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Friday, December 15, 2017

Market Daily Report: KLCI retreats after three-day rise as investors take profit





KUALA LUMPUR (Dec 15): The FBM KLCI came down by as much as 0.76% or 13.35 points today as investors took profit after three days of gains.

At market close, the benchmark index pared some losses to close at 1,753.07, down 5.93 points or 0.34% from yesterday.

"After rising by almost 40 points since Monday's close, we saw profit-taking activities across the board today," said Malacca Securities Sdn Bhd senior research analyst Kenneth Leong.

"This is in tandem with key regional indices, which were affected by uncertainties over US tax overhaul implementation," Leong told theedgemarkets.com.

He expects the KLCI to move between 1,740 and 1,760 points in the near term.

Asian shares erased earlier modest gains with sentiment dented by Wall Street's weakness on concerns about the progress of US tax reform, though regional stocks remain on track for a weekly rise, Reuters reported.


Japan's Nikkei fell 0.62% and Hong Kong's Hang Seng Index dropped 1.09%, while South Korea's Kospi rose 0.51%.
On the local front, total trading volume was 2.34 billion shares worth RM3.51 billion. Losers led gainers by 475 to 414, while 386 counters remained unchanged.

Notable losers included Genting Bhd, Hap Seng Consolidated Bhd and Hong Leong Bank Bhd, while top gainers included Hengyuan Refining Company Bhd and Hartalega Holdings Bhd.
PUC Bhd was the most actively traded counter, with 126.31 million shares done.


Source: The Edge

Thursday, December 14, 2017

Market Daily Report: FBM KLCI up 1.23%; Bursa finance index rises 2.38%




KUALA LUMPUR (Dec 14): The FBM KLCI rose 21.34 points or 1.23%, lifted by banking stocks amid fund managers' year-end window dressing.
 
At 5pm, the KLCI closed at 1,759 points as Public Bank Bhd, Hong Leong Bank Bhd and Hong Leong Financial Group Bhd ended among Bursa Malaysia top gainers. Bursa Malaysia's finance index rose 387.95 points or 2.38% to 16,656.80 points.

Across Bursa Malaysia, there were 540 gainers versus 331 decliners. Trading volume was 2.43 billion shares worth RM3.26 billion.

CIMB Investment Bank Bhd analyst Nick Foo Mun Pang told theedgemarkets.com: "Year-end window dressing will continue to lift KLCI in the near term. Market breadth was very strong today as well. Our immediate (KLCI) resistant level is 1,770 points, immediate support is 1,750 points."

"The sentiment was good as well, especially in the afternoon after The World Bank upgraded (its 2017) Malaysia gross domestic product (growth forecast) to 5.8%," Foo said.

Earlier today, analysts and remisiers said Malaysian banking shares rose on expectation that Bank Negara Malaysia will raise interest rates following the US Federal Reserve's interest rate hike on Wednesday.

Reuters reported that the US central bank raised rates by a quarter of a percentage point to a range of 1.25% to 1.5%. It was the third rate hike this year. But the Fed's forecast of three additional rate increases in 2018 and 2019 was unchanged from its projections in September.

In Malaysia, SJ Securities Sdn Bhd senior remisier Goh Kay Chong told theedgemarkets.com that technical charts are showing that funds are buying Malaysian banking shares following the US interest rate increase as they expect Bank Negara to follow the US's footsteps.

"That way, Public Bank and all other local banks will benefit from the higher interest rate," Goh said.


Source: The Edge

Wednesday, December 13, 2017

Market Daily Report: FBM KLCI up 0.5% ahead of US rate decision




KUALA LUMPUR (Dec 13): The FBM KLCI finished 8.09 points or 0.5% higher, possibly on fund managers' year-end window dressing ahead of the US interest rate decision today.

Malaysian shares had tracked Asian equity gains after US stocks closed at record highs overnight on Tuesday.

At 5pm today, the KLCI settled at 1,737.66 points as index-linked stocks Hong Leong Financial Group Bhd and Genting Bhd rose among Bursa Malaysia top gainers.

"It is quite obvious that there are some forms of window dressing happening today, as there seems to be no particular positive news going on," a remisier told theedgemarkets.com.

FXTM research analyst Lukman Otunuga wrote in a note today: "Much attention will be directed towards the (US) FOMC (Federal Open Market Committee) policy statement on Wednesday, which has the ability to impact gold's trajectory this week. While it is widely expected that the Federal Reserve will be raising US interest rates, much focus is likely to be directed towards the tone of the meeting."

Across Bursa Malaysia, trading volume was 2.51 billion shares worth RM2.58 billion. There were 532 advancers and 327 decliners. The top gainer was Hengyuan Refining Co Bhd while the leading decliner was United Plantations Bhd.

Among Asian bourses, Hong Kong's Hang Seng was up 1.49% while South Korea's Kospi ended 0.79% higher as global markets eyed US stocks record closing highs ahead of the US interest rate decision today (Wednesday).

Overnight, Reuters reported that the S&P 500 and the Dow industrial registered record closing highs on Tuesday with a boost from bank stocks as investors eyed a potential cut in US corporate taxes and continued economic growth after strong inflation data.

The Dow Jones Industrial Average rose 118.77 points or 0.49% to 24,504.8, the S&P 500 gained 4.12 points or 0.15% to 2,664.11 and the Nasdaq Composite dropped 12.76 points or 0.19% to 6,862.32.



Source: The Edge

Tuesday, December 12, 2017

Market Daily Report: KLCI closes at intra-day high as foreign funds bargain hunt for blue chip stocks



KUALA LUMPUR (Dec 12): The Malaysian stock market closed higher today, led by blue chip stocks as foreign funds went bargain hunting.

The benchmark FBM KLCI ended the day at an intra-day high of 1,729.57 points, up 10.1 points or 0.59% from yesterday's closing. The index moved between 1,717.32 and 1,729.57 throughout the day.

Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew told theedgemarkets.com that he expects the KLCI to continue its rising trend this week.

"The increase today was within our expectation and we are optimistic that it will continue this week, generally due to strong foreign fund inflow, and their focus seems to be around the blue chips," he said.

"The reason for them to be here again was likely to be relative valuation, the same reason they left for Thai market earlier this year in September. Now the Thai market seems to be more expensive than the Malaysian market," Pong added.

