Market Daily Report: FBM KLCI recovers from Umno-PN bombshell to close 0.48% lower

KUALA LUMPUR (July 30): The FBM KLCI recouped earlier losses to close 7.67 points or 0.48% lower after tanking by some 25 points in reaction to Umno's departure from the Perikatan Nasional alliance.

At 5pm, the benchmark index ended at 1,603.75. It had opened at a high of 1,614.35 before falling below the 1,600 level to 1,584.95 at 4pm.

A total of 11.92 billion shares were traded for RM6.16 billion, led by 688 losers and 390 gainers.
Umno president Datuk Seri Dr Ahmad Zahid Hamidi earlier announced in a statement that the party would be leaving the informal Perikatan Nasional (PN) coalition and would instead strengthen its Muafakat Nasional (MN) pact with PAS, and the other component parties of Barisan Nasional (BN).
He added that Tan Sri Muhyiddin Yassin met with BN lawmakers at the Parliament yesterday afternoon and expressed Parti Pribumi Bersatu Malaysia's desire to join MN.

Ahmad Zahid said that Bersatu's wish to join the coalition will be discussed with PAS.

Malacca Securities Sdn Bhd's head of research Loui Low said despite the political developments that have caused the KLCI to dip, he still sees some good bargain-hunting opportunities going into next week.

"Even if there could be any political developments during the weekend, it's still a good opportunity to buy given that the next reporting season is coming up. Certain sectors like glove companies are expected to do well," he told theedgemarkets.com.

Dragging the index was banking giant Public Bank Bhd, which fell 54 sen or 3.08% to RM17 apiece after the government announced an extended loan moratorium on selected groups of people.
Some glove counters were also down today, with Top Glove Corp Bhd falling 26 sen or 0.99% to RM25.88 and Kossan Rubber Industries Bhd down by 32 sen or 1.79% to RM17.60.

Over in Asia, markets were mostly negative, reflecting fragile investor sentiment amid rising Sino-US tensions and surging coronavirus cases, said Reuters.

Japan's Nikkei 225 index closed 0.26% lower, though South Korea's Kospi index gained 0.17%. In China, the Hang Seng fell 0.69% while the Shanghai Composite Index dipped 0.23%.



Source: The Edge

Market Daily Report: KLCI ends higher on final-hour nudge after rare V-shape recovery

KUALA LUMPUR (July 29): The FBM KLCI closed 1.48 points or 0.09% higher at 1,611.42 today on a final-hour nudge after volatile trades, which charted a rare V-shaped recovery for Malaysia's equity benchmark.

At 5pm, the KLCI closed up after rising to its intraday high of 1,618.01 in the morning before plunging to its intraday low at 1,589.98 at lunchtime.

Maybank Investment Bank Bhd remisier Jeffry Azizi Jaafar told theedgemarkets.com that the KLCI's performance today "was largely influenced" by index constituents including Top Glove Corp Bhd, IHH Healthcare Bhd and Malayan Banking Bhd.

At a glance, notable KLCI movers included Hartalega Holdings Bhd and Petronas Dagangan Bhd. Hartalega's share price closed up 22 sen or 1.11% at RM20.12, Top Glove ended down 26 sen or 0.98% at RM26.14, while Petronas Dagangan fell six sen or 0.28% to RM21.48.

Earlier today, Hartalega and Top Glove had during morning trades risen to record highs at RM20.50 and RM26.96 respectively, prior to a plunge at lunch time, during which Petronas Dagangan also fell to its intraday low at RM20.70.

Bargain hunting had subsequently helped Hartalega close higher, although Top Glove and Petronas Dagangan ended down.

Across Bursa at 5pm, 10.54 billion securities worth RM6.95 billion were traded. There were 685 decliners versus 398 gainers, as investors took cue from Prime Minister Tan Sri Muhyiddin Yassin and Bank Negara Malaysia's afternoon announcements on the loan-repayment moratorium extension.
The loan-repayment moratorium extension aims to help borrowers cope with the economic impact of the Covid-19-driven movement control order in Malaysia.

News reports quoted Muhyiddin as saying individuals who have lost their jobs in 2020 and remain jobless are eligible for the targeted moratorium extension of three months.

"After three months, the moratorium could be extended further at the banks’ discretion, depending on the borrower’s situation," he said.

BNM, in a follow-up statement, said in recognition of these exceptional circumstances, the flexibilities provided to borrowers will not appear in their Central Credit Reference Information System (CCRIS) reports.

"BNM will monitor the progress of banks in assisting borrowers that may continue to face temporary financial difficulties. The bank (BNM) will also continue to focus efforts in ensuring that the banking system continues to carry out its intermediation function effectively, in support of the economic recovery," the central bank said.

Globally, it was reported that European shares edged up slightly on Wednesday after mixed earnings reports, but a resurgence of Covid-19 cases kept investors cautious while they waited to hear from the US Federal Reserve.

The US Federal Reserve's Federal Open Market Committee meeting is scheduled on Tuesday and Wednesday (July 28 and 29). Reuters reported that investors wager the Federal Reserve will reaffirm its super-easy policies at its meeting this week, and perhaps signal a tolerance for higher inflation in the long-run.



Source: The Edge

Market Daily Report: KLCI ends at intraday high as investors weigh corporate earnings

KUALA LUMPUR (July 28): The FBM KLCI closed up 18.46 points or 1.16% at its intraday high of 1,609.94 today as investors weighed corporate earnings against the possibility of a second wave of global Covid-19 infections.

Spectre of the second wave helped share prices of rubber glove manufacturers rise to all-time highs today.

Meanwhile, news on former prime minister Datuk Seri Najib Razak being found guilty by the High Court here today of all seven charges involving abuse of power, criminal breach of trust and money laundering in relation to the RM42 million belonging to SRC International Sdn Bhd, could have also influenced investor sentiment.

Inter-Pacific Securities Sdn Bhd head of research Victor Wan told theedgemarkets.com: “As the earnings forecast is rather fluid, the broader theme hinges on recovery, whether there is room for upside after what market expects to be an uninspiring second quarter.”

Across the bourse, trading volume stood at 11.85 billion securities valued at RM7.25 billion. Gainers led decliners at 631 against 500 respectively.

