Market Daily Report: Little change on FBM KLCI as investors awaiting fresh buying impetus

 

KUALA LUMPUR (Sept 30): The FBM KLCI was almost unchanged at the end of the trading day at 1,504.82 points, barely 0.92 points higher as the benchmark index bounced back from an intra-day low of 1,497.78 points.

Buying interest in Malayan Banking Bhd (Maybank) and Public Bank Bhd lent support to the FBM KLCI. However, most stocks finished the day in the negative zone, with 638 losers against 296 gainers. Trading volume was at 5.64 billion shares worth RM2.64 billion.

The earlier strong buying interest appeared to have lost steam, particularly among retail investors, amid lack of fresh catalyst.

Inter-Pacific Securities Sdn Bhd head of research Victor Wan commented: “It [market today] is basically very flat.”

Leading the gainers today were Nestle (M) Bhd, Greatech Technology Bhd, Ajinomoto (M) Bhd, and Hong Leong Financial Group Bhd.

Among the most traded counters were XOX Bhd, which was down 13.3% or two sen at 13 sen, Kanger International Bhd, which shed 14.3% or three sen at 18 sen, and Trive Property Group Bhd, which was unchanged at 1.5 sen.

Top losers in terms of value included Fraser & Neave Holdings Bhd (F&N), Hartalega Holdings Bhd, and Vitrox Corp Bhd.

On the regional front, Hong Kong’s Hang Seng Index was up 183.52 points or 0.79% at 23,459.05 points, mainly driven by property stocks, including China Evergrande Group, which has managed to secure investments to ease its liquidity crunch problem.

Elsewhere, Singapore’s Straits Times Index dropped 4.99 points to 2,466.62 points, Tokyo’s Nikkei 225 shed 353.98 points or 1.5% to 23,185.12 points, and Bangkok’s SET Index lost 20.30 points or 1.61% to 1,237.04 points.

 

 

Source: The Edge

Market Daily Report: KLCI drops on profit taking in glove shares, World Bank downgrade

 

KUALA LUMPUR (Sept 29): The FBM KLCI closed down 7.76 points or 0.51% at 1,503.90 today, partly due to profit taking in rubber glove manufacturers' shares and as investors continue to weigh the impact of the resurgence in global Covid-19 infections on global markets.

At a glance, the KLCI ended lower after volatile trade as investors appeared to reevaluate Covid-19's economic impact on Malaysia after The World Bank said today its 2020 economic growth forecast for Malaysia, as measured by real gross domestic product (GDP), had been lowered to a contraction of 4.9% from the previously estimated 3.1% decline.

Rakuten Trade Sdn Bhd research vice president Vincent Lau told theedgemarkets.com: “The sentiment was dampened on The World Bank projecting our (Malaysia) GDP to shrink by 4.9% this year and also profit taking on the glove stocks."

It was reported that investors are also looking ahead to the first US presidential debate later today ahead of the US presidential election on Nov 3, 2020.

Across Bursa Malaysia at 5pm today, 5.15 billion securities were traded for RM3.59 billion. Decliners led gainers at 612 to 412 respectively.

Lau further commented: “Market still in consolidation mode, expect it to improve.”

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

Rubber glove manufacturers are among constituents of Bursa's Healthcare Index, which includes pharmaceutical firms and hospital operators.

Hartalega and Top Glove are also members of the 30-stock KLCI. Hartalega's share price closed down 42 sen or 2.41% at RM17 while Top Glove fell 30 sen or 3.42% to RM8.47.

The Healthcare Index ended down 59.04 points or 1.55% at 3,759.05.

Globally, it was reported that European shares slipped on Tuesday as investors awaited the first US presidential debate and eyed progress of a fiscal stimulus package in Washington.

It was reported that investors are weighing the potential impact on the US economy of either the re-election of President Donald Trump or a victory for Democratic presidential nominee Joe Biden.

"Tonight's debate will be critical, since it represents one of the last set-piece opportunities for either candidate to change the contours of the race," Reuters quoted Deutsche Bank analysts as writing in a note.

 

 

Source: The Edge

Market Daily Report: KLCI ends higher as fund managers window dress

 

KUALA LUMPUR (Sept 28): The FBM KLCI closed 2.52 points or 0.17% higher at 1,511.66 today on fund managers' quarter-end window dressing and as broader global markets took cue from the rising number of Covid-19 cases.

Across Bursa Malaysia at 5pm, trading volume stood at 5.17 billion securities worth RM3.51 billion. There were 569 gainers and 458 decliners.

Top gainers included PPB Group Bhd besides rubber glove manufacturers Kossan Rubber Industries Bhd and Hartalega Holdings Bhd.

Leading gainer PPB's share price closed up RM1.06 or 5.76% at RM19.46 while Hartalega's ended up 42 sen or 2.47% at RM17.42.

PPB and Hartalega are constituents of the 30 stock KLCI.

Rakuten Trade Sdn Bhd research vice president Vincent Lau told theedgemarkets.com that PPB share price's rise today was due to "window dressing and bargain hunting activities".

On the KLCI, Lau said the index's rise also took cue from Asian stock indices' gain today.

In view of the increase in the number of Covid-19 cases globally, he said glove makers' share prices "have shown positive momentum, which helps boost the KLCI to end in a positive territory".

