Market Daily Report: FBM KLCI retreats on glove, banking share selling pressure

 

KUALA LUMPUR (March 30): The FBM KLCI finished down 2.09 points or 0.13% at 1,609.19 today, as investors weighed global news including the US Customs and Border Protection’s (CBP) directive to its personnel at all US ports of entry to begin seizing disposable gloves produced in Malaysia by Top Glove Corp Bhd, besides updates on Archegos Capital's equity derivative default, which hit international banking stocks overnight.

Today, sentiment from the CBP’s directive to its personnel to begin seizing gloves produced by Top Glove over forced labour allegations appeared to have impacted share prices of rival glove manufacturers including  Supermax Corp Bhd and Hartalega Holdings Bhd.

Rakuten Trade Sdn Bhd head of equity sales Vincent Lau told theedgemarkets.com today that the "decline in share prices of rubber glove manufacturers could be due to sentiment from the news on the CBP’s directive involving Top Glove”.

Top Glove, Hartalega and Supermax, which are constituents of the 30-stock KLCI, are also members of Bursa Malaysia’s Health Care Index, which closed down 1.11%.

Meanwhile, Archegos Capital's equity derivative default, which hit international banking stocks overnight, appeared to have influenced sentiment on the broader global stock market today.

It was reported that Nomura and Credit Suisse are facing billions of dollars in losses after sources revealed that Archegos Capital defaulted on margin calls, putting investors on edge about who else might have been caught out.

According to news reports, Nomura shares were down a further 1.1% Tuesday after dropping as much as 16% on Monday, when it revealed it could take a US$2 billion loss from the hedge fund fallout.

"From a market perspective with contagion looking limited ... despite the news flow of further forced liquidations and prime brokerage losses, this looks at this stage to be a positioning-driven sell-off in US futures and various single stock names,” Reuters quoted Eleanor Creagh, market strategist at Saxo Bank, as saying.

Across Bursa today, 5.78 billion shares valued at RM3.59 billion were traded. There were 649 decliners versus 414 gainers.

Top decliners included Top Glove, which closed down 27 sen or 5.35% at RM4.78, while Supermax fell 17 sen or 4.13% to RM3.95.

Notable decliners included Hong Leong Financial Group Bhd after the stock’s price finished down 38 sen or 2.1% at RM17.68.

Meanwhile, most-active stocks included newly-listed Flexidynamic Holdings Bhd after the glove chlorination specialist registered a share trade volume of about 108 million shares on its ACE Market debut.

Flexidynamic, which was listed at 20 sen a share, closed up at 43 sen after the stock was traded between 72 sen and 41.5 sen today.

Globally, investors also took a cue from the impact of a strengthening US dollar on Asian currencies besides the results of FTSE Russell's semi-annual country classification review for fixed income and equities.

It was reported that Asia's emerging currencies buckled under a firmer US dollar today after US bond yields set a new 14-month high, while stock markets in Indonesia and the Philippines fell around 1%.

Meanwhile, it was reported that the yield on 10-year Malaysian bonds fell 4.3 basis points to 3.292% — their lowest in more than two weeks — after FTSE Russell removed the country from its watch list and officially retained it in its flagship government bond index. 

"This is a much welcome relief, and will allow investors to re-focus on other external drivers,” Reuters quoted HSBC as saying.

 

 

Source: The Edge

Market Daily Report: KLCI ends with 0.6% gain, sentiment boosted by export numbers

 

KUALA LUMPUR (March 29): After remaining range bound in cautious trading, the FBM KLCI recovered to close at the day's high following the announcement of Malaysia's higher trade surplus in February.

The index finished 9.86 points or 0.62% higher at 1,611.28, boosted by gains in Axiata Group Bhd, Petronas Gas Bhd and Hong Leong Financial Group Bhd.

Areca Capital CEO Danny Wong said the index was generally on the uptrend, despite the bumps earlier in the session.

“What could have also impacted the sentiment today is the better year-on-year trading data," he said, adding that the local market was also taking a cue from the higher opening in Europe.

Top actives were Berjaya Corp Bhd, Macpie Bhd and Widad Group Bhd, while top gainers today were Malaysian Pacific Industries Bhd, Fraser & Neave Holdings Bhd and Hong Leong Financial Group Bhd. Meanwhile, the top losers were Nestle (Malaysia) Bhd, Cheetah Holdings Bhd and Heineken Malaysia Bhd.

The government announced that Malaysia’s February exports jumped 17.6% year on year to RM87.57 billion, which is the strongest growth since October 2018. This growth was underpinned by higher shipments of electrical and electronic (E&E) products, rubber products and commodity-based products

The country’s trade in February expanded 15.4% year on year to RM157.27 billion, while imports grew 12.7% to RM69.7 billion.

Elsewhere in Asia, markets were mostly up today. The Nikkei 225 in Tokyo rose 0.71% to 29,384.52, Hong Kong's Hang Seng Index gained 0.01% or 1.87 points to 29,338.3, and the Shanghai Composite was up 0.5% or 16.97 points at 2,435.3.

Seoul's Kospi however finished 0.16% or 4.97 points lower at 3,036.04.

Reuters said Asian emerging stock markets’ gains were clipped by US futures falling late into the trading day.

 

Source: The Edge

Market Daily Report: Late buying pushes KLCI up 0.23% today but down 1.52% for the week

 

KUALA LUMPUR (March 26): Late buying before the closing bell lifted the FBM KLCI by 0.23% today amid positive regional sentiment.

On a week-on-week basis, the KLCI, however, shed 1.52% against last week’s closing at 1,626.19.

Today, the benchmark index went up 3.69 points to 1,601.42, from 1,597.73 at yesterday’s close, supported by gains among selective component stocks, such as Digi.Com Bhd, Genting Malaysia Bhd (GenM) and Petronas Gas Bhd (PetGas).

The index opened slightly higher at 1,598.74 today, and traded between 1,593.24 and 1,603.01.

Remisier Jeffry Azizi Jaafar told The Edge he observed that foreign investors returned to the local bourse today.

Across Bursa, trading volume stood at 5.96 billion shares, valued at about RM3.24 billion. Sentiment was positive with gainers outnumbering losers by 695 versus 346, while 460 counters were unchanged.

Gainers by value included Malaysian Pacific Industries Bhd, Nestle (Malaysia) Bhd, Heineken Malaysia Bhd, KESM Industries Bhd, BLD Plantation Bhd, Seni Jaya Corp Bhd, Rapid Synergy Bhd, Pineapple Resources Bhd and MSM Malaysia Holdings Bhd.

Notable losers included Petronas Dagangan Bhd (PetDag), Petronas Chemicals Group Bhd (PetChem), Gamuda Bhd and Dataprep Holdings Bhd.

Of the actively traded counters, Fintec Global Bhd topped the list with 256.51 million shares done. It closed unchanged at seven sen.

Others included Matang Bhd, Widad Group Bhd, Dagang NeXchange Bhd (DNeX), Komarkcorp Bhd, Saudee Group Bhd, G3 Global Bhd, HB Global Ltd, MMAG Holdings Bhd and KTG Bhd.

