Market Daily Report: Glove share price rise, China PMI spur KLCI gains

KUALA LUMPUR (June 30): The FBM KLCI closed 6.54 points or 0.44% higher at 1,500.97 today, partly helped by share price gains in rubber glove manufacturers, amid news of a resurgence in global Covid-19 cases.

Analysts said the KLCI's gain was also underpinned by China’s stronger-than-expected official manufacturing Purchasing Managers' Index (PMI) reading.

"We may see [choppy trading prevailing] amid the rising number of Covid-19 cases across the globe, although it is very much contained in Malaysia,” Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com.

Globally, it was reported that Asian shares advanced today as positive economic data from China and the US helped to close out a strong quarter, though a renewed surge in global coronavirus cases underlined a challenging investment climate.

It was reported that China's official manufacturing PMI came in at 50.9 in June, compared with May's 50.6, National Bureau of Statistics data showed today, and was above the 50.4 forecast in a Reuters poll of analysts.

Across Bursa Malaysia today, the exchange saw 5.35 billion shares traded for RM3.74 billion. Top gainers included KLCI-linked rubber glove manufacturers Hartalega Holdings Bhd and Top Glove Corp Bhd.

Hartalega's share price closed up 50 sen or 4% at RM13, while Top Glove rose 40 sen or 2.55% to RM16.10.

Bursa's Healthcare Index, which tracks share prices of companies including rubber glove manufacturers and hospital operators, finished up 45.44 points or 1.98% at 2,337.08 as investors took their cue from updates that global Covid-19 cases had surged past the 10 million mark.

The surge was reported yesterday as rising numbers in Australia and a big spike in southern and western US threatened to slow down economic recovery.

"The global death toll from Covid-19 reached half a million people on Sunday, with a quarter of those in the US, where cases surged in southern and western states," Reuters reported.


Source: The Edge

Market Daily Report: KLCI bucks regional trend to close higher on late buying support

KUALA LUMPUR (June 29): After starting off negatively, the FBM KLCI rebounded in the final hour of trading to close in positive territory amid fresh interest in glove and healthcare counters.
The benchmark index ended the day 6.29 points or 0.42% higher at 1,494.43, while the broader market was down with losers outnumbering gainers by 662 to 371.

The local market’s weaker start was in line with the rest of the region as sentiment was affected by concerns over the worsening global Covid-19 situation.

Maybank Investment Bank Bhd remisier Jeffry Azizi Jaafar said news of a possible second outbreak of Covid-19, however, also resulted in fresh buying interest in glove makers and healthcare players.
“The death toll from Covid-19 reached half a million people on Sunday, while reported deaths around the world reached 500,000 fatalities with more than 10 million reported cases,” he told theedgemarkets.com.

This, he said, led to renewed buying of counters like Supermax Corp Bhd, Top Glove Corp Bhd, Comfort Gloves Bhd, Careplus Group Bhd and HLT Global Bhd.

The biggest gainers among the KLCI component stocks included Top Glove (up 5.37% or 80 sen to RM15.7), IHH Healthcare Bhd (up 4.48% or 24 sen to RM5.60) and Hartalega Holdings Bhd (up 4.69% or 56 sen higher at RM12.50).

Regional markets were all in the red as a result of sharp spikes in new Covid-19 infections in China and around the world, which raised concerns about the country’s nascent economic recovery, Reuters reported.

Japan’s Nikkei 225 fell 2.3%, while Hong Kong’s Hang Seng Index declined 1.01% and the Shanghai Composite Index dipped 0.61%.



Source: The Edge

Market Daily Report: KLCI closes lower for fourth straight day, dragged down by Top Glove and Hartalega

KUALA LUMPUR (June 26): The FBM KLCI marched into its fourth consecutive trading day of losses, bucking the trend of its regional peers, amid falls in key index-linked stocks like Top Glove Corp Bhd and Hartalega Holdings Bhd.

The benchmark index closed 1.06 points or 0.07% lower at 1,488.14, after moving between 1,483.05 and 1,495.57.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong said the weak market sentiment was partly due to the World Bank’s downgrading of Malaysia’s economic growth for this year to -3.1% from -0.1% estimated in April.

He told theedgemarkets.com that the short-selling ban, which is expected to be lifted on July 1, has also caused investors to take a more cautious approach as they expect the market to experience more volatility ahead.

Today’s major losers were Top Glove (down 3.87% or 60 sen at RM14.9) and Hartalega (down 1.32% or 16 sen at RM11.94).

Leong said the fall in rubber glove counters was due to rumours that a windfall tax will be imposed on the sector, as the glove industry is one of the very few sectors that benefited significantly from the Covid-19 pandemic.

Overall, market breadth was negative with 551 losers and 307 gainers, while 503 counters traded unchanged. Volume was 4.73 billion shares valued at RM2.38 billion.

Across Asia, Japan's Nikkei 225 rose 1.13% and South Korea's Kospi grew 1.05%. In China, the Hong Kong Hang Seng Index fell 0.93% while the Shanghai Stock Exchange Composite Index closed up 0.3%.

Reuters reported that Asian stock markets closed higher today, and were set to end a choppy week more or less where they began as surging coronavirus infections cast a shadow over encouraging economic data and checked hopes for a swift global recovery.


Source: The Edge

Market Daily Report: FBM KLCI drops 0.89% as market reacts to World Bank economic growth downgrade

KUALA LUMPUR (June 25): The FBM KLCI fell 13.43 points or 0.89% to 1489.2 as investors reacted to the World Bank’s downgrade of Malaysia’s economic growth forecast with a larger contraction of 3.1% this year from 0.1% estimated in April.

Market breadth was led by 713 losers to 249 gainers, with a total of 4.49 billion shares traded worth RM2.49 billion.

Maybank Investment Bank Bhd remisier Jeffry Azizi Jaafar pointed out that the World Bank had also said that Malaysia’s economy remains resilient and rests on strong fundamentals such as diversified economic structure, sound financial system and effective public health response.