Trading volume rose to 2.15 billion shares worth RM2.33 billion compared with Monday's 1.65 billion shares worth RM1.97 billion. Market breadth was positive with 500 gainers versus 372 losers, and 364 counters remained unchanged.

Top gainers included OldTown Bhd, CIMB Group Holdings Bhd and Pentamaster Corp Bhd, while Pos Malaysia Bhd was the second largest loser today after its chief executive officer announced his resignation on Monday.

PUC Bhd was the most actively traded counter today, with 145.02 million shares traded in the open market.

Reuters reported that most Southeast Asian stock markets marked time on Tuesday with investors awaiting the US Federal Reserve's (Fed) policy meeting for cues about the world's largest economy, while Vietnam shares rose up to 1.5% after a sharp drop in the previous session.

The Fed is widely expected to raise interest rates at its two-day policy meeting that will end on Wednesday, which could lead to foreign fund outflows from emerging markets.

In the Asian region, Japan's Nikkei fell 0.32%, while Hong Kong's Hang Seng Index declined 0.59%. South Korea's Kospi also dropped 0.42%.


Source: The Edge

Monday, December 11, 2017

Market Daily Report: KLCI down amid foreign selling




KUALA LUMPUR (Dec 11): The FBM KLCI closed 1.78 points or 0.1% lower as European funds sold Malaysian shares and as investors looked ahead to crucial Malaysian economic and industrial data.

Tomorrow, Malaysia's Statistics Department will announce the nation's October industrial output numbers. The Malaysian Palm Oil Board is also scheduled to announce the industry's November output and inventory data.

At 5pm today, the KLCI settled at 1,719.47 points. "We heard from brokers that some European funds were selling in the afternoon today. It was just normal portfolio adjustment," Areca Capital Sdn Bhd chief executive officer Danny Wong told theedgemarkets.com.

Across Bursa Malaysia, there were 410 gainers versus 398 decliners.

A total of 1.65 billion shares were traded for RM1.97 billion.

Malaysian shares had bucked Asian shares' rise. Japan's Nikkei 225 climbed 0.56% while Hong Kong's Hang Seng rose 1.14%.

Earlier today, Reuters reported that Asian shares were buoyant following strong US payrolls data and better-than-expected Chinese trade figures on Friday.


Source: The Edge

Friday, December 8, 2017

Market Daily Report: KLCI gains amid stronger China trade data but market breadth stays negative





KUALA LUMPUR (Dec 8): The FBM KLCI gained on market close on Friday as stronger-than-expected China trade data helped boost regional and local market sentiment, pushing the benchmark index up week-on-week.

At 5pm, KLCI was up 2.2 points or 0.13% from yesterday's close to end at 1,721.25 points, after ranging between 1,718.88 points and 1,724.59 points throughout the day.

It was 3.39 points or 0.2% higher than the 1,717.86 points it settled at last Thursday (Nov 30).
CIMB Research’s analyst Nick Foo Mun Pang, however, said the KLCI rebound is not strong as market breadth remains negative.

“For the whole week, losers still outnumbered gainers, and this scenario may persist in the near term. Investors are cautious ahead of US Federal Reserve’s interest rate decision,” he told theedgemarkets.com over the phone.

There were 490 losers versus 327 gainers on Bursa Malaysia today, while 401 counters remained unchanged. The local exchange saw a total trading volume of 1.84 billion shares, worth some RM2.48 billion.

After reporting a quarterly loss yesterday, Sapura Energy Bhd continued to be one of the more notable losers today, falling another 13.5 sen or 14% to close at a fresh record low of 83 sen. It was the 10th biggest losers across all Bursa Securities, and the most actively traded counter, after 293.87 million shares traded.

Top gainers, meanwhile, were led by large caps, with Ajinomoto (M) Bhd, British American Tobacco (M) Bhd, and Dutch Lady Milk Industries Bhd being the top three counters.

Across the region, Japan’s Nikkei advanced 1.39% while Hong Kong's Hang Seng Index climbed 1.19% and South Korea's Kospi grew 0.08%.

Reuters reported that Southeast Asian stock markets gained on Friday as stronger-than-expected China trade data and the US government avoiding a shutdown buoyed market sentiment, with Singapore rebounding sharply after this week's losing streak.

It added that China's exports and imports unexpectedly accelerated last month after slowing in October, an encouraging sign for the world's second-biggest economy, which has started to slow in the face of a government crackdown on debt risks and factory pollution.

Over at the currency market, ringgit strengthened against the US dollar to 4.0868, and against the Singapore dollar to 3.0190.




Source: The Edge

Thursday, December 7, 2017

Market Daily Report:KLCI stages mild rebound as foreign funds return



KUALA LUMPUR (Dec 7): Malaysian stocks rebounded into positive territory today as foreign investors make their gradual return to Bursa Malaysia.

The benchmark FBM KLCI opened higher at 1,721.71 points to hit an intraday high of 1,723.40 in early trade, before closing up 0.72 points or 0.04% at 1,719.05. Market breadth was negative with 455 decliners, 388 advancers and 405 counters traded unchanged on Bursa.

Trading volume rose to 1.8 billion shares worth RM2.51 billion compared with Wednesday's 1.58 billion shares worth RM2.26 billion.

Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew said the local stock market eked out a slight gain today as foreign funds gradually made their way back to the market.

"Local investors were also able to see the difference in the gains in index that would be a big boost to their confidence," he told theedgemarkets.com.

Pong said the rebound was mainly driven by the blue-chip counters on the KLCI's constituent list.
"The small-cap stocks may yet see a bullish return like that in the first five months of this year, which was led by technology stocks," he added.

Pong also noted that Sime Darby Plantation Bhd has seen some recovery from losses following the demerger of Sime Darby Bhd from its plantation business, and some activities in technology stocks can be noticed taking cue from the recovery in technology counters in the US.

"The market is generally going through a little bit of an upswing. It is believed that the market is turning around," he added.

Actively traded stocks included Sapura Energy Bhd, Hibiscus Petroleum Bhd, Sime Darby Bhd and JAG Bhd.

Leading movers were Nestle (Malaysia) Bhd, Ajinomoto (Malaysia) Bhd and Dutch Lady Milk Industries Bhd, while top losers were United Malacca Bhd, Allianz Malaysia Bhd and Lafarge Malaysia Bhd.