Across Asia, Japan's Nikkei 225 climbed 1.56%, while South Korea's KOSPI added 1.09%. In China, Hong Kong’s Hang Seng Index advanced 1.57%, while the Shanghai Stock Exchange Composite Index closed up 1.63%.

Reuters reported that Asian shares bounced back from a three-month low today, thanks to a late-day rally on Wall Street yesterday, as optimism about the global economic recovery was overshadowed by rising tensions between the West and China.

 

 

Source: The Edge

Market Daily Report: KLCI trails Palm Oil Plantation Index drop as crude oil prices fall

 

KUALA LUMPUR (March 25): The FBM KLCI shed 4.67 points or 0.29% to close at 1,597.73 today, while Bursa Malaysia’s Palm Oil Plantation Index fell the most at 1.67%, as crude palm oil (CPO) prices tracked lower crude oil prices.

According to analysts, investors had also weighed a confluence of factors including rumours of political uncertainty in Malaysia, besides the pullback in technology stocks.

TA Securities Holdings Bhd senior technical analyst Stephen Soo told theedgemarkets.com that the "KLCI faced a setback today, amid confluence of factors including (rumours on) Malaysia’s political uncertainty, pullback in technology stocks and lower crude oil prices."

Soo said the confluence of factors affecting Malaysian share market sentiment include concerns on "rising inflation in the US and Europe against the backdrop of economic recovery”.

Across Bursa, trading volume stood at 6.01 billion shares, valued at about RM3 billion.

Decliners led gainers by 580 to around 430, as oil palm plantation and technology-related companies ended among Bursa top decliners.

The oil palm plantation-related companies included Kuala Lumpur Kepong Bhd (KLK) and PPB Group Bhd, while  technology-related firms included Malaysian Pacific Industries Bhd (MPI) and ViTrox Corp Bhd.

KLK’s share price closed down 24 sen or 1.04% at RM22.92 while PPB fell 24 sen or 1.28% to RM18.54.

KLK and PPB, which are constituents of the 30-stock KLCI, are also included in the Palm Oil Plantation Index.

The Palm Oil Plantation Index specifically tracks share prices of companies which earn a substantial proportion of their revenue from palm oil activities.

The drop in CPO prices today in tandem with lower crude oil prices had not augured well for the Palm Oil Plantation Index constituents.

Prices of Malaysia CPO futures for April and May 2021 closed down RM56 each at RM4,164 and RM4,022 a tonne respectively on the perception that lower crude oil prices may lead to less demand for CPO to produce biodiesel.

Globally today, it was reported that crude oil prices fell more than 1% as fresh coronavirus lockdowns revived worries about demand for oil products, even as tug boats struggled to move a stranded container ship blocking crude oil carriers in the Suez Canal.

"Brent crude futures slid 77 cents, or 1.2%, to US$63.64 a barrel at 0736 GMT, after jumping 6% overnight. US West Texas Intermediate crude futures dropped by 87 cents, or 1.4%, to US$60.31 a barrel, after climbing 5.9% overnight,” Reuters reported.

On Bursa today, the pullback in technology stocks’ prices resulted in the technology index closing down 1.24%, as semiconductor-related companies including MPI and ViTrox took cue from news today on the selloff in Chinese technology shares due to concerns they will be delisted from US bourses, besides updates about a perceived semiconductor shortage globally.

MPI’s share price closed down 44 sen or 1.18% at RM36.82, while ViTrox fell 32 sen or 2.16% to RM14.48.

Meanwhile, rumours of political uncertainty in Malaysia appeared to have led to lacklustre trading interest in the local stock market.

TA Securities’ Soo said "investors are digesting political news" which includes updates on the possible collaboration between DAP and UMNO.

Last Thursday (March 18), news reports quoting DAP national organising secretary Anthony Loke, indicated that DAP is not ruling out the  possibility of cooperating with other political parties such as Umno.

It was however reported that the topic has yet to be discussed within the framework of Pakatan Harapan.

 

 

Source: The Edge

Market Daily Report: KLCI snaps three-day losing streak, swings back to 1,600 level amid bargain hunting

 

 

KUALA LUMPUR (March 24): The FBM KLCI snapped its three-day losing streak as investors jumped in to scoop up battered stocks and sent the benchmark index solidly above the key 1,600 level.

At 5pm, the FBM KLCI was up 7.11 points or 0.45% to 1,602.24. Earlier, the index opened 3.63 points lower at 1,591.66 against yesterday’s closing of 1,595.29.

On the broader market, turnover was at 6.95 billion shares worth RM3.52 billion, lower compared to yesterday’s trading volume of 7.05 billion shares worth RM4.05 billion.

However, sentiment was mixed with losers leading gainers by 631 to 435, while 482 counters remained unchanged.

Rakuten Trade Research head of equity sales Vincent Lau told theedgemarkets.com that the FBM KLCI closed in positive territory today mainly due to bargain hunting following three consecutive days of sell-off since last Friday (March 19).

He also noted that the sentiment has improved from yesterday, which saw 860 counters in the red.

Notable gainers included Nestle (M) Bhd (up RM1.40 or 1.03% to RM137), Hong Leong Financial Group Bhd (up 18 sen or 1.06% to RM17.24) and Petronas Chemicals Group Bhd (up 15 sen or 1.89% to RM8.07).

Other top gainers by value included BLD Plantations Bhd, Fraser and Neave Holdings Bhd, Dutch Lady Milk Industries Bhd and Rapid Synergy Bhd.

Meanwhile, Panasonic Manufacturing (M) Bhd topped the losers list, after it closed down 42 sen or 1.34% to RM30.94.

Other notable losers by value included Carlsberg Brewery (M) Bhd, Hong Leong Bank Bhd and Bursa Malaysia Bhd.

Of the actives, MMAG Holdings Bhd, a company engaged in offering information and communication technologies solutions, was ranked the most actively traded stock, with 352.69 million shares traded. It closed down 10.5 sen or 21.21%.

Other top actives were Dagang NeXchange Bhd, Green Ocean Corp Bhd, South Malaysia Industries Bhd, Saudee Group Bhd, Yong Tai Bhd, Berjaya Corp Bhd and Sapura Energy Bhd.

Across Asia, Japan's Nikkei 225 skid 2.04% while South Korea's Kospi fell 0.28%. In China, Hong Kong’s Hang Seng plunged 2.03% while the Shanghai Stock Exchange Composite Index closed down 1.3%.

Bloomberg reported that Asian stocks and European equity futures declined Wednesday after setbacks to the recovery from the pandemic weighed on US shares and crude oil, and drove haven trades into Treasuries and the US dollar.

 

Source: The Edge

Market Daily Report: FBM KLCI closes below 1,600-level as broader market mirrors global uncertainty

 

KUALA LUMPUR (March 23): The FBM KLCI plunged 21.44 points or 1.33% after trading downwards today, as the market reflected the rest of the broader region which was in negative territory on dampened risk appetite.

At 5pm, the benchmark index closed at 1,595.29. It had earlier traded at a high of 1,616.78. Losers led gainers by 860 to 315 with 420 unchanged. Trading volume stood at 7.05 billion shares worth RM4.05 billion.

