, Property Index up 4.88% leading the climb

KUALA LUMPUR (May 29): Trading value soars to RM9.31 billion today on Bursa Malaysia — two years after the previous peak at RM9 billion on May 31, 2018 — with 9.04 billion securities traded across the board.

The FBM KLCI today marked its third consecutive trading day of gains with the benchmark index climbing 15.75 points or 1.08% to close at a three-month high of 1,473.25.

Strong interest was also seen in the small-cap stocks with the FBM Small Cap Index jumping 153.46 points or 1.29% to 12,061.84 — nearly a three-month high.

Among the sector indices, Bursa Malaysia Property index led with a 4.88% climb to settle at 641.05 points today. It was followed by the Utilities Index, which increased 3.98% to 992.63 points, Healthcare Index, which rose 2.31% to 2,296.25, Consumer Products and Services, up 2.29% to 567.72 points, while Industrial Products and Services jumped 1.78% to 130.06 points.

The overall market breadth was bullish with advancers trouncing losers 610 to 379, while 427 counters were unchanged.

When contacted, Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com the gains seen in KLCI were partly due to the continued buying interest in glove stocks, such as Top Glove Corp Bhd and Hartalega Holdings Bhd.

Also, in light of the semi-annual fund re-balancing activities, it pushed up the trading volume and value across the local exchange market.

Among the 30 constituents of KLCI, Hartalega, which rose 12.57% or RM1.40 to close at RM12.54 today, led the gainers, followed by two Petronas-related counters — Petronas Gas Bhd, which rose 9.83% or RM1.70 to close at RM19, and Petronas Dagangan Bhd, which was up 9.41% or RM2.02 to settle at RM23.48.

On the regional front, Tokyo's Nikkei 225 dropped 0.18%, while Hong Kong’s Hang Seng was down 0.74% and South Korea's Kospi inched up 0.05%.

Reuters reported that stock markets dipped and safe-havens such as bonds and Japan’s yen went up on Friday, as investors awaited Washington’s response to China tightening control over the city of Hong Kong.

China’s parliament on Thursday pressed ahead with national security legislation for the city, raising fears over the future of its freedoms and function as a finance hub, the newswire added.
US President Donald Trump is expected to hold a news conference on Friday. Trepidation about a further deterioration in Sino-US relations has dampened market sentiment.



Source: The Edge

Market Daily Report: KLCI edges up 0.4% following overnight gains on Wall Street

KUALA LUMPUR (May 28): The FBM KLCI closed 5.77 points or 0.4% higher today tracking overnight gains on Wall Street on the back of optimism about the reopening of the US economy.

The benchmark index closed at 1,457.5, after moving between 1,449.25 and 1,458.73.

Apart from the Wall Street gains, the KLCI’s rise was also due to the index playing catch up after the Aidilfitri holiday break on Monday and Tuesday, Rakuten Trade Research head Kenny Yee Shen Pin told theedgemarkets.com.

He, however, warned that the uptrend is unlikely to sustain as the market is lacking a catalyst to provide the support for further gain.

Among KLCI component stocks, Genting Malaysia Bhd led the gainers with a 3.14% or seven sen rise to RM2.30, followed by Dialog Group Bhd (up 2.97% or 11 sen to RM3.81), and CIMB Group Holdings Bhd (up 2.63% or nine sen to RM3.51).

Total turnover on Bursa Malaysia was 6.94 billion shares, worth RM5.45 billion. Losers led gainers by 546 to 366, while 451 counters remained unchanged.

Elsewhere in Asia, Japan's Nikkei 225 grew 2.32%, while South Korea's Kospi fell 0.13% and Hong Kong’s Hang Seng was down 0.72%.

Reuters reported that Asian shares erased gains and the yuan languished today on growing worries China’s planned security law for Hong Kong would spark a broader diplomatic confrontation with the US.



Source: The Edge

Market Daily Report: KLCI rises 1% as continuous buying lifts rubber glove stocks

KUALA LUMPUR (May 27): Continuous buying of selected rubber glove stocks led to the FBM KLCI closing 14.97 points or 1.04% higher today.

The benchmark index settled at 1,451.73 points after moving in positive territory — between 1,446.42 and 1,458.24 — throughout the trading session.

Two rubber glove makers — Top Glove Corp Bhd and Hartalega Holdings Bhd — were the top gainers among the KLCI’s 30 component stocks, both rising by 8.8% for the day.

Top Glove advanced RM1.04 to RM12.86, with 32.34 million shares done, while Hartalega jumped 88 sen to RM10.88, with 12.68 million shares traded.

Rakuten Trade Research vice-president Vincent Lau said the positive sentiment that drove glove stocks higher was also seen in other counters.

“This was in line with the overnight gains seen in the Dow Jones Industrial Average in the US,” he said, adding that key regional bourses also finished higher today.

On Bursa Malaysia’s boarder market, gainers led losers by 582 to 406, while 397 counters remained unchanged. Some 7.2 billion shares worth RM4.78 billion changed hands.

Top active counters included Sanichi Technology Bhd, XOX Bhd, Key Alliance Group Bhd, GD Express Carrier Bhd and MyEG Services Bhd.