Regional markets were mixed today, with Singapore's FTSE Straits Times Index closing 0.3% lower, while Philippine shares closed more than half a percent higher. At close of trade, Vietnam dropped 1%, Hong Kong's Hang Seng index was up 0.28% and Japan's Nikkei jumped 1.5%.


Source: The Edge

Wednesday, December 6, 2017

Market Daily Report: Weak regional markets drag KLCI down




KUALA LUMPUR (Dec 6): Malaysian stocks finished lower today in line with the slide in most regional markets.

The FBM KLCI was down 6.51 points or 0.38% at 1,718.33, dragged by index-linked key blue chips. Market breadth was negative with 431 decliners, 346 advancers and 448 counters unchanged on Bursa Malaysia.

Trading volume fell to 1.58 billion shares worth RM2.26 billion compared with Tuesday's 1.84 billion shares worth RM2.23 billion.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong said the KLCI closed in negative territory today in tandem with the regional markets due to the sell-off in technology shares.

“The weaknesses are in tandem with regional key indices. We did see some weaknesses in the banking counters like Hong Leong Bank Bhd (HLBB), Hong Leong Financial Group Bhd (HLFG) and Malayan Banking Bhd today, which contributed to the weakness in KLCI.

“Other blue chips, most of them are also in negative sentiment mainly due to quick sell-off from the last minute rally on Tuesday,” he told theedgemarkets.com today.

Leading the top losers on Bursa were HLBB, Malaysian Pacific Industries Bhd, HLFG and United Plantations Bhd.

Leong is expecting the KLCI to hover between the 1,710 to 1,730 levels.

Across Asia, Japan’s Nikkei 225 was down 1.97%, South Korea's Kospi fell 1.42% while Hong Kong's Hang Seng decreased by 2.14%.

Reuters reported that Nikkei share average posted its biggest fall in 8½ months on Wednesday as investors rushed to lock in gains after it broke below the key technical support from its 25-day moving average.

Market sentiment was also bruised by news that the US President Donald Trump will recognise Jerusalem as Israel’s capital and set in motion the relocation of the US Embassy to the ancient city, a move that is feared could fuel violence in the Middle East.



Source: The Edge

Tuesday, December 5, 2017

Market Daily Report: FBM KLCI makes about-turn to close in the black, lifted by stronger investors' sentiments




KUALA LUMPUR (Oct 24): The FBM KLCI made an about-turn to close up 0.7% today, as investors' sentiments lifted the market following the wrap-up of the improved third-quarter corporate earnings season, while the ringgit strengthened 0.1% to RM4.2332 to US dollar.

The benchmark index closed 11.71 points higher at 1724.84 points, after 1.84 billion shares were transacted for a total value of RM2.23 billion.

In contrast, the index was at 1712.85 during the afternoon, down 0.28 points from the closing level of 1713.13 yesterday, after reaching an intra-morning low of 1,708.48 points.

Areka Capital Sdn Bhd chief executive officer Danny Wong expects the index to hover at its latest price level for the next two weeks, pending the restrategising of portfolios by fund managers on the last week of December.

The benchmark index's performance reflects 3Q17 results, he said, which were much better than 2Q as most came out above expectations, amid improving oil prices, an expectation that the country's budget deficit will trend lower than 3% by year-end, and a potentially stronger ringgit.

“We feel the market will interest local investors but not foreign funds, due to the upcoming general elections. As such, I don’t see the index going anywhere till the end of the year,” he told theedgemarkets.com

Across Asia, Reuters reported that shares dipped slightly on Tuesday as investors’ rotation out of technology shares took a toll on some of the region’s tech heavyweights, although hopes of a major tax cut in the United States underpinned risk sentiment.

Reuters wrote that MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.2%, driven by a fall in technology shares such as Tencent Holdings Ltd and Alibaba Group Holding Ltd.
Japan's Nikkei slipped 0.4%, with semi-conductor related shares leading losses, while mainland China's start-up board dropped almost 3% to its lowest level in four months, Reuters added.

Back home, losers outpaced gainers with 541 counters to 298, while 435 counters remained unchanged.

Gainers comprised Hong Leong Bank Bhd, Hong Leong Financial Group Bhd and Petron Malaysia Refining & Refining Marketing Bhd, while the losers board were led by Malaysian Pacific Industries Bhd, Magni-Tech Industries Bhd and United U-Li Corp Bhd.

The most active counter of the day — Trive Property Group Bhd — slid one sen or 18.18% to 4.5 sen, after 100.86 million shares were transacted, giving it a market capitalisation of RM81.41 million.



Source: The Edge

Monday, December 4, 2017

Market Daily Report: KLCI dips 4.73 points as funds adjust portfolios

KUALA LUMPUR (Dec 4): The FBM KLCI spent the day in negative territory as funds appear to have sold in order to readjust their portfolios following Bursa Malaysia’s semi-annual review of the index.

The benchmark index closed 4.73 points or 0.28% lower at 1,713.13.




Funds, especially those which are index-linked, may have contributed to the heavy selling today as they readjusted their holdings to reflect the new components of the index, said Pong Teng Siew, head of research at Inter Pacific Securities Sdn Bhd.

IJM Corp Bhd and Sime Darby Property Bhd, which are among the two counters that will be losing their places in the component stocks list, were the top decliners among the index’s movers.

Across the bourse, a total of 1.8 billion shares were crossed today for a total value of RM2.57 billion.
Decliners trumped gainers with a 3-to-1 ratio, led by Hartalega Holdings Bhd, Allianz Malaysia Bhd and Malaysian Pacific Industries Bhd.

The most actively traded counters were Sime Darby Bhd, Berjaya Corp Bhd and DGB Asia Bhd, while gainers were led by Hengyuan Refining Co Bhd, British American Tobacco (M) Bhd and Hong Leong Financial Group Bhd.

Across Asia, shares were weak on fears that liquidity would be squeezed by tightening US policy, Reuters reported. MSCI’s broadest index of Asia Pacific shares outside Japan hovered near more than one-month lows while the Nikkei fell 0.5%.

In China, the SSE Composite slipped 0.2% while Australian shares fell 0.1%. Hong Kong’s Hang Seng, however, managed to rise 0.22% to 29,138.28.



