Market Daily Report: KLCI closes at day’s low on late selling

 

KUALA LUMPUR (Aug 28): The FBM KLCI closed at the day’s low after some index-linked stocks came under selling in the final trading hour. 

The index finished 29.57 points or 1.9% lower at 1,525.21, a near two-month low. 

Areca Capital Sdn Bhd CEO Danny Wong Teck Meng said the late selling in selective KLCI stocks is likely due to portfolio restructuring. 

The portfolio rebalancing action taken by institutional funds, he told theedgemarkets.com, comes in the wake of the inclusion of two glove counters as component stocks of the MSCI Global Standard index with effect from Sept 1. 

MSCI Global Standard had announced on Aug 13 that Kossan Rubber Industries and Supermax Corp Bhd will be new constituents of the index, while IJM Corp Bhd will be removed from the list.  

Among the KLCI component stocks that retreated in the final hour today are Hap Seng Consolidated Bhd, PPB Group Bhd and Petronas Chemical Bhd (PetChem). 

Hap Seng closed 68 sen or 8.63% down at RM7.20 today, while PPB dropped RM1.26 or 6.54% to RM18 and PetChem closed down 35 sen or 6.02% at RM5.46. They were among Bursa Malaysia top decliners.  

On the broader market, there were 576 losers against 500 gainers. 

A total of 11.15 billion shares worth RM8.25 billion were traded. 

The market will be closed on Monday for the Merdeka Day national public holiday. 

Elsewhere in Asia, Japan's Nikkei 225 shed 1.41%, while South Korea's Kospi inched up 0.4%. Hong Kong Hang Seng Index rose 0.56%, while the Shanghai Stock Exchange Composite Index closed up 0.61%.

Reuters reported that stock markets struggled for direction as investors worried about a lack of detail in the US Federal Reserve’s policy shift, while Japanese markets were roiled as Prime Minister Shinzo Abe resigned for health reasons. 

It added that the US Fed’s widely-awaited shift in its policy framework, unveiled on Thursday, saw the central bank placing more emphasis on boosting economic growth and less on worries about letting inflation run too high.

 

 

 

Source: The Edge

Market Daily Report: KLCI snaps three days of decline as TM, Sime Darby Plantation lift

 

 

KUALA LUMPUR (Aug 27): The FBMKLCI closed higher today, snapping three consecutive days of declines, mainly lifted by Telekom Malaysia Bhd (TM) and Sime Darby Plantation Bhd, which announced strong quarterly results today.

At 5pm, the benchmark index was up 5.2 points or 0.34% at 1,554.78. Market breadth, however, was negative, with 545 losers versus 503 gainers. Across the bourse, a total of 13.71 billion shares worth RM5.56 billion were traded.

TM, which was among Bursa Malaysia’s top gainers of the day, closed 8.97% or 34 sen higher at RM4.13, after some 13.69 million shares were done. Sime Darby Plantation was up 1.18% or six sen higher at RM5.16.

When contacted, Malacca Securities Sdn Bhd head of research Loui Low said the KLCI finished higher amid choppy trading, lifted mainly by TM. He said he continues to favour the telco sector, where he expects to see further upside as it benefits from the new norm of working from home following the COVID-19 outbreak, as well as the anticipated roll-out of 5G services.

Besides TM, Nestle (M) Bhd, Kumpulan Powernet Bhd and Kwantas Corp Bhd were among the top gainers of the day. Top decliners, meanwhile, included Supermax Corp Bhd, Carlsberg Brewery Malaysia Bhd, Heineken (M) Bhd and Comfort Gloves bhd.

The day's most active list, notably, continues to be dominated by penny stocks, among which were XOX Bhd, Pegasus Heights Bhd, GPA Holdings Bhd, P.A. Resources and Key Alliance Group Bhd.

Loui believes there is limited upside to be had among penny stocks despite frenzied trading interest, as he believes investors will refocus on fundamentals rather than chase after short-term gains, as the second-quarter result season comes to an end.

Across Asia, Japan's Nikkei 225 shed 0.35%, while South Korea's Kospi sank 1.05%. In China, the Hong Kong Hang Seng Index dipped 0.83% while the Shanghai Stock Exchange Composite Index rose 0.61%.

Reuters reported that markets were mixed on Thursday ahead of US Fed chief Jerome Powell's speech, while geopolitical concerns returned after Beijing fired missiles into the South China Sea and the US sanctioned several Chinese firms linked to the disputed region 

 

 

Source: The Edge

Market Daily Report: FBM KLCI falls for third straight day — to below 1,550 points

 

 

KUALA LUMPUR (Aug 26): The FBM KLCI continued to close lower today, for the third consecutive day, by 5.38 points or 0.35%, mainly dragged by banking and telecommunication stocks.

At 5pm, the local benchmark index closed at 1,549.39 points — nearly a two-month low. In today’s session, it was mostly trading in the negative territory between the range of 1,538.26 and 1,558.95 points.

Malacca Securities Sdn Bhd head of research Loui Low believes that the downward bias on the FBM KLCI will still remain until the conclusion of the reporting season.

“The broader market especially the small caps and lower liners are the ones in focus,” he told theedgemarkets.com, adding that it could be due to ample liquidity in the markets and finding some short-term trading ahead of the busy reporting season.

“We still think it is better to be cautious as stocks might trade higher until the results are released and should the results be weaker than expected, the share price might tank,” Low noted.

Among the 30 constituents, Petronas Dagangan Bhd led the pack as the biggest loser and closed 50 sen or 2.36% lower at RM20.72.

It was followed by Public Bank Bhd, which was down 36 sen or 2.12% at RM16.60, and RHB Bank Bhd, which fell 10 sen or 2.09% at RM4.68. Telekom Malaysia Bhd was also down six sen or 1.56% at RM3.79.