Malaysia's corporate financial reporting season for the April-to-June quarter starts as early as July although most companies report their earnings in August.

Today, exchange operator and regulator Bursa Malaysia Bhd's second quarter earnings announcement was closely watched as robust securities trade volume led to expectation of better earnings for the group.

Bursa said net profit rose to RM86.23 million in the second quarter ended June 30, 2020 (2QFY20) from RM46.34 million a year earlier while revenue climbed to RM179.78 million from RM123.96 million.

For 1HFY20, Bursa said net profit rose to RM150.96 million from RM93.19 million a year earlier while revenue was higher at RM330.53 million versus RM250.49 million.

Today, Bursa's share price rose to its record high of RM10.98 before closing down 38 sen or 3.65% at RM10.04 on profit taking. Bursa was the leading decliner across the exchange.

Notable gainers included rubber glove manufacturers, whose shares rose to record highs before paring gains when markets closed.

Hartalega Holdings Bhd led the top gainers’ list after it closed up RM1.60 or 8.74% at RM19.90. Hartalega had earlier today risen to its all-time high of RM19.92.

Supermax was the second-largest gainer after its share price finished up RM1.56 or 8.94% at RM19. The stock was traded between RM19.36 and RM17.36 today.

Najib's case was closely watched.

At the High Court today, it was reported that Justice Mohd Nazlan Mohd Ghazali said Najib's case had been proven beyond reasonable doubt as the defence failed to rebut the prosecution's argument.
Meanwhile, crucial global highlights include gold prices and the US Federal Reserve's Federal Open Market Committee meeting on Tuesday and Wednesday (July 28 and 29).

It was reported that gold hurtled to record peaks on Tuesday before the sheer scale of its gains drew a burst of profit taking, which in turn helped the US dollar from two-year lows and curbed early equity gains.

"The precious metal had stormed almost US$40 higher at one point to reach US$1,980 an ounce, only for a wave of selling to slap it back to US$1,940 in wild trade.

"Gold is still up over US$125 in little more than a week as investors wager the Federal Reserve will reaffirm its super-easy policies at its meeting this week, and perhaps signal a tolerance for higher inflation in the long-run," Reuters said.



Source: The Edge

Market Daily Report: Late buying in glove stocks lifts KLCI by 0.12% at close

KUALA LUMPUR (July 27): The FBM KLCI closed 1.87 points or 0.12% higher today, thanks to a rush for glovemakers in the final minutes of trading, after declining on the back of losses in banking counters.

The benchmark index dipped to a low of 1,588.98 amid profit-taking in Top Glove Corp Bhd, but the late buying in that stock and other glovemakers lifted the index to 1591.48 at the close.

Public Bank led the banking stocks' decline, while Malayan Banking Bhd shares also slipped.
This follows news that the banking sector is estimated to see losses of RM6.4 billion during the loan moratorium period, and that the government and Bank Negara Malaysia are in talks with banks on whether the six-month moratorium will be extended beyond September. 

 

“Looking ahead the focus now will be on 2Q results, which many already see to be weaker,” Areca Capital Sdn Bhd chief executive officer Danny Wong told theedgemarkets.com when contacted. “Investors are now gauging whether the results will further miss expectations.”

The wider Bursa Malaysia remained a trading market with 11.61 billion shares, valued at RM6.24 billion exchanging hands. A total of 582 counters posted gains as opposed to 505 decliners, while 378 counters traded unchanged.

Topping the gainers’ list was glovemaker Kossan Rubber Industries Bhd, followed by plantation group Kuala Lumpur Kepong Bhd, Bursa Malaysia Bhd and Hartalega Holdings Bhd.
Decliners were led by Nestle (M) Bhd, Ajinomoto M Bhd, Petronas Dagangan Bhd and Allianz M Bhd.

Elsewhere in Asia, the markets were mixed. Japan’s Nikkei 225 slipped 0.16%, South Korea’s Kospi climbed 0.79% while Hong Kong’s HSI eased 0.41%.

Overall, analysts said markets were jittery due to concerns over US-China relations, which in turn raised concerns over global economic outlook and pushed the US dollar lower and precious metal gold to rocket beyond its previous high in 2011-2012.

Reuters reported Washington ordered China’s consulate in Houston to close, prompting Beijing to react in kind by closing the US consulate in Chengdu.

At the time of writing, the US dollar opened lower against the ringgit, trading down 0.26% at 4.2505/4.2625.

Spot gold rose 2.05% to US$1940.30 per ounce, after touching US$1945.30 earlier — its highest ever. Silver followed, rising 5.88% to US$24.04 per ounce.



Source: The Edge

Market Daily Report: KLCI ends 1.22% higher as Bursa volume climbs past 12 billion securities again

KUALA LUMPUR (July 23): The FBM KLCI closed up 19.44 points or 1.22% at 1,606.42 today while trade volume across Bursa Malaysia rose past 12 billion securities again this week as the rubber glove- and healthcare-related sectors continued to be a major theme in the local equities market due to the Covid-19 pandemic.

Across Bursa at 5pm, 12.12 billion securities were traded for RM6.65 billion. Gainers outpaced decliners at 599 to 452 respectively.

Trading volume across Bursa rose past 12 billion securities again today after climbing to its record high at 12.5 billion securities on Monday.

Today, Bursa top gainers included KLCI-linked rubber glove manufacturers Top Glove Corp Bhd and Hartalega Holdings Bhd, the share prices of which closed up at their intraday highs.

Leading gainer Top Glove closed up RM1.42 or 5.75% at RM26.12 while Hartalega ended 62 sen or 3.57% higher at RM18.

TA Securities Holdings Bhd technical analyst Stephen Soo said glove counters' price rises lifted the KLCI past the 1,600-point level today.

"This proves that the glove- and healthcare-related sectors [collectively] is still the major theme in the local market," Soo told theedgemarkets.com.

Meanwhile, actively traded stocks across Bursa included Bioalpha Holdings Bhd and newly listed TCS Group Holdings Bhd.

Top active stock Bioalpha registered a volume of some 2.2 billion shares. Its share price closed up 13 sen or 72.22% at 31 sen.

