Market Daily Report: KLCI finishes down 44.88 points after final-hour dive

KUALA LUMPUR (Nov 30): The FBM KLCI closed down 44.88 points or 2.79% at 1,562.71 today after diving in the final trading hour against a confluence of factors including lower crude oil prices and equity losses as investors weighed Malaysia's corporate financial results amid Covid-19 driven economic weakness.

Across Bursa Malaysia at 5pm, 9.02 billion securities were traded for RM7.71 billion.

Bursa’s Financial Services index fell the most in percentage terms at 3.22% among bourse gauges.

Top declining stocks included KLCI entities Petronas Dagangan Bhd, Public Bank Bhd, Tenaga Nasional Bhd, Petronas Chemicals Group Bhd and Malayan Banking Bhd (Maybank).

Rakuten Trade Sdn Bhd research vice president Vincent Lau told theedgemarkets.com that the drop in the KLCI today might have just been a minor pullback, after a favourable performance throughout the month of November. 

"It was probably just the month-end rebalancing of portfolios [by investors]. Market sentiment is still okay, even glove stocks have rebounded.  

"Most regional indexes are also trading at a high, so it's unsurprising to see them falling today at the end of the month,” Lau said. 

Globally, it was reported today that world shares paused to assess a record-busting month on Monday as the prospect of a Covid-19 vaccine-driven economic recovery next year and yet more free money from central banks eclipsed immediate concerns about the coronavirus pandemic.

"Markets are overbought and at risk of a short term pause,” Reuters quoted Shane Oliver, head of investment strategy at AMP Capital, as saying. "However, we are now in a seasonally strong time of year and investors are yet to fully discount the potential for a very strong recovery next year in growth and profits as stimulus combines with vaccines,” Oliver said.

On commodity markets, it was reported that crude oil prices tumbled on Monday, as investors waited for a decision by producer group OPEC+ whether to extend large output cuts to balance global markets, but vaccine hopes helped keep benchmarks on track to rise more than a fifth in November.

It was reported that January Brent crude futures, which will expire later on Monday, dropped US$1.01, or 2.1%, to US$47.17 a barrel by 0749 GMT. 

The more actively traded February Brent contract was at US$47.29 a barrel, down 96 cents, while US West Texas Intermediate crude futures for January fell 86 cents, or 1.9%, to US$44.67 a barrel.

At Bursa today, a glance at the KLCI showed that the 30-stock index started erasing intraday gains in the afternoon as investors weighed companies' quarterly financial results including those of AMMB Holdings Bhd and MAHB, which announced their financials during Bursa’s 12:30pm break today.

Asian equity indices, which ended lower, and the crude oil price drop, could have also precipitated the KLCI’s plunge before Malaysian markets closed at 5pm.

A closer observation showed KLCI stocks, which saw a sharp price drop, included Petronas Chemicals Group Bhd, Maybank and MAHB.

At 5pm, Petronas Chemicals closed down 44 sen or 6.41% at RM6.42, MAHB dropped 33 sen or 5.96% to RM5.21, while Maybank fell 39 sen or 4.7% to RM7.90.

As market observers watched the big drop in the KLCI shortly before trading ended, they would have also noticed Maybank’s share price plunge about 15 minutes before the closing bell today. 

Source: The Edge

Market Daily Report: KLCI eases from 11-month high, but persistent interest in penny stocks pushes FBM Small Cap Index to two-year high

 

 

KUALA LUMPUR (Nov 27): The FBM KLCI eased from its 11-month high, dropping 0.28% as profit-taking emerged. Still, the benchmark index ended the week above the 1,600-point level at 1,607.59 points — the highest weekly closing since July 31. 

Across the board, persistent interest in penny stocks, which dominated the actively traded list today with handsome gains, lifted the FBM Small Cap Index to 14,588.15 points — the highest closing since end-August 2018. 

The trading interest in penny stocks also boosted the trading volume in the local bourse to more than 10 billion at 10.36 billion shares. The last time that Bursa Malaysia’s trading volume exceeded 10 billion shares was more than a week ago on Nov 18, when it was at 14.41 billion shares.

Gainers outnumbered losers by 621 versus 605, while 406 counters remained unchanged.

TA Securities Holdings Bhd senior technical analyst Stephen Soo said there were some profit-taking activities today in the local bourse following the strong ending yesterday.

Looking into next week, Soo expects the KLCI to enter into consolidation mode following the strong gains this week.  

While the market momentum is still healthy, fuelled by strong retail participation, he opined that the benchmark index needed a fresh catalyst to uplift it further, especially more certainty needed from the political front.  

The upcoming debates for Budget 2021 which will take place next Monday (Nov 30) are expected to generate some concerns for investors, he noted.

“Should the market sentiment improve from here, the psychological resistant levels to watch are the 1,650 level, and this is followed by 1,680. While the key support levels to look at are 1,600 and 1,578,” he added.

Axiata Group Bhd emerged on the top gainers list after the group said its net profit nearly doubled to RM352.99 million in the third quarter ended Sept 30, 2020 (3QFY20), from RM179.27 million in 2QFY20. It closed up 38 sen or 11.34% to RM3.73.

Technology companies KESM Industries Bhd and Vitrox Corp Bhd are also on the top gainers list.

Kanger International Bhd topped the actively traded list after some 729.39 million shares exchanged hands. It closed at 18.5 sen, down half a sen or 2.78%.

Other actively traded stocks included AT Systematization Bhd, Bintai Kinden Corp Bhd, Key Alliance Group Bhd, Metronic Global Bhd, Iris Corp Bhd and Vivocom Intl Holdings Bhd.

Across Asia, Japan's Nikkei 225 rose 0.4%, while Seoul's Kospi climbed up 0.29%. In China, Hong Kong’s Hang Seng Index gained 0.39%, while the Shanghai Stock Exchange Composite Index closed up 1.14%.

CNBC reported that stocks in Asia-Pacific nudged higher on Friday as investors reacted to data on China’s industrial profits for October.

“Markets also scrutinized concerns over the Oxford-AstraZeneca vaccine candidate, with results and methods used in their phase three vaccine trials under criticism from experts in the US,” it added.

 

Source: The Edge

Market Daily Report: KLCI up 14.53 points to end at intraday high after Parliament approves Budget 2021

 

KUALA LUMPUR (Nov 26): The FBM KLCI closed up 14.53 points or 0.91% at its intraday high of 1,612.11 today after news reports indicated that Parliament had approved the Malaysian government's proposed Budget 2021 and as local equities took a cue from the global stock market rise.

MIDF Amanah Investment Bank Bhd research head Imran Yassin Yusof told theedgemarkets.com today the biggest driver for the KLCI’s rise is the Parliament’s approval for Budget 2021.

Across Bursa Malaysia today, sentiment was positive with 816 gainers versus 412 decliners. A total of 8.87 billion securities were traded for RM4.68 billion as global stocks took cue from encouraging news on Covid-19 vaccine trials and updates on the US Government transition to President-elect Joe Biden’s administration.

It was reported today that Asian shares advanced on Thursday as market euphoria over Covid-19 vaccines and expectations that a Biden administration would deliver more economic stimulus and political predictability overrode a slate of weak US economic data. It was reported that the rally started after Biden's US election victory earlier this month raised hopes for more government spending to support the pandemic-hit economy and for more policy predictability after four years of Donald Trump's presidency.

"Reduced policy uncertainties are helping markets. It will be easier for companies to make capital expenditures,” Reuters quoted Arihiro Nagata, general manager of global investment at Sumitomo Mitsui Bank as saying.

It was reported that Prime Minister Tan Sri Muhyiddin Yassin won Parliamentary approval for his government's 2021 Budget on Thursday, avoiding a potential political crisis in the midst of other crises brought on by the coronavirus pandemic.

It was reported that Parliament passed the Budget by a voice vote, leaving it unclear exactly how many of the 222 lawmakers supported the Government's first Budget since Muhyiddin emerged as the leader of a new coalition in March.

“He (Muhyiddin) would likely get a political respite, as the Opposition would likely not be able to muster a majority to topple him in the short term," Oh Ei Sun, a senior fellow with Singapore’s Institute of International Affairs, was quoted as saying by Reuters.

At a glance, the Parliamentary approval for Budget 2021 could have mitigated expectations of political uncertainty in Malaysia, hence the broad-based buying across Bursa today at a time when the nation is still contending with the economic impact of the Covid-19 pandemic.

Out of the 29 Bursa indices, 26 closed higher today while three gauges, namely, the Energy, Financial Services and REIT gauges ended lower.