The resurgence in global Covid-19 infections has been a key theme for global markets including equities, currencies and commodities.

It was reported that European shares opened higher today after strong economic data from China helped lift sentiment in the Asian session, but the dollar was in demand with investors cautious about a second wave of Covid-19 infections and the upcoming US election.

It was reported that crude oil prices dipped today as rising coronavirus cases upset hopes for a smooth recovery in fuel demand, with the main crude benchmarks on track for their first monthly falls in multiple months after slipping last week.

Brent crude fell 37 cents, or 0.9%, to US$41.55 a barrel by 0652 GMT after dropping 2.9% last week while US West Texas Intermediate was at US$39.86 a barrel, down 39 cents or 1%, following a 2.1% decline last week, Reuters reported today.

 

 

Source: The Edge

Market Daily Report: KLCI up on fresh buying after Malaysia retained on FTSE Russell watch list

 

KUALA LUMPUR (Sept 25): The FBM KLCI rose today as market sentiment was boosted by Malaysia’s retention on the FTSE Russell World Government Bond Index (WGBI) watch list, and on continued buying interest in rubber glove stocks.

The KLCI closed 8.34 points 0.56% higher at 1,509.14 after staying in positive territory throughout the day, moving between 1,505.05 and 1,516.00

TA Securities Holdings Bhd senior technical analyst Stephen Soo said glove counters attracted further buying amid a continued increase in Covid-19 cases globally.

He told theedgemarkets.com that the interest in glove counters was further boosted by the news that the Employees Provident Fund is on a shopping spree for glove stocks.  

Soo expects the glove sector to continue to be in the spotlight next week amid a continued rise in Covid-19 cases globally.

He, however, expects the KLCI to move sideways as investors turn cautious in the wake of domestic political uncertainty and concerns over the liquidity in the equity market following the expiry of the loan moratorium on Sept 30.

He expects the support level for the KLCI to be at 1,502, followed by 1,474, with the resistance level at between 1,541 and 1,553.

Trading volume shrank by more than 10% to 5.17 billion shares worth RM3.96 billion, from 5.9 billion shares worth RM4.56 billion yesterday.

The market breadth was positive with losers leading gainers by 512 to 422, while 494 counters remained unchanged.

The day’s top gainer was Hartalega Holdings Bhd, which rose by RM1.10 or 6.92% to RM17, for a market capitalisation of RM58.82 billion.

Other big gainers included Kossan Rubber Industries Bhd, Aeon Credit Service (M) Bhd, Fraser & Neave Holdings Bhd and Time dotCom Bhd.

Meanwhile, Top Glove closed 25 sen or 2.92% higher at RM8.80.

Advance Synergy Bhd was the most actively traded stock with 261.35 million shares traded, exceeding its 200-day average trading volume of 19.76 million shares.

This was followed by Kanger International Bhd, Malayan United Industries Bhd, mTouche Technology Bhd, Pegasus Heights Bhd, Sapura Energy Bhd, Careplus Group Bhd, HLT Global Bhd, Parlo Bhd Bhd and Pasukhas Group Bhd.

The day’s top decliners included PPB Group Bhd, Petronas Dagangan Bhd, Carlsberg Brewery (M) Bhd, Komarkcorp Bhd, Nestle (M) Bhd, Malaysia Airports Bhd and Heineken (M) Bhd.

Asian shares rose today after robust US housing data supported a late tech-driven rally on Wall Street, with investors picking up the pieces a day after a broad regional index posted its biggest daily loss in more than three months, Reuters reported.

 

 

Source: The Edge

Market Daily Report: Two glove stocks lift KLCI to above 1,500-level but trading volume shrinks 30% on Bursa

 

 KUALA LUMPUR (Sept 24): Renewed buying interest in glove counters helped to lift the FBM KLCI to close higher at 1,500.80, up 4.32 points, bucking the trend of its regional peers.

The two component stocks — Top Glove Corp Bhd gained 53 sen or 6.61% to close at RM8.55 while Hartalega Holdings Bhd jumped RM1.40 or 9.7% to close at RM15.90. The two counters were the top percentage gainers among the 30 component stocks.

It is worth noting that the largest market cap stock, Malayan Banking Group Bhd, saw its market capitalisation slip below RM80 billion today, after its share price closed down eight sen or 1.12% to its six-month low of RM7.09.

Other index-linked banking stocks such as CIMB Group Holdings Bhd, RHB Bank Bhd and Public Bank Bhd were not spared from the sell-down. CIMB shares closed five sen or 1.61% lower at RM3.05 while RHB BANK ended five sen or 1.08% lower at RM4.59 and Public Bank was down 12 sen or 0.77% at RM15.52.

Other glove counters were also on the uptrend. Kossan Rubber Industries Bhd gained RM1.10 or 9.24% to close at RM13 and Supermax Corp Bhd rose 58 sen or 7.41% to close at RM8.41.

The trading volume shrank 30% to 5.9 billion shares today from 8.45 billion yesterday, indicating the cautious market undertone. However, turnover was slightly higher at RM4.56 billion compared with RM4.33 billion yesterday. There were 511 losers versus 426 gainers while 520 counters remained unchanged.