“The bank also suggests that Malaysia will be able to ride out the storm better than many other countries,” Jeffry told theedgemarkets.com.

He also noted that only two out of the 30 index-link stocks closed up, namely RHB Bank Bhd and PPB Group Bhd, with the rest of the 28 stocks closing lower.

Laggards dragging the KLCI down today were Genting Malaysia Bhd which fell 2.66% or seven sen to RM2.56, Axiata Group Bhd which fell 2.59% or nine sen to RM3.39 and Hap Seng Consolidated Bhd which fell 2.22% or 19 sen to RM8.36.

Elsewhere in Asia, markets fell on news of several US States reporting record jumps in COVID-19 cases, while the World Health Organization said it expects the number of global cases to touch 10 million next week, according to Reuters.

The International Monetary Fund’s downgrade to global economic projections also dented sentiment, it said.

Japan’s Nikkei 225 index fell 1.22% and the Hang Seng index dropped 0.5%, while the Shanghai composite index gained 0.3%.



Source: The Edge

Market Daily Report: KLCI ends 0.29% lower, dragged down by Petronas-related heavyweights

KUALA LUMPUR (June 24): It was another bleak performance for the FBM KLCI today as it fell 4.41 points or 0.29% to close at 1,502.63 after trending lower for much of the day.

An analyst said the benchmark index was dragged down by Petronas-related heavyweights following Petronas Nasional Bhd's move to withdraw its legal action over the 5% petroleum sales tax imposed by the Sarawak government.

“At the same time, the pullback in crude oil prices due to the larger-than-expected weekly inventory build-up compounded the weakness,” Malacca Securities Sdn Bhd analyst Kenneth Leong told theedgemarkets.com.

Petronas Dagangan Bhd was the worst hit stock among the KLCI constituents, falling RM1.04 or 4.59% to close at RM21.64. 

This was followed by Hap Seng Consolidated Bhd, which fell 19 sen or 2.17% to RM8.55, and Genting Malaysia Bhd, which was five sen or 1.87% lower at RM2.63.

“For now, we will continue to observe the 1,500 level as the immediate support,” said Leong. “Should that level fail to hold, we think that weakness may prevail over the near term.”
“At the same time, investors would be keeping an eye on the final reading of US 1Q2020 gross domestic product data tomorrow evening,” Leong added.

Overall, 5.39 billion shares worth RM2.6 billion were traded on Bursa Malaysia today, with 556 losers and 409 gainers.

Elsewhere in Asia, Reuters reported that shares cleared a four-month high as investors remained stubbornly upbeat on the outlook for a reopening of the global economy even as cases of the coronavirus looked to be accelerating to new peaks.

MSCI's broadest index of Asia-Pacific shares outside Japan added 0.5% to reach its highest since pandemic lockdowns first cratered markets in early March.


Source: The Edge

Market Daily Report: KLCI pares losses after Trump says US-China trade deal 'fully intact'

KUALA LUMPUR (June 23): The FBM KLCI pared losses for a 4.2-point or 0.28% drop to 1,507.04 at market close today after US President Donald Trump said the US-China trade deal was "fully intact” in an effort to clarify earlier confusing statements from the White House on the status of the agreement.

At 5pm, the KLCI pared losses after falling to its intraday low at 1,492.32 in line with major global stock indices, which however erased losses when markets closed.

Japan’s Nikkei 225 ended 0.5% higher while South Korea’s Kospi finished up 0.21%. In China, the Hang Seng rose 1.62% while the Shanghai Stock Exchange Composite climbed 0.18%.

In Malaysia, Malacca Securities Sdn Bhd head of research Loui Low told theedgemarkets.com the KLCI started with a big drop this morning, mirroring regional sentiment which turned negative after White House trade adviser Peter Navarro said the trade deal with China was “over”.  

 

It was reported that Navarro had linked the breakdown in part to Washington's anger over Beijing not sounding the alarm earlier about the coronavirus outbreak.

It was reported that Navarro's statement prompted a selloff across equities markets but sentiment quickly recovered when Navarro, an outspoken critic of China, said his remarks had been taken out of context.

It was reported that Trump also soothed nerves when he tweeted: "China trade deal is fully intact. Hopefully they will continue to live up to the terms of the agreement.”

Across Bursa today, 8.75 billion shares worth RM2.98 billion were traded. Low noted that share prices of electronics manufacturing service providers closed higher today.

The list includes ATA IMS Bhd, which rose eight sen or 6.56% to RM1.30, while SKP Resources Bhd ended up three sen or 2.22% at RM1.38.

“This is due to reopening of the economy. Overall, they are moving towards reopening of activities, as their stocks (share prices) were most battered down during the movement control order period. It’s a catch-up play,” Low said.


Source: The Edge

Market Daily Report: KLCI erases losses after final hour jump

KUALA LUMPUR (June 22): The FBM KLCI closed 3.98 points or 0.26% higher at 1,511.24 after a final hour jump helped the index erased losses, following volatile trade, as concerns of a second wave in Covid-19-infections dented world market sentiment.

At 5pm, the KLCI closed higher after dropping to its intraday low at 1,502.64.
Across Bursa Malaysia, 6.33 billion shares worth RM3.11 billion were traded. There were 548 decliners and 434 gainers.

Rakuten Trade Sdn Bhd research vice president Vincent Lau told theedgemarkets.com that the KLCI’s rise "reflected a cautious regional performance” amid concerns of a resurgence in Covid-19 cases globally.

It was reported that emerging market stocks started the week on softer footing on Monday, after the World Health Organization reported a record global increase in Covid-19 cases, while South Africa’s rand weakened ahead of a local emergency budget later this week.

"Fears of a second wave of coronavirus infections pushed the MSCI’s index of emerging market stocks 0.1% lower. The index had risen 1.5% in the previous week,” Reuters reported.

Across Bursa today, top gainers included KLCI stocks PPB Group Bhd and Hong Leong Financial Group Bhd (HLFG). PPB’s share price closed up 56 sen or 3.24% at RM17.86, while HLFG rose 26 sen or 1.85% at RM14.28.