The top gainers were Nestle (Malaysia) Bhd, Petronas Dagangan Bhd (PetDag), and rubber glove manufacturers Supermax Corp Bhd, Top Glove and QL Resources Bhd.

Losers were led by British American Tobacco (Malaysia) Bhd (BAT), Dutch Lady Milk Industries Bhd, Chin Tek Plantations Bhd, Panasonic Manufacturing Malaysia Bhd and MyEG.

Reuters reported that Asian shares slipped as investors were concerned over rising tensions between the US and China, moderating optimism about the reopening of the global economy.
“Worsening relations between the world's two biggest economies could further hobble global business activity already under intense pressure due to the Covid-19 pandemic,” it said.
Hong Kong’s Hang Seng Index finished 0.36% or 83.3 points lower at 23,301.36, while the Shanghai Composite dropped 0.34% or 9.74 points to 2,836.8.

Japan’s Nikkei 225 inched up 0.7% or 148.06 points to 21,419.23, and South Korea’s Kospi rose 0.07% or 1.42 points to 2,031.2.


Source: The Edge

Market Daily Report: KLCI finishes down 1.06% as China’s plan to tighten grip on HK batters markets

KUALA LUMPUR (May 22): The FBM KLCI finished down 15.35 points or 1.06% at 1,436.76, while Bursa Malaysia’s energy index fell by a larger quantum as news of China’s plan to impose a new national security law on Hong Kong to tighten its grip on the latter battered world equity and crude oil markets.

Bursa’s energy index, which tracks shares in oil and gas (O&G)-related companies, fell 33.19 points or 4.05% to 786.51 at 5pm to become the largest percentage decliner across the exchange’s indices after broad-based selling across the bourse.

TA Securities Holdings Bhd technical analyst Stephen Soo said negative sentiment in the Hong Kong market after China proposed a new security law as well as heightened tensions between China and the US had a spillover effect on the local market.

"Coincidently, the KLCI was due for a correction following a bull run for the past seven straight trading days,” Soo said today. 

 

Across Bursa today, decliners led gainers by 801 to 289, while securities trade volume across the bourse stood at 6.69 billion shares valued at RM4.19 billion as investors looked ahead to the Hari Raya Aidilfitri holidays next week.

Today, Bursa's top gainers and most active stocks included Datasonic Group Bhd after its share price jumped in the final trading hour. Datasonic’s share price closed up 21 sen or 15.67% at RM1.55 with some 112 million shares traded.

The leading decliner was British American Tobacco (Malaysia) Bhd as its share price ended down RM1.58 or 11.88% at RM11.72.

Malaysian shares fell with Asian equity indices. In China, Hong Kong’s Hang Seng closed down 5.56% while the Shanghai Stock Exchange Composite fell 1.42%.

Elsewhere, Japan's Nikkei 225 closed down 0.8%, while South Korea's Kospi fell 1.41%.
It was reported that global shares tumbled today as Hong Kong's political unrest returned as a flashpoint in fast-deteriorating US-China relations, following Beijing's move to impose a new security law on the city.

Quoting analysts, Reuters reported that rising tensions between the US and China over trade and Beijing's plan to implement national security legislation in Hong Kong were hitting oil and other markets.

"Oil prices fell today as tensions rose between the US and China, and as Beijing failed to set a target for economic growth this year, stoking concern that the Covid-19 pandemic will overshadow fuel demand in the world's second-largest oil user.

"Brent crude was trading down US$1.43 (RM6.24), or 4%, at US$34.63 a barrel by 0630 GMT, after falling to as low as US$33.54. West Texas Intermediate (WTI) crude dropped by US$1.81, or 5.3%, to US$32.11 a barrel, having slumped to US$30.72 earlier,” Reuters reported.

In Malaysia next week, markets will be closed on Monday and Tuesday (May 25 and 26) in conjunction with the Hari Raya Aidilfitri celebrations which fall on Sunday (May 24) and Monday.
"Bursa Malaysia and its subsidiaries will resume operations on Wednesday, May 27,” the bourse operator and regulator said in a statement.


Source: The Edge

Market Daily Report: Hartalega tops RM10 as Covid-19 drives glove shares’ seemingly relentless rise

KUALA LUMPUR (May 21): The FBM KLCI closed up 16.99 points or 1.18% today at 1,452.11, helped by share price gains in index-link rubber glove manufacturers on resurgent concerns about the Covid-19 pandemic, amid doubts about the development of a vaccine.

Among rubber glove manufacturers, Hartalega Holdings Bhd’s share price rose past RM10 for the first time today, as doubts about the development of a Covid-19 vaccine led to buying of healthcare-related shares on Bursa Malaysia.

“The glove companies have just gone exceedingly high and it is really beyond fundamentals. Unless the results are good, the push now [in share prices] is unsustainable,” Inter-Pacific Securities Sdn Bhd head of research Victor Wan told theedgemarkets.com.

Across Bursa, the exchange saw 7.15 billion shares, worth RM4.66 billion traded. Top gainers included KLCI stocks Petronas Gas Bhd, Top Glove Corp Bhd and Hartalega.