TCS, which was listed on the ACE Market today at 23 sen a share, ended with a volume of about 207 million shares. The stock's price closed up 22 sen or 95.65% at 45 sen.

Globally, it was reported that Asian shares wavered today as investors weighed hopes for more stimulus to support pandemic-stricken economies against a dramatic rise in tensions between the US and China.

Bloomberg reported that European and US equity futures were mixed today along with Asian stocks amid concerns over renewed Sino-US tensions and the uncertainty over the timing of a new American stimulus package.

Reuters reported that Washington's order to Beijing to close its consulate in Houston, Texas amid accusations of spying had weighed on risk sentiment earlier in Asia, pulling shares lower.

It was reported that China said the order was an "unprecedented escalation" by Washington, and a source said Beijing was considering shutting the US consulate in Wuhan in retaliation.
It was reported that US President Donald Trump said that other consulate closures were "always possible"



Source: The Edge

Market Daily Report: KLCI ends lower amid US-China spat; pharmaceutical firms hit limit up

KUALA LUMPUR (July 22): The FBM KLCI closed 8.95 points or 0.56% lower at 1,586.98 today, as world equities took cue from the US-China spat, which resulted in Hong Kong’s Hang Seng falling the most in nearly six weeks.

At Bursa Malaysia, the KLCI closed lower, partly due to index-linked glove makers’ Hartalega Holdings Bhd and Top Glove Corp Bhd's share price drop among Bursa top decliners.

In a rare development, Bursa’s top four gainers comprising pharmaceutical companies Pharmaniaga Bhd, Apex Healthcare Bhd, Kotra Industries Bhd and Duopharma Biotech Bhd saw their share prices hit limit up after closing 30% higher, as investors continued to pin their hopes on a Covid-19 vaccine to curb the pandemic.

Inter-Pacific Securities Sdn Bhd head of research Victor Wan said the KLCI slipped today as share prices of glove makers fell due to profit taking. Wan said the tension between the US and China also weighed on investor sentiment.

“But the question right now is how far can the KLCI go up still? The next thing to watch is corporate earnings,” he told theedgemarkets.com.

Across Bursa today, turnover stood at 9.37 billion shares worth RM4.89 billion. Decliners beat gainers at 557 to 510 respectively.

Bursa top decliner Hartalega’s share price closed down 62 sen or 3.44% at RM17.38, while Top Glove fell 24 sen or 0.96% to RM24.70.

Bursa top gainer Pharmaniaga's share price closed up RM1.05 or 30% at RM4.55, Apex Healthcare rose 91 sen or 29.74% to RM3.97, Kotra climbed 82 sen or 29.82% to RM3.57 while Duopharma added 68 sen or 29.82% to RM2.96.

All four stocks’ prices ended at their intraday highs.

Most active stocks included Boustead Holdings Bhd and newly listed Ocean Vantage Holdings Bhd.
Boustead, with some 267 million shares traded, saw its share price end up 18.5 sen or 31.62% at 77 sen, possibly in tandem with Pharmaniaga amid optimism about the development of a Covid-19 vaccine.

Boustead said on its website that the group's pharmaceutical division is spearheaded by Pharmaniaga, the core businesses of which include manufacturing of generic pharmaceuticals besides logistics and distribution.

Ocean Vantage, which was listed on Bursa's ACE Market today, saw some 217 million shares traded. Ocean Vantage's share price closed up 27 sen or 103.85% at 53 sen against its issue price of 26 sen.
Globally, it was reported that Hong Kong stocks fell the most in nearly six weeks today, as signs of escalating Sino-US tensions weighed on market sentiment.

At the close of trade, the Hang Seng index was down 577.72 points, or 2.25%, at 25,057.94, its biggest fall since June 11, Reuters reported.

Bloomberg reported that the US equity futures dropped with European stocks after a diplomatic flare-up between the US and China added to concerns over the deteriorating relationship between the economic superpowers.

"Markets shifted on news that the US ordered China's Houston consulate to quickly close, which the State Department later said was to protect property and 'private information' of Americans," Bloomberg reported.



Source: The Edge

Market Daily Report: KLCI rises, Duopharma spikes to record high on Covid-19 vaccine optimism

KUALA LUMPUR (July 21): The FBM KLCI closed 6.48 points or 0.41% higher at 1,595.93 today, tracking global stock gains following news on hopes of a Covid-19 vaccine and the European Union (EU) stimulus package.

Such hopeful sentiment on a Covid-19 vaccine also led to higher crude oil prices, which in turn lifted Bursa Malaysia-listed oil and gas (O&G)-related shares. Hopes for a Covid-19 vaccine also helped pharmaceutical company Duopharma Biotech Bhd’s share price spike to a record high.

Malacca Securities Sdn Bhd head of research Loui Low told theedgemarkets.com that the market is banking on the recovery in the global economy amid the news on Covid-19 vaccine hopes.
“The positive news on vaccine trials also sent crude oil prices high, to a level similar [to] back in March,” he said.

Across Bursa, the exchange saw 9.34 billion shares worth RM5.39 billion traded. Gainers led decliners by 634 to 428 respectively.

Top gainers included pharmaceutical companies Pharmaniaga Bhd and Duopharma.
Duopharma’s share price closed up 38 sen or 20% at RM2.28 after rising to its record high of RM2.40 in afternoon trades today.

Actively-traded stocks included O&G-related Sapura Energy Bhd and Velesto Energy Bhd.
Sapura Energy ended with a trade volume of some 125 million shares. The stock’s price closed up one sen or 11.11% at 10 sen.

Globally, it was reported that Asian shares hit a five-month high and European equity market futures extended gains on Tuesday after EU leaders agreed on a massive stimulus plan for their coronavirus-blighted economies.

It was reported that hopes that vaccines against the Covid-19 disease might be ready by the end of the year also supported riskier assets, following promising early data from trials of three potential vaccines.

Meanwhile, crude oil prices edged higher to above US$40 a barrel on Tuesday on positive news on vaccine trials, but are still within the narrow trading band of the past three weeks amid fears that new lockdowns could derail a recovery in demand.

"An experimental coronavirus vaccine being developed by AstraZeneca and Britain's University of Oxford was safe and produced an immune response in early-stage clinical trials, data showed, keeping alive the hope it could be in use by the end of the year.

