Market Daily Report: KLCI closes 1.89% lower in cautious trading ahead of next week’s developments

 

 KUALA LUMPUR (Oct 30): The FBM KLCI closed 1.89% lower today on profit taking amid cautious sentiment ahead of crucial developments at home and abroad. 

The downtrend was in line with falls in regional markets as fears of a global economic slowdown amid surging coronavirus cases affected sentiment, while investors also looked ahead to the US presidential election next Tuesday (Nov 3). 

Areca Capital Sdn Bhd CEO Danny Wong said overall investor sentiment was one defined by caution amid next week’s developments. 
 
“Next week is set to be an eventful week with Budget 2021, Bank Negara Malaysia’s Monetary Policy Meeting and the US presidential elections. 
 
“As such, those that are currently sitting on gains would want to take profit, while those that are not are still trading to mitigate uncertainties,” he said.  

The KLCI ended 28.31 points lower at 1,466.89.  

The weak sentiment spread across the trading floor with small and large-cap stocks not spared from declines on the final trading day of the month, as investors turn even more cautious. 
 
The FBM ACE Index dropped 3.845% or 377.34 points to 9,443.20, while the Small Cap Index declined 2.65% or 351.58 points to 12,896.64. 
 
A total of 944 decliners were registered on Bursa Malaysia today, against 211 gainers and 390 counters that closed unchanged. 
 
Some 5.9 billion shares worth RM3.91 billion were traded today. 
 
TA Securities Research said its daily brief that investors remain sidelined amid caution over the exponential surge in Covid-19 cases in the US and Europe, as well as uncertainty ahead of the US elections. 
 
“Key support for the index will be the 200-day moving average at 1,492, with next chart supports from Monday and September's low of 1,482 and 1,474 respectively, and more solid supports seen from the 38.2%FR of the 1,207 to 1,618 upswing at 1,461, and then 1,450.  

“Immediate upside hurdles stay at the 50-day moving average at 1,518, with next hurdle at the 100-day moving average at 1,538, followed by 1,560, and then the 100-week moving average at 1,574,” the research house said. 
 
Top active counters included AT Systemization Bhd, Diversified Gateway Solutions Bhd and Vivocom International Holdings Bhd. 
 
Top value gainers were Nationwide Express Courier Services Bhd, Advance Packaging Technology (M) Bhd and British American Tobacco (M) Bhd. Conversely, top value losers were Nestle Bhd, PPB Bhd and Carlsberg Brewery Malaysia Bhd. 
 
Reuters reported Asian equities were subdued after Wall Street’s sell-off, as Covid-19 cases continued to surge in the United States, while fears of more lockdowns across Europe following France and Germany's moves this week, also dented the mood. 
 
Japan’s Nikkei 225 index was down 1.52% or 354.81 points at 22,977.13, the Hang Seng in Hong Kong finished 1.95% or 479.18 points lower at 24,107.42, while the Shanghai Composite fell 1.47% or 48.19 points to 3,224.53. 

 

 

Source: The Edge

Market Daily Report: KLCI closes lower in cautious trading amid political uncertainties

 

KUALA LUMPUR (Oct 28): The FBM KLCI closed lower as market sentiment remained cautious with political uncertainties still lingering ahead of the Budget 2021 announcement next week. 

The key index was in negative territory for the most part of the trading session, before closing 5.15 points or 0.34% lower at 1495.2. 

Market breadth was thin with 4.66 billion shares traded at a total value of RM3.44 billion, with losers dominating the market by 657 against 267 winners. 

Reuters noted that Malaysian shares eased as political tensions cast doubt over whether the government could pass the 2021 budget next week. 

"All eyes are on the 2021 Federal Budget next week, which comes as a key test of confidence in Prime Minister Tan Sri Muhyiddin Yassin's coalition government," the news agency quoted analysts at ING as saying. 

TA Securities, in a market report today, said the exponential surge in Covid-19 cases in the US and Europe should boost the demand outlook for rubber gloves and healthcare related stocks, and hence extend the outperformance of these sectors.  

However, the exponential earnings growth of Hartalega Holdings Bhd and Supermax Corp Bhd did not seem to add fuel to a share price rally today among rubber glove stocks, as a low risk appetite and cautious sentiment weighed in further. 

In other markets, Japan’s Nikkei 225 fell 0.29% and Hong Kong’s Hang Seng lost 0.32%. On the other hand, South Korea’s Kospi rose 0.62% while the Shanghai composite gained 0.46%. 

 

 

Source: The Edge

Market Daily Report: FBM KLCI bucks regional trend to close above 1,500, shored up by Hartalega’s best-ever earnings

 

 KUALA LUMPUR (Oct 27): The FBM KLCI ended the trading day above the 1,500 level, boosted by healthcare stocks after Hartalega Holdings Bhd posted another record set of quarterly results.

At 5pm, the benchmark index closed 5.74 points or 0.38% higher at 1,500.35, supported by 616 gainers against 379 losers.

The FBM KLCI was the exception among other regional indices that fell, in line with Wall Street’s sharp overnight drop — the biggest decline in a month — amid soaring Covid-19 cases and slow progress on a US stimulus deal.

Japan’s Nikkei 225 dipped 0.04% while South Korea’s Kospi dropped 0.56%. China shares also declined with the Hang Seng falling 0.53%. Meanwhile, the Shanghai Composite Index rose 0.1%.

Inter-Pacific Securities Sdn Bhd head of research Victor Wan noted that there was a mild rally on the market today, likely due to Hartalega.

The glove maker today announced that it recorded its best-ever quarterly net profit at RM544.96 million in the second quarter ended Sept 30, 2020 (2QFY21), about five times the RM103.87 million posted last year.

“Overall market breadth was also positive because of less political pressure due to the recent truce with Umno [after the supreme council made a decision to continue to support the Perikatan Nasional government]. But still, there [are] a lot of uncertainty hence the market remains cautious in the medium term and might take the opportunity to sell,” Wan told theedgemarkets.com when contacted.

He also noted that today’s market volume, which recorded about 4.71 billion transactions worth RM4.11 billion, was quite thin compared with previous sessions, reflecting the market’s cautiousness towards the stock market for the time being.

Hong Leong IB Research in a note today said the benchmark index is likely to be stuck in a tug-of-war between the bulls and bears ahead of the US presidential election (Nov 3) and the Budget 2021 presentation (Nov 6), coupled with an exponential surge of coronavirus cases worldwide as the winter season begins in the northern hemisphere.