Top Glove and Hartalega are also constituents of Bursa’s healthcare index, which closed up 6.37% to become the top percentage gainer among Bursa indices.

Across Bursa, leading gainer Petronas Gas' share price closed up RM1.94 or 12.78% at RM17.12. Hartalega rose 58 sen or 6.16% to RM10, after the stock rose to its intraday high at RM10.16.

Petronas Gas' share price rose today after the company declared yesterday, a first interim single-tier dividend of 16 sen a share. The group also reported that its net profit dropped to RM368.12 million for the first quarter ended March 31, 2020 (1QFY20) from RM515.46 million a year earlier.

Today, the most active stock across Bursa was Velesto Energy Bhd, which registered a volume of some 277 million shares. The stock’s price closed down 0.5 sen or 2.94% at 16.5 sen.



Source: The Edge

Market Daily Report: Final hour jump lands KLCI at intraday high

KUALA LUMPUR (May 20): The FBM KLCI closed up 11.15 points or 0.78% at its intraday high today after a final hour jump as doubts about the development of a Covid-19 vaccine led to buying of healthcare-related shares on Bursa Malaysia.

Malaysia equities also took their cue from financial results of companies including Velesto Energy Bhd and KLCI component Petronas Gas Bhd (PetGas) today.

At 5pm, the KLCI finished higher at 1,435.12 points after a final hour spike in the share prices of KLCI stocks IHH Healthcare Bhd and PetGas. IHH closed up 19 sen or 3.45% at RM5.69, while PetGas rose 18 sen or 1.2% to RM15.18.

PetGas' share price rose after the company declared earlier today a first interim single-tier dividend of 16 sen a share. The group also reported that its net profit dropped to RM368.12 million for the first quarter ended March 31, 2020 (1QFY20) from RM515.46 million a year earlier.

Across Bursa today, 6.74 billion shares worth RM3.64 billion were traded. A total of 561 counters gained, while 356 stocks declined.

The most active stock was Velesto, which registered a volume of some 509 million shares. The stock’s price closed up half a sen or 3.03% at 17 sen.

Oil and gas (O&G) support services provider Velesto reported earlier today that its net profit stood at RM16.33 million for 1QFY20 versus a net loss of RM22.22 million a year earlier.

Meanwhile, Bursa top gainers included KLCI-linked rubber glove manufacturers Hartalega Holdings Bhd and Top Glove Corp Bhd, both of which, together with IHH, are also constituents of Bursa’s healthcare index.

The healthcare index closed up 4.22% as world markets took their cue from medical news website STAT’s report, which cast doubt over encouraging early results of Moderna Inc's Covid-19 vaccine trial.

"The report said the results, which had rallied global stocks this week, lacked detail,” Reuters reported.

In Malaysia today, Malacca Securities Sdn Bhd head of research Loui Low told  theedgemarkets.com that “the anticipation of the healthcare sector rally – particularly in rubber glove stocks – continuing was a factor” which led to buying of healthcare-related stocks.

Besides Hartalega and Top Glove, Bursa's top gainers included glove manufacturers Comfort Gloves Bhd and Supermax Corp Bhd.


Source: The Edge

Market Daily Report: KLCI up, underpinned by higher CPO prices

KUALA LUMPUR (May 19): The FBM KLCI today closed 13.81 or 0.98% higher as world equities cheered positive developments of a Covid-19 vaccine trial and as Malaysian shares reacted to speculation that India buyers had resumed buying Malaysian crude palm oil (CPO) after a four-month interval due to a diplomatic row.

On Bursa, the KLCI closed up at 1,423.97 at 5pm. Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com that gains were underpinned by higher CPO prices. CPO prices for July 2020 had added RM44 to RM2,196 a tonne as at the time of writing.

"For now, the KLCI looks likely to retest the 1,430 resistance level, while the 1,400 [mark] will serve as immediate support. We see rotational play shifting from healthcare stocks to plantation stocks over the near term following the recovery in CPO prices,” Leong said.

Across Bursa, the exchange saw 9.51 billion shares worth RM4.65 billion traded. Decliners led gainers by 554 to 500 respectively as shares in plantation companies Kuala Lumpur Kepong Bhd (KLK) and Genting Plantations Bhd ended among top gainers. KLCI component KLK’s share price was up 72 sen or 3.51% to settle at RM21.22. 

 

Bursa’s Plantation Index was the top percentage gainer among the bourse’s indices after the gauge closed up 3.16%. News reports, quoting trade sources, indicated that Indian buyers had resumed purchases of Malaysian CPO after a four-month gap following a diplomatic row, with buying spurred by a fall in domestic inventories and discounted prices.

"The renewed purchases came amid improving trade relations between the two countries after the formation of a new government in Kuala Lumpur, with Malaysia signing a deal last week to buy a record 100,000 tonnes of Indian rice.

"Leading Indian importers last week contracted up to 200,000 tonnes of CPO from Malaysia, the world's No 2 producer after Indonesia, to be shipped in June and July," sources told Reuters. India's Commerce Ministry did not immediately respond to a request for comment today, Reuters added.
Bursa-listed rubber glove manufacturers, including Supermax Corp Bhd and Rubberex Corp (M) Bhd, ended among top decliners on profit taking after rising earlier on expectations of higher glove demand due to Covid-19.