Remisier Jeffry Azizi Jaafar noted all sectors were in the red except for technology stocks, as the semiconductor counters had staged a rebound.

He said Bursa Malaysia’s heavy correction today was due to several factors including the uncertainty in global markets after the Turkish lira plunged, following the firing of Turkey’s central bank chief Naci Agbal.

“Bursa Malaysia and other Asian markets reacted negatively towards this issue,” he told theedgemarkets.com, adding that IHH Healthcare Bhd and Malaysia Airports Holdings Bhd have business operations there.

Meanwhile, he said foreign investor selling pressure has returned after they became net buyers in the previous weeks.

According to Reuters, Japanese shares snapped early gains to end lower on Tuesday, tracking lacklustre performance in Chinese markets as investors locked in profit on a recent rally in some mainland firms, while the volatility of US bond yields also dampened risk appetite.

It added that most regional currencies weakened as the US dollar steadied ahead of a Congressional testimony by US Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen later in the day.

Japan’s Nikkei 225 index fell 0.61%, while South Korea’s Kospi composite index dropped 1.01%. In China, the Hang Seng declined 1.34% and the Shanghai composite index dipped 0.93%.

 

Source: The Edge

Market Daily Report: FBM KLCI closes at intraday-low of 1,616.73 amid cautious trading

 

KUALA LUMPUR (March 22): The FBM KLCI closed at its intraday low of 1,616.73 today, as investors turned cautious amid muted trading in regional markets.

At 5pm, the benchmark index closed 9.46 points lower, down 0.58% lower from Friday (March 19)'s close of 1,626.19. It earlier opened 2.28 points higher at 1,628.47, its intraday high.

Market breadth was negative, with losers outpacing gainers 746 to 387, while 425 counters were unchanged. Turnover stood at 7.57 billion shares worth RM3.87 billion. Trading value was 33.16% lower than the RM5.79 billion recorded on Friday, while trading volume has shrunk 16.26% from 9.04 billion.

Of the 30 component stocks, 22 closed lower, while seven closed higher and one was unchanged. Sime Darby Bhd led the fall among the component stocks, sliding 13 sen or 5.16% to RM2.39, followed by IHH Healthcare Bhd (fell 17 sen or 3.1% to RM5.31) and Genting Bhd (declined 17 sen or 3.07% to RM5.36).

Malacca Securities Sdn Bhd head of research Loui Low told The Edge that investors on Bursa slipped into cautious mode today, as they monitor developments in the US bond yields.

Locally, investors are also waiting for more concrete news on the upcoming general elections, after Prime Minister Tan Sri Muhyiddin Yassin reiterated earlier this month that the polls will be called as soon as the country is out of the woods from the Covid-19 pandemic, he said.

On Bursa, Dataprep Holdings Bhd topped the top losers (by value) list, falling 75 sen or 30% to RM1.75, after 47.86 million shares were done. Other notable losers included Malaysian Pacific Industries Bhd (MPI), Vitrox Corp Bhd, Chin Tek Plantation Bhd, Kuala Lumpur Kepong Bhd, Nestle (M) Bhd and Malaysia Airports Holdings Bhd (MAHB).

Notable gainers included Tenaga Nasional Bhd, Petronas Dagangan Bhd and Press Metal Aluminium Holdings Bhd.

Meanwhile, Macpie Bhd, which fell 4.5 sen or 8.11% to close at 51 sen, again topped the actives list with 350.86 million shares traded. On Friday, the stock surged 26 sen or 88.14% to close at 55.5 sen. Widad Group Bhd, Dagang NeXchange Bhd and Scomi Bhd also remained on the actives' list.

Across Asia, Japan's Nikkei 225 fell 2.07%, while South Korea's Kospi dropped 0.13%. In China, Hong Kong’s Hang Seng skidded 0.36%, while the Shanghai Stock Exchange Composite Index closed up 1.14%.

Reuters reported Asian stocks turned mixed and bonds bounced on Monday, as a plunge in the Turkish lira sparked talk that capital controls might be needed to stem the rout, though the wider fallout has been relatively restrained.

 

 

Source: The Edge

Market Daily Report: KLCI down in line with regional weakness following Wall Street drop

 

KUALA LUMPUR (March 19): The FBM KLCI closed lower today in line with the weak regional performance following the overnight loss on Wall Street.

The benchmark index fell to as low as 1,615.16 before recovering — thanks mainly to a late surge in selective component stocks such as Sime Darby Bhd, Top Glove Corp Bhd, Maxis Bhd and IHH Healthcare Bhd — to close at 1.626.19, down 1.8 points or 0.11% from yesterday.

MIDF head of research Imran Yassin Md Yusof said market sentiment was affected by the downtrend in regional markets.

“The local market's weak performance today is a reflection of its regional peers, as the negative sentiments were a spillover from the drop in the US overnight stock market due to rising bond yields,” he said when contacted.

Market breadth was negative with losers thumping gainers 787 to 347, while 417 counters finished unchanged.

Total volume was 9.04 billion units worth RM5.79 billion, compared with 9.16 billion units worth RM4.84 billion yesterday.

Top losers included Nestle (M) Bhd, Fraser & Neave Holdings Bhd, Dataprep Holdings Bhd, Heineken (M) Bhd, Malaysian Pacific Industries Bhd, KESM Industries Bhd and Press Metal Aluminium Holdings Bhd

Gainers were led by Kuala Lumpur Kepong Bhd, Vitrox Corp Bhd, Kumpulan H&L High-Tech Bhd and Cycle & Carriage Bintang Bhd.

Macpie Bhd topped the active list with 300.08 million shares traded. It rose 26 sen or 88.14% to close at 55.5 sen.

Other active stocks included Widad Group Bhd, Borneo Oil Bhd, Cuscapi Bhd, G3 Global Bhd and Dagang NeXchange Bhd.

Across Asia, Japan's Nikkei 225 fell 1.41% while South Korea's Kospi dropped 0.86%. Hong Kong’s Hang Seng declined 1.41% while the Shanghai Stock Exchange Composite Index fell 1.69%

Reuters reported that Asian share markets slipped today after a spike in global bond yields soured sentiment towards richly priced tech stocks, while a stampede out of crowded positions may have put an end to the bull run in crude oil.

 

 

Source: The Edge

Market Daily Report: KLCI tracks regional peers to rise 0.19% amid gains in tech stocks

 

KUALA LUMPUR (March 18): The FBM KLCI closed slightly higher today in line with regional advances after the US Federal Reserve (Fed) decided to maintain its interest rates.

The benchmark index closed 0.19% higher or 3.02 points up at 1,627.99 after staying in positive territory for the entire trading session.

Areca Capital Sdn Bhd chief executive officer (CEO) Danny Wong Teck Meng said the KLCI’s rise was also due to a rebound in technology stocks on bargain hunting and buying interest in recovery-themed play stocks, including in the banking and gaming sectors.

“Foreign funds which made a comeback to the local bourse since last week also contributed to the positive performance of the KLCI today,” he told The Edge.

Stocks that boosted the KLCI included Genting Bhd, Genting Malaysia Bhd (GenM) and Hap Seng Consolidated Bhd.