Glove makers, on the other hand, flooded the list of top gainers led by Supermax Corp Bhd, which was RM1.48 or 7.47% higher at RM21.28 today, followed by Top Glove Corp Bhd, which rose 94 sen or RM3.70 to RM26.34.

Other glove makers Rubberex Corp (M) Bhd (up 72 sen or 14.31%), Kossan Rubber Industries Bhd (up 66 sen or 4.51%), Comfort Gloves Bhd (up 32 sen or 7.57%), Careplus Group Bhd (up 30 sen or 8.7%), and Hartalega Holdings Bhd (up 26 sen or 1.58%) also joined the ranks.

Today, Bursa Malaysia saw 12.12 billion shares worth RM6.18 billion traded. Gainers outpaced laggards at 706 versus 424, while 379 counters remained unchanged.

Across Asia, Japan's Nikkei 225 slid 0.03%, while South Korea's Kospi rose 0.11%, while Hong Kong’s Hang Seng was up 0.02%.

Reuters reported that Asian stocks drifted lower on Wednesday as rising Covid-19 cases and grim US data dented sentiment, while currencies slipped into a holding pattern ahead of US Federal Reserve chairman Jerome's Powell's speech.

Following a day of buoyant gains for stock markets across the region on signs of progress in US-China trade negotiations, China and Singapore led early selling after a wobble on Wall Street overnight, the newswire added.

 

 

 

Source: The Edge

Market Daily Report: FBM KLCI slips lower, weighed down by glove makers

 

KUALA LUMPUR (Aug 25): The FBM KLCI continued to close lower today by 13.62 points or 0.87% mainly due to profit-taking activities seen across glove makers.

At 5pm, FBM KLCI closed at 1,555.96 points. In today’s session, it was only trading in the red zone between the range of 1,552.92 and 1,569.58 points.

Inter-Pacific Securities Sdn Bhd head of research Victor Wan told theedgemarkets.com that glove stocks retreated “quite badly” due to reports that the US may fast-track an experimental Covid-19 vaccine from the UK.

“Overall, the other stocks, including the small caps, in the market also follow the sentiment from the glove [counters],” he added.

“The market performance is not looking too healthy,” Wan said, adding that the benchmark index performance would be dependent on how corporate earnings results will pan out in the next three to four days.

Noting that the immediate support level is 1,550 points, Wan said “it will definitely look more precarious if it does fall below 1,550”.

Among the 30 constituents, glove makers were the biggest losers. Top Glove Corp Bhd declined RM2.50 or 8.96% to close at RM25.40, followed by Hartalega Holdings Bhd, which was RM1 or 5.71% lower at RM16.50.

On Bursa Malaysia, other glove makers joined the list of top losers. Supermax Corp Bhd was down RM2.30 or 10.41%, Kossan Rubber Industries Bhd slid RM1.30 or 8.16% to RM14.64. The same list was also flooded by Supermax’s warrants.

Meanwhile, Comfort Gloves Bhd fell 12.66%, Careplus Group Bhd dropped by 11.32%, and Rubberex Corp (M) Bhd slid 9.69%.

Today, Bursa Malaysia saw 10.22 billion shares worth RM7.63 billion traded. Losers led gainers by 843 to 323, while 344 counters remained unchanged.

Across Asia, Japan's Nikkei 225 grew 1.35% and South Korea's Kospi climbed 1.58%, while Hong Kong’s Hang Seng was down 0.26%.

Reuters reported that European shares opened higher on Tuesday, with market sentiment propped up by the US and China saying they are still committed to their Phase One trade deal, and some increased optimism around Covid-19 vaccine development.

Top US and Chinese officials had a phone call in which they reaffirmed their commitment to the Phase One trade deal agreed in January, in a positive sign after months of disputes over the Covid-19 pandemic, China’s national security law and Chinese technology firms, the newswire added.

The news lifted Asian currencies and stocks, with the Chinese yuan firming slightly overnight.

As at the time of writing, the ringgit strengthened against the US dollar at 4.1695 — nearly a six-month high.

 

 

 

Source: The Edge

Market Daily Report: KLCI down 0.54%, dragged by PetChem, banking stocks

 

 KUALA LUMPUR (Aug 24): The FBM KLCI underperformed the broader market to close 8.54 points or 0.54% lower today, mainly dragged by Petronas Chemicals Group Bhd (PetChem) and banking stocks.

Despite opening in the positive territory, the index stood in the red zone for most of the trading session. It closed at 1,568.58 after moving between 1,567.10 and 1,581.27.

TA Securities Holdings Bhd senior technical analyst Stephen Soo said most of the blue chips remained in consolidation. “In terms of performance [today], it has underperformed compared with the broader market,” Soo told theedgemarkets.com.

The FBM ACE index was up 23.94 points or 0.22% at 10,945.82, while the Bursa Malaysia Small Cap Index grew 154.02 points or 1.12% to 13,881.35.

Soo said banks are affected by the recent news that cruise ship operator Genting Hong Kong Ltd had suspended payments to creditors. "There are probably concerns on writebacks," he said.

The company was scheduled to hold its first creditors’ meeting today to restructure its debts.

Soo said the KLC’s support level will be at 1,560 (50-day moving average) and 1,539, with the resistance level at 1,590 and 1,600 points.

Among the index’s constituents, PetChem was the biggest loser as it declined 20 sen or 3.25% to close at RM5.95, followed by IHH Healthcare Bhd and Public Bank Bhd.

IHH closed 17 sen or 3.05% lower at RM5.41, while Public Bank slipped 32 sen or 1.85% to RM16.98.

Besides banks, other top laggards among the blue chips included rubber glove makers Hartalega Holdings Bhd (-1.35%) and Top Glove Corp Bhd (-0.36%) as well as Genting Bhd (-0.84%) and Genting Malaysia Bhd (-0.45%).