Supermax’s share price closed down 21 sen or 4.71% at RM4.25.

"As the outlook for rubber glove producers looks promising given stronger demand driven by Covid-19, we upgrade our sector rating to 'overweight' (from 'neutral'),” Hong Leong Investment Bank Bhd analyst Farah Diyana Kamaludin wrote in a note today.

Globally, it was reported that Asian shares extended gains today as more countries emerged from their economic lockdowns and a successful early-stage trial of a Covid-19 vaccine cheered sentiment, although oil shed some of its early moves higher.

"The rally followed a firmer Wall Street lead after data on Moderna Inc's Covid-19 vaccine, the first to be tested in the US, showed it produced protective antibodies in a small group of healthy volunteers. The positive early test results boosted sentiment as investors wagered on a faster-than-expected economic recovery,” Reuters said.



Source: The Edge

Market Daily Report: Bursa scores another record volume at 11.21b securities on crude oil price rise

KUALA LUMPUR (May 18): The FBM KLCI closed up 6.72 points or 0.48% at 1,410.16 today, as trade volume across Bursa Malaysia rose to another record high in less than a week at 11.21 billion securities. Trade volume rose, as higher crude oil prices led to heavy trading of shares in Bursa Malaysia-listed oil and gas-related companies.

At 5pm, Bursa saw 11.21 billion securities worth RM4.41 billion traded across the exchange.
Globally, It was reported that oil prices climbed by more than US$1 a barrel on Monday, supported by output cuts and signs of gradual demand recovery, amid easing coronavirus curbs, with U.S. oil showing no signs of last month's contract expiry price rout.

Reuters reported Brent crude was up US$1.06 or 3.3% at US$33.56 a barrel by 0452 GMT, after touching its highest since April 13. U.S. West Texas Intermediate crude was up US$1.29 or 4.4% at US$30.72 a barrel, after rising to its highest since March 16. 

 

Trade volume across Bursa closed up at another all-time high today, after rising on Wednesday (May 13) to the previous record high of 9.59 billion units, as the spectre of a resurgence of the Covid-19 outbreak dictated world stock market sentiment then.

Prior to Wednesday, Bursa’s all-time high trading volume was on Aug 20, 2014, when the exchange saw 7.67 billion securities transacted.



Source: The Edge

Market Daily Report: Bursa volume revisits nine billion unit mark on crude oil price gain

KUALA LUMPUR (May 15): The FBM KLCI today closed 6.19 points or 0.44% higher as global crude oil price gains offered an impetus to Bursa Malaysia's oil and gas (O&G)-related shares' price and volume rises, which propelled securities trade across the bourse above nine billion units again.

At 5pm, the KLCI closed at 1,403.44 points, while volume across Bursa rose to 9.23 billion securities worth RM3.87 billion as O&G-related companies' share prices rose among the top gainers and most active stocks.

KNM Group Bhd and Hibiscus Petroleum Bhd topped the most active list, while Petronas Gas Bhd (PetGas) and MISC Bhd ended among the top gainers after oil prices jumped more than 3% today, touching more than one-month highs amid signs that demand for crude was picking up with China reporting increased refinery runs, rounding out a week of bullish news on the supply front.

"Brent crude was up US$1.21, or 3.9%, at US$32.34 (RM140.71) a barrel by 0707 GMT after touching US$32.44, the highest since April 14. Brent rose nearly 7% yesterday and is heading for a 3% gain for the week after rising the previous two weeks. 

 

"West Texas Intermediate (WTI) oil was up 92 cents, or 3.3%, at US$28.48 a barrel after reaching US$28.54, the highest since early April. WTI jumped 9% in the previous session and is also heading for a third weekly increase, up about 15%,” Reuters reported.

In Malaysia, Inter-Pacific Securities Sdn Bhd head of research Victor Wan told theedgemarkets.com that "higher oil prices offered impetus for Petronas stocks”.
Top active stock KNM ended with a volume of some 673 million shares. The stock’s price closed up three sen or 20% at 18 sen.

PetGas’ share price rose 24 sen or 1.6% to RM15.28.

Across Bursa today, volume rose to 9.23 billion securities from 7.01 billion units yesterday. On Wednesday, trade volume across Bursa closed higher at an all-time high of 9.59 billion units as the spectre of a resurgence of the Covid-19 outbreak dictated world stock market sentiment.

Today, Wan said “everything is very fluid at this point”, depending on how the pandemic pans out.


Source: The Edge

Market Daily Report: Final hour buying nudges KLCI higher

KUALA LUMPUR (May 14): The FBM KLCI closed 0.12 point or 0.01% higher at 1,397.25 after erasing losses in the final trading hour, while Bursa Malaysia’s index for small market capitalisation (small cap) stocks fell 1.07% as concerns over a second wave of Covid-19 infections drove global market sentiment. Analysts also expected Malaysia’s current corporate financial reporting season to affect local equity market sentiment.