“Stocks-wise, we believe technology and healthcare-related stocks are deemed to benefit from a prolonged virus pandemic,” it said.

 

Source: The Edge

Market Daily Report: Low liners hit as politics weigh on sentiment

 

 

KUALA LUMPUR (Oct 26): Selling pressure continued to manifest across Bursa Malaysia today, with low liners being hit the most by a dampening of investor sentiment due to political developments.

At the close of the trading day today, the FBM ACE was the top loser among the indices on Bursa Malaysia, with its losses outpacing that of the FBM KLCI index.

The FBM ACE index finished 3.61% or 383.30 points lower at 10,223.47, while the FBM Small Cap Index finished 1.25% or 202.69 points down at 15,977.44.

Meanwhile, the headline FBM KLCI index was down 0.03 points at 1,494.61.

Across Bursa Malaysia today, 677 counters demonstrated declines, 301 counters were up, while 491 counters finished the trading day unchanged.

Trading volume stood at 5.80 billion shares, whereas daily turnover was RM4.71 billion.

Top actives today were newly-listed Mr DIY Group (M) Bhd, Vsolar Group Bhd and Advance Synergy Bhd.

Kuala Lumpur Kepong Bhd, Malaysian Pacific Industries Bhd and Fraser & Neave Holdings Bhd were top gainers while top losers were Dutch Lady Milk Industries Bhd, British American Tobacco (M) Bhd and Duopharma Biotech Bhd.

According to Areca Capital chief executive officer Danny Wong, retail investors have been supporting locally listed small to mid-cap companies.

As such, the developments surrounding the potential implementation of a state of emergency in the country has not aided market sentiment among retail investors.

“There are also concerns surrounding Budget 2021. Given recent events, there are some who are concerned [about whether] the government’s expenditure plan will be passed by parliament,” he noted.

He explained that consensus viewed the market to perform even worse today, but the Yang-di-Pertuan Agong’s statement saying a declaration of emergency was not necessary at this point mitigated some of the downside risk.

Rising Covid-19 cases and the upcoming US presidential election on Nov 3 also contributed to the generally cautious sentiment.

Reuters reported that Asian shares started the week in a subdued fashion following surging Covid-19 cases in Europe and the US, while Chinese government leaders congregated to discuss the economic giant’s economy plan for 2021 to 2025.

“The US has seen its highest ever number of new Covid-19 cases in the past two days, while France also set unwanted case records and Spain announced a state of emergency,” it noted.

On the whole, Asian shares were largely in the red. The Nikkei 225 was down by 0.09% or 22.25 points at 23,494.34, while the Shanghai Composite finished 0.82% or 26.88 points lower at 3,251.22.

In contrast, the Hong Kong Hang Seng Seng index was up by 0.54% or 132.65 points at 24,918.78.

 

 

Source: The Edge

Market Daily Report: Sentiment turns cautious on Bursa as speculation about national health emergency mounts

 

 

KUALA LUMPUR (Oct 23): Share prices have reversed their upward trend seen earlier on Bursa Malaysia today, as speculation has run rife that a national health emergency, which could include the suspension of Parliament, may be declared.

The FBM KLCI, which posted gains at the end of the morning trading session, fell into the negative zone in the afternoon trading session. The benchmark index dropped by 4.16 points or 0.3% to close at 1,494.64.

On the broader market, the ACE Market Index fell by 3.15% or 344.43 points to 10,606.77. The FBM Small Cap Index shed 2.57% or 353.45 points to 13,413.66.

A majority of stocks closed lower today, with 900 decliners against 232 gainers while 425 counters were unchanged.

Selling pressure only got stronger in the final hour of trading before the closing bell at 5pm.

In terms of trading volume, some 6.93 billion shares worth RM4.10 billion were traded today. Top actives were MLabs Systems Bhd, AT Systematization Bhd, and Lambo Group Bhd.

Fraser & Neave Holdings Bhd, MISC Bhd and Public Bank Bhd were top gainers, while top losers were Nestle (Malaysia) Bhd, Carlsberg Brewery Malaysia Bhd and Duopharma Biotech Bhd.

Prime Minister Tan Sri Muhyiddin Yassin chaired a special meeting with the Cabinet today and is said to be meeting with the Yang-di-Pertuan Agong to be conferred with special emergency powers.

News reports have indicated that the prime minister rushed from the Cabinet meeting to Kuantan, Pahang, to meet with the Agong.

It is unclear what these emergency powers will entail.

For the most part today, Asian bourses were largely in the green. The Nikkei 225 was up by 0.18% or 42.32 points at 23,516.59. Hong Kong's Hang Seng was up 0.54% or 132.65 points at 24,918.78 while the Shanghai Composite was down by 1.04% or 34.50 points at 3,278.

Reuters reported that broader Asian stocks reported slim gains on better-than-expected US jobs data.

“Broader Asian stocks recorded slim gains, after better-than-expected US jobs data and signs of progress in talks for a US$2 trillion stimulus deal in Washington supported US equities overnight,” it said.

 

Source: The Edge

Market Daily Report: FBM KLCI erases losses after final hour spike

 

 

KUALA LUMPUR (Oct 22): The FBM KLCI closed 6.4 points or 0.43% higher at 1,498.80 today after a final hour spike helped the 30-stock index erase losses as world markets took a cue from a surge in global Covid-19 infections and US stimulus negotiations.

Across Bursa Malaysia at 5pm today, 6.73 billion securities were traded for RM4.6 billion.

The KLCI ended higher after volatile trade, during which the index rose to its intraday high of 1,500.05 points before falling to its intraday low of 1,485.77.  

A closer look across Bursa Malaysia shows that several stocks including KLCI constituents PPB Group Bhd and Petronas Dagangan Bhd finished higher after spiking in the final hour of trading.

PPB ended up 32 sen or 1.7% at RM19.10 while Petronas Dagangan rose 24 sen or 1.34% to RM18.12. Both counters finished among Bursa’a top 10 gainers.

The KLCI's volatility today was not unexpected as investors evaluated a confluence of factors including the impact of Malaysia's Covid-19-driven restricted movement policies on the nation's economy.

"Stocks should trade with downward bias on worries Enhanced Movement Control Order measures may adversely impact economic growth, and [on] continued profit-taking interest in healthcare-related stocks," TA Securities Holdings Bhd analysts wrote in a note earlier today.

Globally, it was reported that world shares slid to a two-week low today, and crude oil steadied after another heavy fall, as a surge in global Covid-19 cases and fractious US stimulus talks kept financial markets cautious.