The top active stock was MQ Technology Bhd, which saw some 506 million shares traded. MQ Technology’s share price closed up 1.5 sen or 30% at 6.5 sen.


Source: The Edge

Market Daily Report: KLCI stays above 1,500 with support of glove makers

KUALA LUMPUR (June 19): The FBM KLCI managed to crawl back above the 1,500-level to end the week at 1,507.26 points after it hit an intraday low of 1,496.76 points.

The index went up barely 2.35 points or 0.16% despite the news of a new breakthrough in trade talks between China and the US.

For the week, the benchmark index dropped 38.76 points or 2.51%, the largest percentage drop in seven weeks, amid absence of fresh buying impetus to sustain the upward momentum.
 

Trading volume came in at 6.32 billion shares worth some RM4.92 billion, while gainers led losers by 610 to 400. 

 

Among the 30 KLCI constituents, gainers were led by Petronas Dagangan Bhd, up RM1.10 or 5.22% to close at RM22.16 today, followed by Top Glove Corp Bhd which rose 70 sen or 4.8% to RM15.40 and Hartalega Holdings Bhd which was up 58 sen to RM12.08.

The gains among the rubber glove stocks made the Bursa Malaysia Healthcare Index the best performer among all sectors. The index climbed 71.96 points or 3.3% to 2,274.17 points today.
Other gainers across the local bourse included Allianz Malaysia Bhd, which was up 64 sen or 4.43% to RM15.08, and QL Resources Bhd, which went up 60 sen or 6.52% to RM9.80.

The most active stock was Prestariang Bhd, with a trading volume of some 280.99 million shares, soaring to its 52-week high of 59 sen in the morning session. The counter closed at 54.5 sen, up 12.4% for the day.

Globally, Bloomberg reported that global stocks rose with US futures as investors cheered the latest breakthrough in trade negotiations between America and China and stimulus talks in Europe.
China was reportedly planning to accelerate purchases of American farm goods to comply with the phase one trade deal with the US following talks in Hawaii.

Nevertheless, with uncertainty over how quickly economies can emerge from lockdowns, and a welter of options set to expire later today, investors were bracing for potential bouts of volatility.
“The quarterly event, known as quadruple witching, usually coincides with a rebalancing of major indices and can spark some of the busiest trading days of the year,” it said.


Source: The Edge

Market Daily Report: KLCI ends 1.4% lower as Covid-19 resurgence dominates sentiment

KUALA LUMPUR (June 18): The FBM KLCI finished 21.41 points or 1.4% lower today at 1,504.91, as concerns over the resurgence of Covid-19 cases in China and the U.S. dented global stock market sentiment.

Across Bursa Malaysia at 5pm, a total of 5.12 billion shares worth RM3.87 were traded. There were 685 decliners and 300 gainers, after broad-based selling across the exchange.

“Concerns over Covid-19 and the potential of a second wave of infections continue to dominate investor sentiment,” Rakuten Trade Sdn Bhd research vice president Vincent Lau told theedgemarkets.com.

All Bursa indices ended lower. Worst hit, in percentage terms, was the healthcare index, which usually rises on news of Covid-19 outbreaks.

The healthcare index, which tracks share prices of companies including rubber glove manufacturers, closed down 3.16%.

Across Bursa-listed stocks, top decliners included Top Glove Corp Bhd, Bursa Malaysia Bhd and Fraser & Neave Holdings Bhd. Leading decliner Top Glove's share price closed down RM1 or 6.37% at RM14.70.

Notable stocks in the top gainer and most-active lists included Datasonic Group Bhd. Datasonic's share price rose 12 sen or 8.57% to RM1.52, with some 92 million units traded.

Globally, Reuters reported Asian stocks and Wall Street futures fell on Thursday, as spiking coronavirus cases in some U.S. states and in China dented hopes of a quick global economic comeback from the pandemic.

It was reported that S&P 500 mini futures fell as much as 1.4% in early Asian trade and last traded down 0.7%, while MSCI's broadest index of Asia-Pacific shares outside Japan shed as much as 1% before paring losses to 0.15%.


Source: The Edge

Market Daily Report: KLCI finishes higher with Asian stock indices

KUALA LUMPUR (June 17): The FBM KLCI closed 8.61 points or 0.57% higher today at 1,526.32 after erasing losses along with other Asian stock indices. World stocks ended higher as economic recovery anticipations offset Covid-19 outbreak revival concerns.

In Malaysia, Inter-Pacific Securities Sdn Bhd head of research Victor Wan old theedgemarkets.com that the reopening of the economy served as an impetus for local stocks.
“It gives a bit of hope that some sort of normalcy is returning,” Wan said.

Globally, it was reported that Chinese blue chips recovered from an early dip to finish steady following a robust session on Wall Street overnight during which the Dow ended yesterday up 2.04%, while the S&P 500 gained 1.9% and the Nasdaq was up by 1.75%.

"Hopes for recovery had been bolstered by the data showing US retail sales data jumped by a record 17.7% in May, recovering more than half the losses in the previous two months, though industrial output still lagged. The Trump administration was also reportedly preparing an up-to-US$1 trillion (RM4.28 trillion) infrastructure package, something that was initially promised more than three years ago," Reuters reported.

Across Bursa Malaysia today, 7.55 billion shares worth RM3.82 billion were traded. Gainers led decliners by 563 to 439.

Among the KLCI's 30 constituents, Genting Malaysia Bhd and Genting Bhd's share prices closed up as top percentage gainers. Genting Malaysia settled 14 sen or 5.38% higher at RM2.74, while Genting Bhd rose 17 sen or 3.93% to RM4.50.

Wan said Genting Malaysia and Genting Bhd's share price rises could be due to anticipations that the group's casino resort operations will be reopened soon.

Genting Malaysia's resorts were closed due to Malaysia's movement control order (MCO) to curb the spread of the Covid-19 pandemic.

Yesterday, Genting Malaysia announced that its Resorts World Kijal and Resorts World Langkawi will reopen tomorrow. However, Resorts World Genting and Resorts World Awana would remain closed until further notice, Genting Malaysia said in a statement on its website.