Source: The Edge

Thursday, November 30, 2017

Market Daily Report: FBM KLCI down at 11th hour as Bursa trades breach RM6 bil



KUALA LUMPUR (Nov 30): The FBM KLCI fell 2.52 points or 0.1% after a sharp drop in the last few minutes of trade, weighed down by Genting Bhd, Petronas Gas Bhd and Public Bank Bhd share losses.

At 5pm, the KLCI closed at 1,717.86 points. Genting declined 13 sen to RM8.80, Petronas Gas dropped 28 sen to RM15.88 while Public Bank fell 36 sen to RM19.90.

Public Bank and Petronas Gas were Bursa Malaysia's fifth and ninth largest decliners respectively.
Across Bursa Malaysia, 2.47 billion shares worth RM6.03 billion were traded. Decliners outpaced gainers at 461 to 340 respectively. Yesterday, the bourse registered a volume of 1.96 billion shares valued at RM2.8 billion.

Today, analysts said banking stocks were in the spotlight. “There may be some added concern over the (financial) results of banks,” said Kenny Yee, head of research at Rakuten Trade Sdn Bhd.

Yee said this as Malaysia's corporate financial reporting season for the July-to-September quarter concludes today. Tomorrow (Dec 1), Malaysian markets will be closed for a public holiday in conjunction with Prophet Muhammad's birthday.



Source: The Edge

Wednesday, November 29, 2017

Market Daily Report: FBM KLCI up as Tenaga rises; ringgit strengthens




KUALA LUMPUR (Nov 29): The FBM KLCI closed 5.96 points or 0.3% higher, mainly due to index-linked Tenaga Nasional Bhd's share price rise. The ringgit appreciated to its strongest level over the last one year against the US dollar at 4.0815.

At 5pm, the KLCI closed at 1,720.38 points. Tenaga shares ended 42 sen higher at RM15.40, to become the third-largest gainer on Bursa Malaysia.

Across Bursa Malaysia, 1.96 billion shares worth RM2.8 billion were traded. There were 389 gainers versus 416 decliners.

"The index (KLCI) closed slightly up mainly due to Tenaga," Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng told theedgemarkets.com.

In the currency markets, the ringgit appreciated to 4.0815 against a weakening US dollar at 5:35pm, while investors speculated that the Organization of the Petroleum Exporting Countries (OPEC) and Russia may extend oil supply cuts until the end of 2018 to support prices of the commodity.
Over the last one year, the exchange rate was between 4.0815 and 4.5002.



Source: The Edge

Tuesday, November 28, 2017

Market Daily Report: FBM KLCI down as China crackdown hits sentiment




KUALA LUMPUR (Nov 28): The FBM KLCI closed 5.44 points or 0.3% lower as China's move to curb shadow banking and other risky forms of financing hit Asian market sentiment. Malaysian shares also tracked crude oil losses.

At 5pm, the KLCI closed at 1,714.42 points. China's Shanghai Stock Exchange Composite erased intraday losses to end 0.34% higher.

Reuters reported that investor confidence in China has been dented by rising bond yields as Beijing stepped up its crackdown on shadow banking and other risky forms of financing. Higher borrowing costs threaten to squeeze corporate profits.

It was also reported that oil prices slipped in Asian trade on Tuesday amid uncertainty over a possible extension of output cuts by major crude producers and expectations of higher supply as the Keystone pipeline restarts. Brent futures had fallen to US$63.72 a barrel by 0753 GMT, down 12 cents, or 0.2 percent, from their previous close.

In Malaysia, Inter-Pacific Securities Sdn Bhd research head Pong Teng Siew told theedgemarkets.com: “This (KLCI's drop) has been led by regional selldown. I’m worried about China. It hasn’t been a huge selldown but it’s continuing.”

Across Bursa Malaysia, 1.8 billion shares worth RM2.1 billion were traded. There were 268 gainers and 556 decliners.

Top decliners included oil and gas-related Hengyuan Refining Co Bhd.
Hengyuan shares dropped 26 sen to RM10.40 to become Bursa Malaysia's fourth-largest decliner.

Monday, November 27, 2017

Market Daily Report: FBM KLCI rebounds on last minute bargain hunting of selective heavyweights

KUALA LUMPUR (Nov 27): Malaysian stocks closed higher today, driven largely by last minute bargain hunting in selected heavyweights, including DiGi.Com Bhd and Tenaga Nasional Bhd.

 
The benchmark FBM KLCI closed up 2.63 points or 0.15% at 1,719.86. Trading volume decreased to 1.64 billion shares, worth RM1.78 billion, compared with Friday’s 1.84 billion shares, worth RM2.52 billion.

Losers led gainers 548 to 343, while 377 counters traded unchanged.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong said the KLCI closed higher today, despite trading mostly lower in early trade, due to last minute bargain hunting in selective heavyweights.

“Today’s gain is also mainly due to the rally of last Friday’s crude oil prices and also a stronger ringgit against the US dollar," he told theedgemarkets.com.

According to Bloomberg, Brent crude oil prices were at US$63.69 per barrel as of writing, while the ringgit appreciated to 4.1155 against the US dollar.

Going forward, Leong opined gains in KLCI would be kept at the 1,730-point level, due to a lack of fresh local catalysts. On the broader market, he advised investors to look at corporate earnings.

Reuters reported Japan’s Nikkei share average fell on Monday in choppy trade, after a slightly stronger yen sapped investors’ risk appetite, sending stocks such as chip-related firms lower. The Nikkei dropped 0.2% to 22,495.99, while across Asia, South Korea's Kospi fell 1.44 % and Hong Kong’s Hang Seng was down 0.6%.



Source: The Edge

Friday, November 24, 2017

Market Daily Report: Local sentiments weighed down by uncertainties on GE14



KUALA LUMPUR (Nov 24): The FBM KLCI ended the week lower today as investors were either staying at the sidelines waiting for fresh leads ahead of the 14th General Election or switching to regional markets for higher returns.

At 5pm, the benchmark index fell 4.04 points or 0.23% to close at 1,717.23 points, after ranging between 1,713.26 points and 1,720.38 points.

The benchmark index has declined by 4.2% or 75.12 points from this year's peak of 1,792.35 points on June 14.