It was reported that Europe has seen the number of coronavirus cases surge to a record high, with Spain becoming the first Western European country to exceed one million infections and France, Britain and Italy all setting record increases recently.

It was reported that sentiment today was also being buffeted after US President Donald Trump accused rival Democrats yesterday of being unwilling to craft an acceptable compromise on fresh stimulus, following reports of progress earlier in the day.

It remains unclear whether negotiations will continue ahead of the US presidential and congressional elections on Nov 3, Reuters reported.

 

Source: The Edge

Market Daily Report: Glove stocks drag KLCI into another negative session, closes 1.23% lower at 1,492.4

 

KUALA LUMPUR (Oct 21): The FBM KLCI finished in negative territory for a second straight day, dragged down by glove stocks which dominated Bursa Malaysia’s top losers.

At 5pm, the benchmark index closed 18.57 points or 1.23% lower at 1,492.4. Market breadth remained mostly negative with 754 losers versus 374 gainers. Meanwhile, trading momentum was fairly active with 8.48 billion shares traded for RM5.95 billion.

Malacca Securities Sdn Bhd head of research Loui Low told The Edge that today’s decline is likely due to a mixed bag of negative factors such as market concerns of snap elections and speculation on what is to be announced during the upcoming Budget 2021 at Parliament in two weeks’ time.

The big four glove stocks — Hartalega Holdings Bhd, Supermax Corp Bhd and its structured warrants, Top Glove Corp Bhd and Kossan Rubber Industries Bhd — dominated Bursa’s top losers' list today.

At market close, Hartalega fell RM1.20 or 6.3% to RM17.84, while Supermax closed 86 sen or 8.3% lower at RM9.50. Top Glove closed 60 sen or 6.33% lower at RM8.88 while Kossan dipped 81 sen or 9.96% to RM7.32.

Hong Leong IB Research said despite closing above the critical 200D SMA support (now at 1,497) and the major support trendline from 1,474 low, KLCI is still engaged in a tug-of-war between the bulls and bears amid rising headwinds ahead of the US presidential election and a resurgence in COVID-19 infections globally.

“Moreover, more targeted lockdowns amid spiking COVID-19 local transmissions in Malaysia may dampen our expectations for a 2H20 economic and corporate earnings recovery,” it said in a note today.

Meanwhile, Reuters said Asian shares and US stock futures rose on Wednesday as renewed hopes for a new round of US stimulus drew money into equities from government debt.

Japan’s Nikkei 225 gained 0.31%, while South Korea’s Kospi closed up 0.53%. In China, the Hang Seng rose 0.75% while the Shanghai composite index fell 0.09%.

 

Source: The Edge

Market Daily Report: KLCI closes lower as Bursa volume tops 11 billion securities

 

 

 KUALA LUMPUR (Oct 20): The FBM KLCI finished 7.14 points or 0.47% lower at 1,510.97 today on profit taking while trade volume across Bursa Malaysia swelled past 11 billion securities on what analysts deem as a strong return of retail investors’ interest in small market capitalisation stocks (small caps) in the rubber glove and healthcare-related sectors amid a rising number of COVID-19 infections globally.

Across Bursa at 5pm, volume swelled to 11.04 billion securities worth RM5.83 billion after broad-based selling across the exchange.

Inter-Pacific Securities Sdn Bhd head of research Victor Wan told theedgemarkets.com that today's selling across Bursa "was spurred by profit-taking as market momentum remained tepid on a lack of buying impetus".

On the KLCI, Wan noted a lack of continued momentum today after yesterday's positive trading session. He said today political developments and uncertainties are likely to be on investors' minds for now.

Meanwhile, TA Securities Holdings Bhd analysts noted the strong return of retail investors' participation in small caps and ACE Market stock trades.

They wrote in a note earlier today: "Rubber gloves and healthcare-related stocks surged on Monday given the firm demand outlook from the resurgent Covid-19 cases globally, helped further by the strong return of retail participation in small caps and ACE Market stocks. The KLCI climbed 14.27 points to close at 1,518.11, off an early low of 1,505.92 and high of 1,521.91, as gainers led losers 723 to 387 on robust trade totalling 9.5 billion shares worth RM5.4 billion."

"[Today] blue chips should pull back following the overnight US stock market correction amid renewed uncertainty over a new US stimulus package ahead of a deadline and surging Covid-19 infections worldwide, but strong retail interest in small caps in the rubber gloves and healthcare-related sectors should still highlight trading," the analysts said.

Across Bursa today, actively-traded stocks included Lambo Group Bhd, Luster Industries Bhd and Mah Sing Group Bhd.

Top-active stock Lambo saw some 960 million shares traded. The stock’s price closed unchanged at 3.5 sen.

Leading decliners included Petronas Dagangan Bhd and Fraser & Neave Holdings Bhd. KLCI stock Petronas Dagangan’s share price closed 98 sen or 5.19% lower at RM17.90.

Top gainers included ViTrox Corp Bhd and Malaysian Pacific Industries Bhd (MPI). Bursa Technology index constituents ViTrox and MPI’s share prices pared gains at 5pm after rising to their record highs today.

At 5pm, leading gainer ViTrox settled up 32 sen or 2.37% at RM13.80 after rising to its record high at RM14.50 earlier. MPI closed up 30 sen or 1.47% at RM20.70 after rising to its all-time high at RM20.78.

The Technology index finished up 0.93% to become the top percentage gainer among Bursa’s 29 indices, out of which, 26 ended lower today as global investors evaluated the impact of the scheduled
US presidential election on Nov 3 besides the higher number of world COVID-19 cases.

It was reported that European stocks recovered from early losses today following a bearish Asian session where investors adjusted their risk exposure before the US elections two weeks away.

It was reported that record COVID-19 cases in Europe also weighed on sentiment. "MSCI world equity index, which tracks shares in 49 countries, slipped as much as 0.2%,” Reuters reported.

 

 

Source: The Edge

Market Daily Report: Fresh interest in healthcare stocks lifts KLCI

 

KUALA LUMPUR (Oct 19): The FBM KLCI closed in a positive territory for the first time after three straight sessions of losses, lifted by healthcare stocks, which saw a boost amidst rising Covid-19 cases.

The benchmark index ended 14.27 points or 0.99% higher at 1,518.11, while the broader market saw 722 gainers against 386 losers, on volume of 9.5 billion shares worth RM5.43 billion.

Leading the climb on the index was Hartalega Holdings Bhd, which rose 62 sen or 3.37% to RM19.00, and Top Glove Corp Bhd, which jumped 35 sen or 3.78% higher to RM9.60.