Gains were also seen in index-linked banking stocks, including Public Bank Bhd, CIMB Group Holdings Bhd, Malayan Banking Bhd (Maybank) and Hong Leong Financial Group Bhd (HLFG).

Bursa Malaysia’s Technology Index, which tracks share prices of semiconductor manufacturers, among others, gained the most in percentage terms, closing 2.5% higher at 84.43.

Technology counters that saw significant gains were Malaysian Pacific Industries Bhd (MPI), Unisem (M) Bhd, D&O Green Technologies Bhd, Greatech Technology Bhd and ViTrox Corp Bhd.

Glove stocks such as Top Glove Corp Bhd, Supermax Corp Bhd and Comfort Gloves Bhd, on the other hand, closed lower.

A total of 9.16 billion shares were traded on Bursa, up 27.7% compared with 12.67 billion shares yesterday. Trading value was slightly higher at RM4.84 billion versus RM4.73 billion

There were 634 gainers and 611 losers, while 415 counters were unchanged.

Datasonic Group Bhd topped the active list, with 458.35 million shares traded. It closed down eight sen or 12.5% at 56 sen.

This was followed by Pegasus Heights Bhd, LKL International Bhd,  Scomi Group Bhd, Borneo Oil Bhd and AirAsia X Bhd (AAX).

Elsewhere in Asia, Japan's Nikkei 225 rose 1.01%, while South Korea's KOSPI gained 0.61%. Hong Kong’s Hang Seng Index advanced 1.28%, while the Shanghai Stock Exchange Composite Index closed up 0.51%.

 

Source: The Edge

Market Daily Report: KLCI closes slightly higher on buying ahead of stimulus package announcement

 

KUALA LUMPUR (March 17): The FBM KLCI erased losses to close marginally higher today on last-minute buying interest ahead of the government’s announcement of a new stimulus package.

The benchmark index closed 1.01 points or 0.06% higher at 1,624.97 after having stayed in negative territory for the most part of the trading session. 

A remisier, Jeffry Azizi Jaafar, said the drop in the index earlier was due to a correction in prices following the rally in the past three weeks.

“The market saw financial, plantation and technology [stocks] fall due to a consolidation after recent strong gains on market recovery optimism, driven by the ongoing vaccination programme and a decline in daily [new] Covid-19 infections,” he told The Edge.

The market also turned cautious as investors awaited the outcome of the US Federal Reserve’s (Fed) two-day policy meeting, he added.

After the market closed, Prime Minister Tan Sri Muhyiddin Yassin announced a RM20 billion economic stimulus programme, which included a direct fiscal injection of RM11 billion.

The package, known as Pemerkasa, contained new incentives and initiatives to face the Covid-19 pandemic.

Bursa Malaysia saw 12.67 billion shares worth RM4.73 billion changing hands. There were 625 gainers, 505 losers and 448 unchanged counters.

Nestle (Malaysia) Bhd was the top gainer, adding RM1.40 to RM137.10. This was followed by British American Tobacco (Malaysia) Bhd, Panasonic Manufacturing Malaysia Bhd, G3 Global Bhd and TIME dotCom Bhd.

Toyo Ventures Holdings Bhd topped the list of losers, closing down 32 sen or 10.16% at RM2.83. Other decliners included Carlsberg Brewery Malaysia Bhd, Cymao Holdings Bhd, Rapid Synergy Bhd, Dutch Lady Milk Industries Bhd and Hap Seng Consolidated Bhd.

Pegasus Heights Bhd was the top active counter, with 1.38 billion shares traded. The counter closed unchanged at three sen.

Other active stocks included Scomi Group Bhd, Borneo Oil Bhd, Barakah Offshore Petroleum Bhd, Fintec Global Bhd and Lambo Group Bhd.

Bloomberg reported that Asian stocks weakened today as investors assessed the strength of the economic recovery against the risk of a shift in the Fed’s dovish policy projections. Benchmark Treasury yields hovered near their highest levels in over a year.

Japan's Nikkei 225 inched down 0.02%, while South Korea's KOSPI fell 0.64%. Hong Kong’s Hang Seng Index closed marginally higher by 0.02%, while the Shanghai Stock Exchange Composite Index was down 0.03%.

 

Source: The Edge

Market Daily Report: KLCI finishes up but gains limited by fresh political uncertainty rumour

 

KUALA LUMPUR (March 16): The FBM KLCI ended up 3.04 points or 0.19% at 1,623.96 today after Asian equity indices closed higher and as investors weighed speculation on Malaysia’s political uncertainty due to opposition leader Datuk Seri Anwar Ibrahim’s surprise press conference, which was scheduled at 4:30pm today.

News reports quoting Anwar said today that he dismissed queries about a possible partnership with Umno for the 15th general election. It was reported that Anwar indicated talks in this direction were still at a very early stage.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com the KLCI's gains today were not significant due to speculation on "fresh political uncertainty" in Malaysia and as the 30-stock KLCI took a cue from weakness in crude oil and crude palm oil prices.

The KLCI closed higher today after rising to its intraday high at 1,625.52 and falling to its intraday low at 1,617.92 as Asian equities tracked US stock indices overnight rise.

Today, it was reported that Asian stocks rose on Tuesday, tracking Wall Street's advance to record highs, as investors anticipated the US Federal Reserve and other central banks meeting this week will keep policies accommodative to help drive a post-pandemic global economic recovery.

In commodity markets, it was reported that crude oil prices dropped on Tuesday, extending declines to three consecutive days, as rising stockpiles in the US added to the risks to a demand recovery after countries including Germany and France halted Covid-19 vaccinations. 

"Brent crude was down 69 cents, or 1%, at US$68.19 by 0531 GMT, having dropped 0.5% on Monday. US crude was down 69 cents, or 1.1%, at US$64.70 a barrel, after declining 0.3% in the previous session,” Reuters reported.

Across Bursa Malaysia, there were 724 decliners versus 457 gainers. Trading volume stood at 11.88  billion shares worth RM5.56 billion.

 

 

Source: The Edge

Market Daily Report: KLCI finishes higher on bargain hunting, improved sentiments

 

KUALA LUMPUR (March 15): The FBM KLCI closed 0.32% higher today, amid bargain hunting after two straight days of decline seen last week.

At 5pm, the benchmark index settled at 1,620.92, up 5.23 points from last Friday’s close of 1,615.69.

Rakuten Trade Research head of equity sales Vincent Lau told theedgemarkets.com that the benchmark index closed higher after the recent sell-off attracted bargain hunters. “Sentiment has also lifted, given investors are positioning on stocks that are expected to benefit from economic recovery as the country’s daily Covid-19 cases continue to show improvement in infectivity rates,” he added.

Among the heavyweights that pushed the KLCI's climb were Maxis Bhd, Genting Bhd, Genting Malaysia Bhd, Petronas Dagangan Bhd and CIMB Group Holdings Bhd.

Across Bursa Malaysia, the brisk trading saw a total of 10.29 billion shares worth RM5.27 billion traded. There were 611 gainers versus 586 losers, while 406 counters were unchanged.