Source: The Edge

Market Daily Report: KLCI ends above 1,500 again on US, Japan stimulus

KUALA LUMPUR (June 16): The FBM KLCI closed 18.88 points or 1.26% higher at 1,517.71, while small market capitalisation (small cap) stocks rose by a larger quantum as factors including US and Japan central banks' stimulus revived market optimism despite lingering Covid-19 pandemic concerns.

At 5pm, Bursa Malaysia's small cap index ended up 488.88 points or 4.26% at 11,966.10 after broad-based buying across the exchange. The KLCI closed higher today, after falling 47.19 points or 3.05% to 1,498.83 yesterday, amid concerns of a second wave in the global Covid-19 outbreak.

Globally today, it was reported that the global stocks rally was back on track on Tuesday, with more support from the Federal Reserve and the Bank of Japan helping end a bumpy few days for financial markets.

It was reported that the Bank of Japan kept its monetary settings steady, as widely expected but increased the nominal size of its lending packages for cash-strapped firms to US$1 trillion from about US$700 billion announced last month. "The move came after the U.S. Federal Reserve announced it would start purchasing corporate bonds on Tuesday, as part of an already announced stimulus scheme," Reuters reported.

In Malaysia today, TA Securities Holdings Bhd technical analyst Stephen Soo noted that positive newsflow from the US had supported global equity market gains, following losses in recent trading sessions.

Looking back at the Malaysian stock market, Soo said the recent correction was good and overdue. “It is like letting off steam from the pressure cooker, especially for the rubber glove stocks,” Soo said.
Across Bursa today, 7.97 billion shares worth RM4.14 billion were traded. Gainers exceeded gainers by 947 to 175 respectively.

Leading gainer Top Glove Corp Bhd closed up 76 sen or 5% at RM15.96.
Notable gainers included JHM Consolidation Bhd, which hit limit up after the stock's price ended up 29.5 sen or 32.96% at RM1.19.


Source: The Edge

Market Daily Report: KLCI slides 3.05% as concerns mount over second wave of Covid-19 infections

KUALA LUMPUR (June 15): Mounting concerns over the second wave of Covid-19 infections, particularly in China, spooked the equity bears in Asian markets, including Bursa Malaysia whose benchmark index had its biggest single-day drop in three months.

A plunge of over 900 points in the Dow Jones Industrial Average futures added fuel to the selling in the afternoon.

The FBM KLCI shed 47.19 points or 3.05% to a two-week low of 1,498.93 points. The index was on a decline for the third consecutive day.

The fall in the FBM Small Cap Index, excluding only the top 100 largest stocks in terms of market capitalisation, was even bigger. It skidded 610.76 points or 5.06% to 11,457.15 points.

On the home front, the news of the unemployment rate soaring to a 30-year high of 5% in April 2020 compounded the selling on the local market.

Rakuten Trade head of research Kenny Yee described the selling today as “drastic”. He pointed out that as the market had been overbought recently, profit-taking activities were expected.

“It is the right time for the market to consolidate. There is still further downside,” Yee told theedgemarkets.com.

In the near term, Yee expects the market to take its cue from Wall Street tonight, adding that market sentiment will be cautious and jittery after the selling today.

The next immediate support level of the KLCI is around the 1,490-level and the 1,470-level next, said Yee.

Asked if the rally was over for the benchmark index, Yee did not think so, saying that the market was “due for a correction”, adding that the index was up over 300 points from the trough in late March.
Nonetheless, he advised investors to trade with caution.

Meanwhile, Malacca Securities Sdn Bhd analyst Kenneth Leong viewed that volatility in the market will be the norm in the near future unless there is further economic stimulus or any positive news of success in developing a Covid-19 vaccine.

“Unlike the previous recovery of the FBM KLCI that was mainly fuelled by glove heavyweights, the cap on margin financing for glove counters is expected to take some steam away from the glove rally,” he added.

Among the 30 component stocks of KLCI, Top Glove Corp Bhd, which is the best performing stock, shed RM1.70 or 10% to close at RM15.20, followed by Petronas Dagangan Bhd, which slid RM1.50 or 6.82% to RM20.50, and Hartalega Holdings Bhd dropped 84 sen or 6.71% to RM11.68.

The market trading volume stood at 9.07 billion shares worth RM5.32 billion traded. Losers led gainers by 1,107 to 159, while 227 counters remained unchanged.

All indices on Bursa Malaysia were in the negative territory and the worst hit was Bursa Malaysia healthcare index, which slipped 173.38 points or 7.26% to 2,215.18 points today.

Across Asia, most regional indices were in the red. South Korea's Kospi fell 4.76%, followed by Japan's Nikkei 225, which slid 3.47% while Hong Kong's Hang Seng was down 2.16%.

Reuters wrote that Asian shares and Wall Street futures fell today as growing fears of a second wave of Covid-19 infections revived economic worries, while underwhelming data from China also weighed on investor sentiment.

Today's losses follow a strong global rally since late March, fuelled by the central bank and fiscal stimulus and optimism as countries gradually lift restrictions put in place to curb the spread of Covid-19, said the newswire.

However, concerns are now swirling about a second wave with Beijing today reporting its second consecutive day of record numbers of Covid-19 cases, while new cases and hospitalisations in record numbers swept through more US states, Reuters added.



Source: The Edge

Market Daily Report: FBM KLCI down on profit taking, joins other indices in the red on weak sentiment

KUALA LUMPUR (June 12): Mirroring the overnight performance of Wall Street, equities around the globe — including the FBM KLCI — slumped into a sea of red as the negative sentiment in the US spilt over into the rest of the markets.

At 5pm, the FBM KLCI closed 11.23 points or 0.72% lower to settle at 1,546.02 points. Throughout the day, the benchmark index was only trading in negative territory.

However, despite opening more than 40 points lower from yesterday’s close, the FBM KLCI managed to pare some of its losses.

Inter-Pacific Securities Sdn Bhd head of research Victor Wan said the FBM KLCI was down on profit-taking activities as the market has been “overbought”.