The KLCI showed gains throughout the day, recovering from the dampened sentiment on the back of political uncertainty that has dominated news flow in recent weeks.

"Given renewed bearish momentum flashed by technical indicators for the FBM KLCI after last week's correction, the local market is expected to extend downward correction this week.

"Domestic political uncertainties, resurgent Covid-19 infections and fresh lockdown measures in multiple districts and areas in Selangor, Klang Valley and other states are main factors dampening market sentiment," TA Securities Holdings Bhd analysts wrote in a note today.

Nonetheless, they said the bright spot should continue to be the healthcare sector, with rubber gloves-, personal protective equipment- and vaccine-related stocks seen to benefit from a protracted virus pandemic to attract strong bargain-hunting interest.

The broader market also mostly traded in a positive territory, with the FBM Small Cap rising as much as 2.54%, followed by the Utilities index, rising 2.38%.

Across Asia, markets mostly rose on hopes of a new US coronavirus relief deal before the presidential election, Reuters reported.

Regional markets also shrugged off data from China after it reported a 4.9% economic growth in the third quarter, saying its economic recovery was gaining momentum despite having missed expectations.

Japan's Nikkei 225 index climbed 1.11%, while South Korea's Kospi rose 0.22%. Hong Kong's Hang Seng rose 0.64% but the Shanghai Composite index fell 0.71%.

 

Source: The Edge

Market Daily Report: Bursa’s trading volume soars to 8.71 billion shares, interest in small-cap stocks re-emerges

 

 

KUALA LUMPUR (Oct 16): Interest in small-cap stocks dominated trading on Bursa Malaysia today.

Trading volume swelled to 8.71 billion — the highest level since Sept 2 when the volume was at 8.45 billion. Total turnover was RM4.77 billion.

The FBM Small Cap climbed 1.55% or 206.93 points at a one-month high of 13,556.63 points while The FBM ACE Index went up 0.88% or 96.03 to 10.971.88 points.

In contrast, the FBM KLCI dropped 0.67% or 10.11 points at 1,503.84 points today, reflecting the lacklustre trading on blue chips. The benchmark index was dragged by Petronas Dagangan Bhd, Axiata Group Bhd and IOI Corp Bhd.

Across the board, gainers outnumbered losers by 513 to 444, with 545 counters unchanged.

Mah Sing Group Bhd, a property developer which will diversify to be a rubber glove maker, topped the most actively traded list today. The stock shot up 22 sen, or 30.4%, to 94.5 sen with 660.42 million shares traded. The number of shares changing hands was equivalent to 27.2% of the group’s issued share capital.

Top gainers were LPI Capital Bhd, Hartalega Holdings Bhd and KESM Industries Bhd, while the top losers in value were Nestle Malaysia Bhd, Petronas Dagangan Bhd and Fraser & Neave Holdings Bhd.

According to Rakuten Trade Research Vice President Vincent Lau, the higher trading volume today can be attributed to greater retail investor participation as a result of the conditional Movement Control Order (CMCO) placed in certain areas of the country.

“The CMCO has led to more people working from home which is likely to increase retail investor participation in the market,” he noted.

Reuters reported today that emerging market stocks continue to be subject to investor fears over resurgent COVID-19 cases, as well as concerns that US stimulus talks are stalling.

“Sentiment has taken a hit this week after high-profile COVID-19 vaccine trials were halted, while a political tussle in Malaysia and anti-government protests in Thailand have also steered investors away from riskier assets in the region,” it reported.

On the regional front, the Hong Kong Hang Seng finished 0.94% or 228.25 points higher at 24,386.79 points. Meanwhile, the Shanghai Composite was up 0.13% or 4.18 points at 3,336.36 points.

Across the causeway, Singapore’s Straits Times Index was up by 0.32% or 8.03 points at 2,351.65 points while the Nikkei 225 dropped 0.41% or 96.90 points at 24,410.63 points.

 

 

Source: The Edge

Market Daily Report: KLCI ends lower with Asian shares amid Covid-19 resurgence, US stimulus concerns

 

 KUALA LUMPUR (Oct 15): The FBM KLCI closed 9.3 points or 0.61% lower at 1,513.95 today with Asian stock indices as the global resurgence of Covid-19 cases weighed down on investor sentiment. 

Besides the resurgence of Covid-19 infections, which generates concerns about global economic growth, it was reported that downbeat comments from US Treasury Secretary Steven Mnuchin that a stimulus deal was unlikely to be made before the Nov 3 US presidential election also provided another excuse for profit-taking in global stock markets today.

Across Bursa Malaysia at 5pm today, trading volume stood at 6.29 billion securities worth RM4.74 billion. There were 593 decliners and 431 gainers as investors also closely watched Malaysian political updates.

"The persistent domestic political uncertainty should keep most investors sidelined pending more certainty, while healthcare related sectors such as rubber glove, vaccine and technology continue to attract strong buying interest,” TA Securities Holdings Bhd analysts wrote in a note today.

Globally, it was reported that world shares slipped on Thursday as investors locked in recent gains amid rising concerns about resurgent Covid-19 infections and after Mnuchin dashed any remaining hopes of a US stimulus package before the Nov 3 election.

It was reported that concerns that a resurgence in the Covid-19 pandemic could lead governments to again shut down economies spurred profit-taking.

"With Covid-19 cases surging, some European nations are closing schools, cancelling surgery and enlisting student medics as overwhelmed authorities braced for a repeat of the nightmare scenario seen earlier this year. That helped push the German 10-year Bund yield to as low as minus 0.586%, a rate last seen in May.

"Downbeat comments from Mnuchin that a stimulus deal was unlikely [to] be made before the Nov 3 vote also provided another excuse for profit-taking. Still, many investors expect large stimulus after the election, which Democratic presidential candidate Joe Biden is increasingly expected to win. Although Biden has been seen as more likely to raise taxes on corporate profits and capital gains, investors are also pointing to other potential benefits of a Biden presidency, such as less global trade uncertainty,” Reuters reported.

At Bursa today, notable decliners included KLCI constituents Hong Leong Financial Group Bhd and Top Glove Corp Bhd.

Leading gainers included Bursa Malaysia Bhd and Advance Information Marketing Bhd (AIM). AIM’s share price closed up 13.5 sen or  79.41% at 30.5 sen today after the company yesterday received a notice of conditional voluntary takeover offer from Datuk Chai Woon Chet, who intends to acquire all the shares of AIM at 13 sen each.