Notable gainers included Nestle (M) Bhd and Hong Leong Bank Bhd. Dataprep shares price surged to a fresh high of RM3.79 — up 63 sen or 19.94% — after announcing last Friday (March 12) that it will be providing integrated solutions technology for Covid-19 screening.

Meanwhile, technology stocks dominated the top losers (by value) list, led by Malaysian Pacific Industries Bhd, KESM Industries Bhd, Greatech Technology Bhd, ViTrox Corp Bhd and Pentamaster Corp Bhd.

Of the actives, Lambo was the most actively traded with 878.51 million shares transacted. It closed up 0.5 sen to three sen. Others included XOX Bhd, Widad Group Bhd, AirAsia X Bhd, AirAsia Group Bhd, Dagang NeXchange Bhd, Permaju Industries Bhd, UCrest Bhd and Asia Poly Holdings Bhd.

Bloomberg reported that most Asian stocks dipped along US equity futures on Monday, as liquidity concerns weighed on Chinese shares and benchmark Treasury yields traded around a one-year high.

Across Asia, South Korea's Kospi dropped 0.28% while Japan's Nikkei 225 closed up 0.17%. In China, Hong Kong’s Hang Seng rose 0.33% while the Shanghai Stock Exchange Composite Index fell 0.96%.

 

Source: The Edge

Market Daily Report: KLCI closes 0.84% or 13.72 points lower on profit taking

 

KUALA LUMPUR (March 12): The FBM KLCI continued to extend its losses today, finishing 0.84% or 13.72 points lower at 1,615.69.

According to Rakuten Trade Research head of equity sales Vincent Lau, the index was down due to profit taking ahead of the weekend amid mixed performances regionally.

Specifically, Supermax Corp Bhd, CIMB Group Holdings Bhd and Top Glove Corp Bhd posted declines today. While the FBM KLCI declined, indices such as the FBM ACE, FBM Small Cap and FBM Fledgling indices posted gains.

The FBM ACE was up 2.13% or 222.07 points higher at 10,665.19, while the Small Cap was up by 0.19% or 31.13 points at 16,806.82. Meanwhile, the Fledgling Index finished 0.77% or 164.52 points higher at 21,551.02.

On the local market, top actives included Dagang NeXchange Bhd (DNeX), EA Holdings Bhd and XOX Bhd. The top gainers were Dutch Lady Milk Industries Bhd, Malaysian Pacific Industries Bhd and Hong Leong Industries Bhd, whereas KESM Industries Bhd, Heineken Malaysia Bhd and Sarawak Oil Palms Bhd topped the list of losers.

The decline seen in the KLCI today was in line with mixed performances demonstrated by other leading bourses in the region.

While the Nikkei 225 closed 1.73% or 506.19 points higher at 29.717.83, Hong Kong's Hang Seng Index closed 2.2% or 645.89 points lower at 28.739.72. In contrast, the Shanghai Composite eked out a 0.47% or 16.25-point gain at 3,453.08.

Reuters reported that most emerging Asian stocks climbed today and were set for strong weekly gains as US stimulus measures and easing bond yields lifted sentiment.

“Global markets received a boost after US President Joe Biden signed a US$1.9 trillion (RM7.82 trillion) stimulus bill into law and as a dovish European Central Bank (ECB) meeting triggered a retreat in bond yields,” it said.

 

 

Source: The Edge

Market Daily Report: KLCI breaks four-day gaining streak on profit-taking

 

KUALA LUMPUR (March 11): The FBM KLCI closed lower today on profit-taking, after rising over the last four trading days. 

The benchmark index finished 10.42 points or 0.64% down at 1,629.41.  

Malacca Securities research head Loui Low said investors decided to take profit after recent gains. 

Component stocks that dragged the KLCI today included Petronas Dagangan Bhd, Hap Seng Consolidated Bhd and Digi.Com Bhd. 

However, while the index-linked heavyweights were down today, the FBM Small Cap and FBM ACE indices closed higher. 

The Small Cap Index was up 275.03 points or 1.67%  at 16,775.69, while the ACE Index closed 90.70 points or 0.88% higher at 10,443.12.  

A total 9.53 billion shares worth RM5.44 billion were traded on Bursa Malaysia today.  

Active counters included AirAsia X Bhd, Sauddee Group Bhd and Dagang NeXchange Bhd. 

Top gainers were Heineken Malaysia Bhd, Malaysian Pacific Industries Bhd and ViTrox Corp Bhd, while Nestle Malaysia Bhd, Petronas Dagangan and Atlan Holdings Bhd led the losers’ list.  

Elsewhere in Asia, most indices ended the day higher.

Tokyo’s Nikkei 225 rose 0.60% or 175.08 points to 29,211.64,  Hong Kong’s Hang Seng finished 1.65% or 478.09 points higher at 29.385.61. The Shanghai Composite index, however, closed 2.36% or 79.09 points lower at 3,436.83. 

Reuters reported Asian markets were mostly higher, following overnight gains on Wall Street after consumer price data for February calmed inflation fears, with the US’ Congress giving its final seal of approval for one the largest economic stimulus measures in US history.  

Investors also kept an eye on a possible improvement in US-China relations, ahead of the US secretary of state meeting with top Chinese officials on March 18, the report said.

 

 

Source: The Edge

Market Daily Report: FBM KLCI rises as recovery play gains momentum

KUALA LUMPUR (March 10): The FBM KLCI extended gains today, continuing an upward trend seen since last Friday, and settled 0.93% or 15.05 points higher at 1,639.83 on market close.

Component stocks that helped lift the index were Petronas Dagangan Bhd (PetDag), Press Metal Aluminium Holdings Bhd and Maxis Bhd.

Rakuten Trade Research head of equity sales Vincent Lau said the FBM KLCI has managed to sustain its performance above 1,600 points in the past few trading days.

“The gains seen today is broad-based. A combination of better overnight performances from US indices such as the Nasdaq and Dow Jones, lower domestic Covid-19 numbers, corporate results meeting expectations — these have all contributed to the rise. It is a confluence of different factors,” Lau said while observing that recovery play is now in vogue.

In total, some 11.01 billion shares worth RM7.2 billion were traded today. Top actives included Dagang NeXchange Bhd, Saudee Group Bhd and Puncak Niaga Holdings Bhd

Top value gainers were Nestle Malaysia Bhd, PetDag and Kobay Technology Bhd, while top value losers were Carlsberg Brewery Malaysia Bhd, ViTrox Corp Bhd and KESM Industries Bhd.

Reuters reported that most emerging Asian shares climbed today following recoveries in US and Chinese equities, as falling bond yields eased concerns about surging inflation, while the outlook for global economic recovery brightened.

“US stocks rallied overnight, recouping heavy losses from the previous session as bond yields retreated and investors scooped up battered technology stocks.

"Chinese shares also bounced back from their lows in the previous session. The country's factory gate prices rose at the fastest pace since November 2018 in February, raising hopes for robust growth in the world's second-largest economy this year.

"In a further boost to shares, the OECD said on Tuesday that the global economic outlook has brightened as Covid-19 vaccine rollouts speed up and the United States launches a new stimulus package,” it noted.

