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Market Daily Report: Selective Buying Of Defensive Stocks Lifts Bursa Malaysia Higher At Close

 KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.

Cocoa Futures Slide as Ivory Coast Harvest Increases

Cocoa futures fell to their lowest level in nearly two weeks as deliveries of beans to ports in Ivory Coast , the world’s top producer, picked up. Bean arrivals for the new season, which started on Oct 1 , reached 192,804 tons , surpassing last year’s figure of 170,794 tons for the same period, according to ADM Investor Services Inc . Earlier in the month, heavy rains had disrupted cocoa farming and transportation, but the improved weather has now allowed for better pod harvesting and drying conditions, contributing to the increase in supply. Concerns about demand have also surfaced following mixed grindings data from Europe, Asia, and North America. Analysts at Fitch Solutions predict that higher cocoa prices could dampen consumption during the 2024-25 season . As of 7:56 a.m. local time in New York, cocoa futures fell 1.4% to $7,290 a ton , the lowest since Oct 10. In London , cocoa prices also dropped 1.4% , while Arabica coffee rose 0.6% and raw sugar slipped 0.9% .

Cocoa Prices Surge Amid West Africa Dry Weather Concerns

Cocoa futures soared by as much as 12% on Friday in New York, marking the largest intraday jump since May, as fears of dry weather in the world’s top cocoa-producing regions, Ivory Coast and Ghana, raised concerns about the upcoming season's output. The most-active contract reached $7,525 per tonne, on track for a weekly gain of over 10%. Key Highlights: Weather Worries: A significant decrease in rainfall over the past month in Ivory Coast and Ghana has led to below-normal soil moisture, potentially stunting crop growth. Forecasts suggest that if rain doesn’t improve by late August, the growing season could end poorly. Market Sensitivity: Analysts warn that while the current dry spell is concerning, markets may be overreacting to the weather forecasts. The price surge reflects the market's heightened sensitivity to any potential supply disruptions. Future Predictions: Despite current concerns, some analysts expect cocoa production in West Africa to recover in the new season ...

Brokers Report: Kuala Lumpur Kepong - Steady Outlook

Retain NEUTRAL with a higher target price (TP) of RM24.90 We had a meeting with Kuala Lumpur Kepong (KLK)’s management recently and came away with a steady view on the company’s outlook. Despite seeing strong CPO price performance, we think current valuation remains unattractive at 23x forward PER. Hence, we maintain our  Neutral  call but with a higher  TP  of  RM24.90  (up from RM23.46) after rolling over our valuations to FY18. A rebound in FFB production.  After experiencing an 8.1% drop in FY16 FFB production, the company expects to see a recovery in FY17 with a 3-5% growth. The growth will mainly come from Kalimantan Tengah, which has seen a dip for 2 consecutive years. Malaysian production may be struggling to see a recovery due to a lagged effect of El Nino’s impact last year. Targeting a steady production cost.  Despite expecting an increase in fertiliser and labour expenses, the company targets to keep its prod...