Today's top-active stocks included Samaiden Group Bhd, which was listed today on Bursa’s ACE Market at 48 sen a share.

Samaiden closed today with some 155 million shares traded. The stock’s price ended up 32.5 sen or 67.71% at 80.5 sen.

 

Source: The Edge

Market Daily Report: KLCI's fall on overnight declines at Wall Street softened by stronger rubber glove demand

 

 KUALA LUMPUR (Oct 14): Taking a cue from the overnight declines at Wall Street, the FBM KLCI slipped 0.13% or 1.95 points to close at 1,523.25 points today.

Overall market sentiment, however, was positive despite the benchmark index's fall, with 523 counters posting gains, 515 counters unchanged and 443 counters posting declines. Trading volume stood at 7.03 billion shares, up from the 5.97 billion yesterday, with a total turnover of RM6.26 billion.

Areca Capital Sdn Bhd chief executive officer Danny Wong told theedgemarkets.com that the performance of the local benchmark index had mirrored the overnight contraction seen on Wall Street, as a result of stalling US stimulus talks and Covid-19 vaccine trials.

“The decline, however, was partly mitigated by the performance of rubber glove counters today,” Wong said, adding the higher trading volume seen could be partly attributed to investors seeking to ensure their portfolio exposure to tech and rubber glove stocks is greater, in preparation for the release of third-quarter earnings that are expected to be higher on a quarter-on-quarter (q-o-q) basis.

The stronger demand for rubber glove stocks has also been driven by the resurgence in Covid-19 cases in the country, he said, as well as news that Top Glove Corp Bhd is listing in Hong Kong and Supermax Corp Bhd and Kossan Rubber Industries Bhd could be included in the FBM KLCI.

Top active stocks today included Metronic Global Bhd, Kanger International Bhd and ES Ceramics Technology Bhd, while the gainers list were led by Malaysian Pacific Industries Bhd, Rubberex Corp (M) Bhd and Hartalega Holdings Bhd. The top losers, on the other hand, were Nestle (Malaysia) Bhd, Heineken Malaysia Bhd and Fraser & Neave Holdings Bhd.

According to Reuters, Asian shares slipped today following news of some halted Covid-19 vaccine trials, and an impasse in US stimulus talks soured risk appetite, while oil was hit by demand concerns amid increasing coronavirus cases.

“The losses began on Wall Street Tuesday when Johnson & Johnson said it was pausing a Covid-19 vaccine trial due to a study participant's unexplained illness. Eli Lilly and Co later said it too had paused the clinical trial of its Covid-19 antibody treatment due to a safety concern, leading the US equity market to deepen losses," the news agency wrote.

Also weighing on sentiment was the faded hopes for the passage of a new coronavirus relief package, as US House Speaker Nancy Pelosi rejected a US$1.8 trillion relief proposal from the White House, it reported.

Key indices across the region, meanwhile, were a mixed bag.

While the Hong Kong Hang Seng finished 0.07% or 17.41 points higher at 24,667.09, its counterpart in Shanghai, the Shanghai Composite, fell 0.56% or 18.97 points to close at 3,340.78. Japan’s Nikkei 225 was up 0.11% or 24.95 points at 23,626.73, while the Kospi in South Korea was down 0.94% or 22.67 points at 2,380.48. 

 

 

Source: The Edge

Market Daily Report: FBM KLCI rebounds after Palace’s statement on Anwar’s audience with King

 

 

KUALA LUMPUR (Oct 13): The FBM KLCI has rebounded in the afternoon trading session, coinciding with the news on opposition leader and PKR president Datuk Seri Anwar Ibrahim’s audience with the King. 

Anwar told the media that he has informed Yang di-Pertuan Agong Al-Sultan Abdullah Ri'ayatuddin Al-Mustafa Billah Shah of the number of Members of Parliament (MPs) supporting the opposition leader, but Istana Negara issued a statement to state that the PKR president did not reveal the identities of the lawmakers who support him. 

The palace said this in a statement issued by the Comptroller of the Royal Household, Datuk Ahmad Fadil Shamsuddin, at around 3pm. 

The FBM KLCI was hovering in the negative zone throughout the morning session. However, it staged a rebound from an intraday low of 1,512.18 points at 3:30pm. The benchmark index climbed 13.62 points from the intraday low to close at 1,525.20.

It gained 6.77 points or 0.45% against yesterday’s closing. Counters that lifted the index were Petronas Dagangan Bhd, Petronas Chemicals Group Bhd and IOI Corp Bhd.

However, on the broader market, share price performance was mixed with 444 counters posting gains, 427 counters seeing declines and 535 counters unchanged.

Trading volume was at 5.97 billion shares across the board today, with a total turnover of RM3.89 billion.

The continued news flow on the rising number of new Covid-19 cases locally and globally has kept glove counters on investors’ buying lists. 

Top Glove Corp Bhd went up 1.34% or 12 sen at RM9.09, valuing the world’s biggest glove maker at RM74.4 billion. Hartalega Holdings Bhd rose 0.5% or eight sen to RM17.58, giving it a market capitalisation of RM60.26 billion. 

Supermax Corp Bhd gained 2.21% or 22 sen to RM10.18, valuing it at some RM27.70 billion, while Kossan added 0.81% or six sen to RM7.51, resulting in a market capitalisation of RM9.60 billion. 

The smaller rubber glove players made a bigger jump today. Rubberex Corp (M) Bhd — the second largest gainer in value — soared 14.2% or 92 sen to RM7.40, while Comfort Gloves Bhd leapt 13.73% or 53 sen to RM4.39.

Advance Synergy Bhd continued to top the list of most actively traded stocks, with 554.23 million shares changing hands, which is more than half of its issued share capital of 929 million shares.  

Kanger International Bhd was the second most traded counter with 256.81 million shares transacted, followed by AT Systematization Bhd, whose trading volume swelled to 228.9 million shares. 

Top gainers were Fraser & Neave Holdings Bhd, Rubberex and Nestle (Malaysia) Bhd. Top losers were Dutch Lady Milk Industries Bhd, Carlsberg Brewery Malaysia Bhd and MISC Bhd.

Elsewhere in the region, Hong Kong’s Hang Seng Index climbed 2.2% or 530.55 points to 24,649.68, while the Shanghai Composite Index rose 1.28 points to 3,359.75. 

Japan's Nikkei 225 was up by 0.18% or 43.09 points at 23,601.78, while South Korea’s Kospi declined 0.02% or 0.58 points at 2,403.15.