Metronic Global Bhd was the most actively traded stock with 249.3 million shares traded, which is equivalent to 20% of its share capital, followed by Advance Synergy Bhd, MNC Wireless Bhd and HLT Global Bhd.

The top losers (in value) were Nestle (M) Bhd, Heineken Malaysia Bhd, TIME dotCom Bhd, Carlsberg Brewery Malaysia Bhd, Hong Leong Financial Group Bhd, KESM Industries Bhd, PPB Group Bhd, MMAG Holdings Bhd and Petronas Chemicals Group Bhd.  

Today, glove counters dominated the gainers' list on Bursa Malaysia. The list was led by Hartalega while Top Glove was the sixth biggest gainer.

The healthcare index climbed nearly 4% to close at 3,685.92.

Malacca Securities Sdn Bhd head of research Loui Low told theedgemarkets.com the buying momentum shown among the glove counters helped to push the KLCI higher today.

Notwithstanding the political uncertainties, he expects more upside for glove counters' shares price supported by high certainty on the industry earnings. This was regardless of current political noise

“Also, from technical viewpoints, the big four glove counters,  Hartalega, Top Glove, Kossan Rubber Industries Bhd and Supermax Corp Bhd...all these stocks have performed on flag-formation breakout, which indicates further upside going forward,” he added.

 

 

Source: The Edge

Market Daily Report: KLCI drops 0.62% amid news of possible change in govt

 

KUALA LUMPUR (Sept 23): The FBM KLCI dropped 0.62% today amid news of a potential change in the Malaysian government, while other uncertainties including concerns over global economic recovery had spooked investors in Asia.

At 5pm, the index posted a 9.3-point fall to close at 1,496.48 points, dragged by declines in blue chip heavyweights including Public Bank Bhd, Malayan Banking Bhd and CIMB Group Holdings Bhd.

“There are concerns that there might be a change in government, which has likely affected sentiment,” said Kenanga Investment Bank head of research Koh Huat Soon.

Datuk Seri Anwar Ibrahim today claimed that he had garnered “formidable and convincing” support from Members of Parliament (MPs) to form a new government to replace the ruling Perikatan Nasional (PN) government, although he did not state the actual number of MPs that support him.

He added that he had received consent to have an audience with Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah.

Bursa Malaysia saw some 8.45 billion shares traded today, valued at RM4.33 billion. Market breadth was bearish, given the 788 decliners against 253 gainers.

The decliners were led by Hong Leong Financial Group Bhd, Petronas Dagangan Bhd and Pharmaniaga Bhd, while Nestle (Malaysia) Bhd topped the gainers.

The most actively traded counter was Advance Synergy Bhd, which saw a total of 814.8 million shares exchanged.

Regionally, Japan’s Nikkei 225 fell 0.06%, Hong Kong’s Hang Seng gained 0.11%, while South Korea’s Kospi increased 0.03%.

Reuters said Asia’s stock markets struggled for gains on Wednesday and the US dollar rose to a two-month high as persistent worries about the global economic recovery had investors preferring safety.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3% for its first gain this week, but the mood was hardly bullish.

 

 

Source: The Edge

Market Daily Report: KLCI bucks Asian stock gauge drop as Covid-19 concerns linger

 

 KUALA LUMPUR (Sept 22): The FBM KLCI ended 6.35 points or 0.42% higher at 1,505.78 today, partly helped by banking stocks' price rise, to buck Asian equity indices drop as the rising global number of Covid-19 infections raised economic growth concerns.

Across Bursa Malaysia at 5pm, 6.54 billion securities were traded for RM3.92 billion.

There were 600 decliners versus 429 gainers. Leading gainers included Hong Leong Financial Group Bhd (HLFG) and Public Bank Bhd.

Top gainer HLFG's share price closed up 50 sen or 3.58% at RM14.46 while Public Bank ended 18 sen or 1.15% higher at RM15.86.

The KLCI, like HLFG and Public Bank, had closed higher after opening lower today.

Areca Capital Sdn Bhd CEO Danny Wong Teck Meng told theedgemarkets.com that "bargain-hunting emerged" in the Malaysian stock market today to lift the KLCI above the 1,500-point level.

Globally, it was reported that Asian shares were broadly weaker Tuesday as possible delays in expanded US stimulus and concerns about fresh Covid-19 pandemic lockdowns in Europe dented the recent positive sentiment towards global equity markets.

It was reported that a burst of positive sentiment emerged briefly in China as the blue-chip index traded higher but the market then again slipped into negative territory.

"Japanese markets were closed for a public holiday. Early trading indicated further selling pressure on Wall Street on Tuesday, with S&P 500 futures down 0.18% in early Asia and Nasdaq 100 futures off 0.29%," Reuters reported.

"We can't see any positive news on the horizon in the near term for the markets to rebound," Steven Leung, executive director for institutional sales at Hong Kong brokerage UOB Kay Hian, was quoted as saying.

 

 

 Source: The Edge

Market Daily Report: KLCI falls below 1,500 as global Covid-19 cases rise

 

KUALA LUMPUR (Sept 21): The FBM KLCI finished 7.2 points or 0.48% lower at 1,499.43 as Asian equity indices alongside US stock futures amid rising number of global Covid-19 infections leading to world economic growth concerns.