From the recent low of 1,219.72 on March 19, the FBM KLCI has risen some 27% to today’s closing.
“The market needs to take a breather [from the rally] that was driven by liquidity and not so much of fundamentals,” Wan told theedgemarkets.com, adding that fundamentals are not looking good for the KLCI as he anticipates “very weak results” coming up in the second quarter of this year.

Thus, he opined that investors need a “reality check”, as currently, the high retail participants are helping to provide support to the market.

Additionally, Wan noted that the downtrend in the KLCI today also coincides with the negative sentiment from the US as fears of Covid-19 infections resurface, coupled with the dovish outlook from the US Federal Reserve.

Confirmed cases of Covid-19 in the US have exceeded 2 million, which has fuelled concerns on the spread of this outbreak.

Still, KLCI appears to be faring better than other markets. Across Asia, the biggest laggard is South Korea's Kospi, which fell 2.04%, followed by the Laos Composite Index, which was down 1.85%, and Thailand’s SET Index, which slipped 1.21%.

Japan's Nikkei 225 slid 0.75%, Hong Kong’s Hang Seng was down 0.73%, and China’s Shanghai Composite Index dipped 0.04%.

Among the 30 constituents of KLCI, banks pushed down the benchmark index, led by CIMB Group Holdings Bhd, which was down 14 sen or 3.54% to close at RM3.81 today, followed by Public Bank Bhd, which slid 44 sen or 2.55% to close at RM16.80, and AMMB Holdings Bhd, which was down seven sen or 2.12% to settle at RM3.23.

Malayan Banking Bhd was also down 17 sen or 2.1% at RM7.91, while RHB Bank Bhd declined 10 sen or 1.96% to RM5 today.

Today, Bursa Malaysia saw 8.03 billion shares worth RM4.77 billion traded. Losers led gainers by 803 to 283, while 343 counters remained unchanged.

All indices on Bursa Malaysia, apart from the Bursa Malaysia Real Estate Investment Trust (REIT) Index, were down. The worst hit was Bursa Malaysia Energy index, which slipped 23.01 points or 2.81% to 797.09 points today.

At the time of writing, Brent crude oil prices slipped to US$38 per barrel, down 10.17% from the recent peak of US$42.30 per barrel last Friday (June 5).

Reuters reported that Asian shares fell sharply on Friday and oil prices extended losses on growing concerns that a resurgence of Covid-19 infections could stunt the pace of recovery in economies reopening from lockdowns, or even lead to fresh restrictions.

Oil futures slumped for a second consecutive trading session on fears of weak global energy demand, which boosted the safe-haven US dollar, the newswire added.



Source: The Edge

Market Daily Report: KLCI declines following Fed’s gloomy economic outlook

KUALA LUMPUR (June 11): The FBM KLCI closed lower today in tandem with other regional benchmark indices, as the US Federal Reserve’s muted outlook on the economic giant presented a bitter pill to investors banking on a quicker economic recovery.

The KLCI fell 18.02 points or 1.14% to 1,557.25 points.

“Today’s performance follows broader regional sentiment, following the US Federal Reserve’s outlook on US economy,” said Rakuten Trade Research vice president Vincent Lau.

Market breadth was broadly negative with 871 counters recording declines, 394 stocks remaining unchanged and 249 counters posting gains.

Some 9.16 billion shares worth RM5.91 billion were traded today.

Top actives included AT Systemization Bhd, Luster Industries Bhd and Pegasus Heights Bhd. Top decliners today were Allianz Malaysia Bhd, Carlsberg Brewery Malaysia Bhd and Nestle Malaysia.
The day’s top gainers were Top Glove Corp Bhd’s TOPGLOV-C78 warrant, Tasek Corp Bhd’s TASEK PA warrant and Supermax Corp Bhd’s SUPERMX-93 warrant.

Reuters reported Asian shares retreated today, following a gloomy outlook from the Fed which challenged market optimism on the global economy.

“In a reality check to the stock market’s recent euphoria, the Fed predicted the US economy would shrink 6.5% in 2020 and unemployment would still be at 9.3% at year’s end.

Data out earlier had also shown core U.S. consumer prices fell for a third straight month in May, the longest stretch of declines on record, it said.

In China, the Shanghai Composite finished 0.78% or 22.86 points lower at 2,920.9, with Hong Kong’s Hang Seng down 2.27% or 569.58 points at 24,480.15.

South Korea’s Kospi was down 0.86% or 18.91 points at 2,176.78, while Japan’s Nikkei 225 fell 2.82% or 652.04 points to 22,472.91.


Source: The Edge

Market Daily Report: KLCI reverses loss at eleventh hour to close marginally higher

KUALA LUMPUR (June 10): After being in the red for the most part of today’s trading session, the FBM KLCI closed marginally higher on late buying of selected counters.

The benchmark index closed 0.11 point or 0.1% up at 1,575.16.

Malacca Securities Sdn Bhd head of research Loui Low said the lacklustre market today in terms of trading volume, when compared with yesterday, could be due to the recovery movement control order (RMCO) coming into effect.

This resulted in more people going back to work, Low told theedgemarkets.com.

“It could also be because of Top Glove [Corp Bhd]’s results that are going to be out tomorrow, and therefore investors are on the sidelines for now to wait and see how the results will be,” he added.
Shares in Top Glove, the darling of investors, rose to another record high today, closing at RM17.08, valuing the company at RM45.11 billion. Year to date, the counter has more than tripled from RM4.70.

Low said political developments in the country could also be dampening market sentiment, causing investors to be more cautious.

Among the KLCI constituents, telecommunications counters shone with Maxis Bhd rising eight sen or 1.5% to RM5.40 today, Axiata Group Bhd was up four sen or 1.1% to RM3.69, and Digi.Com Bhd rose three sen or 0.68% to RM4.43.

Elsewhere, Petronas Gas Bhd (PetDag) rose 26 sen or 1.47% to RM17.96.