Total volume on the broader market was 9.95 billion shares worth RM5.77 billion. Gainers led losers by 645 to 504, while 376 counters remained unchanged.

Across Asia, Japan's Nikkei 225 grew 0.28%, while Hong Kong’s Hang Seng was up 1.74% and South Korea's Kospi rose 1.1%.

Reuters wrote that Asian shares advanced for a second straight session, underpinned by coronavirus hopes after US regulators authorised the use of blood plasma from recovered patients as a treatment option.

 

 

Source: The Edge

Market Daily Report: KLCI dips 0.16% as profit taking erases gains

 

 

KUALA LUMPUR (Aug 19): The FBM KLCI gave up earlier gains to close slightly lower today on profit-taking, against the backdrop of mixed regional markets. 

The key index closed 2.47 points or 0.16% lower at 1,575.38. After coming down in the morning, it recovered in the afternoon only to retreat again towards the close.

The market breadth was more positive, as gainers outpaced decliners by 589 to 411. 

Rakuten Trade Research vice president Vincent Lau said investors took some cash off the table, especially in some rubber glove counters, following yesterday’s strong rally.

Hartalega Holdings Bhd, which jumped 12.85%, gave up some of its gains yesterday, closing 36 sen or 2.05% lower at RM17.2. It was among the day’s top losers on Bursa Malaysia. 

Top Glove Corp Bhd closed up 4.06% or RM1.06 at RM27.14 in volatile trading. It had fallen to as low as RM25.54 earlier in the day.

Supermax also went down by 5% to RM19.76, before rebounding to close 0.67% or 14 sen higher at RM20.94. 

Kossan Rubber Industries Bhd recovered from a low of RM14.92 to close at RM16.26, 1.63% or 26 sen higher than yesterday. 

Across Bursa Malaysia, 8.56 billion shares valued at RM7.01 billion exchanged hands, lower than the 10.6 billion shares worth RM6.92 billion that were transacted yesterday. 

Overnight on Wall Street, the S&P 500 erased its coronavirus losses as it rose to an all-time high. The broader market index advanced 0.2% to 3,389.78, a record close. It also touched an intraday all-time high of 3,395.06 earlier in the trading day.

The Nasdaq Composite also hit a record, closing 0.7% up at 11,210.84. The Dow Jones Industrial Average, however, finished 66.84 points or 0.2% down. 

Meanwhile, Reuters reported a gauge of Asian shares eased today, led by losses in Chinese and Hong Kong stocks, though it was still near a seven-month peak, driven by ever expanding policy stimulus aimed at cushioning the blow from the coronavirus pandemic.

 

 

Source: The Edge

Market Daily Report: KLCI closes up 1.1% at intraday high of 1,577.8 as glove counters rebound

 

 

KUALA LUMPUR (Aug 18): The FBM KLCI closed 17.11 points or 1.10% higher at its intraday high of 1,577.8 points after a final hour jump, as bargain hunters returned for glove makers that had recently succumbed to profit taking.

At a glance, notable KLCI movers included Top Glove Corp Bhd and Hartalega Holdings Bhd.

Top Glove’s shares price reversed losses from the past two days, closing up 16.32% or RM3.66 at RM26.08, while Hartalega's share price ended 12.85% or RM2 higher at RM17.56. Both Top Glove and Hartalega were among the biggest gainers on the local bourse today.

The other glove counters also made it to the top gainer list today, including Supermax Corp Bhd, which spiked 24.55% or RM4.10 to RM20.80, Kossan Rubber Industries Bhd, which jumped 16.96% or RM2.32 to RM16, and Rubberex Corp Bhd, which rallied 29.86% or RM1.29 at RM5.61. 

Bursa Malaysia’s Healthcare Index, which includes rubber glove manufacturers, was the largest percentage gainer among Bursa indices. The index closed up 9.85% or 360.04 points at 4,016.21 compared to 3,647.88 previously.

MIDF Research head of research Imran Yassin Md Yusof said the gains posted by glove makers today were due to bargain-hunting activities following the recent selldown.

“Fundamentally, the glove stocks still are attractive as we will be still living with Covid-19 until the vaccine for the virus is found.

“Until the vaccine is discovered, I expect the glove counters, especially Top Glove and Hartalega, to continue to drive the movement of KLCI going forward,” Imran told theedgemarkets.com.

Nonetheless, Imran believes the volatility in the market will persist, given the uncertainty of the impact from the pandemic, and coupled with the growing tension between the US-China spat as well as pending the outcome of the US presidential election in November this year.

Across Bursa Malaysia, 10.6 billion shares changed hands for RM6.92 billion. In comparison, Bursa volume stood at 8.8 billion securities worth RM4.95 billion yesterday.

The market breadth was positive, as gainers outpaced decliners, with 635 against 409.

Across Asia, Japan's Nikkei 225 dipped 0.2%, while South Korea's Kospi dropped 2.46%. In China, the Hong Kong Hang Seng Index inched up 0.08% while the Shanghai Stock Exchange Composite Index rose 0.36%.

Reuters reported that Asian shares made cautious gains on Tuesday as the lift from Wall Street's tech-fueled rally was checked by investors' fresh concerns about Sino-US tensions.

“The Trump administration announced on Monday it would further tighten restrictions on China's Huawei Technologies Co, aimed at cracking down on its access to commercially available chips, a move set to disrupt global supply chains.

“However, sentiment was supported by the Nasdaq, which surged to a record high close on Monday and the S&P 500, which approached its own record level, both lifted by technology stocks,” the report added.

 

 

Source: The Edge

Market Daily Report: Bursa volume drops below 10 billion securities as healthcare gauge falls the most on glove slump

 

KUALA LUMPUR (Aug 17): The FBM KLCI closed down 3.85 points or 0.25% at 1,560.74 today while trade volume across Bursa Malaysia dropped below 10 billion securities as investors continued selling shares of rubber glove manufacturers.