Among Bursa-listed stocks, top gainers included technology companies and rubber glove manufacturers.

The list included semiconductor manufacturer Malaysian Pacific Industries Bhd (MPI) besides glove manufacturers Supermax Corp Bhd, Top Glove Corp Bhd and Hartalega Holdings Bhd

MPI topped the gainers list today after its share price closed up RM1.88 or 7.97% at RM25.48. The stock pared gains at 5pm after rising to its record high at RM26 earlier today.

MPI’s share price rise had partly contributed to Bursa’s Technology index’s 3.02% rise when markets closed. The index was the top percentage gainer among Bursa indices today.

 

 

Source: The Edge

Market Daily Report: Bullish sentiment on Wall Street spills over to Bursa, KLCI climbs 1.22%

 

 

KUALA LUMPUR (Nov 25): The FBM KLCI climbed 1.22% today, buoyed by the overnight record closing on Wall Street amid news that the Trump administration agreed to start the transition process for President-elect Joe Biden to the White House. 

Furthermore, the optimism the economic landscape will turn more favourable underpinned the positive sentiment. 

The FBM KLCI rose 19.19 points to 1,597.58, after moving between 1,582.31 and 1,600.20.

Leading the climb on the KLCI today were banking stocks Public Bank Bhd, which surged 54 sen or 2.94% to RM18.892, and CIMB Group Holdings Bhd, which climbed 14 sen or 3.85% to RM3.78.

Meanwhile, Hong Leong Bank Bhd rose 20 sen or 1.19% to RM17.04, Hong Leong Financial Group Bhd went up 60 sen or 3.77% to RM16.50, Malayan Banking Bhd increased nine sen or 1.11% to RM8.22 and RHB Bank Bhd rose seven sen or 1.41% to RM5.05.

In contrast, Top Glove Corp Bhd continued to be under selling pressure as the world’s largest glove maker has to shut down its manufacturing plant after the Covid-19 outbreak in its worker dormitories in Meru, Klang. The stock was among the top losers today. It dropped 15 sen or 2.21% to RM6.65.

Remisier Jeffry Azizi Jaafar commented that the FBM KLCI's performance was tracking the overnight gains in Wall Street on Joe Biden’s transition to the White House which provided investors more clarity on the US prospects and policies moving forward.

Meanwhile, he said there is rotational play into oil and gas stocks today given the promising vaccine candidate spurred hopes of a quicker recovery in economic growth and oil demand.

Nonetheless, he opined the local sentiment remains wary of a sharp spike in daily local Covid-19 cases.

Overall, the market was mixed as there were 653 gainers versus 496 decliners, while 483 remained unchanged. A total of 8.91 billion securities were traded for RM4.22 billion, compared to trading volume of 8.36 billion securities and turnover of RM4.28 billion recorded yesterday.

Among indices, the energy index led the gain by percentage, up 4.52% to 810.43, on the back of better oil future prices. At time of writing, Brent crude oil was up 1.15% at US$48.33 per barrel, while West Texas Intermediate crude oil also climbed 1% at US$45.35 per barrel.  

Some oil and gas stocks were actively traded today, such as Sapura Energy Bhd, Bumi Armada Bhd, KNM Group Bhd and Hibiscus Petroleum Bhd.

EA Holdings Bhd topped the most-actively traded list today, after some 718.93 million shares changed hands. It dropped 0.5 sen to three sen.

Other actively traded stocks included AT Systematization Bhd, Kanger International Bhd, Key Alliance Group Bhd and Vsolar Group Bhd.

Gets Global Bhd topped the gainers list today after it closed up 68 sen or 29.82% at RM2.96. The rebound came after the stock retreated for a few sessions from its recent high of RM3.97 on Nov 16 after the stock exchange advised investors to exercise caution in trading the stock's shares.

Other gainers included Malaysia Pacific Industries Bhd, Nestle (Malaysia) Bhd, Petronas Dagangan Bhd, Press Metal Aluminium Holdings Bhd and Batu Kawan Bhd.

The decliners included Carlsberg Brewery Malaysia Bhd, Heineken (M) Bhd, Greatech Technology Bhd, TIME dotCom Bhd, Scientex Bhd, Dutch Lady Industries Bhd and Quality Concrete Holdings Bhd.

Bloomberg reported that a rally in global equities cooled Wednesday as investors balanced optimism spurred by vaccines and political developments against a challenging economic outlook amid the pandemic. The US dollar steadied.

A gauge of Asia-Pacific shares gave up an earlier climb of about 1%. South Korean and Chinese stocks turned lower, while those in Japan posted modest gains. US and European futures ticked higher.

The S&P 500 index earlier closed at a record and the Dow Jones Industrial Average topped 30,000. Treasury yields dipped, oil held above US$45 a barrel and copper touched the highest since 2014.

 

 

Source: The Edge

Market Daily Report: KLCI retreats, Bursa decliners top 1,000 on Covid-19 resurgence, Budget 2021 vote

 

KUALA LUMPUR (Nov 24): The FBM KLCI closed down 19.09 points or 1.2% at 1,578.39 today while the number of Bursa Malaysia decliners rose sharply to above 1,000 as the surge in the country’s new Covid-19 cases to a record high weighed on investor sentiment. Anticipation on the Budget 2021 vote in Parliament this Thursday (Nov 26) also led to profit taking in the stock market today.

Analysts and remisiers said today the spike in the number of new Covid-19 cases in the country has increased the level of uncertainty over the outlook for the nation's economic growth. 

"Stocks are likely to trade sideways ahead of the highly anticipated vote to pass Budget 2021 by Parliament this Thursday, with the uncertainty causing investors to be sidelined,” TA Securities Holdings Bhd analysts wrote in a note today.

Across Bursa today, there were 1,093 decliners versus 250 gainers. A total of 8.36 billion securities were traded for RM4.28 billion.

Top decliners included KLCI stocks Petronas Dagangan Bhd and Top Glove Corp Bhd.

Top Glove’s share price closed down 55 sen or 7.48% at RM6.80 today after the company said yesterday it will work closely and cooperate fully with the relevant authorities to implement the temporary stoppage by stages of its manufacturing facilities within Meru in Klang, Selangor.

"The safety and well-being of our employees and local community is of our utmost priority towards containing the situation and to flatten the Covid-19 curve,” Top Glove said.

For now, the Covid-19 situation across Malaysia appears discouraging after health director-general Tan Sri Dr Noor Hisham Abdullah said in a statement today that the country recorded for the first time today over 2,000 new Covid-19 cases at a record high of 2,188.

Dr Noor Hisham said the nation's total number of active Covid-19 cases as at today stood at 14,353.

Yesterday, Dr Noor Hisham said there were 1,884 new Covid-19 cases across the country. 

Today, the number of Bursa decliners topped 1,000 compared to 674 yesterday.

At a glance today, Malaysian stocks’ trading dynamics showed a stark contrast to global equities' performance. It was reported that stocks, crude oil and risk currencies gained on Tuesday as the formal go-ahead for US President-elect Joe Biden to begin his transition burnished a November already boosted by Covid-19 vaccines.

"European markets tracked gains in Asian and US equities, with the broad-based STOXX 600 index opening 0.8% higher and Brent crude climbing to its highest level since March at US$46.38 a barrel. Safe haven assets such as gold fell,” Reuters reported.

CNBC reported that stocks in Japan led gains among Asia-Pacific markets on Tuesday as investors in the region reacted to more positive coronavirus vaccine news, as well as Biden’s choice of former Federal Reserve Chair Janet Yellen as Treasury Secretary.

“Investors continued to monitor positive momentum surrounding the race for a coronavirus vaccine. AstraZeneca said Monday interim analysis showed its coronavirus vaccine has an average efficacy of 70% in protecting against the virus. That follows other encouraging vaccine results in recent weeks, with late-stage trial readouts from Pfizer-BioNTech and Moderna showing their respective Covid-19 vaccine candidates were about 95% effective,” CNBC reported.

 

 

Source: The Edge

Market Daily Report: KLCI advances cautiously ahead of Budget 2021 vote as crude oil price rise offers fillip to energy index

 

KUALA LUMPUR (Nov 23): The FBM KLCI closed up 3.73 points or 0.23% at 1,597.48 today to trail Bursa Malaysia’s Energy index’s 5.55% gain as the Brent crude oil price rose past the US$45 (RM184.07) per barrel level following news of successful Covid-19 vaccine trials. 

The KLCI’s gain was, however, limited by investors' caution ahead of Malaysia's parliamentary voting on the proposed Budget 2021 on Wednesday (Nov 25), according to analysts.