According to Reuters, Asian markets steadied today after Chinese trade data underscored economic recovery in the republic, with fresh optimism on further stimulus in the US expected to keep global investor sentiment elevated.

 

 

Source: The Edge

Market Daily Report: CMCO, lower crude oil prices weigh on Malaysia equities

 

KUALA LUMPUR (Oct 12): The FBM KLCI closed down 11.92 points or 0.78% at 1,518.43 today, after the Malaysian Government announced its decision to implement the conditional movement control order (CMCO) in Selangor, Kuala Lumpur, Putrajaya and Sabah to curb the spread of the Covid-19 pandemic and as world markets took cue from lower crude oil prices.

News reports, quoting Senior Minister (Security Cluster) Datuk Seri Ismail Sabri Yaakob, reported today that the government has agreed to enforce the CMCO in Selangor, Kuala Lumpur and Putrajaya from 12:01am on (Wednesday) Oct 14 to Oct 27, 2020. "The government has (also) agreed to implement the CMCO throughout Sabah effective from 12.01am on Oct 13 until Oct 26,” Bernama reported.

Across Bursa Malaysia at 5pm today, 5.98 billion securities were traded for RM3.82 billion. There were 573 decliners and 498 gainers, as investors also closely watch Malaysia’s political developments after opposition leader and PKR president Datuk Seri Anwar Ibrahim claimed last Thursday that he was granted an audience with Yang di-Pertuan Agong Al-Sultan Abdullah Ri'ayatuddin Al-Mustafa Billah Shah tomorrow.

"In the meeting, I will present documentation of the strong and convincing majority of MPs (Members of Parliament), as I mentioned earlier," Anwar claimed via Twitter last Thursday.

On the KLCI today, TA Securities Holdings Bhd analysts wrote in a note today that "key domestic political developments need to unravel this week for a confirmation on further upward recovery ahead".

Maybank Investment Bank Bhd remisier Jeffry Aziz told theedgemarkets.com that the planned implementation of the CMCO in certain parts of the country and domestic political uncertainties following Anwar’s royal audience claim "weighed on investor sentiment".

From an investment viewpoint, the planned CMCO across Selangor, Kuala Lumpur, Putrajaya and Sabah raises concern on Malaysia's economic growth, which is expected to affect trading sentiment across asset classes including currency, commodity, bond and stock markets. 

A crucial example is how global restricted movement policies to curb the Covid-19 pandemic generate concerns on the demand outlook for crude oil as the pandemic results in less travel among the world population. 

Crude oil markets also contend with supply issues. It was reported that oil prices fell on Monday as force majeure at Libya's largest oilfield was lifted, a Norwegian strike affecting production ended and US producers began restoring output after Hurricane Delta.

It was reported that Brent crude was down 41 cents to US$42.44 a barrel by 0650 GMT and US West Texas Intermediate was at US$40.18, down 42 cents.

"Prices were also pressured by a jump in new Covid-19 cases that have raised the spectre of more lockdowns. Infections are at record levels in the US Midwest and in Britain Prime Minister Boris Johnson is expected to announce new measures on Monday, while Italy is preparing fresh nationwide restrictions,” Reuters reported.

At Bursa today, the current crude oil price sentiment did not appear to bode well for oil and gas related shares.

The bourse’s Energy Index, which tracks shares of oil and gas related companies, closed down 9.86 points or 1.37% at 711.69.

 

 

Source: The Edge

Market Daily Report: KLCI finishes up on institutional buying as politics drives stock bets

 

 KUALA LUMPUR (Oct 9): The FBM KLCI finished up 10.92 points or 0.72% today at 1,530.35 on institutional buying and as Malaysia's political developments drove trading sentiment across Bursa Malaysia.

Across Bursa at 5pm, 6.61 billion securities were traded for RM2.89 billion as shares of companies seen to be linked to PKR leader Datuk Seri Anwar Ibrahim topped the exchange’s actively traded stocks list. 

Speaking to theedgemarkets.com today, Inter-Pacific Securities Sdn Bhd head of research Victor Wan said there was a possibility of "selective buying from institutional investors".

At a glance across Bursa, top gainers included KLCI stocks Hartalega Holdings Bhd and PPB Group Bhd.

The top active stock was Advance Synergy Bhd, followed by Malayan United Industries Bhd and Pan Malaysia Holdings Bhd after Anwar claimed yesterday he was granted an audience with Yang di-Pertuan Agong Al-Sultan Abdullah Ri'ayatuddin Al-Mustafa Billah Shah next Tuesday.

"At the meeting, I will present documentation of the strong and convincing majority of MPs (members of Parliament) as I mentioned earlier," Anwar claimed via Twitter yesterday.

At the time of writing this report, the official portal of Istana Negara had not issued any statement in response to Anwar's claim of having been granted the royal audience.

At Bursa today, Advance Synergy saw some 764 million shares traded while MUIIND and Pan Malaysia Holdings registered a trading volume of about 390 million and 223 million shares respectively.

Advance Synergy’s share price closed up 4.5 sen or 20.45% at 26.5 sen while Pan Malaysia Holdings added four sen or 27.59% to 18.5 sen. MUIIND ended unchanged at 14 sen after trading between 16.5 sen and 13 sen today.

Anwar's sister Farizon Ibrahim is a director of MUIIND and Pan Malaysia Holdings.

MUIIND said on its website that besides MUIIND and Pan Malaysia Holdings, Farizon also sits on the boards of Pan Malaysian Industries Bhd, Pan Malaysia Capital Bhd and Metrojaya Bhd.

Meanwhile, news reports have indicated that Advance Synergy group chair Datuk Ahmad Sebi Bakar is linked to Anwar although the reports do not say how they are linked.

MUIIND and its member companies are known as the MUI Group, which include Pan Malaysia Corp Bhd and MUI Properties Bhd.

Globally, it was reported that Asian shares inched towards 2-1/2-year highs on Friday as revived hopes for a US stimulus deal eclipsed weaker-than-expected jobs data, while mainland Chinese markets jumped after a week-long holiday.

It was reported that analysts said investors were also increasingly expecting the Democrats to take back the White House, and possibly the Senate as well, in the Nov 3 US election.

"A widening lead for Democratic presidential candidate Joe Biden is seen as reducing the risk of a contested election and opening the way for a big economic stimulus, helping to counter investors' wariness about a Democrat pledge to hike corporate tax rates,” Reuters reported.