At 5pm, Bursa volume stood at 8.8 billion securities worth RM4.95 billion. Bursa’s Healthcare Index, which tracks shares of companies including rubber glove manufacturers, ended down 2.83% to become the top percentage decliner among bourse gauges.

Maybank Investment Bank Bhd analyst Anand Pathmakanthan wrote in the research firm’s latest Malaysia strategy note that the "market faces a difficult and uncertain economic and earnings recovery path, with 2H20 downside risks including a potential windfall tax levy on the gloves sector”.

Anand said the powerful year-to-date share price rally in glove manufacturers is fundamentally grounded in sharply higher volume demand and average selling prices.

However, news including updates on the discovery of Covid-19 vaccines have curbed the rise in share prices of rubber glove manufacturers like Top Glove Corp Bhd, Supermax Corp Bhd, Kossan Rubber Industries Bhd and Hartalega Holdings Bhd, all of which ended among Bursa top decliners today.

Top Glove's share price closed RM1.40 or 5.88% lower at RM22.42, making it the leading decliner across Bursa. Supermax fell RM1.22 or 6.81% to RM16.70, Kossan dipped 72 sen or 5% to RM13.68 while Hartalega declined 46 sen or 2.87% to RM15.56.

Investors continued selling rubber glove manufacturers' shares today after disposing of them last Friday. It was reported then that rubber glove manufacturers' share prices closed down last Friday on speculation certain stockbroking firms were banning contra transactions involving glove manufacturers' shares.

Top Glove and Hartalega are KLCI stocks. Today, analysts said Top Glove and Hartalega's share-price drop was major a contributor to the KLCI's decline.

At 5pm today, the KLCI pared losses after falling to its intraday low of 1,543.04. Inter-Pacific Securities Sdn Bhd head of research Victor Wan told theedgemarkets.com that valuation of glove counters had been pushed higher as the Covid-19 pandemic led to expectations of higher demand for gloves to curb the spread of the outbreak. However, anticipation of  the potential mass production of Covid-19 vaccines has sparked a selldown in shares in rubber glove manufacturers, according to him.

As investors closely watch share prices of rubber glove manufacturers against the broader market, they would have also noticed that securities' trading volume across Bursa has appeared to normalise after rising to a new record high of 27.8 billion securities last Tuesday.

Last Friday, a total of 10.46 billion securities were traded for RM5.15 billion, followed by today's 8.8 billion securities worth RM4.95 billion.

Globally today, it was reported that Asian shares crept back towards recent peaks as Chinese markets swung higher, while investors waited to see if the recent sell-off in longer-dated US Treasuries would extend and maybe take some pressure off the beleaguered dollar.

It was also reported that oil prices rose today following news that China plans to ship large volumes of US crude in August and September, which outweighed concerns over a slowdown in demand recovery after the coronavirus pandemic and an uptick in supplies. Brent crude added 32 cents, or 0.7%, to US$45.12 a barrel by 0616 GMT, while US West Texas Intermediate crude was up 35 cents, or 0.8%, to US$42.36 a barrel, Reuters reported.

 

 

Source: The Edge

Market Daily Report: Bursa decliners near 1,000 as investors weigh Malaysia’s worst quarterly economic performance since 1998

 

 KUALA LUMPUR (Aug 14): The number of Bursa Malaysia decliners rose sharply to almost 1,000 today as investors weighed Malaysia’s worst quarterly economic performance since 1998 and as world markets pulled back after China announced a disappointing set of economic indicators.

All Bursa indices closed lower at 5pm today. Worst hit was the Healthcare Index after the gauge fell 201.62 points or 5.09% to 3,762.49 as investors sold shares of rubber glove manufacturers. 

Meanwhile, the FBM KLCI ended down 11.83 points or 0.75% at 1,564.59.

Across Bursa today, there were 981 decliners versus 213 gainers. A total of 10.46 billion securities were traded for RM5.15 billion. 

Yesterday, there were 491 decliners versus 607 gainers.

Today, news reports, quoting Bank Negara Malaysia and the Statistics Department, said Malaysia’s economy, as measured by gross domestic product (GDP), contracted 17.1% in the second quarter of 2020 (2Q20) from a year earlier mainly due to the Movement Control Order (MCO) to stem the spread of the COVID-19 pandemic.

It was reported that the GDP performance for 2Q20 was the worst ever recorded by the nation since the 11.2% on-year contraction during the fourth quarter of 1998.

“Investors are digesting the numbers,” Hong Leong Investment Bank Bhd senior analyst Ng Jun Sheng told theedgemarkets.com today.

Bursa top decliners included rubber glove manufacturers Supermax Corp Bhd, Top Glove Corp Bhd and Kossan Rubber Industries Bhd.

Supermax’s share price closed down RM1.56 or 8.01% at RM17.92, Top Glove fell RM1.18 or 4.72% to RM23.82 while Kossan was 70 sen or 4.64% lower at RM14.40.

World markets took cue from China's economic data today. It was reported today that China's industrial output grew 4.8% in July from a year earlier, in line with June's growth but less than a forecast 5.1% rise.

It was reported that retail sales dropped 1.1% on year, missing predictions for a 0.1% rise and following June's 1.8% fall.

"Asian markets pulled back on Friday following the disappointing set of economic indicators, which raised concerns about the fragility of China's emergence from COVID-19,” Reuters reported.

 

 

Source: The Edge

Market Daily Report: KLCI ends at intraday high as Bursa volume slumps under 12 billion securities

 

 

KUALA LUMPUR (Aug 13): The FBM KLCI closed up 19.78 points or 1.27% at its intraday high of 1,576.42 today, lifted partly by banking and rubber glove manufacturers’ share price rise as the broader market took cue from US stocks’ overnight gain.

Today, trade volume across Bursa Malaysia however ended sharply lower at 11.67 billion securities worth RM4.97 billion.