"More than 150 possible vaccines are in various stages of development with US drugmaker Pfizer and China's CanSino Biologics also reporting positive responses for their candidates on Monday,” Reuters reported.

Bloomberg reported that stocks advanced globally alongside US equity futures after European leaders reached a deal on a landmark stimulus package.

CMC Markets Asia Pacific Pty chief market strategist Michael McCarthy was quoted as saying: “The market, particularly tech stocks, is rallying on both good news and bad news, that tells us it’s all about momentum and not about the facts.

“There are concerns we could see significant pullbacks before we make further gains, but at the moment you can’t stand in front of the train that is the Nasdaq 100 Index.”



Source: The Edge

Market Daily Report: Banks, telcos weigh on KLCI, as Bursa trading volume soars to record 12.5 billion securities

KUALA LUMPUR (July 20): The FBM KLCI closed lower today, dampened mostly by weak interest in banking and telecommunication index-linked counters.

Meanwhile, trading volume across Bursa Malaysia rose to another record high of 12.5 billion securities in less than two weeks, driven by strong buying interest in glove makers.

At 5pm, the benchmark index settled 6.88 points or 0.43% lower at 1,589.45, from 1,596.33 last Friday.

Telco stocks DiGi.com Bhd fell 15 sen or 3.35% to RM4.33, followed by Axiata Group Bhd, which shed eight sen or 2.37% to RM3.33, while Maxis Bhd trimmed eight sen or 1.49% to RM5.30.
Among the banks, Public Bank Bhd fell 64 sen or 3.5% to RM17.64, CIMB Group Holdings Bhd sank eight sen or 2.22% to RM3.53, Malayan Banking Bhd dipped 12 sen or 1.51% to RM7.82, RHB Bank Bhd slipped seven sen or 1.38% to RM5, while Hong Leong Financial Group Bhd dropped 12 sen or 0.86% to RM13.82.

Bursa saw 12.50 billion securities worth RM6.64 billion traded across the exchange.
The previous record was 11.81 billion shares, registered on July 8.

There were 551 decliners versus 439 gainers while 507 counters remained unchanged.

Commenting on the record-high trading volume across the Bursa Malaysia, MIDF Amanah Investment Bank Bhd senior analyst Imran Yassin Yusof said it was mainly driven by strong buying interest in rubber glove makers.

“The trading interest in glove makers continued to be high, mirroring the situation at the moment which [is] linked to the prolonged issue with the Covid-19 pandemic across the world,” he told theedgemarkets.com.

On the flipside, other sectors were negatively impacted by the virus, he added.

Glove makers dominated the gainer list. Top Glove Corp Bhd surged RM1.84 or 8.01% to RM24.82, Kossan Rubber Industries Bhd rose 80 sen or 5.93% to RM14.30, Supermax Corp Bhd was up 70 sen or 3.95% at RM18.40, while Hartalega Holdings Bhd rose 36 sen or 2.11% to RM17.46.

The actively traded stocks included Lambo Group Bhd, Eduspec Holdings Bhd, Nexgram Holdings Bhd, XOX Bhd and Pegasus Heights Bhd.

Across Asia, Japan's Nikkei 225 edged up 0.09%, while South Korea's Kospi fell 0.14%.
In China, the Hong Kong Hang Seng Index inched down 0.12% while the Shanghai Stock Exchange Composite Index rose 3.11%.

Reuters reported that Asian shares posted gains on Monday while the euro rose to four-month highs, as EU leaders appeared to make some headway after three days of haggling on a plan to revive their economies, even as coronavirus cases increased in many countries.


Source: The Edge

Market Daily Report: KLCI lower at Bursa halt as Top Glove, China shares drop

 
KUALA LUMPUR (July 16): The FBM KLCI closed down 12.08 points or 0.76% at 1,573.48 today after a Bursa Malaysia trade halt and as Asian equity indices fell against a confluence of factors including deteriorating US-China ties and China's share plunge after announcing its latest economic growth data.

Exchange operator Bursa said in a statement that trading across the bourse was halted at 3:30pm due to a technical issue.

Interestingly and coincidentally, KLCI-linked Top Glove Corp Bhd's share price fell below RM20 in afternoon trade after the company confirmed the US Customs and Border Protection (CBP) had yesterday placed a detention order on disposable gloves manufactured by two of its subsidiaries, namely Top Glove Sdn Bhd and TG Medical Sdn Bhd.

Trading in Top Glove's shares resumed following a suspension between 2:30pm and 3:30pm today in conjunction with the detention order announcement, which appeared on Bursa's website during the exchange's 12:30pm to 2:30pm break. 

 

At 3.30pm, across Bursa, 9.28 billion securities worth RM4.2 billion were traded.
Decliners led gainers by 782 to 249 respectively. Top Glove's share price ended RM2.10 or 9.63% lower at RM19.70 with some 27 million shares traded. Top Glove ended among Bursa Malaysia's top decliners.

Malacca Securities Sdn Bhd head of research Loui Low said negative sentiment across the local exchange was "mainly driven by rubber glove makers, especially from Top Glove."

From a technical standpoint, TA Securities Holdings Bhd analyst Stephen Soo said the research firm expects the KLCI to drift lower towards the weekend on speculation selling pressure will continue on glove counters after trading was halted across Bursa today.

“On the chart, our support levels stand at 1,550 and 1,509. While our resistance levels are 1,590 and 1,617,” he said.

Bursa said in separate statements today that trading across the exchange was halted at 3:30pm today due to a technical issue.

According to Bursa, it is diagnosing the problem and will communicate with all its participants while the regulator determines the cause of the technical issue and its impact.

"We will notify all relevant parties as soon as the issue has been resolved. The exchange will not reopen the securities market for trading today. The last traded price will be used as the reference price.

"The matter is currently being investigated. The exchange remains focused on ensuring there is minimal disruption to trading. Please be informed that trading on Bursa Malaysia will resume tomorrow, 17 July 2020 at 9:00am as normal," Bursa said.

Globally, it was reported that European shares opened lower on Thursday after Asian stocks faltered overnight, with risk appetite hit by deteriorating US-China relations and worse-than-expected Chinese domestic consumption data.