The Nikkei 225 in Japan finished 0.03% or 8.62 points higher at 29.036.56, while Hong Kong's Hang Seng was 0.35% or 100 points higher at 28,873.23. However, the Shanghai Composite slipped 0.05% or 1.55 points to 3,357.74.

 

Source: The Edge

Market Daily Report: KLCI closes higher, lifted by Top Glove, DiGi.Com and Axiata gains

 

 

KUALA LUMPUR (March 9): The FBM KLCI rose 0.8% or 12.97 points to its one-month high of 1,624.78 today, lifted by gains seen among DiGi.Com Bhd, Axiata Group Bhd and Top Glove Corp Bhd. 

Top Glove, which announced another set of record-breaking quarterly earnings earlier today, closed 2.98% or 15 sen higher at RM5.19, valuing it at RM42.57 billion. DiGi.Com shares were up 3.35% or 12 sen at RM3.70, while Axiata climbed 3.64% or 13 sen to RM3.70.

In a note today, TA Securities Research said stocks should sustain recovery momentum given the optimism over economic recovery potential, while supply cuts by OPEC+ should support the firm trend in global oil prices, therefore enhancing the uptrend in oil and gas-related stocks.

“On the index, resurgent buying momentum is crucial to overcome profit-taking resistance from 1,620, 1,640 and 1,660. Key chart supports will be the 100-day and 200-day moving averages at 1,585 and 1,558, respectively,” the research house noted.

Top actives included Jadi Imaging Holdings Bhd, Sealink International Bhd and AirAsia X Bhd. Top value gainers were led by Carlsberg Brewery Malaysia Bhd, Dataprep Holdings Bhd and KESM Industries Bhd, while among the top losers were Greatech Technology Bhd, Rapid Synergy Bhd and Complete Logistic Services Bhd.

A total of 8.12 billion shares worth RM5.91 billion were traded today.

The FBM KLCI’s performance today was broadly in line with the performances of other regional indices. Japan's Nikkei 225 was up by 0.99% or 284.69 points at 29,072.94, whereas Hong Kong's Hang Seng was 0.81% or 232.40 points higher at 28,773.23. However, the Shanghai Composite was 1.82% or 62.12 points lower at 3,359.29.

Asian stocks managed to recover from earlier losses today, following firmer US equity futures and central bank comments aimed at soothing fears about rising bond yields and inflation, according to Reuters, with a pullback in US bond yields also buoying equity markets.

“People's Bank of China Vice Governor Chen Yulu told Yicai Global that China's money supply would grow only to match GDP growth and the country's central bank did not see a need for major stimulus support in the next five years.

"NASDAQ futures bounced 1.1% and S&P 500 futures 0.73%. European futures were slightly lower, however, with EUROSTOXX 50 futures down 0.13% and FTSE futures 0.25% lower,” Reuters reported.

 

 

Source: The Edge

Market Daily Report: FBM KLCI closes 0.73% higher on gains from PetChem, GenM, Axiata

 

KUALA LUMPUR (March 8): The FBM KLCI closed 0.73% or 11.69 points higher today, driven by gains seen in Petronas Chemicals Group Bhd (PetChem), Genting Malaysia Bhd (GenM) and Axiata Group Bhd.

The benchmark index rose to 1,611.81 points at the closing bell.

PetChem was among the top gainers today, rising by 6.78% or 53 sen to RM8.35, with a market value of RM66.8 billion. Meanwhile, shares in GenM closed 4.05% or 12 sen higher at RM3.08, valuing it at RM18.29 billion with Axiata finishing the trading day 4.08% or 14 sen higher at RM3.57, translating into a market valuation of RM32.74 billion.

In a note today, TA Securities Research said the technical trend and momentum indicators for the FBM KLCI have improved significantly following last week’s rebound.

“With economic recovery plays gaining traction on reopening optimism, sectors deemed to benefit most from reopening of the domestic economy such as banking, gaming, property, oil and gas, and transportation should continue to perform well.

“On the index, further strength above immediate overhead resistance from the 50-day moving average at 1,600 will aid upside to tougher hurdles coming from 1,620, 1,640 and 1,660. Key chart supports will be the 100-day and 200-day moving averages at 1,584 and 1,557, respectively, with 1,521, the 23.6% Fibonacci Retracement (FR) of the 1,207 to 1,618 upswing, acting as a stronger support platform,” TA Securities Research noted.

In terms of stock picks for this week, the research house said gaming, telco, oil and gas, and property-related stocks such as Genting Bhd, GenM, Maxis, Hibiscus Petroleum Bhd, Malaysian Resources Corp Bhd, UEM Sunrise Bhd and Velesto Energy Bhd should be able to attract bargain hunters looking for rotation into economic recovery play.

On the broader market, a total of 9.8 billion shares worth RM6.28 billion were traded on the local bourse today.

The most actively traded counters on Bursa Malaysia were Dagang NeXchange Bhd, Sapura Energy Bhd and Sealink International Bhd. In terms of top value gainers, Heineken Malaysia Bhd, Carlsberg Brewery Malaysia Bhd and PetChem were in the top three. Conversely, selldowns in tech stocks meant that Malaysian Pacific Industries Bhd, ViTrox Corp Bhd and UWC Bhd were at the top of the top value losers list today.

From an overall index perspective, the Energy, Construction and Financial Services Indices were up today. The Energy Index specifically saw a 3.54% or 33.68 point gain to 985.19, following greater trading interest in oil and gas counters as prices of Brent crude breached US$70 a barrel.

The FBM KLCI’s performance stood in stark contrast to those of other regional markets. Japan's Nikkei 225, Hong Kong's Hang Seng and Shanghai Composite all posted declines. The Shanghai Composite was down 2.30% or 80.57 points at 3,421.41. Hang Seng finished 1.92% or 557.46 points lower at 28,540.83. Nikkei 225 was 0.42% or 121.07 points lower at 28,743.25.

Reuters reported that Asian shares broadly reversed course to trade lower today as higher oil prices raised inflation worries and offset optimism over the passage of a US$1.9 trillion stimulus bill in the US.

“Earlier on Monday, Asian shares were broadly higher after the mammoth US stimulus bill cleared the Senate over the weekend, boosting optimism about the global economic recovery.

“A spike in oil prices past US$70 for the first time since the pandemic, though, sparked some worries about inflation for energy-hungry Asia,” it noted.

 

 Source: The Edge

Market Daily Report: KLCI closes 1.2% higher on gains in banking, glove and energy stocks

 

KUALA LUMPUR (March 5): The FBM KLCI bucked the regional trend to close higher, boosted by the positive performance of banking stocks and a rebound in glove counters.

The index was back above the 1,600 mark, closing at 1,600.12 for a gain of 18.86 points or 1.19% from yesterday.

Rakuten Trade Research head of equity sales Vincent Lau said market sentiment was buoyed by buying interest in banking stocks.

Sentiment was also lifted by bargain-hunting among rubber glove stocks after the selldown yesterday, Lau  told theedgemarkets.com

Also contributing to the market’s positive performance was renewed buying in oil and gas stocks, on the back  of an increase in oil prices after Saudi Arabia and its OPEC+ allies extended their production cuts.