Maybank Investment Bank Bhd remisier Jeffry Azizi Jaafar told theedgemarkets.com that the news on the planned inclusion of rubber glove manufacturers Kossan Rubber Industries Bhd and Supermax Corp Bhd into the MSCI Global Standard Indexes' MSCI Malaysia Index today lifted share prices of KLCI-linked glove manufacturers Hartalega Holdings Bhd and Top Glove Corp Bhd.

MSCI said in a statement yesterday that changes in constituents for the MSCI Global Standard Indexes would take place as of the close of Aug 31.

At Bursa today, Top Glove's share price closed up 50 sen or 2.04% at RM25 while Hartalega rose 44 sen or 2.73% to RM16.56.

Top Glove and Hartalega emerged among Bursa top gainers, which included Public Bank Bhd.

Public Bank’s share price closed up 40 sen or 2.3% at RM17.80.

Jeffry Azizi said: "Other positive catalysts for the market today was a stronger ringgit on the back of higher oil prices coupled with a positive overnight close on Wall Street.”

Across Bursa today, trade volume slumped to 11.67 billion securities from yesterday’s 19.16 billion securities worth RM7.99 billion.

Globally, it was reported that Japanese stocks soared to a six-month peak and the US dollar was under pressure today as investors picked positives out of recent economic data and bet on China and the US sticking with their trade deal at a crucial weekend meeting.

Overnight yesterday in US markets, the Dow Jones Industrial Average rose 1.03% to end at 27,971.9 points, the S&P 500 gained 1.38% to 3,379.81 while the Nasdaq Composite climbed 2.1% to 11,009.76.

In Malaysia tomorrow, investors will closely follow the announcement on Malaysia’s 2020 second quarter gross domestic product (GDP) numbers.

Malaysia’s GDP grew 0.7% in 2020’s first quarter from a year earlier, according to Bank Negara Malaysia’s statement on May 13.

 

 

Source: The Edge

Market Daily Report: KLCI cuts losses as vaccine hope prompts COVID-19 battered stocks buy

KUALA LUMPUR (Aug 12): The FBM KLCI pared losses after closing down 8.1 points or 0.52% at 1,556.64 today as COVID-19 vaccine hopes prompted investors to buy beaten-down shares of companies badly affected by the coronavirus pandemic and sell shares of rubber glove manufacturers.

At 5pm, Bursa Malaysia notable gainers included KLCI constituents Genting Bhd and Genting Malaysia Bhd while leading decliners included KLCI-linked rubber glove manufacturers Top Glove Corp Bhd and Hartalega Holdings Bhd.

The rotational shift was observed since yesterday when investors bought oil and gas shares. Today, TA Securities Holdings Bhd analysts wrote in a note: "The strong rebound in oil & gas related stocks yesterday augurs well for trading sentiment, given the healthy rotational shift from the red hot rubber glove and healthcare sector which need to consolidate and neutralise their excessive overbought condition after enjoying dizzying profits.” 

Across Bursa Malaysia, 19.16 billion securities were traded for RM7.99 billion. There were 907 decliners against 315 gainers.

Leading decliner Top Glove’s share price closed down RM2.80 or 10.26% at RM24.50 while Hartalega fell RM2.18 or 11.91% to RM16.12.

Notable gainers included Genting-related companies besides KLCI-linked Public Bank Bhd and Hong Leong Financial Group Bhd.

Public Bank’s share price closed up 48 sen or 2.84% at RM17.40, Genting Bhd added 25 sen or 6.72% to RM3.97 while Genting Malaysia rose 19 sen or 8.41% to RM2.45.

Investors sold rubber glove shares across Bursa today on news Russia had become the first country to grant regulatory approval to a COVID-19 vaccine after less than two months of human testing.

It was also reported that the US has entered into an agreement with drugmaker Moderna Inc to acquire 100 million doses of its potential COVID-19 vaccine for around US$1.5 billion.

At a glance, such sentiment does not bode well for rubber gloves' demand as the confirmation of a  viable COVID-19 vaccine is expected to curb the spread of the global outbreak.

However, such sentiment is seen auguring well for casino and hotel operator Genting, the businesses of which have been disrupted by global COVID-19 driven movement restriction policies to curb the spread of the pandemic.  

For the oil and gas sector, anticipation of a successful curb of the COVID-19 pandemic due to vaccine discoveries is expected to lead to a recovery in global crude oil demand in line with the revival of the transport industry, which include airlines.

Hong Leong Investment Bank Bhd senior analyst Ng Jun Sheng told theedgemarkets.com that “interest will gradually shift back to blue-chips or value stocks” as investors weigh corporate  earnings during the current reporting season for the April-to-June quarter.

Besides corporate earnings, Ng said today investors are also anticipating the announcement on Malaysia’s 2020 second quarter Gross Domestic Product (GDP) numbers this Friday (Aug 14).

"All eyes are also on Malaysia's GDP data this week,” said Ng.

Globally today, it was reported that Asian stocks slipped on Wednesday on growing uncertainty over whether US lawmakers would strike an agreement on an additional round of big fiscal stimulus to support an economy still struggling with the coronavirus pandemic.

"Hopes of vaccine development, however, prompted some investors to reduce safe-haven assets such as gold and government bonds, and to buy back battered stocks of companies hit hardest by the virus,” Reuters reported.

 

 

Source: The Edge

Market Daily Report: Trading volume tops 27 billion at record high, while KLCI heads lower

 

 

KUALA  LUMPUR (Aug 11): The FBM KLCI closed down 6.92 points or 0.44% at 1,564.74 today while trading volume across Bursa Malaysia rose to another record peak at 27.8 billion securities against a confluence of factors including global crude oil and equity price gains.

At 5pm, Bursa saw 27.8 billion securities traded for RM7.8 billion. There were 722 decliners versus 552 gainers across the bourse.