It was reported that China stocks posted their biggest fall in more than five months on Thursday, as investors cooled down their buying spree on signs of policy tightening after the country's economic growth in the second quarter beat expectations.

"The Shanghai Composite index closed down 4.5% at 3,210.1, while the blue-chip CSI300 index was down 4.81%, their largest drops since February 3.

"China's GDP grew 3.2% in the second quarter, beating expectation, but domestic consumption and investment remained weak," Reuters reported.



Source: The Edge

Market Daily Report: KLCI down at intraday low as profit-taking, vaccine hope dent glove shares

KUALA LUMPUR (July 15): The FBM KLCI finished down at its intraday low today after falling 13.19 points or 0.83% to 1,585.56 while Bursa Malaysia small market capitalisation (small cap) index rose more than 1% as Covid-19 vaccine hopes spurred world stock markets.

Covid-19 vaccine hopes and profit-taking, however, appeared not to bode well today for shares of rubber glove manufacturers, which had earlier seen their stock prices increase substantially due to rising Covid-19 infections globally.

Across Bursa Malaysia today, 8.24 billion shares worth RM5.02 billion were traded. There were 558 gainers and 456 decliners.

The top four decliners were rubber glove manufacturers, led by Hartalega Holdings Bhd followed by Top Glove Corp Bhd, Supermax Corp Bhd and Kossan Rubber Industries Bhd.

Hartalega and Top Glove are KLCI constituents. Hartalega's share price closed RM1.40 or 8.24% lower at RM15.60 while Top Glove finished down RM1.36 or 5.87% at RM21.80.

Speaking to theedgemarkets.com today, Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng said: “The KLCI is mainly down because of these two counters [Hartalega and Top Glove]."

"But most of the other sectors are positive and not really down,” he said.

Meanwhile, the most-active stocks across Bursa included Reservoir Link Energy Bhd, which debuted on the ACE Market today. Reservoir Link saw some 189 million shares traded when markets closed today.

Reservoir Link's share price closed up 10.5 sen or 25.61% at 51.5 sen against its initial public offering price of 41 sen apiece.

Globally, it was reported that Asian shares rose on Wednesday, led by coronavirus vaccine hopes though sentiment was cautious after Beijing vowed retaliatory sanctions against the US, while the euro rose to a four-month high ahead of a crucial EU summit.

"Overnight risk appetite was boosted by Moderna Inc's experimental vaccine for Covid-19 which showed it was safe and provoked immune responses in all 45 healthy volunteers in an early-stage study. On Tuesday, the Dow Jones Industrial Average rose over 2%, while the S&P 500 gained 1.34% and the Nasdaq Composite climbed 0.94%.

"Stocks firmed despite rising Sino-US tensions and three US states reporting new record daily deaths from the pandemic," Reuters reported.



Source: The Edge

Market Daily Report: KLCI cuts losses after final-hour plunge

KUALA LUMPUR (July 14): The FBM KLCI closed down 7.68 points or 0.48% at 1,598.75 today after cutting losses following a sharp final-hour drop and as investors weighed a confluence of factors including fresh Covid-19 restrictions in the US besides the US-China trade tension.

At Bursa Malaysia, share prices of KLCI-linked rubber glove manufacturers Top Glove Corp Bhd and Hartalega Holdings Bhd slumped as much as 15% during the final hour of trading before paring losses when markets closed.

Another KLCI constituent Hap Seng Consolidated Bhd closed down at its intraday low after a final-hour plunge.

“Today's (Malaysian stock market) performance was (due to) a confluence of different factors, for example, you have fresh Covid-19 restrictions in the US, the overnight (share price) fall on Wall Street, US-China trade tension,” Rakuten Trade Sdn Bhd research vice president Vincent Lau told theedgemarkets.com.

Across Bursa at 5pm, the bourse saw 8.76 billion securities worth RM8.22 billion traded. There were 770 decliners versus 304 gainers.

Top decliners included Hartalega, Top Glove and Hap Seng Consolidated.
Hartalega ended down 90 sen or 5.03% at RM17 after falling as much as RM2.62 or 15% to RM15.28.

Top Glove finished 84 sen or 3.5% lower at RM23.16 after dropping as much as RM3.50 or 15% to RM20.50.

Hap Seng Consolidated closed at its intraday low of RM8.61 after slumping 41 sen or 4.55%.
Globally, it was reported that emerging markets stocks fell on Tuesday after Covid-19 cases continued to rise globally and economic growth forecasts were cut further, with currencies taking a hit from a firmer dollar as US-China tensions flared.

Global coronavirus cases topped 13 million on Monday, while a return to curbs for the US state of California revived worries over whether the virus can cause more economic damage, Reuters reported.

In Malaysia today, MIDF Amanah Investment Bank Bhd analysts wrote in a note that MIDF expects another wave of selling pressure in the equity market as the real extent of economic and corporate earnings impacts of the Covid-19 pandemic manifests.

"However, the forthcoming wave of selling pressure may be moderated somewhat by the sheer amount of liquidity in the financial system," they said.


Source: The Edge

Market Daily Report: KLCI finishes up 0.92%, propelled by Top Glove, Hartalega

KUALA LUMPUR (July 13): The FBM KLCI finished up 14.59 points or 0.92% at 1,606.43 today, led mainly by rubber glove manufacturers Top Glove Corp Bhd and Hartalega Holdings Bhd's share price rise amid rising Covid-19 infections globally.

Malaysia Parliament newsflow also appeared to have influenced local share trade dynamics and as investors looked ahead to the corporate financial reporting season for the April-to-June quarter.
“Currently there are only two sectors that have been supporting the KLCI, namely the rubber glove and financial services sectors,” Malacca Securities Sdn Bhd head of research Loui Low told theedgemarkets.com today.

Across Bursa Malaysia, 9.55 billion shares were traded for RM5.7 billion.

 The top three gainers were rubber glove manufacturers, led by Supermax Corp Bhd followed by KLCI-linked Top Glove and Hartalega.