Malacca Securities Sdn Bhd head of research Loui Low told theedgemarkets.com that higher crude oil prices lifted sentiment on the local bourse and helped the KLCI close in positive territory today. 

"The gain in the KLCI, however, was seen capped as local investors stayed wary as they were waiting for the final result of the Budget 2021 vote this week," he said.

Across Bursa today, 9.43 billion securities were traded for RM4.52 billion as oil and gas (O&G)-related shares rose among the top gainers.

Petronas Dagangan Bhd topped the gainers' list after its share price closed up RM2.48 or 12.64% at RM22.10.

Hengyuan Refining Company Bhd was up 32 sen or 10.22% at RM3.45, while Petron Malaysia Refining & Marketing Bhd gained 23 sen or 6.07% to RM4.02.

Notable gainers included Asia Brands Bhd after the lingerie and baby product retailer’s share price closed up 30 sen or 61.22% at its intraday high of 79 sen.

Asia Brands’ share price rose today after the company announced last Friday that its net profit jumped to RM5.35 million for the second quarter ended Sept 30, 2020 (2QFY21) from RM1.32 million a year earlier. For the first half ended Sept 30, 2020 (1HFY21), Asia Brands said its cumulative net profit climbed to RM9.58 million from RM5.91 million a year earlier.

Globally, it was reported that crude oil prices extended gains today as traders eyed a recovery in crude demand, thanks to successful coronavirus vaccine trials, although prices were contained by renewed lockdowns in several countries.

It was reported that sentiment was also bolstered by hopes that the Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers, a group known as OPEC+, will keep crude output in check. It was reported that Brent crude futures were 21 cents, or 0.5%, higher at US$45.17 a barrel by 0436 GMT, while US West Texas Intermediate (WTI) crude had gained 10 cents, or 0.2%, to US$42.52 a barrel.

 

 

Source: The Edge

Market Daily Report: KLCI snaps 2-day losing streak as Covid-19 rise spurs glove share buy

 

KUALA LUMPUR (Nov 20): The FBM KLCI ended 10.07 points or 0.64% higher at 1,593.75 today, to snap two straight days of losses, as the rise in global Covid-19 cases spurred buying of rubber glove manufacturers’ shares.

Across Bursa Malaysia at 5pm, 9.01 billion securities were traded for RM5.16 billion.

Top gainers included glove manufacturers Top Glove Corp Bhd and Supermax Corp Bhd on bargain hunting and as the rise in the number of global Covid-19 cases checked investors’ vaccine-driven optimism.

Top Glove’s share price closed 35 sen or 5.04% higher at RM7.29, while Supermax added 32 sen or 4.12% to RM8.08.

Bursa’s Healthcare index, which includes rubber glove manufacturers as constituents, ended up 1.43%.

Top Glove and Hartalega Holdings Bhd are also members of the 30-stock KLCI.

The KLCI snapped its two-day losing streak today, after falling 21.07 points and 5.4 points respectively yesterday (Nov 19) and Wednesday (Nov 18).

“At this juncture, the index is anticipated to trend sideways between 1,610 and 1,580 marks in the near term, hanging between bull and bear territory, “ Public Investment Bank Bhd technical analyst Lee Siao Ping said today.

Globally, CNBC reported Asia-Pacific markets traded mixed on Friday, as investors remained cautious over the short-term economic impact of the coronavirus as cases around the world continue to rise.

“The session in Asia followed a tepid finish overnight, where US stocks closed slightly higher as traders increased their exposure to major technology names. Sentiment on Wall Street received a boost after lawmakers agreed to resume negotiations over a potential new Covid-19 relief bill. Still, US futures fell in overnight trading,” CNBC reported.

Market Daily Report: Profit-taking sends KLCI to intraday low, Bursa volume slips below 10b securities

 

KUALA LUMPUR (Nov 19): The FBM KLCI closed down 21.07 points or 1.31% at its intraday low at 1,583.68 today, while trading volume across Bursa Malaysia slipped below 10 billion securities as the rising number of global Covid-19 cases checked vaccine-driven market optimism.

At 5pm, 9.53 billion securities were traded for RM4.48 billion across Bursa.

"The local market should pause for a profit-taking breather following the recent rally due to economic recovery plays, which will be healthy to check extreme overbought momentum and excessive gains,” TA Securities Holdings Bhd analysts wrote in a note earlier today.

Rakuten Trade Sdn Bhd head of research Kenny Yee told theedgemarkets.com today that the weakness in the KLCI was due to the sell-down in banking and rubber glove counters.

Yee said: "The sell pressure seen in banking stocks was due to profit-taking activities as their share prices have surged beyond some research houses' target prices following the recent rise."

Bursa’s trading volume today dropped to 9.53 billion securities worth RM4.48 billion from yesterday’s 14.41 billion securities valued at RM5.08 billion.

Today, Bursa’s financial services index was the top percentage decliner, after the gauge closed down 2.49% as constituents Hong Leong Bank Bhd and Public Bank Bhd, which are also KLCI stocks, ended among Bursa top decliners.

Hong Leong Bank’s share price fell 98 sen or 5.51% to RM16.80, while Public Bank dropped 68 sen or 3.57% to RM18.38.

Top gainers included EITA Resources Bhd and Samaiden Group Bhd after both companies' share prices closed at their intraday high.

Leading gainer EITA rose 40 sen or 29.41% to RM1.76 after the company announced its planned bonus issue of new shares and free warrants.

Samaiden hit limit up after its share price climbed 30 sen or 31.25% to RM1.26.

Globally, CNBC reported that Asia-Pacific markets traded mixed today as traders grappled with optimism around a potential coronavirus vaccine and economic worries.

It was reported that the session in Asia followed US stocks falling for a second straight day, pausing a recent rally to new records.

“It was a consolidative day for financial markets, which are caught in the crosscurrent of vaccine optimism and near-term economic weakness,” CNBC quoted Daniel Been, head of foreign-exchange and G3 research at ANZ as saying.

 

Source: The Edge

Market Daily Report: KLCI drops 0.33% on profit taking as vaccine rally falters

 

 KUALA LUMPUR (Nov 18): The FBM KLCI fell 0.33% on Wednesday as local institutional investors took profit following two days of strong gains.

According to remisier Jeffry Aziz, the sell-down in the benchmark index today was due to healthy correction with the local bourse experiencing a good run amid a switch from pandemic-themed plays to a recovery-focused theme given the positive sentiment from vaccine newsflow last week.

He also attributed the weakness in the KLCI to the sell-off in blue chip stocks by the Employees Provident Fund (EPF), following the announcement that it is allowing eligible members to take an advance from their Account 1 under a scheme called i-Sinar starting December.

At the closing bell, the local benchmark index was down 5.4 points at 1,604.75, after moving between 1,595.09 and 1,611.58. Market breadth was negative with losers thumping gainers 731 to 473, while 456 counters were unchanged.

Trading volume narrowed to 14.41 billion compared with 16.4 billion yesterday. Turnover also fell to RM5.09 billion from RM7.96 billion.

Among the heavyweights, MISC Bhd led the loss as it closed down 51 sen or 6.88% at RM6.90, followed by Dialog Group Bhd, which sank 13 sen or 3.46% to RM3.63.

Other counters linked to Petroliam Nasional Bhd (Petronas) that were in the red today include Petronas Gas Bhd, which lost 14 sen or 0.86% at RM16.18.

Index-linked banking stocks such as CIMB Group Holdings Bhd closed down eight sen or 2.11% to RM3.72. RHB Bank Bhd fell 11 sen or 2.08% to RM5.18, Malayan Banking Bhd eased seven sen or 0.84% to RM8.23, while Hong Leong Bank Bhd sank 12 sen or 0.67% to RM17.78.

Heavyweight glove stock Hartalega Holdings Bhd was not spared from the sell-down, as it closed down 22 sen or 1.5% at RM14.42. It was the seventh-largest loser in the local bourse today.

Meanwhile, Malaysian Pacific Industries Bhd topped the losers list today. Others included Ayer Holdings Bhd, Heineken Malaysia Bhd, Panasonic Manufacturing Malaysia Bhd, Hong Leong Capital Bhd, Malaysia Airports Holdings Bhd and Syarikat Takaful Malaysia Keluarga Bhd.

Top gainers included Batu Kawan Bhd and Chemical Company of Malaysia Bhd (CCM) after news on the acquisition of CCM from Permodalan Nasional Bhd and Amanahraya Trustee.

Other top gainers included Nestle (M) Bhd, Dutch Lady Industries Bhd, Lii Hen Industries Bhd, Kuala Lumpur Kepong Bhd, Time dotCom Bhd and Hong Leong Financial Group Bhd.