The broader market, however, was mixed with 617 decliners versus 561 gainers. A total of 7.99 billion securities were traded for RM5.15 billion, lower than the 9.63 billion units worth RM5.37 billion yesterday.

Notable gainers included Top Glove, Hong Leong Bank Bhd, MISC Bhd, Kuala Lumpur Kepong Bhd and RHB Bank.

Other gainers included Central Global Bhd, Latitude Tree Holdings Bhd, Artroniq Bhd (formerly known as Plastrade Technology Bhd) and Solarvest Holdings Bhd.

Meanwhile technology stocks dominated the top losers list led by Malaysian Pacific Industries Bhd, UWC Bhd, Vitrox Corp Bhd and KESM Industries Bhd.

Oil and gas counters that were actively traded included Velesto Energy Bhd, Bumi Armada Bhd, TH Heavy Engineering Bhd and Sapura Energy Bhd.

The Bursa Malaysia Energy Index, which tracks the performance of 25 oil and gas stocks, increased the most by percentage, closing up 3.15% at 951.51. This was followed by the Financial Services Index, which added 1.75% to 15,452.74.

Elsewhere in Asia, Japan's Nikkei 225 dipped 0.23% while South Korea's Kospi dropped 0.57%. Hong Kong’s Hang Seng slid 0.47% while the Shanghai Stock Exchange Composite Index fell 0.04%.

Bloomberg reported that Asian stocks and US futures pared losses today as investors digested comments from Federal Reserve chairman Jerome Powell that fell well short of trying to rein in bond yields.

 

Source: The Edge

Market Daily Report: FBM KLCI tracks regional markets to end lower as sentiment weighed by bond yield rise

 

 

KUALA LUMPUR (March 4): The FBM KLCI closed down 7.19 points or 0.45% today tracking the negative performance of Asian equities after an overnight surge in bond yields again dragged shares on Wall Street.

At 5pm, the benchmark index closed at 1,581.26 points. Today, the index had mostly traded in negative territory, ranging between 1,577.39 and 1,590.46 — compared with yesterday’s closing of 1,588.45.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com the weakness in the local bourse performance today was in line with regional markets after Wall Street dropped yesterday due to rising Treasury yield.

The rising yield has sparked investors' concerns that this may prompt central banks to raise ultra-low interest rates, which is bad for the equity market.

Leong added that the abovementioned event overshadowed the fact that Bank Negara Malaysia (BNM) maintained the overnight policy rate (OPR) at 1.75% during the afternoon session. Nonetheless, banking stocks surged in apparent reaction to the BNM’s decision on OPR rate.

Index-linked banking counters like Hong Leong Bank Bhd, CIMB Group Holdings Bhd, Hong Leong Financial Group Bhd, Malayan Banking Bhd and RHB Bank Bhd all ended in positive performance.

However, the gain in banking stocks was mitigated by the weakness of other KLCI components stocks, including Supermax Corp Bhd, Top Glove Corp Bhd, Hartalega Holdings Bhd, Press Metal Aluminium Holdings Bhd and MISC Bhd.

Across the local bourse, decliners dominated with 701 counters dropping versus 444 gaining, while 434 were unchanged.

Trading volume was 9.63 billion shares worth RM5.37 billion compared with 10.78 billion shares worth RM6.18 billion traded yesterday.

Notable decliners included Fraser & Neave Holdings Bhd, Unisem (M) Bhd,  ViTrox Corp Bhd, KESM Industries Bhd, Kelington Group Bhd and Aeon Credit Service (M) Bhd.

Meanwhile, notable gainers included Heineken (M) Bhd, Hong Leong Bank Bhd, Hong Leong Financial Group Bhd, Tasco Bhd, Paragon Union Bhd, MSM Malaysia Holdings Bhd, Dataprep Holdings Bhd, Rapid Synergy Bhd and Carlsberg Brewey (M) Bhd.

Of the actives, XOX Bhd topped the actively traded stock again for the second straight day with 682.90 million shares traded. It closed down one sen to seven sen. Others included Key Alliance Group Bhd, Dagang NeXchange Bhd, Asia Pac Holdings Bhd, Minetec Resources Bhd and Green Ocean Corp Bhd.

Reuters reported that China and Indonesia led a sell-off in Asia's emerging stock markets on Thursday as US Treasury yields rose again, raising renewed doubts about continued monetary support and global growth.

Across Asia, Japan's Nikkei 225 fell 2.13% while South Korea's Kospi dropped 1.28%. In China, Hong Kong’s Hang Seng declined 2.15% while the Shanghai Stock Exchange Composite Index closed down 2.05%.

 

 

Source: The Edge

Market Daily Report: FBM KLCI ends higher as bargain hunters flock into glove-linked stocks

 

KUALA LUMPUR (March 3): The FBM KLCI mirrored regional peers’ performance to close higher by 1.18% or 18.58 points, as bargain hunters made a comeback for rubber glove-linked stocks after their shares price slumped due to developments on the Covid-19 vaccines.

At 5pm, the benchmark index closed at 1,588.45 points after trading between 1,568.67 and 1,583.43. KLCI constituents Supermax Corp Bhd, Top Glove Corp Bhd and Hartalega were among blue-chips that powered the benchmark index today.

Supermax rose 55 sen or 13.38% to close at RM4.66, Hartalega added 44 sen or 4.68% at RM9.85, while Top Glove climbed 34 sen or 7.16% to RM5.09. They were among Bursa’s top gainers by value today.

Supermax, Hartalega and Top Glove are also members of Bursa's Health Care index, which rose the most in percentage terms among bourse gauges. The Health Care index settled up 80.12 points or 2.61% at 3,150.30.

Notable gainers also included Nestle (M) Bhd, Press Metal Aluminium Holdings Bhd and Petronas Chemical Group Bhd.

Remisier Jeffry Azizi Jaafar told theedgemarkets.com that share prices of the glove stocks rebounded today on bargain hunting activities, lifting the performance of the local bourse.

“Investors were bargain-hunting glove stocks after seeing heavy selldown on glove counters due to the Covid-19 vaccine news, which were halved from their recent peak in October last year,” he said.  

The rebound in glove stocks today, however, is only temporary, he added.

Meanwhile, on the broader market,  gainers led decliners by 631 to 559,  while 416 counters closed unchanged. Trading volume was 10.78 billion shares, 17% lower compared to 12.89 billion shares traded yesterday. Meanwhile, total trade value stood at RM6.18 billion, compared to  RM6.42 billion yesterday.

AMMB Holdings Bhd, which resumed trading today following a two-day suspension, settled down 36 sen or 11.39% at RM2.80 from its closing price of RM3.16 on last Friday (Feb 26), making it the second-most decliner by value on local bourse.

Earlier, the stock was transacted at between RM2.63 and RM2.91.

Other decliners included Carlsberg Brewery Malaysia Bhd, Rapid Synergy Bhd, Greatech Technology Bhd, Hap Seng Consolidated Bhd, Malaysian Pacific Industries Bhd and Unisem (M) Bhd.