All three stocks' prices rose to their record highs today before paring gains when market closed.
Supermax closed up RM2.36 or 17.33% at RM15.98 after rising to its record high of RM16.
Top Glove finished RM2.08 or 9.49% higher at RM24 after reaching its all-time high of RM24.50.
Hartalega ended up 84 sen or 4.92% at RM17.90 after climbing to its record high of RM18.10.
At Parliament, the second meeting of the third session of Malaysia's 14th Parliament starts today and is scheduled to end this Aug 27.

Among highlights at the Parliament today, news reports, quoting Prime Minister Tan Sri Muhyiddin Yassin, reported that the government will ensure that no Malaysians are left out, especially the bottom 40% income (B40) group in the implementation of the Prihatin Rakyat Economic Stimulus Package.

“We will ensure that all groups, especially in Sabah and Sarawak, will not be left out in receiving the government’s assistance to ease their burden in facing the Covid-19 pandemic,” he said when answering a question from Kota Semarahan MP Rubiah Wang during today's parliamentary session.
It was also reported that the motion to remove Tan Sri Mohamad Ariff Md Yusof as Parliament Speaker was passed after 111 MPs voted for the proposal versus 109, who voted against.
It was reported that Deputy Speaker Datuk Mohd Rashid Hasnon announced the motion had been passed, before adjourning the sitting until 2:30pm today.

Globally, it was reported that Asian shares climbed towards five-month peaks on Monday as investors wagered the US earnings season would see most companies beat forecasts given expectations had been lowered so far by coronavirus lockdowns.

"Ongoing grim US Covid-19 infection news continue to be summarily ignored in favour of ongoing optimism regarding the time-line for the discovery and rapid roll-out of an effective vaccine and/or more policy support for asset prices and the US economy," Reuters quoted Ray Attrill, head of FX strategy at NAB, as saying.



Source: The Edge

Market Daily Report: KLCI bucks regional trend to close higher on continuing strong gains by glove counters

KUALA LUMPUR (July 10): The FBM KLCI bucked the regional trend to close 0.54% higher today, mainly on further gains recorded by glove makers Top Glove Corp Bhd and Hartalega Holdings Bhd.

The index dipped into the red shortly after it opened at 1,578.92. But as trading progressed, it slowly inched up to end the day 8.59 points higher at 1,591.84.

The healthcare index, which includes rubber glove manufacturers, was the biggest percentage gainer among Bursa Malaysia indices, closing 4.25% higher at 3,062.57.

Public Investment Bank technical analyst Lee Siao Ping said he is positive about the healthcare sector, especially the glove counters.

He said from a technical viewpoint, the KLCI could rise above 1,600 next week, buoyed by the continuing buying momentum in the sector.

"Support can be found at 1,600, 1610 and 1,622. Conversely, resistance can be identified at 1,580 and 1,550, which is less likely," he told theedgemarkets.com.

Glove stocks dominated the day's top gainers' list as they rose to fresh record highs on growing demand for gloves amid rising Covid-19 cases globally.


Top Glove closed up 74 sen or 3.49% to a new record high of RM21.92, as did Hartalega which jumped 46 sen or 2.77% to RM17.06.

Similarly, Supermax Corp Bhd and Kossan Rubber Industries Bhd also rose to new all-time highs of RM13.62 (up RM1.18 or 9.49%) and RM12.38 (up 70 sen or 5.99%), resprectively.

Elsewhere in Asia, Japan's Nikkei 225 fell 1.06%, South Korea's Kospi dipped 0.81%, Hong Kong's Hang Seng Index declined 1.84% and the Shanghai Stock Exchange Composite Index dropped 1.95%.

Reuters reported that world stocks and oil prices were faltering today as record-setting new Covid-19 cases in several US states led to worries that more lockdowns might be necessary, making a quick economic recovery unlikely.



Source: The Edge

Market Daily Report: KLCI closes marginally lower on lack of new leads

KUALA LUMPUR (July 9): The FBM KLCI ended marginally lower today on a lack of fresh catalysts to prop up the market.

The benchmark index closed 0.25 points or 0.02% lower at 1,583.25, after moving between 1,579.90 and 1,590.63.

Market breadth today was mixed with 471 gainers versus 490 losers, while 505 counters closed unchanged.

Turnover stood at 10.24 billion shares valued at RM5.18 billion, compared with yesterday’s record high volume of 11.81 billion worth RM4.36 billion.

Fortress Capital Asset Management (M) Sdn Bhd investment adviser and director Geoffrey Ng said the market’s relatively lacklustre performance was mainly due to the absence of fresh leads.

He also told theedgemarkets.com that retail investors have played a major role in terms of market participation of late and this trend would likely persist given the low-interest rates environment. 
Ng said some speculation activities are continuing, including in glove stocks, as evidenced by the strong retail participation.

“In the case of glove makers, their share prices have more than priced in the strong demand and higher (average selling) prices of gloves. Still, we are seeing very significant retail investor activity in the glove counters,” he said.

Among glove makers, Top Glove Corp Bhd soared to another fresh record high of RM21.18, after rising 64 sen or 3.12%. There were some 23.10 million shares traded.

Supermax also jumped to an all-time high of RM12.44, after increasing by another RM1.58 or 14.55%. It saw some 47.82 million shares changing hands.

Similarly, Kossan Rubber Industries Bhd also reached its new high of RM11.68, after rising 36 sen or 3.18%. The stock saw 13.74 million shares traded.

Hartalega Holdings Bhd closed up 18 sen or 1.1% to RM16.6 on a volume of 10.59 million shares.
The day’s top active stock was PDZ Bhd, which saw some 589.13 million shares traded. The stock closed down 1.5 sen or 7.32% at 19 sen.

Top losers included Nestle (M) Bhd, Petronas Dagangan Bhd and Petronas Gas Bhd.
Across Asia, Japan's Nikkei 225 rose 0.4% and South Korea's Kospi gained 0.42%. Hong Kong’s Hang Seng Index climbed 0.31% while the Shanghai Stock Exchange Composite Index closed up 1.39%.

Reuters reported that surging Chinese stocks led Asia’s equity markets higher, as investors looked past Sino-US tension and renewed coronavirus lockdowns and hoped stimulus washing through the world economy finds its way to company earnings.