Areca Capital Sdn Bhd chief executive officer Danny Wong told theedgemarkets.com that the Malaysia market weakness may persist for the next few weeks.

“I think the sentiment will remain weak over the next few weeks because of uncertainties on the upcoming general election. If you look at the regional market, there are many other markets which look more attractive than us. As foreign investors, it is very normal for them to opt out of Malaysia and go to somewhere that gives them better returns,” he said.

“Having said that, the mid-and small cap stocks are still attractive in Malaysia, judging by their recent quarterly financial results,” he added.

On Bursa Malaysia, some 1.84 billion shares worth some RM2.53 billion were traded today. On the scoreboard, losers outnumbered gainers 476 to 322, with 462 counters remaining unchanged.

Trive Property Group Bhd was the most actively traded counter, with 54.9 million shares traded. The counter went up 0.5 sen to 6.5 sen. Low-cost long haul carrier AirAsia X Bhd was the second most actively traded stock with 47.39 million shares changing hands. Its share price dropped two sen to 36 sen.

The ringgit weakened against the US dollar to 4.1170, and against the Singapore dollar to 3.0558 today.

Most major regional market indices closed on a positive note today, with Japan’s Nikkei gaining 0.12%, the Hong Kong Hang Seng Index going up by 0.53% and South Korean Kospi advancing 0.28%.

Reuters reported that Asian shares hovered below their 10-year peak on Friday while mainland Chinese shares dropped to three-month lows after big falls the previous day on concerns about fresh government steps to curb financial risks and an ongoing rout in the Chinese bond market.




Source: The Edge

Thursday, November 23, 2017

Market Daily Report: KLCI down with China shares amid CPO drag




KUALA LUMPUR (Nov 23): The FBM KLCI closed 2.27 points or 0.1% lower, tracking China's share drop on concerns about China's bond selloff. Malaysian crude palm oil (CPO) selling pressure also affected market sentiment.

At 5pm, the KLCI closed at 1,721.27 points on losses in KLCI-linked plantation counters Sime Darby Bhd, IOI Corp Bhd and Kuala Lumpur Kepong Bhd (KLK).

In China, the Shanghai Stock Exchange Composite fell 2.29% while Japan markets were closed for the Labour Thanksgiving Day holiday. US markets are also closed today for the Thanksgiving Day holiday.

In Malaysia, Malacca Securities Sdn Bhd research analyst Kenneth Leong told theedgemarkets.com: “Selling pressure in CPO is one of the sources of market weakness today. The other reason was China's bond selloff. It had affected local market sentiment as well."

Reuters reported that Chinese shares tumbled on Thursday with the blue-chip index suffering its worst fall in nearly 1½ years as worries about a selloff in the bond market bled into equities.

It was also reported that Malaysian CPO futures fell in early trade on Thursday as the edible oil was weighed down by a stronger ringgit and prospects of rising production. The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange was down 0.7 percent at RM2,626 a tonne at the midday break, its sharpest decline since Monday.

Across Bursa Malaysia today,, 2.09 billion shares worth RM1.87 billion were traded. There were 381 gainers versus 438 decliners.

KLK was the second-largest decliner after the stock fell 24 sen to RM24.26.

In currency markets, the ringgit appreciated against the US dollar to 4.0965, the strongest level over the last one year. The exchange rate today was between 4.0965 and 4.1215.



Source: The Edge

Wednesday, November 22, 2017

Market Daily Report: KLCI gains on stronger ringgit, higher oil price




KUALA LUMPUR (Nov 22): The FBM KLCI rose 2.86 points or 0.2% as the
ringgit appreciated amid crude oil price gains. Malaysian shares rose with Asian equities today after US stocks closed at record highs overnight on Tuesday.

At Bursa Malaysia today, the KLCI settled at 1,723.54 points at 5pm.

In currency markets, the ringgit appreciated to 4.1110 against the US dollar at 5:30pm.

The ringgit appreciated as crude oil prices rose. Reuters reported that oil prices rose on Wednesday as ongoing cuts of piped Canadian crude to the United States added to falling US crude inventories, while expectations of a prolonged OPEC-led production cut also offered support. Brent crude futures, the international benchmark for oil prices, were at US$62.97 per barrel, up 40 cents, or 0.6 percent.

In Malaysia, CIMB Investment Bank Bhd analyst Nick Foo Mun Pang told theedgemarkets.com that “market sentiment in Asia was boosted by strong global corporate earnings and economic growth".
"Locally, the KLCI was supported by stronger oil prices and ringgit's (appreciation) against US dollar. From a technical perspective, the KLCI movement indicated a reduction in selling pressure,” Foo said.

Across Bursa Malaysia, trading volume was 2.24 billion shares worth RM2.61 billion. There were 521 gainers versus 304 decliners.

Top gainers included oil and gas-related companies Hengyuan Refining Co Bhd, Petronas Dagangan Bhd and Petron Malaysia Refining & Marketing Bhd.

Across Asian share markets, Japan's Nikkkei 225 climbed 0.48% while Hong Kong's Hang Seng rose 0.62%.

Reuters reported that Asian shares joined a global rally to reach their highest in a decade on Wednesday as strong world growth and rising corporate profits lured hordes of investors into equities, while oil prices jumped closer to a recent 2½ year top.



Source: The Edge

Tuesday, November 21, 2017

Market Daily Report: KLCI up on Petronas Gas spike; ringgit at 4.1390 vs USD




KUALA LUMPUR (Nov 21): The FBM KLCI climbed 2.32 points or 0.1% after Petronas Gas Bhd's share price spiked in the final trading minutes. The ringgit strengthened to a new one-year level against the US dollar at 4.1390.

At 5pm, the KLCI closed at 1,720.68 points. KLCI-linked Petronas Gas added 48 sen to RM17.14 to become Bursa Malaysia's top gainer.

Across Bursa Malaysia, decliners led gainers by 640 against 231 respectively. A total of 2.27 billion shares valued at RM2.37 billion exchanged hands.

Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew said that market breadth across Bursa Malaysia was still rather negative as corporate earnings growth failed to attract investors.
“It’s a continuity of trends," Pong told theedgemarkets.com.