AT Systematization Bhd remained as the most actively-traded counter. Its trading volume expanded to 1.42 billion shares, compared with 1.22 billion yesterday. The stock closed lower at 19 sen, down 5.5 sen or 22.45%.

It was followed by NetX Holdings Bhd, Pegasus Heights Bhd, Metronic Global Bhd, Kanger International Bhd, mTouche Technology Bhd, Sanichi Technology Bhd and Thrive Property Group Bhd.

Elsewhere in Asia, Tokyo's Nikkei 225 fell 1.1%, while Seoul's Kospi rose 0.26%. Hong Kong’s Hang Seng Index gained 0.49%, while the Shanghai Stock Exchange Composite Index closed up 0.22%.

CNBC reported that Asia-Pacific markets were mixed by the close on Wednesday. Investors remained cautious despite vaccine hopes, as coronavirus cases continued to surge.

 

 

Source: The Edge

Market Daily Report: KLCI climbs above 1,600 level as positive vaccine news aids market sentiment

 

KUALA LUMPUR (Nov 17): The FBM KLCI extended its gains for the second consecutive day as investors, particularly institutional funds, were rejigging their portfolios in view of the positive news flow of Covid-19 vaccines.

The benchmark index climbed above the 1,600-point level to close at 1,610.15, its highest since end-July, up 10.49 points or 0.66% for the day as market sentiment was boosted by the positive news. 

Trading volume across the board was above the 16 billion mark for the second day in a row. Today’s volume was 16.4 billion shares. Turnover ballooned to RM7.96 billion from RM6.71 billion yesterday.

Gainers outnumbered losers at 627 to 567, while 554 counters closed unchanged.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong told The Edge that the benchmark index went up further following Moderna Inc’s announcement that its experimental Covid-19 vaccine was 94.5% effective in preventing infection based on interim late-stage data. This reinforced hope that a vaccine could be available sooner than later. 

Banking stocks continued to attract buying interest. Hong Leong Bank Bhd (HLB) gained 84 sen or 4.92% to RM17.90, Public Bank Bhd increased 42 sen or 2.27% to RM18.90, and Hong Leong Financial Group Bhd went up 34 sen or 2.17% to RM16. 

Meanwhile, RHB Bank Bhd rose 11 sen or 2.12% to RM5.29, Malayan Banking Bhd (Maybank) climbed 16 sen or 1.97% to RM8.30, and CIMB Group Holdings Bhd rose three sen or 0.8% to RM3.80.

Bursa Malaysia's Financial Services Index was the second highest among the bourse’s indices today, shooting up 311.81 points or 2.2% to 14,455.69.

Meanwhile, index-linked glove counter Top Glove Corp Bhd fell 20 sen or 2.78% to a two-month low of RM7. Selling accelerated for the counter after it was reported that its workers’ dormitories in Klang would be put under the enhanced movement control order (EMCO) for two weeks, starting from today.

However, its peer Hartalega Holdings Bhd reversed its downtrend today, with its share price going up 14 sen or 0.97% to RM14.64.

GETS Global Bhd topped the loser list today, skidding 86 sen or 21.7%, after Bursa advised investors to exercise caution in trading its shares.

AT Systematization Bhd remained as the most actively traded. However, its trading volume shrank to 1.22 billion shares, compared with 2.06 billion yesterday. The stock closed lower at 24.5 sen, down 1.5 sen or 5.77%.

Among the most traded counters were mTouche Technology Bhd, Thrive Property Group Bhd, Lambo Group Bhd, Pegasus Heights Bhd, Metronic Global Bhd, PDZ Holdings Bhd, Pasukhas Group Bhd and EA Holdings Bhd.

Elsewhere in Asia, Tokyo's Nikkei 225 rose 0.42%, while Seoul's Kospi fell 0.15%. Hong Kong’s Hang Seng Index inched up 0.13%, while the Shanghai Stock Exchange Composite Index closed down 0.21%.

Reuters reported that Asian stocks held gains and moved tentatively further into record positive territory today after US benchmarks were pepped up by news of a second promising coronavirus vaccine, though futures indicated that the rally could be stalled in European hours.

 

Source: The Edge

Market Daily Report: KLCI up 0.63% on bargain hunting for blue chips but glove stocks down

 

KUALA LUMPUR (Nov 16): The FBM KLCI ended 0.63% higher today on strong bargain hunting on blue chips as investors continued shifting to recovery play, stemming from the expected deployment of the COVID-19 vaccines.

Meanwhile, the local bourse was moved in tandem with an uptrend in regional bourse thanks to positive momentum following Asia-Pacific nations signing the Regional Comprehensive Economic Partnership (RCEP).

In Malaysia, Areca Capital Sdn Bhd CEO Danny Wong Teck Meng told theedgemarkets that investors have positioned themselves for post-pandemic recovery. Hence, the sentiment lifted stocks that were poised to benefit from economic recovery such as banks, gaming and aviation counters.

“After the gloves and tech counters enjoyed a good run for more than half a year amid the pandemic, investors are starting to anticipate that conventional business will be coming back with hope stemming from the news of vaccines and recovery of businesses.

“From the investors’ point of view, those stocks are cheap to buy now after being battered by the pandemic,” he said.

The FBM KLCI closed 0.63% or 9.97 points higher at 1,599.66, after moving between 1,587.06 and 1,602.23. The benchmark index opened 3.66 points higher at 1,593.35 compared with last Friday’s closing of 1,589.69.

There were 695 gainers versus 472 losers while 529 remained unchanged. The trading volume ballooned to  16.1 billion shares compared with 12.58 billion last Friday, while turnover rose to RM6.71 billion from RM4.6 billion.

Banking stocks, the proxy for economic growth, have garnered strong buying interest. Among KLCI-linked banking stocks, Hong Leong Bank Bhd, Public Bank Bhd, CIMB Group Holdings Bhd, Hong Leong Financial Group Bhd (HLFG), RHB Bank Bhd and Malayan Banking Bhd were the top gainers.

Hong Leong Bank jumped 72 sen or 4.41% to RM17.06, Public Bank surged 72 sen or 4.05% to RM18.48, CIMB Bank rose 33 sen or 9.59% to RM3.77, HLFG climbed 26 sen or 1.69% to RM15.66, Maybank rose 21 sen or 2.65% to RM8.14 and RHB was up 24 sen or 4.86% to RM5.18.

The gains lifted Bursa Malaysia's financial services index up 575.87 points or 4.24% at 14,143.88, the highest since March 6 when it recorded 14,336.56. The financial services index was the second highest among the bourse's indices.

The Bursa Malaysia Energy Index led the gain among the indices, rising 5.48% or 38.98 points to 749.83, a level not seen since Sept 22, when it recorded 762.59.

Meanwhile Genting Bhd and Genting Malaysia Bhd shares were cheered by Genting Singapore Ltd’s quarterly earnings recovery in the third quarter ended Sept, 2020. Genting soared 35 sen or 9.23% to close at RM4.14 while Genting Malaysia closed up 10 sen or 4.12% to RM2.53 — both counters were at a more than four-month high.

Malaysia Airports Holdings Bhd was also among top gainers today. The airport operator gained 40 sen or 7.72% to RM5.58.

Meanwhile, the spillover positive sentiment from broadmarket lifted AirAsia Group Bhd and AirAsia X Bhd share prices. AirAsia rose nine sen or 13.64% to a more than four-month high of 75 sen, while AAX soared 27.27% or 1.5 sen to seven sen.

AT Systematization Bhd topped the most actively traded list again. Its trading volume expanded to 2.06 billion shares compared with 1.95 billion last Friday. Its share price closed at 26 sen, up 0.5 sen or 1.96%, after it leapt to 30 sen in the morning.

This was followed by Metronic Global Bhd, MTouche Technology Bhd, Nexgram Holdings Bhd, Lambo Group Bhd, Vsolar Group Bhd, EA Holdings Bhd and Sapura Energy Bhd.

Index-linked glove counters Hartalega Holdings Bhd and Top Glove Corp Bhd both topped the losers list. Hartalega closed down 88 sen or 5.72% to RM14.50 while  Top Glove shed 58 sen or 7.46% to RM7.20.

Supermax Corp Bhd fell 78 sen or 8.88% to RM8, while Kossan Rubber Industries Bhd declined 40 sen or 6.01% to RM6.26.

Bursa Malaysia's healthcare index fell the most in percentage terms, down by 2.54% to 3,889.66.