The Energy Index, which tracks shares in oil and gas-related firms, rose 12.27% to become the top percentage gainer among Bursa gauges while Sapura Energy Bhd was the most-active stock across the exchange with a record-high volume of over four billion shares.

Areca Capital Sdn Bhd chief executive officer Danny Wong noted that Bursa's trading volume mostly comprised transactions of penny stocks.

Although share volume was high, total trading value only stood at RM7.8 billion, he said.

"I think the market is not certain about the direction. It's typically the retailers in the market taking profit after making a handsome gain. There's also been rotational play and today it's on oil and gas counters," he told theedgemarkets.com.

Wong said the local stock market is expected to remain volatile with high trading volume as retail investors dominate the trading ground.

Prices of oil and gas counters including Sapura Energy Bhd and Velesto Energy Bhd closed higher among Bursa most-active stocks. Top-active stock Sapura Energy’s trade volume spiked to an all-time high of 4.13 billion shares. The stock's price ended 4.5 sen or 45% higher at 14.5 sen, after rising to its intraday high of 17.5 sen, in tandem with global crude oil and equity price gains.

It was reported that crude oil gained more ground on Tuesday, with prices underpinned by expectations of US stimulus and a rebound in Asian demand as economies reopen. It was reported that Brent crude added 22 cents or 0.5% to US$45.21 a barrel as of 0441 GMT, while West Texas Intermediate US crude rose 32 cents or 0.8% to US$42.26 a barrel.

It was reported that world equities inched to 5½-month highs on Tuesday, lifted by bets the US fiscal stimulus package will be reached and by signs Sino-US tensions have eased ahead of a crucial round of trade talks.

"Crude oil gained amid signs of further stimulus measures. US lawmakers continued negotiations on the massive virus relief economic package with Treasury Secretary Steven Mnuchin, saying there are areas where compromise is possible and a fair deal could be agreed upon. Sentiment was also boosted by comments from Saudi Aramco that demand is improving,” Reuters quoted ANZ as saying in a note.

 

 

 

Source: The Edge

Market Daily Report: FBM KLCI ends 0.41% lower as glove counters lead decline

 

 

KUALA LUMPUR (Aug 10): The FBM KLCI pared some losses to close 6.48 points or 0.41% lower to 1,571.66 as profit taking was seen across glove counters today. The benchmark index had earlier fallen to a low of 1,558.07.

Trade volume swelled to 19.76 billion, the second highest since crossing the 20-billion mark last Friday to hit 26.65 billion. Total value of shares traded today was RM7.55 billion.

Despite negative trading throughout the day, there were 618 gainers and 449 losers in the market.

Maybank Investment Bank Bhd remisier Jeffry Azizi Jaafar noted that Hartalega Holdings Bhd and Top Glove Corp Bhd led the decline of the benchmark index today.

Hartalega fell 78 sen or 4.08% to RM18.36, while Top Glove ended 94 sen or 3.34% lower at RM27.20.

“The reason is because investors were eyeing profit taking as both stocks and other glove counters make a correction today. The previous rally has been strong, which lasted the past one to two weeks and most of the glove counters [achieved a] new high price. A new Covid-19 wave was the main catalyst behind the last round of the said rally,” he told theedgemarkets.com.

IHH Healthcare Bhd and Telekom Malaysia Bhd also fell, with IHH closing 16 sen or 2.91% lower to RM5.34, and Telekom closing 11 sen or 2.84% lower to RM3.77.

Across the region, South Korea led gains across Asia's emerging stock markets on Monday as an improvement in Chinese factory data calmed nerves over a ramp-up in US-China tensions ahead of trade talks at the end of the week, said Reuters.

South Korea’s Kospi index rose 1.48%, while Shanghai’s composite index climbed 0.75%. The Hang Seng, however, fell 0.63% and Japan’s Nikkei 225 dropped 0.39%.

 

 

 

Source: The Edge

Market Daily Report: KLCI ends lower as Bursa volume tops 20 billion securities for first time

 

 

KUALA LUMPUR (Aug 7): The FBM KLCI closed down 10.43 points or 0.66% at 1,578.14 today as trade volume across Bursa Malaysia topped 20 billion securities for the first time ever while world markets took cue from the US-China spat.

At 5pm, Bursa's trade volume ended at 26.65 billion securities worth RM9.05 billion.

Areca Capital Sdn Bhd chief executive officer Danny Wong told theedgmarkets.com that the local bourse was subject to profit-taking today.

“This is specifically the case for the rubber glove and technology (stocks), which have seen handsome gains in the past one to two weeks,” Wong said.

Across Bursa indices today, the technology index was the top percentage decliner after the gauge closed down 3.34% followed by the healthcare index's 3.28% drop.

The healthcare index's constituents include rubber glove manufacturers.

Rubber glove manufacturers Supermax Corp Bhd and Hartalega Holdings Bhd closed down among Bursa top decliners. Notable decliners also included technology index constituent Malaysian Pacific Industries Bhd (MPI), which manufactures semiconductor devices.

Supermax closed down 86 sen or 3.62% at RM22.92 after rising to its all-time high of RM24.44 earlier today.

Hartalega, which is also a KLCI stock, ended down 66 sen or 3.33% at RM19.14 while MPI dropped 36 sen or 2.4% to RM14.62.

The top active stock was Borneo Oil Bhd, which is involved in gold mining.

Borneo Oil registered a volume of 2.72 billion shares. The stock's price closed up 2.5 sen or 50% at 7.5 sen in tandem with higher gold prices at above US$2,000 an ounce.

It was reported that gold steadied near a record high on Friday as the US dollar regained ground as a hedge against another escalation in US-China tensions, but concerns over a worsening pandemic kept bullion on track for its longest weekly gain in nearly a decade.