In currency markets, the ringgit was traded at 4.1400 against the US dollar at 5:40pm. The ringgit had earlier today appreciated to its strongest level in a year against the US dollar at 4.1390.

The exchange rate today was between 4.1390 and 4.1533. Over the last one year, the exchange rate was between 4.1390 and 4.5002. Asian shares rose today. Japan’s Nikkei 225 rose 0.7% while Hong Kong's Hang Seng climbed 1.91%.

Reuters reported that Asian stocks rose to a 10-year high on Tuesday as investors took heart from further evidence of strength in the global economy, while the dollar hovered near a one-week high against its peers, thanks to higher US yields and a floundering euro.


Source: The Edge

Monday, November 20, 2017

Market Daily Report: FBM KLCI down as Bursa volume dips below two billion shares




KUALA LUMPUR (Nov 20): The FBM KLCI slipped 3.3 points or 0.2% on weaker technical indicators and after China shares fell during intraday trades on the country 's new guidelines to regulate asset management products.

At 5pm, the KLCI closed at 1,718.36 points. China's Shanghai Stock Exchange Composite erased intraday losses to end 0.28% higher.

Reuters reported that China stocks fell sharply on Monday and were heading for their biggest daily loss in three months after Beijing set sweeping new guidelines to regulate asset management products, which analysts said will dampen investors' appetite for riskier assets.

The central bank issued the new guidelines on Friday to more strictly regulate asset management businesses, in the government's latest effort to rein in the risky shadow banking sector which had been channeling money into Chinese stocks, bonds and property.

In Malaysia, Kenanga Investment Bank Bhd analyst Muhammad Afif Zulkaplly told theedgemarkets.com that the market still lacked catalysts, prompting investors to opt for profit taking on counters like Genting Bhd.

KLCI-linked Genting closed 16 sen lower at RM9.04 to become Bursa Malaysia's eighth-largest decliner. Across Bursa Malaysia, decliners led gainers by 610 against 239 respectively. A total of 1.98 billion shares worth RM2.14 billion changed hands.

Muhammad Afif said: “Technical indicators actually worsened, even among the small-caps. We look forward for the results season in the next two weeks, and see if the positive economic growth will translate to better corporate earnings.”




Source: The Edge

Friday, November 17, 2017

Market Daily Report: FBM KLCI up; ringgit strengthens to 4.1563 vs US dollar




KUALA LUMPUR (Nov 17): The FBM KLCI inched up 3.55 points or 0.2% on what appears to be a technical rebound following four consecutive days of losses. Meanwhile, the ringgit strengthened against the US dollar.

At 5pm, the KLCI ended at 1,721.66 points. Yesterday (Thursday), the index fell 4.88 points to 1,718.11 points.

Today, TA Securities Holdings Bhd wrote in a note: "Persistent profit-taking on index heavyweights pressured the local bluechip benchmark lower for a fourth straight session Thursday. (Today) The cautious market undertone and bearish momentum should continue to pressure the index lower, before oversold conditions spark a technical rebound."

Despite the KLCI's rise today, analysts are still mindful of the  sustainability of the index's gain. Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew told theedgemarkets.com that the market is cautious as investors had taken the brunt of foreign funds' outflow from Malaysian equities.

“The market is still jittery, as foreign selling has gathered pace over the past week and today’s price action does not seem to indicate a reverse into net buying,” Pong said.

Across Bursa Malaysia, gainers outpaced decliners at 411 to 363 respectively. A total of 2.21 billion shares worth RM2.23 billion were traded.

Top gainer was KLCI-linked Genting Bhd after investors bargain hunted for the stock. Genting rose 28 sen to close at RM9.20.

In currency markets, the ringgit appreciated to its strongest level in a year today at 4.1563 against the US dollar. The exchange rate was between 4.1563 and 4.1735 today.

Over the last one year, the exchange rate was between 4.1563 and 4.5002.


Source: The Edge

Thursday, November 16, 2017

Market Daily Report: FBM KLCI lower amid bearish technical signals




KUALA LUMPUR (Nov 16): The FBM KLCI closed 4.88 points or 0.3% lower amid bearish technical signals, acccording to analysts. At 5pm, the KLCI closed at 1,718.11 points.

AmInvestment Bank Bhd analyst Lim Sae Wai told theedgemarkets.com that the KLCI had been showing bearish technical indicators since the middle of October this year.

"My technical analysis has been showing a bearish signal in the FBM KLCI since the middle of October. So in the immediate term, we might see a potential technical rebound in the market. However, I am of the opinion that it may not last long," Lim said.

Today, TA Securities Holdings Bhd wrote in a note: "The weaker tone on global markets and negative technical momentum should increase cautious sentiment and discourage investors to the sidelines."

Across Bursa Malaysia, decliners led gainers at 614 against 265 respectively. A total of 2.44 billion shares worth RM2.48 billion exchanged hands.

Top decliners included SAM Engineering & Equipment (M) Bhd and Dutch Lady Milk Industries Bhd. Top gainer was Kossan Rubber Indstries Bhd.


Source: The Edge

Monday, November 13, 2017

Market Daily Report: FBM KLCI ends lower amid mixed regional performance



KUALA LUMPUR (Nov 13): The FBM KCLI closed 4.79 points or 0.27% lower today, as regional exchanges turned in a mixed performance.

The benchmark index had opened at 1,743.14 points and climbed to its intra-day high of 1,746.72 points in morning trade, before ending the day at its intra-day low of 1,737.49 points.

At closing bell, Bursa Malaysia decliners led gainers at 594 against 319 respectively. A total of 2.89 billion shares worth RM2.24 billion exchanged hands.

Top decliners were Petronas Gas Bhd, KESM Industries Bhd, and PMB Technology Bhd while top gainers for the day were Petronas Dagangan Bhd, Hengyuan Refining Company Bhd and Vitrox Corp Bhd.

Analysts said there is a general air of uncertainty across Bursa Malaysia amid broader regional market weakness.

“The Asian markets are quite mixed for various reasons. Several exchanges are quite volatile, such as in Australia and South Korea. It's the same in Europe and the US. Based on this sentiment we can expect spillover effects here in Malaysia,” AmInvestment Bank Bhd analyst Lim Sae Wai told theedgemarkets.

Lim opined that the Japanese stock market went overboard recently, thus justifying its correction, while Australia shares are currently weighed down by political uncertainties amid the dual citizenship fiasco in its Parliament.