Osamu Takashima, chief FX strategist at Citigroup Global Markets Japan, was quoted as saying: "Markets are starting to assume a Biden victory."

 

Source: The Edge

Market Daily Report: FBM KLCI finishes at intraday high after final hour spike

 

KUALA LUMPUR (Oct 8): The FBM KLCI finished up 29.87 points or 2.01% at its intraday high of 1,519.43 today after a final hour spike on bargain hunting and institutional support and as crude palm oil (CPO) prices rose with crude oil prices.

Fund managers said investors are also evaluating a confluence of factors including the rising number of global Covid-19 cases and political uncertainties.

Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng told theedgemarkets.com that the KLCI had rebounded today on bargain hunting after falling 19.91 points or 1.3% yesterday.

Today, Wong said institutional investors bought blue chip stocks possibly in anticipation that these companies will report better earnings for the third quarter of 2020 on a quarter-on-quarter basis.

“On the overall market sentiment, retailers (retail investors) could be concerned over the rising (number of)  Covid-19 cases and political uncertainty,” Wong said.

Across Bursa Malaysia, trading volume stood at 6.29 billion securities worth RM3.23 billion.

Notable gainers across Bursa included KLCI stocks Petronas Gas Bhd and Petronas Dagangan Bhd as global crude oil prices rose. Petronas Gas’ share price closed up 84 sen or 5.22% at RM16.94 while Petronas Dagangan rose 56 sen or 2.93% to RM19.66.

Globally, it was reported that crude oil prices inched up on Thursday as oil workers evacuated rigs in the US Gulf of Mexico ahead of Hurricane Delta, though fuel demand concerns persisted on fading chances for a US economic stimulus deal and a build in US crude inventories.

It was reported that US West Texas Intermediate crude futures rose 3 cents, or 0.1%, to US$39.98 a barrel at 0435 GMT, after falling 1.8% on Wednesday

"Brent crude futures rose 9 cents, or 0.2%, to US$42.08 a barrel, after falling 1.6% on Wednesday,” Reuters reported.

Costlier crude oil generates expectation of higher demand for CPO to produce biodiesel.

On Bursa today, CPO price for October 2020 rose RM10 to RM3,000 a tonne while CPO for the November 2020 contract climbed RM18 to RM2,944 a tonne.

 

 

Source: The Edge

Market Daily Report: KLCI declines 1.31%, bucking regional gains

KUALA LUMPUR (Oct 7): The FBM KLCI fell 1.31% today against the backdrop of higher Covid-19 cases, new infection clusters, as well as declines in crude oil prices, despite the generally positive sentiment in the regional markets.

At 5pm, the benchmark index fell 19.91 points or 1.31% to close at 1,489.56 points, marking its second consecutive day of decline.

In a note, Hong Leong Investment Bank analyst Ng Jun Sheng said the major supports for the index stood at the 1,474 and 1,450 levels.

“Nevertheless, a further sharp fall is likely to be cushioned by the prime minister’s assurance that there will not be another total lockdown, but [only the enforcement of] Targeted Enhanced Movement Control Order (TEMCO) in high-risk areas to prevent significant impact on Malaysia’s economic and social systems,” said Ng.

Meanwhile, crude oil prices fell today, with Brent crude futures recording a 1.64% decline to US$41.95 per barrel.

A total of 5.25 billion shares were traded on the bourse, valued at RM3.61 billion.

The losers were led by Nestle (Malaysia) Bhd, Petronas Dagangan Bhd and Fraser & Neave Holdings Bhd, while the gainers were led by Dutch Lady Milk Industries Bhd.

The most actively traded stock was Kanger International Bhd, with a total of 252.6 million shares traded.

Elsewhere in the region, markets were mostly up. Hong Kong’s Hang Seng gained 1.09%, South Korea’s Kospi rose 0.89%, while Taiwan’s TAIEX Index increased 0.33%. However, Japan’s Nikkei 225 declined 0.05%.

Reuters reported that Asian stock markets hit a two-week high on Wednesday, brushing off a Wall Street tumble and a drop in commodity prices after US President Donald Trump abruptly cancelled talks with lawmakers on coronavirus-relief spending plans.

Trump broke off talks with Democrats in a tweet, saying that negotiations will stop until after the election, when he promised a major stimulus bill, it said.

 

 

Source: The Edge

Market Daily Report: Glove selldown, national lockdown fears drag KLCI

 

 KUALA LUMPUR (Oct 6): A selldown among index-linked glove stocks, mounting investor concerns over a second national lockdown and political uncertainty brought the FBM KLCI down by 0.2%.

At the closing bell, the local benchmark index was down 2.96 points at 1,509.47 points

According to Maybank Investment Bank remisier Jeffry Aziz, the sentiment in the local market is not positive at the moment given the rise in Covid-19 cases domestically, as well as fears over a second nationwide lockdown.

“Investors and traders are taking profit amongst the glove stocks as well. Importantly, the FBM KLCI is above the 1,500 support level,” he noted.

Declines seen in Top Glove Corp Bhd, Hartalega Holdings Bhd and IOI Corp Bhd dragged the index down.

Market breadth was also negative, with 704 counters posting declines vis-à-vis the 263 counters that registered gains and 514 counters that finished trading unchanged.

Trading volume stood at 6.03 billion shares, with today’s turnover at RM3.80 billion.

The decline seen today in the Malaysian equities market was not the case in regional markets. The Shanghai Composite Index was 0.20% or 6.31 points lower at 3,218.05 points, while its neighbour further south, the Hong Kong Hang Seng was up by 0.90% or 212.87 points at 23,980.65 points.

Japan’s Nikkei 225 was up by 0.52% or 121.59 points at 23,433.73 while South Korea's Kospi was up by 0.34% or 7.90 points at 2,365.90 points.

The rise in global equities came on the back of US President Donald Trump leaving the hospital, as well as indications of further economic stimulus from the world’s largest economy.

“Wall Street and most of Asia rallied overnight after Trump’s return from the Walter Reed Medical Center military hospital outside Washington eased nerves about possible disruption to next month’s presidential election," Reuters said.

Trump returned to the White House on Monday after a three-night hospital stay and said he felt “real good”, although one of his doctors cautioned that he may not be out of the woods until later in the week.

“US stimulus hopes were still bubbling in the background after House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin spoke by phone for about an hour and said they were preparing to talk again on Tuesday,” it reported.