In Malaysia, Rakuten Trade Sdn Bhd research vice president Vincent Lau said the drop in the KLCI mirrored weaknesses in Asian share indices as US equity futures sank amid concerns of second lockdowns in Europe due to the rising number of global Covid-19 infections.

Across Bursa Malaysia today, there were 873 decliners versus 274 gainers. Volume stood at 7.03 billion securities valued at RM3.55 billion.

Globally, it was reported that Asian shares slipped today on fears the global economy might sputter for a while due to a resurgence of coronavirus infections in Europe, while fading hopes for US fiscal stimulus also weighed.

Concerns over the resurgence of Covid-19 infections also partly hit crude oil markets. Reuters reported that oil prices fell today on the potential return of output from Libya as rising coronavirus cases also added to worries about global demand, although a tropical storm heading for the US Gulf of Mexico limited losses.

It was reported that Brent crude was down 33 cents, or 0.8%, at US$42.82 a barrel by 0645 GMT, while US crude was down 38 cents, or 0.9%, to US$40.73 a barrel.

Such sentiment had an impact on oil and gas (O&G)-related shares across Bursa.

Bursa's energy index, which tracks share prices in O&G-related firms, closed down 1.72%.

Petronas Dagangan Bhd led Bursa's decliners after its share price ended down 76 sen or 3.59% at RM20.40.

 

 

Source: The Edge

Market Daily Report: KLCI reverses gains at 11th hour as Nestle, banks drag

 

 

KUALA LUMPUR (Sept 18): The FBMKLCI bucked regional trend and closed 6.44 points or 0.43% lower today at 1,506.63, after an 11th-hour fall following a sharp drop in the share prices of a couple of banking component stocks.
 
The benchmark index dipped into the red zone shortly after the opening bell this morning, but quickly rebounded and spent most of the trading day in the positive territory.
 
The gains, however, were erased when declines at Public Bank Bhd and Malayan Banking Bhd dragged the index into the red, as the trading hours drew to a close.
 
Public Bank, which was the fourth top decliner across the bourse today, closed 56 sen or 3.39% lower at its almost three-week low of RM15.94, while Maybank retreated 16 sen or 2.17% to settle at RM7.21.
 
Also weighing on the index was Nestle (Malaysia) Bhd, which sank RM1.60 or 1.14% to close at RM139. It was the biggest loser of the day.
 
Affin Hwang Investment Bank Bhd reminsier Loo Boon How told theedgemarkets.com that the selling pressure on banking counters arose from concerns about bank earnings coming under pressure, amid the current low interest rate and challenging economic environment.
 
Loo, who noted a decline in trading volume, also expects the KLCI to consolidate further with even lower trading volume in the next two weeks as the end of the loan moratorium nears, as he believes retail investors will cash out from the equities market to resume their loan payment.
 
Notwithstanding that, he expects the KLCI to still remain above the 1,500 level next week.
 
A total of 6.87 billion shares worth RM5.07 billion were traded today, compared to the 7.53 billion shares worth RM6.2 billion recorded yesterday.
 
Market breadth, however, was positive, as 592 counters closed higher against 408 decliners. Among top gainers were Heineken Malaysia Bhd, Petronas Dagangan Bhd, Khind Holdings Bhd, Scientex Bhd and Genting Plantations Bhd.
 
Elsewhere in Asia, Japan's Nikkei 225 rose 0.18%, while South Korea's Kospi gained 0.26%. In China, the Hong Kong Hang Seng Index closed 0.47% higher, while the Shanghai Stock Exchange Composite Index rose 2.07%.
 
Reuters reported Asian stocks inched up on Friday, though lingering disappointment that central banks merely affirmed their monetary support this week with no new stimulus promised, had kept a lid on gains.
 
“Oil rose after OPEC flagged a crackdown on members that did not cut output, and the dollar was back to the bottom of its recent range, following its brief journey higher after Wednesday’s Federal Reserve meeting,” it reported.

It added that while the Fed promised to keep rates low for a long time, it gave no new hints about any further monetary support.

 

 

Source: The Edge

Market Daily Report: KLCI advances for third straight day as Hartalega, banks lift

 

KUALA LUMPUR (Sept 15): The FBM KLCI marked its third consecutive trading day of gains today, lifted in particular by advances at Hartalega Holdings Bhd and banking stocks.

The benchmark index settled 1.32% or 19.92 points higher at 1,531.28 on market close, after trading between 1,503.19 and 1,532.04 throughout the day.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com that the gains seen in the local bourse was driven mainly by Hartalega, after the group told shareholders of its positive prospects during the annual general meeting held earlier today.  Among the 30 constituents of the FBM KLCI, Hartalega led the gainers with an increase of 8.46% or RM1.10 to close at RM14.10.

Banking stocks also contributed to the KLCI's advancement, Leong said, as their share prices climbed while the market turned more optimistic on bank borrowings. The expectation is that fewer borrowers would default on their loan repayments once the loan moratorium comes to an end this month, compared with prior assumptions, he said, as most industries have resumed their activities.

Public Bank Bhd shares closed 66 sen or 4.411% higher at RM16.70, Hong Leong Financial Group Bhd settled 24 sen or 1.75% higher at RM13.92, while Malayan Banking Bhd or Maybank closed 22 sen or 3.02% higher at RM7.50.  