The Nikkei 225 closed at its lowest since Oct 31 at 22,380.99 points, down 1.32% or 300.43 points. Across the Korean Strait, the Kospi slid 0.5% or 12.6 points to end at 2,530.35 points due to losses in manufacturing names.


Source: The Edge

Friday, November 10, 2017

Market Daily Report: FBM KLCI ends lower amid US tax concerns after rangebound trading




KUALA LUMPUR (Nov 10): The FBM KLCI dropped 4.53 points or 0.26% today, taking a weak lead from the overnight lower closing on Wall Street following possible delays in its corporate tax cuts.

The benchmark index opened at 1,746.53 points this morning, and was trading between 1,740.94 and 1,748.94 points, before it ended the week at 1,742.28 points.

Inter-Pacific Securities head of research Pong Teng Siew told theedgemarkets that the KLCI traded between small gains and small losses today, mainly because investors were worried over the prospect of the landmark US tax bill which may be delayed until 2019.

“Uncertainties around the US tax plans was a huge trigger for its market, the US market was down last night and it is not surprising that we are experiencing some spillover negative effects,” he said.
Pong also noted some abnormalities on Bursa Malaysia today, as the strengthening of the ringgit against the US dollar to levels just below 4.20 sent export-oriented stocks upwards instead.

Across the board 3.11 billion shares worth RM2.14 billion were traded today. Decliners outpaced gainers at 503 stocks to 342 respectively.

The most actively-traded stocks today were Sumatec Resources Bhd, Hibiscus Petroleum Bhd, Malayan United Industries Bhd and Key Asic Bhd.

Stocks ending in negative territory were led by Kim Loong Resources Bhd, MISC Bhd, Genetec Technology Bhd, and Malayan Smelting Corp Bhd; whereas top gainers were export-oriented KESM Industries Bhd, Hartalega Holdings Bhd and Vitrox Corp Bhd.

Looking to major bourses, Tokyo’s Nikkei 225 lost 0.82% or 187.29 points at 22,681.42 points while South Korea’s Kospi ended 7.62 points or 0.30% down at 2,542.95 points.



Source: The Edge

Thursday, November 9, 2017

Market Daily Report: FBM KLCI up 2.61pts as oil prices climb

KUALA LUMPUR (Nov 9): The FBM KLCI closed up 2.61 points or 0.15% today at 1,746.81 points, as oil and gas (O&G) counters took centre stage on the back of rising Brent crude oil prices.

Petronas Gas Bhd, Hengyuan Refining Co Bhd, and Petron Malaysia Refining & Marketing Bhd were among the top gainers after British American Tobacco (Malaysia) Bhd.



However, the KLCI was rather choppy throughout the day, in line with other Asian markets as the geopolitical outcomes from US President Donald Trump's visit to Asian countries remains to be seen, said TA Securities technical analyst Stephen Soo.

"It will be very tough for the market to clear the hurdle of 1,751 points, although there is good downside support above the 1,740 level," Soo told theedgemarkets.com.

He added that oil price movements are likely to continue contributing to outperformance of O&G counters. Brent crude oil futures last traded at US$63.44 and have gained more than 40% since July.

Across the local exchange, some 3.09 billion shares were traded today for a total of RM2.34 billion. Gainers outpaced decliners at 399 stocks to 398.

The most actively traded stocks were PUC Bhd, Key Alliance Group Bhd, and Ho Wah Genting Bhd, while Malaysian Pacific Industries Bhd, Heineken Malaysia Bhd and Petronas Dagangan Bhd were the top decliners.

In Asian markets, MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2% to a 10-year high, tracking record-breaking gains on Wall Street, Reuters reported.


South Korea's Kospi, however, was flat after rising in past weeks, while Japan's Nikkei closed down 0.2% on profit-taking.



Source: The Edge

Wednesday, November 8, 2017

Market Daily Report: KLCI slips on profit taking as China export growth slows




KUALA LUMPUR (Nov 8): The FBM KLCI closed 6.74 points or 0.4% lower
on profit taking and after China announced October export growth slowed to 6.9% from a year earlier.

At Bursa Malaysia, the KLCI closed at 1,744.2 points at 5pm. Investors took profit today after the index rose 8.65 points yesterday to 1,750.94 points.

AmInvestment Bank Bhd research analyst Lim Sae Wai told theedgemarkets.com that Malaysian companies' quarterly earnings announcements had not been able to sustain the KLCI's uptick.

“The KLCI needed a few more points to break (the) resistance. While technical indicators provide a slight bearish view, we can give it more time to see which direction the market is heading to," Lim said.

Across Bursa Malaysia, decliners led gainers by 443 against 342 respectively. A total of 2.6 billion shares valued at RM2.14 billion changed hands.

Top decliner was Petronas Dagangan Bhd followed by Petronas Gas Bhd.

China's latest external trade numbers could have also affected global share-trade sentiment.
Reuters reported that China's October exports lagged market expectations, rising 6.9 percent from a year earlier while imports beat forecasts, growing 17.2 percent, official data showed on Wednesday.

Analysts polled by Reuters had expected October shipments from the world's largest exporter to have risen 7.2 percent, slower than the 8.1 percent in the previous month.


Source: The Edge

Tuesday, November 7, 2017

Market Daily Report: FBM KLCI up at intraday high on Petronas, Genting spike



KUALA LUMPUR (Nov 7): The FBM KLCI rose 8.65 points or 0.5% to close at its intraday high today after US equities climbed to record highs overnight on Monday.

Crude oil's overnight rise also supported Malaysian shares today. At 5pm today, the KLCI settled at 1,750.94 points on gains in blue-chip stocks including Petronas Gas Bhd, Genting Bhd and Genting Malaysia Bhd.

"Oil prices continue to be front and centre for traders in a relatively quiet market. Brent crude surged 3.5% to trade above US$64 on Monday, after the arrests in Saudi Arabia raised investors’ concerns over the stability of the Middle East region," FXTM chief market strategist Hussein Sayed wrote in a note today.

Across Bursa Malaysia, 3.02 billion shares worth RM2.67 billion were traded. There were 357 gainers and 456 decliners.