 

 

Source: The Edge

Market Daily Report: KLCI finishes up with Asian indices amid easing concerns about Trump’s health

 

KUALA LUMPUR (Oct 5): The FBM KLCI closed up 12.13 points or 0.81% at 1,512.43 today after Asian equity indices ended higher on easing concerns about US President Donald Trump’s health after he tested positive for Covid-19 although news on the rising number of global infections continue to dictate sentiment.

In Malaysia, Malacca Securities Sdn Bhd head of research Loui Low told theedgemarkets.com that the KLCI and the broader market were today driven by healthcare and glove stocks, as Covid-19 cases have been increasing in the past week.

“Also with people now working more from home, we are starting to see more (share) buying activity. This was seen between March and May as well,” Low said.

Globally, it was reported that stocks rose on Monday as signs that Trump's health was improving eased some of the political uncertainty caused by his coronavirus infection, which sent investors rushing for safety last week.

It was reported that Trump, 74, was flown to hospital for treatment for the coronavirus on Friday, but his doctors say he has responded well and could return to the White House on Monday.

"Equities and other risk-on traders should be well-supported by easing concerns about Trump's health,” Reuters quoted Junichi Ishikawa, senior currency strategist at IG Securities in Tokyo, as saying today.

Across Bursa today, trading volume stood at 6.34 billion securities valued at RM4.59 billion.

There were 728 gainers and 344 decliners.

Notable gainers included Petronas Dagangan Bhd besides rubber glove manufacturers Supermax Corp Bhd and Kossan Rubber Industries Bhd.

Supermax’s share price closed up 73 sen or 8.13% at RM9.71 while Petronas Dagangan rose 44 sen or 2.22% to RM20.24.

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

The healthcare index closed up 118.89 points or 3.06% at 4,003.60 to be the largest percentage gainer among the exchange’s indices.

 

 

Source: The Edge

Market Daily Report: KLCI ekes out minor gain as Top Glove and Hartalega rise on fresh buying

 

 

Top Glove Corp finished 3.92% or 33 sen higher at RM8.76, valuing the company at RM71.7 billion, while Hartalega was up 7.63% or RM1.24 at RM17.50, giving a market capitalisation of RM59.98 billion. 

The broader market was however lower, with 647 counters posting declines against 330 gainers, while 458 counters closed unchanged. 

Rakuten Trade Research vice president Vincent Lau said the overall performance of the market was one defined by caution, except for healthcare stocks which continued to attract interest amid rising Covid-19 cases worldwide. 

“Investors are currently cautious at the moment. It is the confluence of the loan moratorium ending, fears over another lockdown and Trump’s positive Covid-19 diagnosis on futures that are weighing on investor sentiment,” Lau said. 
 
Trading volume across the bourse stood at 5.48 billion shares, worth RM4.09 billion. 

Elsewhere in Asia, the Shanghai Composite was down 0.2% or 6.31 points to 3,218.05, Hong Kong’s Hang Seng fell 0.79% or 183.52 points to 23,459.05, Japan’s Nikkei 225 dropped 0.67% or 155.22 points at 23,029.90, and Singapore’s Straits Times Index 0.33% or 8.16 points lower at 2,492.58. South Korea’s Kospi managed to rise 0.86% or 19.81 points to 2,327.89. 

According to Reuters, global stock markets sneezed today, after US President Donald Trump, alongside his wife Melania Trump, had tested positive for the virus. 
 
“Early losses in Singapore and Indonesian stock markets deepened after the news of Trump's positive test, as stock markets globally took a hit from the additional uncertainty it generated around November's vote,” it reported. 

Source: The Edge

Market Daily Report: KLCI trails palm oil plantation index drop as US bans FGV products

 

KUALA LUMPUR (Oct 1): The FBM KLCI finished 8.05 points or 0.53% lower today at 1,496.77 while Bursa Malaysia's Palm Oil Plantation index fell by a larger quantum as investors weighed a confluence of factors including the US Customs and Border Protection's detention order on palm oil produced by FGV Holdings Bhd.

Analysts and remisiers said today the confluence of factors weighing on investor sentiment includes the resurgence of global COVID-19 infections besides the end of Malaysia's loan-repayment moratorium.

"While stocks should stay range bound amid virus resurgence worries, which would prop up rubber glove and healthcare related sectors, trading liquidity should dwindle with retailers continuing to consolidate their trading positions," TA Securities Holdings Bhd analysts wrote in a note today.

Maybank Investment Bank Bhd remisier Jeffry Aziz told theedgemarkets.com today that the end of Malaysia's six-month loan-repayment moratorium yesterday (Sept 30) had resulted in lower retail participation in the stock market today.

Bank Negara Malaysia had in March 2020 announced the six-month loan-repayment moratorium starting April 1, 2020 to help individuals and businesses affected by the COVID-19 pandemic, which had led the Malaysian Government to implement the Movement Control Order (MCO) to curb the spread of the pandemic.

The loan-repayment moratorium is believed to have led to higher retail participation in the stock market in recent months as borrowers, who obtained a respite from debt repayments, had instead invested their money in equities.

Today, Jeffry said global political uncertainties including the US presidential election, are also dictating investor sentiment.
 
“Another factor that contributed to the performance of the KLCI today is political uncertainty that continues to be present. This is in addition to the possibility of a future (global) lockdown given the rise in COVID-19 cases,” he said.

At Bursa today, the KLCI's 0.53% drop trailed the Palm Oil Plantation index's 2.91% decline as investors sold shares of oil palm-related companies including PPB Group Bhd, Sime Darby Plantation Bhd and Genting Plantations Bhd after the US issued a detention order on palm oil produced by FGV.

The detention order has been effective since Wednesday.

In a statement on Wednesday, the US Customs and Border Protection said its Office of Trade directed the issuance of a Withhold Release Order against palm oil and palm oil products made by FGV based on information that reasonably indicates the alleged use of forced labour.

Today, CGS-CIMB Securities Sdn Bhd analysts Ivy Ng Lee Fang and Nagulan Ravi wrote in a note that the US ban on FGV products "may also have some implications for other palm oil players" as the US is also believed to be investigating allegations regarding the broader oil palm industry's labour practices.

Across Bursa today, 4.92 billion securities worth RM2.61 billion were transacted. Top decliners included PPB, Sime Darby Plantation and Genting Plantations.

PPB's share price closed down 30 sen or 1.58% at RM18.70 while Sime Darby Plantation fell 26 sen or 5.15% to RM4.79. FGV dropped 10 sen or 8.7% to RM1.05.

Yesterday, Bursa's trading volume was higher at 5.64 billion securities valued at RM2.64 billion.

 

 

Source: The Edge