Overall, the market breadth was positive with gainers outpacing decliners at 561 versus 417. Total volume stood at 8.85 billion shares worth RM5.45 billion.

All the sectoral indices were positive, except for the REIT and FBM Small Cap Indexes, which fell 0.25% and 0.04% respectively.

Across Asia, Japan's Nikkei 225 shed 0.44%, while South Korea's Kospi gained 0.65%. In China, the Hong Kong Hang Seng Index climbed 0.38%, while the Shanghai Stock Exchange Composite Index closed up 0.51%.

Reuters reported Asian equities advanced on Tuesday, while the dollar slipped, with investor sentiment supported by Chinese data and optimism about Covid-19 vaccines.

 

 

Source: The Edge

Market Daily Report: Stocks up as Covid-19 vaccine hopes support sentiment

 

KUALA LUMPUR (Sept 14): The FBM KLCI closed up 6.51 points or 0.43% at 1,511.36 today with world share indices as news on the resumption of AstraZeneca’s clinical trials of its Covid-19 vaccine raised hopes.

Across Bursa Malaysia at 5pm, 9.57 billion securities were traded for RM6.47 million.

There were 732 gainers versus 300 decliners. MIDF Amanah Investment Bank Bhd research head Imran Yassin Yusof told theedgemarkets.com that gains in the local bourse today were "mainly on bargain hunting on glove counters".

Leading gainers included rubber glove manufacturers Supermax Corp Bhd and Top Glove Corp Bhd. 

Supermax’s share price closed up RM1.50 or 20% at RM9 while Top Glove added 82 sen or 10.57% to RM8.58.

Bursa-listed pharmaceutical shares also gained as investors took cue from the progress in AstraZeneca’s Covid-19 vaccine trials.

Pharmaniaga Bhd’s share price closed up 15 sen or 3.46% at RM4.49 while Duopharma Biotech Bhd rose 10 sen or 3.33% to RM3.10.

Globally, it was reported that world stocks rallied on Monday on hopes of a coronavirus vaccine after AstraZeneca resumed its phase-3 trial, but caution lingered before a host of central bank meetings this week. 

It was reported that the sterling, which has been hit by renewed Brexit turmoil, was on firmer ground before a vote on British Prime Minister Boris Johnson's plan to break international law by breaching parts of the Brexit divorce treaty with the European Union.

"European stock markets opened broadly higher and US stock futures rallied more than 1% — suggesting a strong start for Wall Street later on. In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.9% to its highest in almost a week. Japan's Nikkei firmed 0.7% after Chief Cabinet Secretary Yoshihide Suga won a landslide victory in a ruling party leadership election, paving the way for him to succeed Prime Minister Shinzo Abe.

"Drugmaker AstraZeneca said at the weekend it has resumed British clinical trials of its Covid-19 vaccine, one of the most advanced in development, after getting the green light from safety watchdogs. The news provided a boost to sentiment in world share markets, hit last week by a selloff in US tech stocks,” Reuters reported.

 

 

Source: The Edge

Market Daily Report: KLCI slips on glove counters sell-off, OPR surprise

 

 

KUALA LUMPUR (Sept 10): The FBM KLCI slid 0.44%, dragged by glove makers’ continued sell-off, while Malaysian shares drifted lower as investors digested Bank Negara Malaysia’s decision to maintain its policy interest rate at 1.75%.

Having taken cue from the overnight rally in Wall Street to open at its intra-day high of 1,504.03 points, the benchmark index retreated in mid-morning and hovered in the red to close down 6.6 points to 1,490.12 points.

KLCI’s biggest decliners were Hartalega Holdings Bhd (down RM1.12 or 8.62% to RM11.88), Top Glove Corp Bhd (down 70 sen or 9.79% to RM6.45) and Petronas Dagangan Bhd (down 40 sen or 1.89% to RM20.78).

Elsewhere in Asia, Japan’s Nikkei 225 gained 0.88%, South Korea’s Kospi rose 0.87% while Hong Kong’s Hang Seng Index fell 0.64%.

Malaysia’s Central Bank announced at 3pm today that it will maintain the overnight policy rate (OPR) at 1.75%. Street consensus had been split, with half of research houses expecting another 25 basis point cut as the nation is still recovering from the COVID-19-induced downturn.

“The cumulative 125 basis points reduction in the OPR this year will continue to provide stimulus to the economy,” BNM said in a statement.

“Given the outlook for growth and inflation, the Monetary Policy Council considers the stance of monetary policy to be appropriate and accommodative,” it added.

A senior market analyst opined that the decision also contributed to today’s negative market sentiment in Bursa Malaysia.

“People in the street are seeing it tough. The Central Bank may be maintaining the OPR unchanged ahead of FTSE Russell’s upcoming review of the World Government Bond Index to maintain the inclusion of our Government’s bonds,” said the analyst.

“There is still another MPC meeting in November to look out for,” the analyst added.

Across the wider Bursa Malaysia, market breadth was negative with 1,023 decliners against 200 gainers, while 293 counters traded unchanged. The FBM Emas Index fell 1.09%, while the ACE Index fell by a steeper 5.39%.

Overall volume stood at 8.4 billion shares, with total turnover at RM5.49 billion.