At 5pm, the KLCI closed higher after trading in negative territory for most of the trading session today. The index had earlier fallen to its intraday low of 1,388.80 points.

The Small Cap Index closed down 123.95 points or 1.07% at 11,419.56.

“Moving forward, investors will brace [themselves] for a barrage of corporate earnings releases, albeit some companies have opted for deferment of the release of their financial performance,” Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com  Leong said buying support for selected index-linked stocks at the 11th hour nudged the 30-company index up to close in positive territory.

Across Bursa, the exchange saw 7.01 billion securities worth RM4.04 billion traded. Decliners led gainers by 616 to 345 as KLCI-linked rubber glove manufacturers Top Glove Corp Bhd and Hartalega Holdings Bhd ended among the top gainers.

Top Glove’s share price closed 99 sen or 10.63% higher at RM10.30, while Hartalega rose 33 sen or 3.72% to RM9.19, as concerns over the second wave of Covid-19 infections led to expectations of higher demand for rubber gloves.

Globally, it was reported that stock markets fell and bonds were in demand today as worries grew about the second wave of the pandemic and a dour assessment by the head of the US Federal Reserve (Fed) dashed hopes for a quick economic recovery.

Reuters reported that Fed chair Jerome Powell had warned of a recession worse than any since World War II, and called for additional fiscal spending to stem the fallout from the pandemic.

It was reported that new outbreaks in South Korea and China were a cause for concern even as more countries began to reopen their economies after lengthy lockdowns.



Source: The Edge

Market Daily Report: KLCI finishes 1.25% higher as Bursa volume tops 9b at all-time high

KUALA LUMPUR (May 13): The FBM KLCI finished 17.2 points or 1.25% higher at 1,397.13, while share trade volume across Bursa Malaysia closed higher at an all-time high of 9.59 billion shares, as the spectre of a resurgence in the Covid-19 outbreak dictated world stock market sentiment.
The spectre of a resurgence in the Covid-19 outbreak led to buying of shares in healthcare-related companies like rubber glove manufacturers and hospital operators. In Malaysia, analysts said announcement today on the nation’s stronger-than-expected first quarter 2020 (1Q2020) gross domestic product (GDP) on-year growth at 0.7% had also boosted sentiment in the equities market.  It was reported that the country’s 1Q2020 GDP growth of 0.7% was better than the 1.5% decline forecast in a Reuters poll.

TA Securities Holdings Bhd technical analyst Steven Soo told theedgemarkets.com today that price gains of rubber glove counters were ‘excessive’. He said TA expects the share price of rubber glove counters to pull back.

Across Bursa at 5pm, share trade volume rose to a record high of 9.59 billion shares, worth RM5.1 billion. There were 558 decliners versus 395 gainers across the exchange.

Bursa’s previous all-time high trading volume was on Aug 20, 2014, when the exchange saw 7.67 billion shares transacted.

Commenting on the all-time high share trade volume today, Soo said TA deems the sentiment as “overdone”.

Today’s leading gainers across Bursa included rubber glove manufacturers Hartalega Holdings Bhd, Top Glove Corp Bhd and hospital operator IHH Healthcare Bhd. These KLCI stocks are also constituents of Bursa’s healthcare index.

Most active entities included healthcare related companies HLT Global Bhd and K-One Technology Bhd.

Top active entity HLT warrants saw some 506 million units traded. The warrant’s price closed up seven sen or 33.33% at 28 sen.

Glove dipping line manufacturer HLT is in the spotlight, amid expectation of higher rubber glove demand due to the spectre of a Covid-19 infection resurgence.
Its share price closed up 11.5 sen or 30.26% at 49.5 sen. The stock saw about 321 million shares transacted.

Among Bursa indices, the healthcare index ended up 7.5%, while the plantation gauge rose 0.5%.
Affin Hwang Investment Bank Bhd analysts Nadia Aquidah and Areecca Tan wrote in a note today that the research house has a cautious stance on the demand outlook for crude palm oil (CPO).
They said prices of CPO are under pressure, amid concerns over weakening demand and rising stocks in producing countries.

"Malaysia’s palm-oil inventory in Apr20 increased further to 2.05m MT, the highest level since Nov19, as production exceeded total consumption. We believe CPO prices are also under pressure, amid concerns over weakening demand and rising stocks in producing countries. We keep our UNDERWEIGHT rating on the plantation sector and our CPO ASP (average selling price) assumptions of RM2,100-2,200/MT for 2020- 21E, given our cautious stance on the demand outlook for palm-oil and weak crude oil prices,” they said.

Globally, Reuters reported that investors, many facing steep losses due to the pandemic-driven shakeout in assets over the past few months, have also had to contend with renewed US-China trade tensions.

It was reported Asian shares tumbled on Tuesday on growing worries about a second wave of coronavirus infections, after the Chinese city where the pandemic originated, reported its first new cases since its lockdown was lifted. The central Chinese city of Wuhan reported five new cases on Monday, casting doubts over efforts to lower coronavirus-related restrictions across the country, as businesses restarted and individuals went back to work.