"Spot gold hit an all-time high of US$2,072.50 in early trade and by 0744 GMT it was down 0.1% at US$2,061.41. It has added 4.4% so far this week in what would be its ninth straight weekly gain," Reuters reported.

Bursa's trade volume of 26.65 billion securities today is a new record high after the previous all-time high yesterday (Aug 6) of 16.69 billion securities.

Prior to yesterday, the previous all-time high volume was 15.62 billion securities on Tuesday (Aug 4).

On Tuesday, the bourse's securities transaction value also ended at a record high of RM10.45 billion.

 

 

Source: The Edge

Market Daily Report: KLCI ends at intraday high as Bursa volume rises to new record peak

KUALA LUMPUR (Aug 6): The FBM KLCI closed up 20.44 points or 1.3% today at its intraday high of 1,588.57 while trade volume across Bursa Malaysia topped 16 billion securities to hit another all-time peak for the second time this week.

At 5pm, Bursa's trade volume stood at 16.69 billion securities worth RM8.56 billion.

There were 716 gainers and 468 decliners across the exchange.

The KLCI closed up at its intraday high today after a final-hour jump.

Maybank Investment Bank Bhd remisier Jeffry Aziz told theedgemarkets.com that notable KLCI movers today included Top Glove Corp Bhd and Petronas Chemicals Group Bhd.

Top Glove’ share price ended up 46 sen or 1.65% at RM28.40 while Petronas Chemicals finished 19 sen or 3.32% higher at RM5.92.

On the KLCI, CGS-CIMB Securities Sdn Bhd analysts Ivy Ng Lee Fang and Nagulan Ravi wrote in a note today that given the KLCI's sharp gains in the past four months and with August being typically a negative month for the index, CGS-CIMB does not discount the possibility of profit-taking activities.

"We maintain our end-2020 KLCI target of 1,550, based on a P/E target of 16x. We advise investors to stay defensive and,  for those with higher risk appetite, to venture into selective cyclicals that offer deep value," they said.

All Bursa indices closed higher today except for the Healthcare index. The KLCI's 1.3% rise today trailed top percentage gainer FBM ACE index's 3.86% increase while the Healthcare gauge fell 0.2%.

Securities trade volume across Bursa rose to another record high today after its volume climbed to its previous all-time high of 15.62 billion securities on Tuesday.

On Tuesday, the bourse's securities transaction value also ended at a record high at RM10.45 billion.

Globally today, it was reported that stocks slipped as investors waited for signs of agreement on a US stimulus package, while the US dollar slumped to a two-year low on fears that the recovery in the world's biggest economy was lagging others.

"European stocks edged down in volatile trading, with Frankfurt gaining 0.2% as investors digested a fresh batch of corporate earnings reports," Reuters reported.

Source: The Edge

Market Daily Report: Declines in Hap Seng, KLK, HLFG drag FBM KLCI down by 0.5%

KUALA LUMPUR (Aug 5): The FBM KLCI finished 0.5% lower today, weighed down by declines in Hap Seng Consolidated Bhd, Kuala Lumpur Kepong Bhd (KLK) and Hong Leong Financial Group Bhd (HLFG).

At the closing bell, Malaysia’s benchmark index closed 0.5% or 7.81 points lower at 1,568.13 points.

Rakuten Trade Research vice president Vincent Lau noted that pandemic-related stocks, such as those in the technology and healthcare sectors, are seeing more investor interest than those not directly boosted by the pandemic.

“It is still very much a retail investor-driven market, with news driving its movements,” he noted.

Hap Seng was down by 3.77% or 32 sen at RM8.18, valuing the group at RM20.37 billion.

KLK closed 1.9% or 44 sen lower at RM22.76, giving it a market capitalisation of RM24.6 billion.

As for HLFG, it finished 1.87% or 24 sen lower at RM12.62, valuing it at RM14.48 billion.

Asian markets were mixed today.

The Shanghai Composite posted minor gains of 0.17% or 5.88 points to close at 3,377.57 points, while Hong Kong's Hang Seng finished 0.63% or 155.91 points higher at 25,102.54 points.

Meanwhile, Japan’s Nikkei 225 was down by 0.26% or 58.81 points at 22,514.85 points, and South Korea’s Kospi finished 1.4% or 31.89 points higher at 2,311.86 points.

Reuters reported that investors are counting on more spending in the US when it comes to stimulus packages.

“Markets also latched on to comments from the president of Federal Reserve Bank of San Francisco that the US economy will need more support than initially thought, sending long-term Treasury yields into a downward spiral,” it reported.

Also in the spotlight is gold, which has seen prices shoot up to above US$2,000 an ounce for the first time ever as concerns of market instability, inflation in the US as well as heightened US-China trade tensions weigh on global investor sentiment.

Across Bursa Malaysia as a whole, a total of 15.57 billion shares worth RM8.27 billion were traded. Market breadth was broadly positive with 719 gainers and 380 decliners while 419 counters were unchanged.

Top actives were VSolar Group Bhd, Fintec Global Bhd and Borneo Oil Bhd, while today’s top gainers were Fraser & Neave Holdings Bhd, KESM Industries Bhd and Bursa Malaysia Bhd. Top decliners were Carlsberg Brewery Malaysia Bhd, British American Tobacco Malaysia Bhd and Malayan Banking Bhd.

Investor sentiment is still tilted to smaller cap stocks, with the FBM Small Cap index finishing 426.09 points or 3.07% higher and the FBM ACE index closing up 471.90 points or 4.89%.

Additionally, the Healthcare and Technology indices continue to register gains, rising by 160.63 points or 3.74% and 1.31 points or 2.37% respectively.

Source: The Edge

Market Daily Report: KLCI finishes up as Bursa volume, value rise to record highs

KUALA LUMPUR (Aug 4): The KLCI rose today as trade volume and value across Bursa Malaysia closed up at all-time highs of 15.62 billion securities and RM10.45 billion respectively while shares of rubber glove manufacturers climbed to record peaks amid lingering Covid-19 pandemic concerns.