Glove makers emerged as top decliners led by Supermax Corp Bhd (down RM1.38 or 18.45% to RM6.10), Kossan Rubber Industries Bhd (down RM1.26 or 11.5% to RM9.70), and Hartalega.

Gainers were led by Kuala Lumpur Kepong Bhd (up 58 sen or 2.59% to RM22.90), Time DotCom Bhd (up 58 sen or 2.6% to RM11.72) and Tenaga Nasional Bhd (up 32 sen or 2.86% to RM11.50) and PPB Group Bhd.

Top active counters were XOX Bhd, Pegasus Heights Bhd and Top Glove.

 

 

Source: The Edge

Market Daily Report: KLCI sees final hour reprieve, powered by Tenaga, Maybank

 

KUALA LUMPUR (Sept 8): The FBM KLCI closed up 2.94 points or 0.19% at 1,519.32 today after a final hour spike helped the index erase earlier losses, which pushed the equity gauge below 1,500 amid a confluence of factors including lower crude oil prices and anticipation of Bank Negara Malaysia's (BNM) interest rate decision this week.

Today, the KLCI closed higher at 5pm after a spike, helped by the sharp rise in share prices of constituents including Tenaga Nasional Bhd and Malayan Banking Bhd (Maybank) in the final trading hour, as share prices of rubber glove manufacturers fell.

Across Bursa Malaysia at 5pm, 9.04 billion securities were traded for RM4.57 billion.

There were 867 decliners versus 309 gainers.

The KLCI finished up after falling to its intraday low at 1,494.19, as KLCI-linked rubber glove manufacturers Top Glove Corp Bhd and Hartalega Holdings Bhd’ share prices slumped.

Inter-Pacific Securities Sdn Bhd Victor Wan said the KLCI’s consolidation trend is ongoing, as market interest continues to wane after the extended rally seen over the past few months.

“We will likely see more of the same trend in the near term, with profit taking and selling activities to continue,” Wan told theedgemarkets.com.

Today, Tenaga’s share price closed up 26 sen or 2.35% at RM11.32, while Maybank rose 24 sen or 3.31% to RM7.50.

Top Glove’s share price ended down 64 sen or 7.73% at RM7.64, while Hartalega fell 40 sen or 2.86% to RM13.60.

Rubber glove manufacturers are also constituents of Bursa’s healthcare index, which includes hospital operators and pharmaceutical companies.

The healthcare index closed down 4% to become the top percentage decliner among Bursa indices.

Lower crude oil prices and the anticipation of BNM’s interest rate decision on Thursday (Sept 10) are deemed crucial factors affecting broader market sentiment today.

In general, central banks’ interest rate decisions affect equity sentiment, as investors weigh the impact of such decisions on industries such as the banking and property sectors.

Across world crude oil markets today, it was reported oil prices fell on Tuesday amid concerns that a possible rise in Covid-19 cases following the US Labor Day long weekend, which also marks the end of the peak US driving season, could squeeze demand for fuel.

It was reported that coronavirus cases rose in 22 of the 50 US states, a Reuters analysis showed, on the holiday weekend traditionally filled with gatherings to mark the end of summer. 

"At the same time, cases are flaring up in India and Britain. US West Texas Intermediate (WTI) crude futures fell 76 cents or 1.9% to US$39.01 per barrel at 0433 GMT, playing catch-up with a drop in Brent prices overnight.

"Brent crude futures eased 8 cents or nearly 0.2%, to US$41.93 a barrel, after falling 1.5% on Monday. Brent dropped on Monday after Saudi Arabia's Aramco, the world's top oil exporter, cut the October official selling prices for its Arab light crude, seen as a sign demand growth may be stuttering as Covid-19 cases flare up around the world,” Reuters reported.

 

 

Source: The Edge

Market Daily Report: Malaysian stocks pare earlier losses to close slightly higher

 

 

KUALA LUMPUR (Sept 7): Malaysian shares ended higher today, recouping much of their earlier losses, buoyed by last-minute gains in certain component stocks including Nestle Malaysia Bhd.

The benchmark FBM KLCI started the day in positive territory but slipped into the red after the midday break, touching an intraday low of 1,507.57 points. It remained in the red throughout most of the second half of the day before promptly returning to positive territory about 10 minutes before closing time.

At 5pm, the index was up 0.52 points or 0.03% at 1,516.38.

Based on Bloomberg data, the leaders among the component stocks were Nestle, which gained RM1.40 to close at RM141, as well as Kuala Lumpur Kepong Bhd (KLK) and PPB Group Bhd, which gained 44 sen and 20 sen to close at RM23 and RM18.80 respectively.

The laggards were led by Top Glove Corp Bhd, which fell 10 sen to RM8.28.

HLIB Research senior analyst Ng Jun Sheng said the KLCI is expected to extend range-bound consolidation in the seasonally weak month of September, while also grappling with other factors including domestic political uncertainty, resurgence of Covid-19 global hotspots and escalating US-China tensions.

Market breadth remained bearish with 744 decliners, against 268 gainers. A total of 448 counters were unchanged.

Across the board, Nestle, Latitude Tree Holdings Bhd and KLK led the gainers, while the decliners were led by Supermax Corp Bhd. The top actively traded stock was JCY International Bhd.