Source: The Edge

Market Daily Report: Bursa healthcare index up most amid Covid-19 revival concerns

KUALA LUMPUR (May 12): The FBM KLCI finished 2.38 points or 0.17% lower at 1,379.93 today, while Bursa Malaysia’s Healthcare Index rose by a significantly larger quantum as concerns over a second wave of the Covid-19 pandemic weighed on investors’ confidence and at the same time prompted buying of shares in healthcare-related companies like rubber glove manufacturers.

In Malaysia, investors also appeared to take their cue from factors including the current corporate financial reporting season and political updates in the country. News reports today, based on PAS Jeneri assemblyperson Muhammad Sanusi Md Nor's claims, indicated that 23 Kedah state assemblypersons had lost confidence in the leadership of Datuk Seri Mukhriz Mahathir as Kedah menteri besar.

The KLCI closed lower after volatile trade. Malaysian markets resumed trading today folllowing a holiday yesterday in lieu of Nuzul Al-Quran, which fell on Sunday.

Today, Bursa saw 6.39 billion shares worth RM3.73 billion transacted across the exchange.
The healthcare index, which includes rubber glove manufacturers, closed up 5.21% to be the largest percentage gainer among Bursa indices.

Glove counters dominated the top gainer list across Bursa. The list included Top Glove Corp Bhd, Supermax Corp Bhd and Careplus Group Bhd.

Leading gainer Top Glove closed up 68 sen or 9.3% at RM7.99 after rising to its intraday high of RM8.28.

Careplus, which was also Bursa’s most active stock, saw some 291 million shares traded. The stock’s price hit limit up after closing up 30 sen or 50.85% at its intraday high of 89 sen.

Malacca Securities Sdn Bhd head of retail research Loui Low said Bursa’s Healthcare Index "outperformed the rest as the related industry, such as glove manufacturing, stands to be a beneficiary of rising glove demand due to the Covid-19 pandemic".

Globally, it was reported that Asian shares tumbled today on growing worries about a second wave of Covid-19 infections after the central Chinese city of Wuhan, where the pandemic originated, reported its first new cases since its lockdown was lifted.

According to Reuters, Wuhan reported five new cases yesterday, casting doubts over efforts to lower Covid-19-related restrictions across the country as businesses restarted and individuals went back to work.

In Malaysia tomorrow, investors will follow closely the announcement of the country’s first-quarter (1Q) economic growth numbers to gauge Covid 19’s impact on the nation’s economy.


Source: The Edge

Market Daily Report: Shares end higher as US-China phone call seen easing trade spat

KUALA LUMPUR (May 8): The FBM KLCI closed up 5.38 points or 0.39% at 1,382.31 today with Asian equity indices on expectations of easing of US-China trade tensions following a telephone conservation between officials of both nations. Such sentiment supported world equities’ rise despite an existing US-China spat over the origin of the Covid-19 pandemic.

Across Bursa Malaysia at 5pm, 4.68 billion shares had been traded for RM2.74 billion. There were 540 gainers and 340 decliners.

The Malaysian stock market, which resumed trading today following a holiday yesterday in conjunction with the Wesak Day holiday, could have also taken its cue from China’s unexpected April 2020 export growth numbers.

In Malaysia, banking shares were also in the spotlight following news reports that financial institutions had agreed to waive the additional interest or profit charge imposed on instalments for hire-purchase loans for the six-month moratorium period announced by the government. Banking shares are closely watched because of their significant weightage within the KLCI, according to analysts.

"Banks are a crucial component of the main market barometer – they make up 33% of the KLCI's weight based on the latest closing prices. And by our estimates, the bank components collectively account for 48% of KLCI’s FY20 (financial year 2020) earnings,” Kenanga Investment Bank Bhd analyst Koh Huat Soon wrote in a note today.

"In a move that favours borrowers over banks, the finance ministry and banks have agreed to keep loan repayments unchanged for hire purchase and Islamic fixed-rate loans after the six-month moratorium period is over, with those loans’ tenures extended by six months. The losses that banks will have to provide as a result, coupled with an earlier-than-expected 50bps OPR (50-basis point overnight policy rate) cut on May 4, have led us to not just downgrade the sector from OW ('overweight') to 'neutral'. It has also led us to shave our estimates for the KLCI's FY20 EPS (earnings per share) from 87.2 sen to 84.5 sen and for FY21 EPS from 98.2 sen to 96.6 sen. With the FY21E (estimated) EPS trimmed, our end-2020 KLCI target is reduced from 1,463 to 1,439,” Koh said.
Across Bursa today, top gainers included Petron Malaysia Refining & Marketing Bhd and Hengyuan Refining Co Bhd.

Hengyuan’s share price closed up 27 sen or 7.34% at RM3.95. The stock was traded between RM3.74 and RM3.98 today.

Globally, it was reported that Asian shares rose today as a phone call between US and Chinese officials raised hopes that trade tensions were easing, turning the focus away from looming data expected to show the American economy lost the most jobs since the Great Depression. It was reported that Asian markets, which opened higher following gains on Wall Street overnight, got a further boost on news that US and Chinese trade representatives had held a phone call and pledged to improve the atmosphere for the implementation of the two countries' Phase 1 trade deal.