Total volume on Bursa Malaysia was 7.6 billion shares worth RM4.71 billion. Gainers led losers by 626 to 415, while 423 counters remained unchanged.

The Bursa Malaysia Technology Index was the day’s best performing index as it closed 1.74 points or 4.4% higher at 41.3 today.

Low said this could be due to investors turning to laggards as glove counters were overbought.
Across Asia, Japan's Nikkei 225 grew 0.15% and South Korea's Kospi rose 0.31%, while Hong Kong’s Hang Seng Index was down 0.03%.

Reuters reported that Asia’s stock markets edged up to a fresh three-month high, with the US dollar again under pressure, but sentiment was largely cautious ahead of the US Federal Reserve’s (Fed) next move.


Source: The Edge

Market Daily Report: M'sia the best performing market in Asean, KLCI at four-month high

KUALA LUMPUR (June 9): The FBM KLCI has risen 18.83 points or 1.21% to a four-and-a-half-month high at 1,575.16 points as the country’s short-term economic recovery plan and the recovery phase of the movement control order, which starts tomorrow, spurred investor optimism.

Today, the FBM KLCI only traded in positive territory, ranging between 1,567.97 to 1,590.83 points.
This means the benchmark index has surged 29.14% since the low of 1,219.72 points on March 19 this year. Year-to-date (YTD), the FBM KLCI was down only 0.86% — nearly erasing all its losses seen this year.

Malacca Securities Sdn Bhd analyst Kenneth Leong told theedgemarkets.com that the FBM KLCI resumed trading from the extended weekend break on a buoyant manner as the key index is playing catch-up with gains across global equities.

“Market sentiment was also supported by the slew of measures announced under the Short Term Economic Recovery Plan that aims to support the growth of the economy from June 2020 to December 2020,” he added.

Despite the strong performance today, Leong said further upsides will be increasingly difficult to come by, amid the lofty valuations following the recent recovery. “For now, we see the 1,600 level serves as a strong resistance while the support is set at the 1,530 level.”

Based on the high of 1,590 level this morning — attributable to investor optimism from the recovery movement control order — TA Securities Holdings Bhd technical analyst Stephen Soo said the market was seeing a discount due to profit taking by investors.

As the market has been “overheated”, Soo opined that the market should see a pause moving forward as investors take their cues from the earnings results that are still being released as well as the World Health Organisation (WHO) warning that the Covid-19 situation is worsening worldwide.

He noted that support level will be at 1,550 and 1,520 points, while the resistance level will be at 1,590, 1,600 and 1,620 points.

Two-thirds of the KLCI constituents made gains today. Among the 30 constituents, Malaysia Airports Holdings Bhd led the gainers with a strong 10.91% or 60 sen rise to close at RM6.10 today, followed by Genting Bhd, which rose 8.66% or 38 sen to close at RM4.77, and AMMB Holding Bhd, which was up 4.94% or 16 sen to settle at RM3.40.

Notably, shares of glove makers also continue to be well supported, following the warning of WHO on the worsening Covid-19 situation worldwide. Top Glove Corp Bhd rose 62 sen or 3.79% to RM17, while Hartalega Holdings Bhd was up 32 sen or 2.62% at RM12.52.

Today, Bursa Malaysia saw 9.1 billion shares worth RM6.21 billion traded. Gainers led losers by 779 to 328, while 403 counters remained unchanged.

Clearly, the KLCI is the best performing index among the Asean markets today. Across Asia, Japan's Nikkei 225 slid 0.38%, while South Korea's Kospi grew 0.21% and Hong Kong’s Hang Seng was up 1.13%.

YTD, China’s Shenzhen Composite index was up 8.5%, followed by Kospi, which was down only 0.4%, while the KLCI was the third best performer. Closer to home, Singapore’s Straits Times Index was down 13.5% since the beginning of this year.

Reuters reported that Asian stocks extended their winning streak for the ninth consecutive session on Tuesday and oil prices rose as the lifting of coronavirus lockdowns in many countries made investors hopeful for a relatively quick global economic recovery.

Global markets were battered in March due to investor anxiety over the impact of the short- and longer-term damage to the world economy from the pandemic. But most indices are now back to pre-Covid-19 levels, the newswire reported.



Source: The Edge

Market Daily Report: KLCI pares losses in line with region as glovemakers rise

KUALA LUMPUR (June 5): The FBM KLCI pared some of its losses at the midday break, tracking the reversal at most regional markets, as investors awaited the announcement for the nation's short-term economic recovery plan for the June to December 2020 period later today.

The reversal of losses at the local market was partly aided by resurgent glovemakers. The healthcare index of Bursa Malaysia rose 3.71% or 88.06 points to 2,460.85.

The decliners included Nestle (M) Bhd, Malayan Banking Bhd, Can-One Bhd, PPB Group Bhd, Gas Malaysia Bhd, My EG Services Bhd, British American Tobacco (M) Bhd and Duopharma Biotech Bhd.

The actives included Hibiscus Petroleum Bhd, Advanced Synergy Bhd, Sapura Energy Bhd, Careplus Group Bhd, Sanichi Technology Bhd, KNM Group Bhd and AT Systemization Bhd.

The gainers were led by Top Glove Corp Bhd, Supermax Corp Bhd, UMW Holdings Bhd, UWC Bhd, Hartalega Holdings Bhd, Vitrox Corp Bhd, MBM Resources Holdings Bhd, Adventa Bhd and Imaspro Bhd.

Investors will closely follow Prime Minister Tan Sri Muhyiddin Yassin's scheduled announcement at 3pm today.

At 12.30pm, the FBM KLCI was down 2.39 points to 1,559.45. The index earlier fell to a low of 1,547.57.

Losers led gainers by 389 to 293, while 619 counters traded unchanged. Trading volume was 4.88 billion shares valued at RM3.14 billion.

Reuters said Asian stocks erased early losses today and were poised for their biggest weekly rise since 2011 while the euro hovered near a 1-1/2 month high as Europe's central bank surprised with more stimulus, fuelling hopes for a global rebound.