Of the active counters,  XOX was the most heavily traded stock, with 421.57 million shares traded. It closed down 0.5 sen to eight sen. Others including Parkson Holdings Bhd, Aimflex Bhd (previously known as I-Stone Group Bhd), EAH Holdings Bhd, Sealink International Bhd, Dagang NeXchange Bhd, Kanger International Bhd, Borneo Oil Bhd and Radiant Global Bhd.

The Business Times reported Asian markets rose on Wednesday, following previous day's losses, but investors remained on guard over a possible correction, as concerns about asset bubbles and a surge in inflation continued to play against progress in fighting the coronavirus.

Across Asia, Japan's Nikkei 225 rose 0.51%, while South Korea's Kospi gained 1.29%. In China, Hong Kong’s Hang Seng added 2.7%, while the Shanghai Stock Exchange Composite Index closed up 1.95%.

 

 

Source: The Edge

Market Daily Report: KLCI ends 0.17% higher amid rotational play, in line with Wall Street gains

 

KUALA LUMPUR (March 2): The FBM KLCI closed higher by 0.17% or 2.73 points as investors engaged in stock-picking amid sector rotational play, while the positive sentiment generated from Wall Street’s overnight surge has also spilt over to the local market.

At 5pm, the benchmark index closed at 1,569.87 points. Today, the index had only been trading in the positive territory throughout the trading session, ranging between 1,568.67 and 1,583.43.

Among the 30 FBM KLCI constituents, 18 stocks were higher, nine were lower while three traded flat. Gains were led by IHH Healthcare Bhd, which jumped 21 sen or 3.97% to RM5.50, followed by Dialog Group Bhd and MISC Bhd.

Index-linked banking stocks also contributed to the KLCI's positive performance today, with Hong Leong Financial Group Bhd (HLFG), CIMB Group Holdings Bhd, Public Bank Bhd, RHB Bank Bhd and Malayan Banking Bhd all closing in positive territory.

In contrast, glove heavyweights Supermax Corp Bhd and Top Glove Corp Bhd were among the biggest losers of the KLCI component stocks following the latest news on the Covid-19 vaccines.

Areca Capital Sdn Bhd CEO Danny Wong Teck Meng told theedgemarkets.com the market liquidity has yet to taper and there will be further rotational play and buying of selective counters in recovery-themed stocks such as bank counters, lifting the performance of the benchmark index.

Meanwhile, Rakuten Trade Sdn Bhd reported that Wall Street rebounded sharply following days of decline amid the uncertainty on rates. Buyers returned in force amid vaccine optimism and the impending reopening of the economy. The Dow Jones Industrial Average soared 600 points to close above the 31,500 mark again.

On the local front, Rakuten Trade commented: “Though we expect a broader based buying today, the FBM KLCI performance may be negated by the continuous sell-down on glove companies.”

"Therefore, the research house foresees the benchmark index to trend within the 1,575/80 range today as bargain-hunting activities should emerge after yesterday’s dismal showing," it added.

Trading volume was 12.89 billion shares, 21% higher compared to 10.69 billion shares traded yesterday. Meanwhile total trade value stood at RM6.42 billion today.

The market breadth was mixed with 672 decliners compared to 484 gainers, while 472 closed unchanged.

The top gainers by value was led by Fraser and Neave Holdings Bhd, which rose 92 sen or 3.07% to RM30.88. It was followed by Malaysian Pacific Industries Bhd, Nestle (M) Bhd, ViTrox Corp Bhd, Hong Leong Industries Bhd and HLFG.

Meanwhile, the top losers by value were Kobay Technology Bhd, Heineken Malaysia Bhd, Muda Holdings Bhd, Mega First Corp Bhd, Kuala Lumpur Kepong Bhd, Supermax and Pharmaniaga Bhd.

Of the actives, Aimflex Bhd (previously known as i-Stone Group Bhd) topped the list. It added six sen or 23.53% to 31.5 sen after 589.42 million shares were traded. Others included Straits Inter Logistics Bhd, GFM Service Bhd, Gran-flo Bhd and AirAsia X Bhd.

Bloomberg reported that most Asian stocks slipped Tuesday along with US and European equity futures as investors weighed the impact of the recent climb in bond yields and a Chinese official’s warning about asset bubbles.

Across Asia, Japan's Nikkei 225 fell 0.86% while South Korea's Kospi gained 1.03%. In China, Hong Kong’s Hang Seng dropped 1.21% while the Shanghai Stock Exchange Composite Index closed down 1.21%.

 

Source: The Edge

Market Daily Report: Glove giants yank down FBM KLCI

 

KUALA LUMPUR (March 1): The FBM KLCI finished the first day of March lower, with declines in rubber glove counters pushing the benchmark index downwards.

At market close, the index was down 0.67% or 10.61 points at 1,567.14.  

Declines in the index's glove constituents contributed to the fall. 

Supermax Corp Bhd was down 9.92% or 48 sen at RM4.36, valuing it at RM11.41 billion. Top Glove Corp Bhd was in second place, falling 6.49% or 34 sen to RM4.90, translating into a market value of RM39.2 billion. Hartalega Holdings Bhd finished 6.2% or 62 sen lower at RM9.38, valuing it at RM32.15 billion.

TA Securities Research said in a note today that further downside volatility can be expected this week.

“However, while further correction on Wall Street last week on persistent inflationary and high valuation worries may spill over to the region, domestic economic recovery plays should cushion downside, with the banking, plantation, technology, utility, and oil and gas sectors attracting bargain hunters on any further sharp dips.

“Crucial index support remains at the recent low of 1,557 and the 200-day moving average at 1,552, with 1,521, the 23.6% Fibonacci Retracement (FR) of the 1,207 to 1,618 upswing, acting as a stronger support platform. Overhead resistance will be the 30-day moving average at 1,590, with tougher hurdles coming from 1,600, the 50-day ma (1,608) and 1,620,” it noted.

On the broader market today, some 10.69 billion shares were traded on the local bourse today.

Top active counters included GFM Services Bhd, Bumi Armada Bhd and Industronics Bhd. Top gainers were Malaysian Pacific Industries Bhd, D&O Green Technologies Bhd and Pimpinan Ehsan Bhd, while top losers were Nestle (Malaysia) Bhd, Fraser & Neave Holdings Bhd and KESM Industries Bhd.

Regionally, Asian bourses were largely in positive territory. Hong Kong's Hang Seng was 1.63% or 472.36 points higher at 29,452.37. Its counterpart in Shanghai was 1.21% or 42.32 points higher at 3,551. Japan's Nikkei 225 rose 2.41% or 679.49 points to 29,663.50.

According to Reuters, regional bourses were up today as bond markets ended last week on a calmer note, with regional manufacturing activity indicating that a gradual recovery is on track.

“A slew of data on Monday showed manufacturing activity in Indonesia and the Philippines was still in expansion territory while Japan figures showed the fastest growth in over two years. Factory activity in China, though, missed forecasts in February as a spike in Covid-19 cases led to lockdowns in parts of the country.

“The moves on Monday followed a wild ride last week that saw US 10-year bond yields peak at 1.61% before ending the week at 1.41%, easing pressure on Asia's debt markets and equity valuations. The yields were at about 1.41% on Monday,” it noted.

 

 

Source: The Edge