"The discussion came amid escalating tensions between the countries, exacerbated by a war of words over US criticism of China's handling of the novel coronavirus (Covid-19) outbreak,” Reuters reported.

China’s surprise export growth in April beat market forecasts. It was reported that overseas shipments in April rose 3.5% from a year earlier, marking the first positive growth since December last year, customs data showed yesterday.

"That compared with a 15.7% drop forecast in a Reuters poll and a 6.6% plunge in March,” Reuters reported.

On Monday (May 11), Malaysian markets will be closed again in lieu of Nuzul Al-Quran, which falls on Sunday (May 10). Trading resumes on Tuesday (May 12).


Source: The Edge

Market Daily Report: KLCI slips into the red after final hour plunge

KUALA LUMPUR (May 6): The FBM KLCI closed down 12.62 points or 0.91% at 1,376.93 today, after a final hour plunge landed the index at its intraday low.

Analysts and remisiers said investors took profit today, ahead of a holiday in Malaysia tomorrow. At 5pm today, the KLCI closed down at 1,376.93 after rising to its intraday high at 1393.56.
"The market continued its profit taking activity for this week as most shares had gained a lot compared with last month," Maybank Investment Bank Bhd remisier Jeffry Azizi Jaafar told theedgemarkets.com.

"Markets will close tomorrow due to a public holiday. This, coupled with the long weekend until Monday, another public holiday, prompted traders and investors to sell their shares as they would not want to hold overnight stocks in these uncertain times," he said. 

 

Tomorrow (May 7), Malaysia markets will be closed in conjunction with the Wesak Day holiday. Trading resumes on Friday (May 8).

On Monday (May 11), local markets will be closed again in lieu of Nuzul Al-Quran, which falls on Sunday (May 10).

Today, Bursa Malaysia saw 5.89 billion shares traded for RM2.8 billion across the exchange. There were 445 gainers and 441 decliners.

Top decliners included KLCI stocks Public Bank Bhd, Tenaga Nasional Bhd and Petronas Gas Bhd after a sharp drop in their share prices in the last hour of trading.

Public Bank’s share price closed down 32 sen or 1.99% at RM15.74, Tenaga dropped 22 sen or 1.78% to RM12.16, while Petronas Gas fell 22 sen or 1.45% to RM14.98.

Globally, it was reported Asian shares extended gains on Wednesday, as investors saw China's yuan fixing offering a modest olive branch to Washington, amid a resurgence in trade tensions, while oil ended its winning streak on oversupply fears and weak demand.

It was reported that China's central bank set the yuan at a broadly neutral midpoint, analysts said, helping take the focus off the exchange rate, a typically contentious point in Sino-U.S. ties. That helped mainland stocks claw back initial losses on their first day of trade since breaking for a holiday last week, as reported.

"Oil prices reversed course to edge lower on Wednesday, as a higher than expected rise in U.S. inventories refocused investors on the risk of oversupply, amid a coronavirus-driven slump in fuel demand.

"U.S. West Texas Intermediate (WTI) crude futures fell 27 cents or 1.1% to US$24.29 a barrel by 0436 GMT, snapping a five-day winning streak. Brent crude futures dipped 20 cents or 0.7% to US$30.77 a barrel, ending a six-day rise.

"Oil slipped after a report showed U.S. crude inventories rose 8.4 million barrels last week, more than expected, according to data from the American Petroleum Institute(API) late on Tuesday,” Reuters reported.


Source: The Edge

Market Daily Report: BNM OPR cut, oil price rise spur Bursa share gains

KUALA LUMPUR (May 5): The FBM KLCI closed up 12.96 points or 0.94% at 1,389.55 today as a confluence of factors, including higher crude oil and palm oil prices as well as Bank Negara Malaysia’s (BNM) 50 basis-point overnight policy rate (OPR) cut to 2.00%, spurred broad-based buying across Bursa Malaysia.

At 5pm, Bursa saw 5.76 billion shares worth RM2.7 billion traded. There were 774 gainers and 162 decliners across the exchange as markets responded to news on the global easing of Covid-19 pandemic-driven movement restrictions.

Broad-based buying across Bursa saw the index for small market capitalisation stocks close up 3.17% while the energy gauge, which tracks shares of oil and gas-related companies, was the largest percentage gainer after the index rose 5.27% with crude oil prices, as news on the global easing of Covid-19 pandemic-driven movement restrictions led to expectation of higher demand for the commodity.

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On the KLCI, analysts said the index’s historical performance had been mixed in  May. "Based on historical data, we observe that the KLCI’s performance tended to be mixed in May, with an average m-o-m negative return of 1.3% over the past 10 years, but posting an average monthly positive return of 1.2% over the past 40 years. However, following the strong gains in April to reflect the relaxation of the Movement Control Order (MCO) (in Malaysia), we expect the market to turn choppy in May due to potential external events and earnings risks,” CGS-CIMB Securities Sdn Bhd analysts Ivy Ng Lee Fang and Nagulan Ravi wrote in a note today.