Source: The Edge

Market Daily Report: Liquidity-driven buying pushes KLCI higher in record volume

KUALA LUMPUR (July 8): The FBM KLCI finished 16.78 points or 1.07% higher at 1,583.50 today in heavy trading on liquidity-driven buying.

Trading volume across Bursa Malaysia rose to another record high at 11.81 billion shares, worth RM4.36 billion. The previous record was 11.21 billion shares, registered on May 18.

Gainers surpassed losers at 619 to 353, while 482 counters closed unchanged.

Inter-Pacific Securities Sdn Bhd head of research Victor Wan said there was strong buying interest as more investors shifted their funds to the market.  

 

“The current low interest rates environment encourages investors to pour money into the equity market, as elsewhere the returns are pretty low,” Wan told theedgemarkets.com.

Bank Negara Malaysia yesterday announced another cut in the Overnight Policy Rate (OPR) by 25bps to 1.75%, a record low since the floor was set in 2004.

So far this year, the central bank has slashed the OPR four times for a cumulative 125bps reduction.
In a note today, Hong Leong Investment Bank Research said it is not discounting the possibility that BNM will cut the OPR by another 25 bps in September.

Top gainers among the KLCI component stocks were Hap Seng Consolidated Bhd (up 53 sen or 6.22% at RM9.05),  Petronas Dagangan Bhd (up 72 sen or 3.55% at RM21) and CIMB Group Holdings Bhd (up 10 sen or 2.7% at RM3.80).

Elsewhere in Asia, stocks dithered as an increase in coronavirus cases in some parts of the world undermined prospects for a quick economic recovery while oil prices eased on oversupply fears, Reuters reported.

Japan's Nikkei 225 dipped 0.78% and South Korea's Kospi sank 0.24%. Hong Kong’s Hang Seng Index, however, gained 0.59% while the Shanghai Stock Exchange Composite Index rose 1.74%.


Source: The Edge

Market Daily Report: KLCI finishes down, ACE up the most after OPR cut

KUALA LUMPUR (July 7): The FBM KLCI closed down 10.18 points or 0.65% at 1,566.72 today while the FBM ACE was the top percentage gainer after Bank Negara Malaysia (BNM) cut the overnight policy rate (OPR) by 25 basis points (bps) today to a record low of 1.75%.

Across Bursa Malaysia, 7.78 billion shares worth RM4.93 billion were traded. There were 648 decliners and 428 gainers.

The ACE index closed up 194.09 points or 2.75% at 7,246.90, while the healthcare and REIT indices rose 1.9% and 0.14% respectively.

BNM cut the OPR by 25 bps today to a record low of 1.75%, saying the impact of the Covid-19 pandemic on the global economy is severe and that Malaysia’s economic activity contracted sharply in the second quarter of the year, due to measures introduced to contain the pandemic.

In a statement today, the central bank said Malaysia’s inflationary pressures are expected to be muted in 2020.

In theory, interest rate cuts are good for equities but bad for currencies.



Source: The Edge

Market Daily Report: KLCI climbs on regional markets rally, glove makers’ boost

KUALA LUMPUR (July 6): The FBM KLCI marked its sixth consecutive day of gains as it tracked regional markets, which climbed on sentiments of anticipated recovery to global growth, while strong buying interest seen among glove makers also boosted the benchmark index.

Across Asia, Japan's Nikkei 225 rose 1.83% and South Korea's Kospi soared 1.65%. In China, the Hong Kong Hang Seng Index jumped 3.81% while the Shanghai Stock Exchange Composite Index closed up 5.71%.

Reuters reported that Asian shares scaled four-month peaks on Monday as investors counted on a revival in Chinese activity to boost global economic growth, even as surging coronavirus cases delayed business re-openings across the United States.

In Malaysia, Rakuten Trade Sdn Bhd research vice president Vincent Lau told theedgemarkets.com that the regional markets’ rally was a major driver to the KLCI's performance today, as it closed 24.25 points or 1.56% higher at 1,576.90, compared with Friday’s (July 3) close of 1,552.65. 

 

In addition, the continued strong buying interest in glove makers led the benchmark index to settle higher, he said.

The healthcare index, which includes rubber glove manufacturers, closed 5.6% or 131.06 points higher at 2,716.20 points, making it the largest percentage gainer among Bursa Malaysia indices.
The top gainers list on Bursa today was also led by glove makers: Top Glove Corp Bhd (up 8.13% or RM1.50 to close at RM19.96; with a market capitalisation of RM53.77 billion), Hartalega Holdings Bhd (up 3.13% to RM16.50; RM55.9 billion), Kossan Rubber Industries Bhd (up 11.25% to RM10.38; RM13.28 billion) and Supermax Corp Bhd (up 10.10% to RM10.36; RM13.38 billion).
All four counters ended the day at their record highs, with each counter recording tens of millions of shares traded.

The wider market breadth was also positive, with 648 gainers versus 358 decliners, while 478 counters traded unchanged.

There were some 8.73 billion shares worth RM5.07 billion traded today, compared with 6.72 billion shares worth RM3.81 billion that was recorded last Friday.



Source: The Edge

Market Daily Report: KLCI rises 1.07% as glove heavyweights soar further

KUALA LUMPUR (July 3): The FBM KLCI closed higher led by gains in glove counters which attracted fresh buying interest as prospects for the industry strengthened further amid rising COVID-19 cases globally.

The benchmark index closed 1.07% or 16.37 points higher at 1552.65.

Leading the KLCI today was Hartalega Holdings Bhd which rose 6.67% to RM16 and Top Glove Corp Bhd which climbed 5.49% to a new high of RM18.46.

Supermax Corp Bhd also hit a new high of RM9.43 before closing at RM9.41.
On the broader market, gainers outnumbered losers by 667 to 355, with 6.72 billion shares worth RM3.81 billion traded.

Maybank Investment Bank Bhd remisier Jeffry Azizi Jaafar said Malaysia’s success in curbing the spread of COVID-19 also boosted investor sentiment, as this will lead to the reopening of more economic sectors.

“Malaysia is aiming for zero cases for 28 days to be declared free of COVID-19. If Malaysia achieves the target, the economy can recover as soon as next year according to Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed,” he told theedgemarkets.com
There’s also a positive outlook on the technology sector, Jeffry added.