The brewer companies Heineken (M) Bhd and Carlsberg Brewery Malaysia Bhd also among the top losers today, with Heineken down 62 sen or 2.77% to RM21.80 and Carlsberg down 40 sen or 1.72% to RM22.88.

Elsewhere in Asia, Tokyo's Nikkei 225 surged 2.05% while Seoul's Kospi jumped 1.97%. Hong Kong’s Hang Seng Index rose 0.86% while the Shanghai Stock Exchange Composite Index gained 1.11%.

CNBC reported that Asia markets bounced in Monday’s session after 15 economies in the region signed a deal that formed the world’s largest trade alliance.

The trade deal, signed on Sunday, aims to gradually reduce tariffs across many areas, according to Reuters. The Regional Comprehensive Economic Partnership is now the world’s largest trade bloc, a deal that excludes the US. It marks the first time that East Asian powers China, Japan and South Korea are in a single trade agreement, it added.

 

 

Source: The Edge

Market Daily Report: KLCI ends on tepid note amid rotational play

 

KUALA LUMPUR (Nov 13): The FBM KLCI erased most of its earlier losses to end the day on a flat note as investors engaged in stock picking in sector rotational play, especially in the glove stocks after the recent sell-down, and cheered the smaller-than-expected July-Sept Gross Domestic Product (GDP) contraction.

At 5pm, the benchmark index closed 1.09 points or 0.07% lower at 1,589.69 points. The FBM KLCI opened lower at 1,588.38 this morning and fell by as much as 18.78 points or 1.18% to 1,572 points ahead of the announcement of third quarter GDP announcement.

However, it started to recover slowly by one point, reentering positive territory at 1,592.19 after investors started to snap up index-linked banking stocks such as Malayan Banking Bhd and CIMB Group Holdings Bhd, heavyweight glove counters Top Glove Corp Bhd and Hartalega Holdings Bhd, Press Metal Aluminium Holdings Bhd and Genting Bhd.

Among the 30 FBM KLCI constituents, 11 stocks were higher, with two stocks traded flat and 17 stocks lower. Gains were led by Press Metal, which jumped 22 sen or 3.66% to RM6.23, followed by banking counters, namely Maybank, which closed up 13 sen or 1.67% to RM7.93 and CIMB Bank which rose five sen or 1.47% to RM3.44.

Glove counters reversed their fortunes today with Top Glove closing higher at RM7.78 after rising eight sen or 1.04% while Hartalega rose two sen or 0.13% to RM15.38.

Genting also closed up two sen or 0.53% to RM3.79. Meanwhile Sime Darby Bhd and Sime Darby Plantation Bhd also ended higher todayclo; they closed up three sen or 1.25% to RM2.43 and one sen or 0.19% to RM5.21, respectively.

Market breadth was mixed, with 605 gainers versus 474 losers while 552 remained unchanged.

Trading volume and turnover narrowed to 12.58 billion shares and RM4.6 billion, posting a 24% and 22% contraction respectively compared with 16.56 billion shares worth RM5.88 billion posted yesterday.

Bank Negara Malaysia announced that the GDP contracted by 2.7% in 3Q2020, a marked improvement on the —17.1%  slump in the 2Q2020. The improved performance largely reflected the impact of the reopening of the economy after the Movement Control Order and better external demand conditions.

The contraction was smaller than the 3.2% decline forecast by economists in a Reuters poll.

TA Securities Holdings Bhd technical analyst Steven Soo told theedgemarkets.com that investors in the market were engaging in rotational play with strong bargain hunting going on for blue chips, especially in the recently battered glove stocks, which provided some support for KLCI today.

Amid strong gains seen in KLCI for the past two weeks following market optimism over the vaccine news, he expects the market to consolidate next week on some external weakness, citing that the rally is “overdone” at this stage.

“The resurgence of the COVID-10 pandemic in Europe and the US may weigh down the market sentiment which could cap the upside in the local market,” he added.

On the technical front, Soo said the key support for the KLCI is 1,550, followed by 1,537 and 1,520, while the immediate resistance is 1,600 and 1,618.

AT Systematization Bhd topped the most actively traded list again for seven consecutive days. However, its trading volume shrank to 1.95 billion shares compared with 2.62 billion yesterday. Its share price closed higher at 25.5 sen, after adding 3.5 sen or 15.91%.

Salcon Bhd also emerged in the most actively traded list after the group jumped into the glove market bandwagon yesterday. However, the move by the water and wastewater engineering firm received lukewarm response from investors, with its share price closing down 4.5 sen or 11.84% to 33.5 sen today.

Other actively traded stocks included Metronic Global Bhd, Nexgram Holdings Bhd, Xidelang Holdings Ltd and Priceworth International Bhd.

Shares price of Hong Leong Capital Bhd hit limit today when it resumed trading after being suspended for more than five years. It closed down RM2.05 or 22.4% at RM7.10, making it the top loser on the local bourse.

Other index-linked counters in the top 10 losers' list are Petronas Dagangan Bhd, Hap Seng Consolidated Bhd and Hong Leong Bank Bhd.

Among the top gainers' list, Malaysian Pacific Industries Bhd ranked first after rising 50 sen or 2.17% to RM23.50. This was followed by Euro Holding Bhd, which added 48 sen or 19.2% to RM2.98 and Kumpulan Powernet Bhd, which gained 31 sen or 7.58% to RM4.40.

Elsewhere in Asia, Tokyo's Nikkei 225 fell 0.53% while Seoul's Kospi rose 0.74%. Hong Kong’s Hang Seng Index inched down 0.05% while the Shanghai Stock Exchange Composite Index was down 0.86%.

Reuters reported that stocks in Asia fell on Friday, following from selloffs in the United States and Europe as investors feared the economic impact of an accelerating rise in coronavirus infections.

 

Source: The Edge

Market Daily Report: KLCI rises 1.32%, trading volume swells to three-month high

 

 

KUALA LUMPUR (Nov 12): The FBM KLCI gained 1.32% or 20.70 points to a more than three-month high of 1,590.78, thanks to persistent buying interest in blue chips as investment funds are hedging their positions for the likelihood of sooner-than-expected economic recovery.

Rakuten Trade Sdn Bhd research vice president Vincent Lau said the positive sentiment on KLCI was supported by investors’ optimism on the government’s efforts to contain the pandemic and that will help pave the way for economic recovery.

On the broader market, some penny stocks have regained interest. One that has hogged the limelight is AT Systematization Bhd whose trading volume soared to 2.62 billion, making it the most traded stock on Bursa Malaysia today. Its trading volume accounted for 15.82% of the exchange’s total daily trading volume of 16.56 billion shares.

Across Bursa Malaysia, there were 686 gainers versus 411 losers, while 536 counters were unchanged.

Some 16.56 billion shares were traded today, up by a whopping 62% compared with yesterday's trading volume of 10.19 billion. The daily trading volume is the highest since Aug 12, when 19.16  billion shares changed hands.

Turnover was marginally lower at RM5.88 billion from RM5.95 billion recorded yesterday.

Other actively traded stocks included Metronic Global Bhd, Xidelang Holdings Ltd, Lambo Group Bhd, Compugates Holdings Bhd, PDZ Bhd, Key Alliance Group Bhd and DGB Asia Bhd.

Index-linked plantation counters lifted the benchmark index. Hap Seng Consolidated Bhd went up 40 sen or 4.98% to RM8.43 while Kuala Lumpur Kepong Bhd rose 26 sen or 1.13% to close at RM23.26.

The FBM Palm Oil Plantation-NC (FBMPALMOIL-NC) increased 1.84% or 227.06 points to 12,586.07. Bursa Malaysia Plantation also increased 1.43% or 102.87 points to 7,280.65.

At the close, the CPO futures contract for December 2020 increased RM33 to RM3,489 per tonne and for Jan 2021, it rose RM17 to RM3,363 per tonne.

Index-linked glove counters Top Glove Corp and Hartalega Holdings Bhd were both on the top losers list. Top Glove shed 16 sen or 2.04% to RM7.70 while Hartalega closed down 14 sen or 0.9% to RM15.36.

Supermax Corp Bhd also lost 20 sen or 2.25% to RM8.70, while Kossan Rubber Industries Bhd declined two sen or 0.3% to RM6.62.

Elsewhere in Asia, Tokyo's Nikkei 225 rose 0.68% while Seoul's Kospi fell 0.41%. Hong Kong’s Hang Seng Index shed 0.22% while the Shanghai Stock Exchange Composite Index declined 0.11%.

Reuters reported that Asian shares pared their gains in choppy trade on Thursday as investors awaited further details on whether drugmakers can develop a coronavirus vaccine.