Regionally, Asian markets were mostly down. Japan’s Nikkei 225 fell 0.5%, Hong Kong’s Hang Seng Index fell 0.43%, while the Shanghai Stock Exchange Composite Index was down 1.87%. However, South Korea’s Kospi was up 0.67%.

Reuters reported that Asian shares were on the defensive as investors grappled with sky-high valuations against the backdrop of a global economy in the grip of a deep coronavirus-induced recession while oil prices dropped sharply.

 

 

Source: The Edge

Market Daily Report: KLCI closes slightly higher on bargain hunting after sharp falls in line with regional declines

 

 

KUALA LUMPUR (Sept 4): The FBM KLCI closed marginally higher on mild bargain hunting in the later part of the trading session.  But overall sentiment remained tepid in line with the decline at regional markets, following Wall Street’s sharp fall overnight.

The index ended the day 0.46 points or 0.03% higher at 1,515.86, after opening sharply lower and remaining in the red for the most part of the session.

MIDF Research head of research Imran Yassin Md Yusof told theedgemarkets.com that the heavy selldown in early trading was a spillover effect from the overnight plunge on Wall Street.

The market sentiment remained bearish thereafter until the bargain hunting activities ahead of the close.

Imran said the KLCI is likely to tread on cautious mode next week amid the selldown on the US markets and with Bank Negara Malaysia's Monetary Policy Committee set to decide whether a further interest rate cut is needed.

On the broader market today, losers led gainers by 578 to 385, while 514 counters closed unchanged. Volume was 7.04 billion shares valued at RM4.08 billion.

All of Bursa Malaysia’s indices closed lower except for the energy index.

The technology index fell the most in percentage terms, closing 1.8% lower at 57.26, followed by the healthcare index, which dropped by 1.74% to 3,857.01.
 
Elsewhere  in Asia, Japan's Nikkei 225 fell 1.11% and South Korea's Kospi dropped 1.15%. Hong Kong’s Hang Seng Index sank 1.25% while the Shanghai Stock Exchange Composite Index closed down 0.87%.

Reuters reported that emerging Asian stock markets were pumelled today, with many plumbing multi-week lows, after the steep sell-off on Wall Street unnerved investors ahead of US jobs data later in the session.

“US indexes marked their biggest one-day falls since June on Thursday on the back of furious profit-taking, while analysts worry a disappointing non-farm payrolls report could deepen the selling,” the report said.

 

 

Source: The Edge

Market Daily Report: FBM KLCI tumbles as Bursa decliners top 800

 

KUALA LUMPUR (Sept 3): The FBM KLCI closed down 22.14 points or 1.44% at 1,515.40 today while the number Bursa Malaysia decliners rose past 800 on profit-taking and as investors took cue from China share losses.

Across Bursa at 5pm, there were 874 decliners and 315 gainers.

Trading volume stood at 9.41 billion shares valued at RM5.43 billion.

Inter-Pacific Securities Sdn Bhd head of research Victor Wan told theedgemarkets.com the KLCI fell today as investors took profit after yesterday’s gain.

“I was surprised looking at how steep the selloff was at the KLCI today as I was initially anticipating the buying momentum in the technology-driven rally seen yesterday [to] continue today.

“Also, I was expecting there will be more upside for the KLCI following the [end of the] corporate second quarter earnings [reporting season, during] which most of them (companies) should have reflected their worst due to the (Covid-19) pandemic-induced slump,” Wan said.

Yesterday, it was reported that the KLCI closed up 16.11 points or 1.06% at its intraday high of 1,537.54 while Bursa's technology index rose by a larger quantum as the healthcare gauge fell in an apparent tack change where investors priced in an earnings recovery after businesses were hit by the Covid-19 pandemic.

It was reported that the technology index, which tracks shares of companies like electronic component manufacturers, ended up 2.97% to become the largest-percentage gainer among Bursa indices.

Across Bursa, it was reported that 11.6 billion securities were traded for RM5.39 billion. There were 552 gainers against 537 decliners.

Today, all Bursa indices closed lower except for the REIT index and the telecommunications and media gauge.

The healthcare index, which tracks share prices of companies including rubber glove manufacturers, fell the most in percentage terms, after the gauge ended down 163.92 points or 4.01% at 3,925.15.

The telecommunications and media gauge closed up 0.71% while the REIT index rose 0.2%.

Rubber glove manufacturers ended among Bursa leading decliners.

Hartalega Holdings Bhd closed down RM1.50 or 9.77% at RM13.86, Kossan Rubber Industries Bhd fell RM1.12 or 7.41% to RM14, Supermax Corp Bhd dropped RM1.10 or 5.14% to RM20.30 while Top Glove Corp Bhd closed 32 sen or 3.68% lower at RM8.37.

Top Glove and Hartalega are KLCI stocks.

Global markets took cue from China today. Reports that China was planning sweeping policy changes to its semiconductor industry to fight US restrictions added fuel to concerns about deteriorating relations between the world's two biggest economies.

It was reported that China's blue-chip index closed 0.5% lower, while Hong Kong's Hang Seng fell 0.7% to take some of the shine off gains of 0.9% and 1.3% in Tokyo and Seoul respectively.

"The China chip talk came after the United States said on Wednesday it would now require senior Chinese diplomats to get State Department approval before visiting US university campuses or holding cultural events with more than 50 people outside mission grounds.