At 5pm, the KLCI finished up 3.33 points or 0.21% at 1,575.94. Bursa's top gainers included rubber glove manufacturers Supermax Corp Bhd and Top Glove Corp Bhd.

Among Bursa indices, the FBM ACE was the top percentage gainer after the gauge close up 5.27% followed by the healthcare and technology indices, which rose 4.79% and 3.33% respectively.

On the KLCI, EquitiesTracker head of research Lim Tze Cheng said the performance of the index today was mainly on account of rubber glove stocks.

“That said, it is still a two-tier market where pandemic related counters are performing as compared to non-pandemic sectors,” he said.

Lim said Bursa-listed technology stocks in particular did well today, not only due to overnight gains in such stocks in the US but also in anticipation that global demand for semiconductors is set to increase, given the shift to remote work away from the office due to the Covid-19 pandemic.

As more people shift to remote work, which requires products linked to semiconductors, such sentiment bodes well for the entire technology value chain, according to him.

Across Bursa today, rubber glove manufacturers Supermax, Top Glove and Kossan Rubber Industries Bhd were among notable gainers, with their share prices having pared gains at 5pm, following their rise to record highs earlier today.

Rival glove manufacturer Hartalega Holdings Bhd’s share price however, closed lower.  

At 5pm, top gainer Supermax closed up RM3.08 or 15.93% at RM22.42, Top Glove finished RM1.48 or 5.51% at RM28.36 while Kossan rose 40 sen or 2.17% to RM18.84.

Supermax, Top Glove and Kossan had earlier today risen to record highs at RM22.46, RM28.38 and RM18.90 respectively.
 
Rubber glove manufacturers are constituents of Bursa’s healthcare index. Top Glove and Hartalega are KLCI stocks.

Vibrant trading activities across Bursa today lifted the bourse's trading volume and value to new highs after the exchange's volume rose past 13 billion securities for the first time yesterday to its previous record high.

Yesterday, trade volume across Bursa ended at 13.13 billion securities worth RM8.24 billion.

Bursa's previous record high securities trading value was RM9.31 billion on May 29, 2020.

Today is also the first time Bursa's securities trade value rose past RM10 billion.

Globally, it was reported that Asian shares advanced toay thanks to strong US manufacturing data and upbeat tech stocks, though broader worries about the coronavirus and global economy saw some markets trim early gains.

Overnight yesterday, Reuters reported that the Nasdaq closed at a record high yesterday as a rebound in multibillion-dollar deals, including Microsoft's pursuit of TikTok's US operations, lifted sentiment, and efforts to hammer out a coronavirus relief bill resumed.

Source: The Edge

Market Daily Report: FBM KLCI slid 1.9% — biggest single-day drop in seven weeks

KUALA LUMPUR (Aug 3): Only three out of the 30 component stocks chalked up gains today, indicating the selling across the blue chips amid mounting concern over the likelihood of a fresh wave of Covid-19 infection after the relaxation of the movement control order despite the low daily new infection figure.

Stale bulls seem to be taking some profit off the table against the backdrop of neighbouring countries seeing rising new cases, raising concern that Malaysia might fall into a similar scenario sooner or later.

The FBM KLCI shed 1.94% or 31.14 points to 1,572.61 points today — the biggest one-day decline since June 15, when the benchmark index dived 3.05%.

However, there was strong buying interest in the lower liners, as reflected by the 7.52% surge in the FBMACE index to close at 9,176.82 points. 

 

Banking stocks succumbed to selling pressure. In particular, Hong Leong Bank Bhd shed 4.67% or 70 sen to RM14.30, CIMB Group Holdings Bhd slid 3.62% or 13 sen to RM3.46, while Public Bank Bhd dropped 2.6% or 44 sen to RM16.56. Malayan Banking Bhd lost 2.22% or 17 sen to RM7.50, and RHB Bank Bhd fell nearly 2% or 10 sen to RM4.92.

Top Glove Corp Bhd, Hartalega Holdings Bhd and KLCC Stapled Group Bhd are the only three component stocks that are in the green. Top Glove soared 3.86% or RM1 to a new peak of RM26.88, valuing it at some RM72.69 billion. Meanwhile, Hartalega gained 1.09% or 22 sen to RM20.50, giving it a market value of RM70.27 billion. KLCC Stapled Group went up 1.28% or 10 sen to RM7.90, valuing it at some RM14.26 billion.

“That said, penny stocks and small caps [stocks with small market capitalisation] were up, mainly driven by local retail investors and traders,” said Rakuten Trade Research vice president Vincent Lau.
There were 663 decliners across the board, outnumbering 426 gainers with 417 counters unchanged. Some 13.13 billion shares worth RM8.24 billion were traded across the local bourse today.
Lower liners such as MQ Technology Bhd, XOX Bhd, and Key Alliance Group Bhd dominated the list of most actively traded stocks.

On the regional front, Singapore Straits Time Index was also down over 1% while other regional bourses largely saw gains today.

Singapore's Straits Times Index fell 1.78% or 44.91 points to 2,484.91 points.
The Shanghai Composite Index finished 1.75% or 57.96 points higher at 3,367.97 points, while the Hong Kong Hang Seng was down by 0.56% or 137.22 points at 24,458.13 points.
The Nikkei 225 went up 2.24% or 485.38 points to 22,195.38 points, and Seoul’s Kospi rose 1.67 points to 2,251.04 points.

Reuters reported that Asian equities were mixed today, in response to US legislators struggling to devise a new stimulus plan for the economic giant amid a global surge of new Covid-19 cases.
“Investors were nervous at the lack of a new stimulus package in the US with White House Chief of Staff Mark Meadows not optimistic on reaching an agreement soon on a deal,” it reported.