"Investors will also be waiting for the government’s decision on whether to extend the current conditional MCO, which ends on May 12. Markets will also be watching the Parliament sitting, which will reconvene for one day (instead of 15 days) due to Covid-19, for the first time following the change of government in February. Also keeping investors busy locally is the results season, which will be spread over two months (May-June) instead of the usual May. On the external front, investors will be tracking news flow on the Covid-19 epidemic and (US President) Donald Trump’s threat to reignite the US-China trade war over the coronavirus,” they said.

In Malaysia, BNM said in a statement today that at its Monetary Policy Committee meeting today, the committee decided to reduce the OPR by 50 basis points to 2.00%. BNM said the ceiling and floor rates of the OPR corridor are correspondingly reduced to 2.25% and 1.75% respectively.
In theory, interest rate cuts are good for stocks but bad for currencies.

Globally, it was reported that Asian stocks rose on Tuesday, tracking a late Wall Street rally as governments eased coronavirus lockdowns while oil extended gains on expectations fuel demand would begin to pick up.

It was reported that amid light share trading volumes, with China, Japan and South Korea closed for public holiday, MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.84%.
“(Crude) Oil prices jumped again on Tuesday on hopes for a recovery in vehicle traffic and fuel demand, as some US states and countries in Europe and Asia start to ease coronavirus lockdown measures. West Texas Intermediate (WTI) crude futures surged 9.9%, or US$2.01, toUS$22.40 per barrel as of 0705 GMT. The US benchmark has now risen for five sessions in a row. Brent crude futures were up 6.9%, or US$1.87, at US$29.07, rising for a sixth straight day.

"Malaysian palm oil futures on Tuesday rose off nine-month lows hit in the previous session as crude prices jumped, although gains were limited by forecasts for higher April inventory. The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange gained RM10, or 0.5%, to RM1,993 (US$462.95) per tonne by the midday break, after being volatile in early trade,” Reuters reported.

Palm oil prices move in tandem with higher crude oil prices as costlier crude oil generates expectation of higher palm oil demand to produce biodiesel.
A glance across Bursa today showed that oil and gas-related shares ended among the most-active stocks and top gainers.

The most-active list included Velesto Energy Bhd and Hibiscus Petroleum Bhd while top gainers included Hengyuan Refining Co Bhd and KLCI stock Petronas Dagangan Bhd.
Petronas Dagangan’s share price closed up 56 sen or 2.81% at RM20.50.



Source: The Edge

Market Daily Report: KLCI falls on dour manufacturing sentiment, US-China Covid-19 spat

KUALA LUMPUR (May 4): The FBM KLCI closed 31.19 points or 2.22% lower at 1,376.59 today as investors weighed the prospect of renewed US-China trade tension amid a spat over the origin of the Covid-19 pandemic.

In Malaysia, the IHS Markit Malaysia Manufacturing Purchasing Managers' Index's (PMI) latest reading, which showed a deterioration in the local industry, also affected market sentiment, according to analysts.

Across Bursa Malaysia at 5pm, a total of 5.47 billion shares worth RM2.48 billion had been traded. There were 597 decliners versus 284 gainers.

Top decliners included KLCI stocks Public Bank Bhd and Petronas Dagangan Bhd. “Despite the news of the easing of the movement control order (MCO) in Malaysia, market sentiment was affected by the sluggish IHS Markit Malaysia Manufacturing PMI.

"The weakness also stemmed from renewed trade tension between the US and China after US President Donald Trump threatened to raise tariffs on Chinese goods after accusing the latter that the Covid-19 pandemic was brought from a laboratory in Wuhan,” Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com.

Earlier today, IHS Markit said in a statement the headline IHS Markit Malaysia Manufacturing PMI was at 31.3 in April, down from 48.4 in March.

"According to the latest PMI survey, the Malaysian manufacturing sector came under heavy pressure during April as measures implemented to tackle the spread of Covid-19 caused firms to either suspend production or operate well below full capacity. Lockdown measures both domestically and overseas had a considerable impact on demand, which fell at a survey-record pace. Supplier deliveries were also heavily affected by the MCO, restricting firms' ability to purchase vital materials,” IHS Markit said.

Globally, the US-China spat over the origin of the Covid-19 pandemic did not help markets. It was reported that Wall Street sold off sharply last Friday after Trump revived a threat of new tariffs against China in response to the Covid-19 pandemic, which had brought global economies to a grinding halt.

Trump reportedly said his administration was crafting retaliatory measures against China as punishment for the Covid-19 outbreak, once again sparking tariff fears that rattled markets through much of the last two years. It was reported that Trump had blamed China for what he said was "misinformation" when the virus emerged from the Chinese city of Wuhan and then quickly spread around the world.

"European stock markets and oil prices fell today as a spat between top US officials and China over the origin of Covid-19 fuelled fears of a new trade war, derailing a rebound in global markets.
"US Secretary of State Mike Pompeo said on Sunday there was 'a significant amount of evidence' that the virus emerged from a laboratory in the central Chinese city of Wuhan.

"Pompeo did not provide evidence or dispute an earlier US intelligence conclusion that the virus was not man-made.  An editorial in China’s Global Times said he was 'bluffing' and called on the US to present its evidence,” Reuters reported.



Source: The Edge