Oil futures traded near two-month highs due to hope for a vaccine and a larger-than-expected drawdown in US crude inventories.

Brent crude rose 0.02% to US$43.81 a barrel, which is near a two-month high. US crude futures also gained 0.14% to US$41.51 a barrel, it added.

 

 

Source: The Edge

Market Daily Report: KLCI retreats 0.32% on profit taking as Pfizer vaccine optimism fades

 

 

KUALA LUMPUR (Nov 11): The FBM KLCI closed down 0.32% or 4.99 points at 1,570.08 points on profit-taking as market optimism about the progress of a COVID-19 vaccine faded, after the index yesterday posted the strongest gains since March.

Yesterday, the FBM KLCI surged 3.33% or 50.75 points to an over two-month high of 1,575.07 today — the biggest single-day gain since March 20 when the benchmark rocketed by 6.85%.

MIDF Research head of research Imran Yassin Md Yusof told theedgemarkets.com that the selldown in the benchmark index today was due to profit-taking activities as well as investors realising that it will take time for a vaccine to be delivered to the public.

According to him, the selldown was unexpected as he thought the positive sentiments from the development of Pfizer’s COVID-19 vaccine will continue to boost the market.

The benchmark index stayed largely negative throughout the day, ranging between 1,550.44 points and 1,572.69 points.

The brisk trading saw double-digit declines in trading volume and value.

Some 10.19 billion shares were traded today, down 17.22% compared with yesterday's trading volume of 12.31 billion.

Trading value was lower by almost 30% to RM5.95 billion from RM8.45 billion recorded yesterday.

On the broader market, share prices were mixed. There were 627 gainers versus 523 losers, while 504 counters were unchanged.

The heavyweights that dragged down the benchmark index included MISC Bhd, after it fell 32 sen or 4.44% at RM6.89, Sime Darby Bhd (down 10 sen or 4.07% to RM2.36) and IHH Healthcare Bhd (20 sen or 3.54% to RM5.45).

The top losers included Nestle (Malaysia) Bhd, which fell RM1 or 0.71% to RM140, followed by PPB Group Bhd (down 24 sen to RM18.88), Aeon Credit Service (M) Bhd (shed 36 sen to RM10.34), Hartalega Holdings Bhd (declined 20 sen to RM15.50) and Vitrox Corp Bhd (fell 30 sen to RM15).

AT Systematization Bhd topped the most actively traded list again. Its trading volume surged to 2.83 billion shares compared with 1.67 billion yesterday. Its share price closed higher at 27 sen, adding eight sen or 42.11%.

Other actively traded stocks included DGB Asia Bhd, Fintec Global Bhd, AE Multi Holdings Bhd, Metronic Global Bhd, P.A. Resources Bhd and Pasukhas Group Bhd.

Among KLCI-linked banking stocks, Public Bank Bhd, Hong Leong Bank Bhd, Hong Leong Financial Group Bhd (HLFG), RHB Bank and Malayan Banking Bhd continued their positive momentum today.

However, CIMB Group Holdings bucked the trend, closing down eight sen or 2.37% to RM3.30.

Public Bank was up 48 sen or 2.79% to RM17.68, Hong Leong Bank added 42 sen or 2.6% to RM16.60 while HLFG gained 18 sen or 1.19% to RM15.28.

RHB Bank increased eight sen or 1.65% to RM4.93 and Maybank rose three sen or 0.39% to RM7.69.

The gainers list also included Gets Global Bhd (which surged 56 sen or 29.79% to RM2.44), Lii Hen Industries Bhd (up 30 sen or 6.98% to RM4.60), Malaysian Pacific Industries Bhd (rose 28 sen or 1.24% to RM22.94), KESM Industries Bhd (gained 25 sen or 2.51% to RM10.20) and Vivocom Intl Holdings Bhd (up 20 sen or 16.81% to RM1.39).  

Asia stocks were mixed today. Japan's Nikkei 225 jumped 1.78% while South Korea's Kospi gained 1.35%. In China, the Hong Kong Hang Seng Index shed 0.28% while the Shanghai Stock Exchange Composite Index declined 0.53%.

CNBC reported that Stocks in Asia-Pacific were mixed on Wednesday, with tech shares in the region monitored following overnight declines in the sector on Wall Street.

 

Source: The Edge

Market Daily Report: KLCI leaps 3.33%, biggest single-day gain since late March, thanks to vaccine optimism

 

 

KUALA LUMPUR (Nov 10): It is a cheerful day for Asian equity markets. In tandem with the positive sentiment boosted by rising hope that a Covid-19 vaccine will be available sooner than later, the FBM KLCI surged 3.33% or 50.75 points to an over two-month high of 1,575.07 today — the biggest single-day gain since March 20 when the benchmark rocketed 6.85%.

The benchmark index started the trading day lower, it was down by 7.78 points or 0.51% at 1,516.54 shortly after the opening bell amidst the selldown on the two heavyweights, namely Top Glove Corp Bhd and Hartalega Holdings Bhd. 

However, it regained the lost ground soon after, when investors started to snap up banking stocks, which carry the most weightage on the KLCI, as well as casino operator Genting Malaysia Bhd and its parent Genting Bhd.  

On the broader market, share prices were mixed. There were 675 gainers versus 510 losers, while 502 counters were unchanged.

Across Bursa Malaysia, the brisk trading saw the total volume surged to 12.31 billion units worth RM8.45 billion, from 11.71 billion units worth RM4.62 billion recorded yesterday.  

The daily trading volume of 12.31 billion is the highest since Aug 27, when 13.7 billion shares changed hands, while the turnover of RM8.45 billion is the highest since Aug 7, when RM9.7 billion was recorded. 

Malacca Securities Sdn Bhd head of research Loui Low told theedgemarkets.com that the uptrend in the market today was mainly related to positive developments on the Covid-19 vaccine.

He said industries that were previously badly affected by Covid-19 have seen their fortunes reversed today, including aviation and bank counters — which are often seen as a proxy for the economy — as investors hope for possible economic recovery play when viable vaccines are imminent.  

Among KLCI-linked banking stocks, Public Bank Bhd led the gain, surging RM1.90 or 12.42% to RM17.20. It was followed by RHB Bank Bhd, which shot up 47 sen or 10.73% to RM4.85, and CIMB Group Holdings Bhd, which jumped 32 sen or 10.46% to RM3.38.

Hong Leong Bank Bhd rose RM1.48 or 10.07% to RM16.18, Malayan Banking Bhd climbed 54 sen or 7.58% to RM7.66, and Hong Leong Financial Group Bhd gained 56 sen or 3.85% to RM15.10.

Genting closed up 61 sen or 20.4% at RM3.60 while Genting Malaysia soared 26 sen or 12.3% to RM2.38.

Malaysia Airports Holdings Bhd was also among top gainers today. The airport operator climbed 89 sen or 20.55% to RM5.22. 

Meanwhile, aviation counters AirAsia X Bhd (AAX) and AirAsia Group Bhd were on the top active list. AAX went up 2.5 sen to 6.5 sen while AirAsia soared 14.5 sen or 27% to 68 sen.

AT Systematization Bhd topped the most actively traded list again. However, its trading volume shrank to 1.67 billion shares compared with 2.66 billion yesterday. Its share price closed lower at 19 sen, down 2.5 sen, as glove-related counters were under selling pressure today. 

The latest news that Pfizer might be able to start vaccine production next year has prompted investors to take profit on glove stocks. Hartalega shed 13.8% or RM2.52 to RM15.70.

Kossan Rubber Industries Bhd slid 92 sen or 12.3% to RM6.58, Supermax Corp Bhd dropped 80 sen or 8.31% to RM8.83 while Top Glove fell 68 sen or 8.02% to RM7.80.

 

Source: The Edge

Market Daily Report: KLCI ends higher, Bursa volume tops 11.7 billion securities as global stocks cheer Biden win

 

KUALA LUMPUR (Nov 9): The FBM KLCI closed 4.68 points or 0.31% higher at 1,524.32 today with global stock indices while trading volume across Bursa Malaysia rose to 11.71 billion securities as US President-elect Joe Biden's election victory supported global stock market sentiment.

Across Bursa at 5pm, 11.71 billion securities worth RM4.62 billion were traded as Malaysian markets also took cue today from the Budget 2021 announcement last Friday.

Today TA Securities Holdings Bhd analysts wrote in a note: "With multiple buy signals triggered on momentum and trend indicators due to last week's strong sessions, the KLCI should enjoy further upside room this week, as optimism over economic growth increases with the Budget 2021 proposals likely to enhance recovery potential. On the external front, markets are rallying on hopes Democrat candidate Biden will eventually become the new US president, fuelling global recovery optimism as he should prove less combative and more accommodative towards China and other major economies, and hence reduce global trade frictions."