“AmInvestment Bank Bhd [in a report] today upgraded the sector from ‘neutral’ to ‘overweight’ as the sector remains resilient despite the COVID-19 pandemic impact. According to them, the attractive valuations make the sector interesting with stocks at lower side of price.

“Another factor is the performance of Nasdaq, which tracks performance of technology stocks in the US is at all-time high. This brings positive effect to technology stocks in Bursa Malaysia,” he added.



Source: The Edge

Market Daily Report: COVID-19 vaccine hopes spur Bursa share rise

KUALA LUMPUR (July 2): The FBM KLCI closed up 21.85 points or 1.44% at 1,536.28 today after broad-based buying across Bursa Malaysia as world equity indices rose on hopes of a vaccine for Covid-19.

Across Bursa Malaysia, 5.9 billion shares were traded for RM4.03 billion.

There were 701 gainers and 334 decliners.

Leading the KLCI, in percentage terms, was Petronas Chemicals Group Bhd after its share price closed up 30 sen or 4.8% at RM6.55, followed by Genting Malaysia Bhd and Genting Bhd.
Genting Malaysia was up 10 sen or 3.98% at RM2.61 while Genting Bhd closed 13 sen or 3.19% higher at RM4.21.

Globally, it was reported that Asian stocks hovered near four-month highs on Thursday on hopes of a vaccine for COVID-19 while copper prices jumped to a more than six-month peak on a better global outlook and supply fears in top producer Chile.

It was reported that all eyes are on US employment data, due later in the day, which are expected to offer further cues into how the world's largest economy is coping with a rise in coronavirus cases in several States.

"In a sign the positive sentiment will extend elsewhere, E-minis for S&P 500 rose 0.3% while futures for Euro Stoxx 50 rose 0.8% and those for Germany's DAX climbed 0.8%. London's FTSE futures added 0.6%. Risk sentiment was whetted by a COVID-19 vaccine from Pfizer and Germany's BioNTech, which was found to be well tolerated in early-stage human trials," Reuters reported.

In Malaysia, analysts are mindful of the KLCI's V-shape recovery's sustainability due to factors including the rising number of global COVID-19 cases and Malaysia's political uncertainty.

"Although the KLCI has staged an unprecedented V-shaped recovery, a pullback could ensue, triggered by rising COVID-19 count globally, souring US-China relations, domestic political uncertainty and deteriorating 2Q corporate results," Hong Leong Investment Bank Bhd analysts Jeremy Goh, Felicia Ling and Goh Khing-Mae wrote in a note today.

"Still, the pullback shouldn’t be as severe (unlike 1Q20) as liquidity factors (rejuvenated retail participation and Fed’s 'unlimited QE' arsenal) would help cushion it," they said.

QE refers to quantitative easing, a scheme undertaken by Central Banks to increase money supply to support economic growth.



Source: The Edge

Market Daily Report: KLCI finishes up 0.9%; Hartalega hits record high

KUALA LUMPUR (July 1): The FBM KLCI closed up 13.46 points or 0.9% at 1,514.43 today, helped by a confluence of factors including share price gains for rubber glove manufacturers and higher crude oil prices.

KLCI-linked glove manufacuturer Hartalega Holdings Bhd's share price rose to a record high.

Meanwhile, better economic indicators for Malaysia also appeared to support broad-based buying across Bursa Malaysia as investors priced in a recovery of the local economy in the second half of 2020 as businesses reopen after the Covid-19 pandemic-driven disruption.

"We believe there is a case for the KLCI’s multiple to stay elevated to reflect the robust domestic liquidity driven by the risk-on sentiment globally triggered by the massive monetary and fiscal stimulus packages put in place by central banks and governments around the globe, optimism about the economy reopening and the news flow of vaccine developments," AmInvestment Bank Bhd Malaysia equity research head Joshua Ng wrote in a note today.

"We believe there is a case for staying fully invested in the glove sector as no one knows for sure if the [Covid-19] pandemic is going to go away or evolve into another wave, or any effective treatment drug and/or vaccine could be found anytime soon. Post the pandemic, there is a case for staying invested in the sector given the higher hygiene standards and practices of the global population," Ng said.

Across Bursa today, 7.33 billion securities were traded for RM3.6 billion.

There were 660 gainers and 313 decliners. Hartalega was the top gainer, followed by KLCI-linked Top Glove Corp Bhd, as a resurgence in global Covid-19 infections led to expectations of higher demand for gloves.

Hartalega's share price closed up RM1.78 or 13.69% at RM14.78 after rising to a record high of RM15 in intraday trade. Top Glove's share price finished RM1.04 or 6.46% higher at RM17.14.
Among the 30 KLCI stocks, Hartalega was the top percentage gainer, followed by Top Glove. Bursa's Healthcare Index, which includes rubber glove manufacturers, ended up 4.11% to become the leading percentage gainer among the bourse's indices.

Equity investors could have also taken their cue from better global economic indicators.
In Malaysia today, IHS Markit said its Malaysia Manufacturing Purchasing Managers’ Index (PMI) rose sharply to 51 in June 2020 from 45.6 in May, indicating an improvement in the health of Malaysia's goods-producing sector and stronger economic growth.

Yesterday, 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, and was above the 50.4 forecast in a Reuters poll of analysts.

Today, Areca Capital Sdn Bhd chief executive officer Danny Wong told theedgemarkets.com that China’s latest manufacturing data was a positive for share trade sentiment across Asia.
“[The China numbers] were quite encouraging [in terms of Covid-19 recovery cases and economic data].

"If China is the first to re-emerge from this virus fully recovered, it would be positive for the region, which will have optimism about the recovery of their local economies,” Wong said.

Reuters reported that global crude oil prices rose today after an industry report showed crude stockpiles in the US staged a bigger drop than expected, suggesting demand was improving even as the Covid-19 outbreak spread around the world.

Brent crude rose 31 cents, or 0.8%, to US$41.58 (RM178.21) a barrel by 0632 GMT after declining more than 1% yesterday. US crude was up 35 cents, or 0.9%, at US$39.62 a barrel, having dropped by 1.1% in the previous session.



Source: The Edge