The market was a bit choppy as some investors chose to take profits ahead of today's nonfarm payrolls data, which is expected to show further deterioration in the US jobs market, it said.
Kenanga Research said that yesterday Asian stocks ended higher driven by positive sentiment on economic recovery and hopes on stimulus to support the recovery.

It said back home, the FBM KLCI rose 23.31 points (+1.52%) to finish at 1,561.84.

"Following the formation of a 'Golden Cross', the index managed to close the gap that was opened during the mid-March market meltdown, which sees it now trading above all of its key-SMAs.
"On the chart, our support levels are set at 1,530 (S1) and 1,500 (S2).

"On the upside, our resistance levels stand at 1,570 (R1) and 1,600 (R2)," it said.



Source: The Edge

Market Daily Report: KLCI climbs for 7th consecutive day

KUALA LUMPUR (June 4): The FBM KLCI closed up 23.31 points or 1.52% today at its intraday high after a spike in the final trading minutes, partly helped by sharp gains in prices of index-linked counters Hap Seng Consolidated Bhd and Nestle (M) Bhd.

Rubber glove manufacturers Top Glove Corp Bhd and Hartalega Holdings Bhd were also among stocks contributing to the KLCI’s rise.

At 5pm, the KLCI finished higher at 1,561.84 points. Bursa Malaysia’s healthcare index, which includes rubber glove manufacturers, closed up 5.85% to be the largest percentage gainer among Bursa indices.

The KLCI closed higher for the seventh consecutive day today.

Across Bursa, 8.19 billion securities worth RM6.12 billion were traded. There were 634 gainers and 389 decliners.

Hap Seng Consolidated’s share price closed up RM1.30 or 15.66% at RM9.60, while Nestle rose RM1.10 or 0.79% to RM140.40.

Top Glove's share price closed up 74 sen or 5.03% at RM15.44, while Hartalega ended 56 sen or 4.99% higher at RM11.78, as share prices of rubber glove manufacturers rebounded after falling earlier.

Rubber glove manufacturers’ share prices had earlier fallen on news stockbroking firms have tightened their share margin financing standards for shares in rubber glove manufacturers, following the recent rise in their stock prices on expectation that the Covid-19 pandemic will lead to higher demand for rubber gloves.

TA Securities Holdings Bhd technical analyst Stephen Soo told theedgemarkets.com that investment sentiment remains strong among rubber glove makers, following their share price rebound today.
“Going forward, there will be some rotational play going on from the rubber glove sector, into the banking and gaming sectors. On the chart, our (KLCI) support levels stand at 1,517 and 1,539, while our resistance levels are 1,575, 1,600 (and) 1,620,” Soo said.

Globally, it was reported that the rapid rally in world markets finally paused for breath on Thursday, as traders waited to hear how much more stimulus the European Central Bank (ECB) plans to shovel out to address the coronavirus slump.

It was reported that the ECB is expected to pump in another 250-500 billion euros for the cause, but after weeks of sharp gains for stocks, oil and confidence-sensitive currencies, investors were taking the chance to lock in some profit.

"Asian stocks stalled at a two-month high; London, Frankfurt, Paris and Brent dipped; and the euro, pound and Aussie dollar all wilted, as the U.S. dollar snapped out of week-long run of falls,” Reuters reported.

In Malaysia tomorrow (June 5), investors will closely follow Prime Minister Tan Sri Muhyiddin Yassin’s announcement at 3pm on the nation's short-term economic recovery plan for the June to December 2020 period.

On Tuesday (June 2), Bernama, quoting Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz, reported that the plan would still focus on three key objectives, namely to empower people, propel businesses and stimulate the economy.


Source: The Edge

Market Daily Report: Sharp rise in banking stocks lifts FBM KLCI to four-month high

KUALA LUMPUR (June 3): The FBM KLCI jumped 30.84 points or 2.05% to 1,538.53 — the highest closing since Feb 14 — on buying interest in battered banking stocks that carry large weightage on the benchmark index.

The FBM KLCI has been on the climb for six consecutive trading days.

The selling wave that swept across the rubber glove sector did not seem to have dampened the local sentiment as much after a list of stockbrokers tighten margin financing on glove counters.

The benchmark index marched higher for the sixth straight session today, with buying interest turned towards financial stocks amid their attractive valuations, Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com.

“Gains were also underpinned by the anticipation of The Short Term Economic Recovery Plan for June 2020 to December 2020 that is scheduled to be announced this month. At the same time, the stronger commodity prices (both the crude oil and crude palm oil) and firmer ringgit against the US dollar also provide a boost,” he said.

Trading volume remained high at 9.42 billion shares today, trade value totalled RM7.02 billion. Gainers outnumbered losers by 560 against 445 losers.

Banking stocks, which have been bashed down to at least 10-year low in terms of price-to-book valuation, dominated the gainers list. Public Bank Bhd soared 11.13% or RM1.74 to RM17.38, Malayan Banking Bhd gained 47 sen or 6.26% to RM7.98, RHB Bank Bhd went up 39 sen or 7.86% to RM5.35, and Hong Leong Bank Bhd leapt RM1.02 or 7.3% to RM15.02.

“Should the FBM KLCI retain its position above the 1,500 level, we see more upsides taking place over the near term,” Leong added.

Across the region, Asian shares advanced as hopes of more stimulus measures and further easing in coronavirus-led curbs around the world offset caution over US-China tensions, Reuters said.
“Analysts said the market has been surprisingly resilient to negative news, both domestic and international, but a sense of short-term overheating capped gains,” the newswire said.

“Meanwhile, the US President Donald Trump has threatened to use the military to quell spreading protests against racism and police brutality, but Wall Street stocks rallied on Tuesday, reflecting the global investor optimism,” it added.

Among the regional bourses, Tokyo’s Nikkei 225 Index rose 1.29% while South Korea’s Kospi advanced 2.87%. Hong Kong’s Hang Seng Index climbed 1.37% and the Shanghai Composite Index gained 0.07%.