Globally, it was reported that shares surged, oil prices jumped and the US dollar remained weak today as expectations of fewer regulatory reforms and more monetary stimulus under US President-elect Biden supported risk appetite.

It was reported that the Democratic candidate's election victory was already largely priced in by markets, which had been trading with the view of a Biden presidency and a Republican-controlled US Senate since last week.

It was reported that although Biden clinched enough states to win the presidency, incumbent President Donald Trump has not conceded and is making legal challenges to the outcome of the Nov 3 election.

On Bursa today, the KLCI opened higher in the morning before falling in the afternoon. The index, however, closed higher at 5pm after erasing losses in the final trading hour.

MIDF Amanah Investment Bank Bhd research head Imran Yassin Yusof told theedgemarkets.com today the KLCI finished higher in line with Asian stock indices.

Across Bursa, trading volume rose to 11.71 billion securities today from 7.67 billion units last Friday when the KLCI ended up 18.15 points or 1.21% at 1,519.64 as Finance Minister Tengku Datuk Seri Zafrul Aziz tabled Budget 2021 in Parliament on that day.

"[During] the last 15 minutes, last-minute buying was seen [in the KLCI]," Imran said.

Today, notable stocks included top-active entity AT Systematization Bhd after the stock registered a trading volume at some 2.66 billion shares.

AT Systematization's share price closed up 8.5 sen or 65.38% at 21.5 sen.

 

Source: The Edge

Market Daily Report: FBM KLCI ends at three-week high of 1,519.64 points as Budget 2021 spurs optimism

 

KUALA LUMPUR (Nov 6): The FBM KLCI closed 18.15 points or 1.21% higher, making it the third consecutive day of gains, as investors evaluate Malaysia's Budget 2021 announcement while awaiting the results of the US Presidential election.

At 5pm, the local benchmark index closed at an intraday high of 1,519.64 points — a three-week high.

Despite opening lower today, the FBM KLCI managed to quickly rebound strongly and was traded in the positive territory for most of the trading day.

Malacca Securities Sdn Bhd head of research Loui Low told theedgemarkets.com that investors are buying and looking ahead to what is expected in the Budget 2021 this afternoon, adding that everyone is looking for recovery play next year. Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz is currently tabling Budget 2021 in Parliament.

In a note today, TA Securities Holdings Bhd wrote that the immediate index upside hurdles are revised higher to the 50-day and 100-day moving averages at 1,508 and 1,534 respectively, with the subsequent hurdle from the upper Bollinger band at 1,541.

Immediate support now, on the other hand, is reset to the 200-day moving average at 1,490, followed by the rising 10-day moving average at 1,484.

The research firm also noted that democrat candidate Joe Biden looks increasingly certain to win the US presidential election, which in turn, improves economic recovery hopes amid lessening global trade tensions.

Today, Bursa Malaysia saw 7.67 billion shares worth RM4.67 billion traded. Gainers outpaced laggards at 624 versus 469, while 436 counters remained unchanged.

Among the 30 constituents, more than two-thirds were making positive gains. Axiata Group Bhd led the pack as the biggest winner and was 4.92% or 15 sen higher to close at RM3.20.

This was followed by Hap Seng Consolidated Bhd that was up 4.61% or 35 sen at RM7.95 and PPB Group Bhd that grew 3.24% or 60 sen to close at RM19.10.

Across Asia, Japan’s Nikkei 225 increased 0.91%, South Korea's Kospi rose 0.11% while Hong Kong’s Hang Seng was up 0.07%.

Reuters reported global stocks eyed an all-time peak while the dollar and US bond yields stayed sluggish on Friday on hopes that a divided US legislature would hinder large government borrowing, which could pave the way for even more central bank stimulus.

Meanwhile, investors expect Democrat Joe Biden to beat President Donald Trump and the Republicans to retain control of the Senate, allowing them to block Democrat policies such as corporate tax hikes and debt-funded spending on infrastructure, said Reuters.

“With the prospects of fiscal stimulus constrained by a likely gridlock in Washington, monetary policy will likely have to do heavy lifting, boosting risk assets and putting pressure on the dollar,” said Hiroshi Watanabe, economist at Sony Financial Holdings was reported saying.

The newswire wrote that a sense that a Biden presidency will be more predictable than Trump’s is also underpinning risk sentiment, even though investors saw no quick rapprochement between Washington and Beijing on trade and other issues.

 

 

Source: The Edge

Market Daily Report: KLCI up 36.88 points, Bursa gainers top 1,000 on US election, Budget 2021 bets

 

KUALA LUMPUR (Nov 5): The FBM KLCI closed 36.88 points or 2.52% higher at 1,501.49 while Bursa Malaysia’s indices for technology stocks and small market capitalisation (small cap) companies rose by a larger quantum as investors speculated on the outcome of the closely-watched US presidential election and as they looked ahead to the tabling of Malaysia’s Budget 2021 tomorrow. There were more than 1,000 gainers across Bursa today.

At 5pm today, the KLCI closed at its intraday high while Bursa’s Technology Index ended up 5.36% to become the largest-percentage gainer among the exchange’s indices. The Small Cap Index finished up 4.01%.

Bursa saw 6.92 billion securities worth RM3.89 billion traded across the exchange. There were 1,096 gainers versus 204 decliners as global stock markets rose ahead of a conclusive outcome from the US presidential election.

It was reported that stocks and currencies in Asia's emerging markets rose on Thursday as Democrat Joe Biden pulled ahead of Republican rival Donald Trump and was within striking distance of clinching a nail-biting US presidential election. 

It was reported that the Democratic candidate is widely seen as likely to be less combative on trade policy and in relations with the region's growth engine China, and investors hope that it may clear the way for Asia's stronger recovery from the coronavirus crisis. 

"Biden is a seasoned politician and will revert the United States to a trajectory of more conventional foreign policies and geopolitical manoeuvring, which is somewhat good for China and emerging economies at large,” Reuters quoted Mahesh Sethuraman, country head of global sales trading at Saxo Capital Markets, Singapore as saying.

In Malaysia, MIDF Amanah Investment Bank Bhd research head Imran Yassin Yusof told theedgemarkets.com today that "investor sentiment has improved on a possible Biden win."

Imran said that a Biden win is expected to reduce market uncertainties as Biden will likely be less confrontational on global trade affairs.

Meanwhile, Malaysia’s Budget 2021 is also a crucial highlight this event-heavy week which also saw Bank Negara Malaysia maintaining the Overnight Policy Rate at 1.75% on Tuesday (Nov 3).

Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said Budget 2021 is not the usual scheme as announced in previous years because the Budget this time involves a combination of solutions to support citizens’ livelihoods and the country’s economic growth as it fights against the COVID-19 pandemic.

Harian Metro quoted Tengku Zafrul as saying in an interview that Budget 2021, to be tabled by him in Parliament at 4pm tomorrow (Nov 6), will have to strike a balance between supporting the people’s livelihoods and the country’s economic growth.

Across Bursa today, top gainers included semiconductor manufacturers Malaysian Pacific Industries Bhd (MPI) and Unisem (M) Bhd after their share prices rose to record intraday highs at RM24.28 and RM6.16 respectively.

Both Bursa Technology index constituents pared gains when markets closed. At 5pm, leading gainer MPI ended at RM24.10 while Unisem finished at RM6.11 as investors took cue from US stocks' overnight performance.

Reuters reported that US growth stocks, currently comprising a large portion of names in areas such as tech, surged 4.31% as investors expected them to keep outperforming value stocks as they have in recent months.

It was reported that value names, which closed flat, are currently comprised of mostly cyclical stocks such as banks and energy.

 

Source: The Edge

Market Daily Report: KLCI snaps 4-day losing streak as investors weigh BNM rate decision, US election whipsaws stocks

 

 KUALA LUMPUR (Nov 4): The FBM KLCI closed 3.16 points or 0.22% higher at 1,464.61 today after declining for four consecutive trading days as investors weighed Bank Negara Malaysia’s (BNM) latest interest rate decision while waiting for the outcome of the US presidential election.

At 5pm, Bursa Malaysia saw 7.3 billion securities worth RM3.36 billion traded across the exchange.

Gainers outpaced decliners at 702 to 377 respectively after broad-based buying across Bursa today as retail investors were seen returning to the local share market after BNM maintained the Overnight Policy Rate (OPR) at 1.75% yesterday.