"Shares of Chinese gaming and social media powerhouse Tencent had also fallen more than 2% after India banned 118 mobile apps, including the firm's popular PUBG game," Reuters reported.

 

 

Source: The Edge

Market Daily Report: KLCI lags tech rise as investors dump healthcare shares

 

 

KUALA LUMPUR (Sept 2): The FBM KLCI closed up 16.11 points or 1.06% at its intraday high of 1,537.54 today while Bursa Malaysia's technology index rose by a larger quantum as the healthcare gauge fell in an apparent tack change where investors price in an earnings recovery after businesses were hit by the COVID-19 pandemic.

At 5pm, the technology index, which tracks shares of companies like electronic component manufacturers, ended up 2.97% to become the largest percentage gainer among Bursa indices.

The healthcare index, which includes rubber glove manufacturers and pharmaceutical companies, fell the most after the gauge closed down 2.72%.

“The KLCI has been down amid the expected weak 2020 second quarter results season. Everyone is now expecting a recovery in third quarter earnings, and it is a matter of how far the recovery will be,” Inter-Pacific Securities Sdn Bhd head of research Victor Wan said.

Across Bursa today, 11.6 billion securities were traded for RM5.39 billion. There were 552 gainers against 537 decliners.

Top gainers included technology index constituents Malaysian Pacific Industries Bhd (MPI) and KESM Industries Bhd.

Leading gainers included KLCI stocks PPB Group Bhd and Petronas Gas Bhd.

MPI's share price closed up RM1.50 or 8.82% at RM18.50 after rising to its record high of RM18.80. PPB ended up 54 sen or 2.93% at RM18.98.

Meanwhile, Bursa's top decliners included rubber glove manufacturers Hartalega Holdings Bhd, Kossan Rubber Industries Bhd, Supermax Corp Bhd and Top Glove Corp Bhd.

Pharmaceutical company Pharmaniaga Bhd was also among notable decliners.

Leading decliner Hartalega's share price closed down RM1.10 or 6.68% at RM15.36. Pharmaniaga finished down 29 sen or 5.15% at RM5.34.

Globally, Asian shares took cue today from factors including higher crude oil prices and overnight gains in US-listed technology shares.

It was reported that Asian shares inched up today following buoyant manufacturing indicators from the United States and elsewhere and a rally in US tech shares, with investors also expecting more policy support from Washington.

It was reported that crude oil futures extended gains today after a bigger-than-expected draw in US crude stockpiles and as solid US and Chinese factory activities fuelled optimism about a recovery from the coronavirus pandemic, boosting investor risk appetite.

"Brent crude futures rose 45 cents to US$46.03 a barrel as of 0559 GMT, climbing for a third day. US West Texas Intermediate futures rose 43 cents to US$43.19, following the previous day's gain of 15 cents," Reuters reported.

 

 

Source: The Edge

Market Daily Report: KLCI slips 0.25% as market enters consolidation mode

 

 

KUALA LUMPUR (Sept 1): The FBM KLCI slipped 0.25% today as investors opted for selective rebalancing among their portfolios following the end of the results season last week.

The benchmark index closed the day 3.78 points lower at 1,521.43, dragged by losses in Public Bank Bhd, CIMB Group Holdings Bhd, Malayan Banking Bhd and Petronas Dagangan Bhd (PetDag).

Public Bank and PetDag were the two biggest losers on Bursa Malaysia, followed by glove maker Supermax Corp Bhd.

On the other side, Hong Leong Bank Bhd and Hong Leong Financial Group Bhd were the top gainers among KLCI component stocks. They also emerged as the second- and third-biggest gainers across Bursa, after Malaysian Pacific Industries Bhd.

Overall, market breadth had a slightly negative bias with 612 decliners against 542 gainers, while 391 counters traded unchanged.

"Until there is more uncertainty, the market will likely remain in consolidation mode," HLIB Research senior analyst Ng Jun Seng told theedgemarkets.com.

All eyes will be on whether there will be a further cut in the Overnight Policy Rate on Sept 10, and whether there will be more economic stimulus programmes following the extension of the Recovery Movement Control Order announced last Friday.

While September is a seasonally quiet period for Bursa Malaysia, trading activity was still on the high side, with 10.39 billion shares valued at RM5.59 billion traded.

Investors continued to favour small-cap stocks, with the FBM Small Cap Index up 1% and the FBM ACE Index up 2.05%.

Small-cap counters continued to dominate the top active list, led by Fintec Global Bhd, XOX Bhd and Nova MSC Bhd.

Elsewhere in Asia, markets were largely mixed. The Nikkei 225 traded sideways to close down 0.01%, South Korea's Kospi rose 1.01% while Hong Kong's Hang Seng Index rose 0.03%.

The ringgit strengthened today on the back of a rebound in crude oil prices, with Brent spot traded up 0.97% to US$45.72 per barrel at the time of writing.

Against the US dollar, the ringgit strengthened 0.48% to 4.1440 having traded at 4.4125/4.1628. It also strengthened against the Singapore dollar (up 0.34% to 3.0508/3.0625) and the Australian dollar (up 0.38% to 3.0562/3.0802).

 

 

 

Source: The Edge