Source: The Edge

Market Daily Report: Genting spikes, KLCI ends above 1,500 on MCO conclusion bets

KUALA LUMPUR (June 2): The FBM KLCI closed 17.55 points or 1.18% higher at 1,507.69 today in an apparent reaction to Malaysia’s short-term economic recovery plan announcement, which led to share price spikes in KLCI linked companies like Genting Bhd, Genting Malaysia Bhd and Malaysia Airports Holdings Bhd (MAHB). Analysts said expectation that Malaysia’s movement control order (MCO) will end next Tuesday (June 9) is also boosting investor sentiment.

Meanwhile, Bursa Malaysia’s Energy Index, which tracks shares of oil and gas (O&G)-related companies, was the top percentage gainer among the exchange’s indices. It finished up 5.15%.
Within the 30-stock KLCI, Genting Bhd’s share price closed up 43 sen or 10.75% at RM4.43, Genting Malaysia settled up 24 sen or 10.17% at RM2.60 while MAHB ended 72 sen or  14.2% higher at RM5.79.

At a glance, the KLCI and shares of these companies rose sharply at about 3pm when news broke that the short-term economic recovery plan for the June to December 2020 period will be launched by Prime Minister Tan Sri Muhyiddin Yassin this month. Bernama, quoting Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz, reported that the plan would still focus on three key objectives, namely to empower people, propel businesses, and stimulate the economy.

Speaking to theedgemarkets.com, Rakuten Trade Sdn Bhd vice-president of research Vincent Lau said the share price rise in Genting-related counters and MAHB could be due to investors anticipating economic activity to pick up as they foresee Malaysia’s conditional MCO ending next Tuesday.
“So far, June has started off on a strong note, with daily reported Covid-19 cases remaining low. The MCO ending is also boosting investor sentiment in the market. The government’s anticipated economic recovery plan to be announced this week will also be of focus,” Lau said.

Across Bursa, 9.62 billion securities worth RM6.21 billion were traded. Gainers led decliners by 596 to 428 respectively as O&G-related shares like Hibiscus Petroleum Bhd and Bumi Armada Bhd saw their share prices closed up among Bursa’s most active stocks on higher crude oil prices.
Hibiscus and Bumi Armada registered a volume of some 304 million and 278 million shares respectively. Hibiscus’ share price ended up nine sen or 15.13% at 68.5 sen while Bumi Armada rose 2.5 sen or 10.87% to 25.5 sen.

In global crude oil markets, Reuters reported that oil prices rose on Tuesday on expectations that major producers would agree to extend output cuts that have shored up prices, during a video conference likely to be held this week.

"Benchmark Brent crude rose 2.3%, or 88 cents, to US$39.20 a barrel as of 0840 GMT. US West Texas Intermediate crude climbed 2%, or 72 cents, to US$36.16 a barrel,” the newswire reported.
Malaysia’s MCO, which was initially scheduled between March 18 and 31, 2020, requires non-essential businesses to stop operations, while the public has been ordered to stay at home to curb the Covid-19 outbreak.

On March 25, Muhyiddin said the government decided to extend the MCO until April 14, because updates from the National Security Council and Health Ministry indicated an increase in Covid-19 cases. On April 10, Muhyiddin said the government was extending the MCO until April 28.
On April 23, he said the MCO will be extended for another two weeks until May 12.
On May 10, the premier said the MCO will be extended to June 9.



Source: The Edge

Market Daily Report: FBM KLCI closes up 1.15%, Bursa volume tops 10b units

KUALA LUMPUR (June 1): The FBM KLCI closed up 16.89 points or 1.15% at 1,490.14 today, while trading volume across Bursa Malaysia topped 10 billion securities for the second time in less than a month, as global investors cheered news on the less-drastic-than-expected US measures in response to China’s new security legislation in Hong Kong. In Malaysia, rubber glove manufacturers powered the KLCI’s rise, analysts said.

Across Bursa today, 10.31 billion securities worth RM6.73 billion were traded. There were 511 gainers and 574 decliners.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong said investors cheered the softer stance from Trump's remarks on China. “Back home, the continuous rally in heavyweight glovemakers powered the KLCI,” Leong said.

Globally, it was reported that Trump said he was directing his administration to begin the process of eliminating special treatment for Hong Kong in response to China's plans to impose new security legislation in the semi-autonomous territory.

But Trump made no mention of any action that could undermine the Phase One trade deal that Washington and Beijing struck early this year, a concern that had cast a cloud over the market throughout the week, Reuters reported.

Across Bursa today, trading volume topped 10 billion securities again, after rising to a record high at 11.21 billion securities on May 18. Trading volume across Bursa exceeded 10 billion securities for the first time on that day.

Today, Bursa’s leading gainers included KLCI-linked rubber glove manufacturers Top Glove Corp Bhd and Hartalega Holdings Bhd. Top Glove’s share price closed up RM2.24 or 16.84% at RM15.54.
Most active was K-One Technology Bhd, which registered a volume of some 581 million shares. The stock’s price closed up 12.5 sen or 39.06% at 44.5 sen.

Notable decliners included KLCI stock PPB Group Bhd. PPB’s share price closed down 26 sen or 1.5% at RM17.10 today, after the diversified group said on Friday (May 29) that net profit fell to RM187.27 million in the first quarter ended March 31, 2020 from RM248.45 million a year earlier. PPB said revenue was lower at RM1.07 billion versus RM1.16 billion.

Today, MIDF Amanah Investment Bank Bhd analyst Martin Foo Chuan Loong wrote in a note that PPB suffered a setback across its core businesses, due to the Covid19 pandemic.

"In particular, the film exhibition and distribution business is impacted the most. While we expect the majority of the core businesses would gradually return to normalcy, we opine that the film exhibition and distribution (will) remain loss-making in the foreseeable term.

"Nonetheless, we expect the contribution from its associate, Wilmar, (to) provide support to the group’s weakened earnings capability. All factors considered, we are maintaining our NEUTRAL recommendation at this juncture,” Foo said.

He said MIDF had however lowered its PPB share target price to RM17.95, from the RM18.60 previously.


Source: The Edge