It was reported that BNM decided to maintain the OPR as Malaysia’s economic activity is projected to improve further and as the central bank expects the nation’s underlying inflation to remain subdued as the world economy contends with the resurgence in Covid-19 cases.

Today, analysts said BNM’s view on Malaysia’s economic outlook is deemed sanguine. TA Securities Holdings Bhd senior technical analyst Stephen Soo said investor sentiment has improved after BNM’s sanguine view on the country’s economic outlook.

"So far, the (share trade) volume is quite strong as retailers are coming back strongly,” Soo told theedgemarkets.com as world markets took a cue from the US presidential election.

Globally, it was reported that share markets were whipsawed and bonds well bid on Wednesday as results from the US presidential election proved far closer than polls had predicted, potentially leaving the outcome in doubt for days to come.

"US equity futures went on a wild ride, rising then falling, only to climb again as the voting seemed to favour (US President Donald) Trump,” Reuters reported.

It was reported that Democratic contender Joe Biden took to the air to declare he was still optimistic about winning and called for all votes to be counted, no matter how long it took.

Across Bursa today, top gainers included Pharmaniaga Bhd and Duopharma Biotech Bhd after these companies’ share prices jumped in the final trading hour in an apparent response to news that Malaysia is in the final stages of negotiations to participate in the Covid-19 Global Vaccine Access (COVAX) Facility.

Bernama, quoting Science, Technology and Innovation Minister Khairy Jamaluddin, reported that the ceiling price set for the Covid-19 vaccine offered to Malaysia under the COVAX Facility is US$21 (RM87.50) each.

“We hope to sign the participation in COVAX soon. However, COVAX would only provide the country a portion of the required supply and the bigger part of this procurement process will be achieved via two-way negotiations with other countries or companies,” Khairy said in Parliament today.

On Bursa, Pharmaniaga’s share price closed up 28 sen or 5.74% at RM5.16 while Duopharma rose 26 sen or 7.01% to RM3.97. 

 

Source: The Edge

Market Daily Report: KLCI down, small caps up after BNM rate decision, ahead of US presidential election

 

KUALA LUMPUR (Nov 3): The FBM KLCI closed down 5.01 points or 0.34% at 1,461.45 today while Bursa Malaysia’s index for small market capitalisation (small cap) stocks rose 2.21% as investors weighed Bank Negara Malaysia’s (BNM) decision to maintain interest rates during an event-heavy week, which will see markets bracing for Malaysia’s Budget 2021 announcement besides the US presidential election.

It was reported that BNM decided to maintain the Overnight Policy Rate at 1.75% today as Malaysia’s economic activity is projected to improve further and as the central bank expects the nation’s underlying inflation to remain subdued as the world economy contends with the resurgence in Covid-19 cases.

Investors will also closely watch the US presidential election today as they anticipate Malaysia’s Budget 2021 announcement on Friday (Nov 6).

Today, Rakuten Trade Sdn Bhd research vice president Vincent Lau said "investors are still staying on the sidelines, as they turned cautious" ahead of the US presidential election today (Nov 3), as well as Malaysia’s Budget 2021 announcement on Friday.

CGS-CIMB Securities Sdn Bhd economists Michelle Chia and Lim Yee Ping wrote in a note today that BNM’s decision was against CGS-CIMB's expectations, "implying BNM’s inclination to look past near-term risks to economic recovery, drawing a line on further rate cuts."

"Market attention next shifts to Budget 2021 on 6 Nov, which is expected to provide the next leg of stimulus for economic recovery,” Chia and Lim said.

Today, Bursa saw 6.45 billion securities worth RM3.31 billion traded across the exchange. Gainers outpaced decliners at 669 to 384 respectively.

At a glance, notable decliners included KLCI constituents PPB Group Bhd and Sime Darby Bhd.

PPB’s share price closed down 14 sen or 0.76% at RM18.36, while Sime Darby Bhd ended 13 sen or 5.24% lower at RM2.35.

Globally, it was reported that world share markets rose as investors predict the outcome of the closely-watched US presidential election.

Meanwhile, President Donald Trump and Democratic rival Joe Biden made a last-ditch push for votes in battleground states, as their campaigns prepared for post-election disputes that could prolong a divisive presidential election.

European stock markets rose in early trading on Tuesday, as investors bet on a clear win for Biden as the United States votes-in its most polarised presidential election in living memory. 

Asian shares got off to a strong start on Tuesday, with investors buoyed by strong factory output data from major economies, while the dollar and gold held ground on political uncertainty ahead of the US elections.

"Markets are pricing for a Biden win, certainly a clear outcome, and they want a clear and uncontested outcome," Michael Hewson, chief market analyst at CMC Markets, was quoted by Reuters as saying.

A shock Trump win, a contested result or just a divided outcome could all trigger corrections in markets, Hewson said.

 

Source: The Edge

Market Daily Report: KLCI flat after choppy trade ahead of BNM rate decision, US presidential election

 

KUALA LUMPUR (Nov 2): The FBM KLCI closed down 0.43 point or 0.03% at 1,466.46 after choppy trades in the final hour amid a confluence of factors including the rising number of Covid-19 infections globally and lower crude oil prices ahead of an event-heavy week, which will see investors bracing for Bank Negara Malaysia’s (BNM) interest rate decision and Malaysia’s Budget 2021 announcement besides the US presidential election.

BNM is scheduled to deliver its final monetary policy decision for 2020 tomorrow, the same day the US presidential election will take place.

On Friday (Nov 6), the Malaysian government is scheduled to table the country’s Budget 2021 in Parliament.

"There is another rumour on the windfall tax on the glove sector, and hence, it has been driving the sector lower, which contributed to the lower KLCI position," Malacca Securities Sdn Bhd head of research Loui Low told theedgemarkets.com.

Earlier today, TA Securities Holdings Bhd analysts wrote in a note: "Following last Friday's sell-off to a fresh five-month low, technical trend indicators for the KLCI turned decisively bearish, which could accelerate losses despite momentum indicators registering more oversold conditions. Hence, any oversold rebound attempts this week may prove fleeting, moreover given slumping oil prices amid surging Covid-19 cases worldwide dampening the global growth outlook, ambiguity over the US presidential elections outcome, concerns over an interest rate cut pressuring banking shares and domestic political uncertainties ahead of the keenly awaited Budget 2021 tabling this Friday."

Across Bursa Malaysia at 5pm today, 5.94 billion securities were traded for RM3.29 billion. There were 688 decliners versus 365 gainers.

The KLCI ended lower after falling to its intraday low of 1,452.13. At a glance, the 30-constitiuent KLCI, which mostly traded in the negative territory today, rose to its intraday high of 1,468.09 amid choppy trades between 4pm and 5pm.

The KLCI cut losses at 5pm after Asian equity indices closed higher. It was reported that Asian shares bounced off one-month lows today, helped by Chinese factory activity expanding at its fastest pace in a decade, while oil prices skidded as many Western countries slid back into coronavirus-driven lockdowns.

It was reported that a major risk event this week is the US presidential election tomorrow with Republican President Donald Trump trailing Democratic challenger Joe Biden in national opinion polls.

"Polls in the most competitive states that will decide the election have, however, shown a closer race, still favouring Biden. MSCI's broadest index of Asia-Pacific shares outside Japan climbed 0.36%, as China's Caixin/Markit Manufacturing Purchasing Managers' Index offered hope the region's success in containing the coronavirus could spare it the economic pain being inflicted on Europe and the United States.

"The mood in Europe was downbeat with many countries in the region battling new Covid-19 infections and slipping back into virus lockdowns.

"Oil prices fell 4% on Monday on worries that widening coronavirus lockdowns in Europe would weaken fuel demand and amid concerns about turbulence over this week's US presidential election. Brent crude futures for January dropped US$1.49, or 3.9%, to US$36.45 a barrel by 0745 GMT, while US West Texas Intermediate futures fell US$1.58, or 4.4%, to US$34.21," Reuters reported.

Global crude oil price sentiment hit Bursa-listed oil and gas-related shares. Bursa's Energy index, which tracks share prices in these companies, closed down 2.42% to become the largest percentage decliner among Bursa gauges, folllowed by the Healthcare index's 1.87% drop.

Rubber glove manufacturers are constituents of the Healthcare index, which includes pharmaceutical companies and hospital operators.

Across Bursa, notable decliners included glove manufacturer Supermax Corp Bhd and plantation-related company PPB Group Bhd.

Supermax's share price closed down 56 sen or 5.91% at RM8.91 while PPB ended 30 sen or 1.6% lower at RM18.50.

 

Source: The Edge