Petronas Gas shares added 54 sen to RM17.64, Genting Bhd rose 48 sen to RM9.35 while Genting Malaysia Bhd was 25 sen higher at RM5.30.

Petronas Gas was Bursa Malaysia's top gainer while Genting Bhd and Genting Malaysia were the second and fourth-largest gainers respectively.

Malaysian shares rose with Asian stocks after US equities' overnight rise. Reuters reported today that MSCI's broadest index of Asia-Pacific shares outside Japan extended early gains, rising 0.7 percent to its loftiest peak since November 2007. The index got a bump higher after all three major US equity indexes closed at record highs overnight.

The Dow Jones Industrial Average inched up 0.04 percent to end at 23,548.42, while the S&P 500 gained 0.13 percent to 2,591.13. The Nasdaq Composite added 0.33 percent to 6,786.44.


 Source: The Edge

Monday, November 6, 2017

Market Daily Report: KLCI up on MISC support as crude oil rises





KUALA LUMPUR (Nov 6): The FBM KLCI rose 1.36 points or 0.1%, supported by blue-chip counters including MISC Bhd. Crude oil gains directed the spotlight on Bursa Malaysia's oil and gas-related stocks.

At 5pm, the KLCI closed at 1,742.29 points. MISC added 30 sen to RM7.41 to become Bursa Malaysia's fifth-largest gainer.

MISC shares rose after the shipping company declared a tax-free dividend of seven sen a share. MISC declared its dividend on Friday in conjunction with the announcement of its third quarter results.

Across Bursa Malaysia today, three billion shares worth RM2.08 billion were traded. Despite KLCI's gain, there were more decliners than gainers — 429 versus 401 respectively.

Top gainers included oil and gas-related companies Hengyuan Refining Co Bhd and Petron Malaysia Refining & Marketing Bhd.

Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew told theedgemarkets.com that "Hengyuan and Petron have benefited from rising oil prices”.

Reuters reported that oil prices hit their highest levels since July 2015 early on Monday as markets tightened, while Saudi Arabia's crown prince cemented his power over the weekend through an anti-corruption crackdown that included high profile arrests.

Brent futures, the international benchmark for oil prices, hit US$62.44 per barrel early on Monday, their highest level since July 2015.


Source: The Edge

Friday, November 3, 2017

Market Daily Report: FBM KLCI down as Petronas Dagangan tops Bursa decliners




KUALA LUMPUR (Nov 3): The FBM KLCI erased gains at the 11th hour to close 0.12 point lower at 1,740.93 points on late selling of index-linked Petronas Dagangan Bhd shares.

At 5pm, Petronas Dagangan fell 46 sen to close at RM23.44 to become Bursa Malaysia's largest decliner. Earlier, the KLCI had risen to its intraday high at 1,744.79 points.

At 5pm, Bursa Malaysia decliners led gainers at 440 against 327 respectively. A total of 2.8 billion shares worth RM1.98 billion changed hands.

Analysts said Malaysian shares fell amid muted market reaction towards US policy news.

Reuters reported that the dollar held steady versus a basket of currencies on Friday, as investors shifted their focus to US jobs data, with President Donald Trump's nomination of Federal Reserve Governor Jerome Powell to be the next Fed chair coming as no surprise.

It was reported that in Washington, House Republicans finally unveiled long-delayed plans for deep tax cuts that Trump has promised, setting off a frantic race in Congress to give him his first major legislative victory.

AmInvestment Bank Bhd analyst Lim Sae Wai told theedgemarkets.com: “The appointment of Jerome Powell has been indicated earlier, and the tax reform bill by the Republicans seems to be less significant than earlier hyped.

“While foreign outflow (from Malaysian markets) has stabilised, there is no signal of reversal yet in the KLCI’s downward trend. Quarterly results will determine the market direction in the near term.”


Source: The Edge

Thursday, November 2, 2017

Market Daily Report: KLCI pares losses as investors eye Malaysia corporate earnings




KUALA LUMPUR (Nov 2): The FBM KLCI pared losses for a 2.88-point or 0.2% drop as investors bargain hunted for blue-chip stocks in the afternoon. The month of November is when Malaysia's July-September quarter corporate financial reporting starts in earnest.

At 5pm today, the KLCI closed at 1,741.05 points after hitting its intraday low at 1,739.80 points.
“Better third quarter results can provide a catalyst for the local market, which has lagged behind regional peers,” Areca Capital Sdn Bhd chief executive Danny Wong Teck Meng told theedgemarkets.com.

Across Bursa Malaysia, 2.91 billion shares valued at RM2.09 billion exchanged hands. Decliners led gainers by 474 to 329 respectively.

Elsewhere, Asian share markets closed mixed as strong earnings prospects lifted Japan’s Nikkei 225 by 0.53%. Hong Kong’s Hang Seng dipped 0.26% while South Korea’s Kospi slipped 0.4%.

Reuters reported that Japan's Nikkei share average extended its strong rally to top a new 21-year peak on Thursday, ahead of a long weekend, with investors piling into miners and companies such as Honda Motor and Sony on robust earnings prospects. Japanese markets will be closed for a national holiday on Friday.


Source: The Edge

Wednesday, November 1, 2017

Market Daily Report: FBM KLCI slips on Sime Darby drop, foreign fund outflow



KUALA LUMPUR (Nov 1): The FBM KLCI closed down 3.99 points or 0.2% partly on Sime Darby Bhd share losses and as foreigners sold Malaysian equities.

At 5pm, the KLCI closed at 1,743.93 points. Sime Darby dipped 11 sen to RM9.09 after Moody's Investors Service downgraded Sime Darby's issuer rating to Baa3 from Baa1.

"The rating outlook is stable. The rating action concludes Moody's review of the company's rating for downgrade, which was initiated on Feb 3 2017, after Sime Darby announced a plan to create three standalone businesses, by retaining its motors, industrial, logistics and other businesses and listing its plantation and property divisions on Bursa Securities Malaysia," Moody's said in a statement yesterday.

Today, Kenanga Investment Bank Bhd analyst Muhammad Afif Zulkaplly told theedgemarkets.com that Sime Darby partly contributed to the outflow of foreign funds from Malaysian shares.

“Locally, foreign outflow is most likely to continue in the next few days. We maintain our outlook on KLCI to be biased on the downside in the near term,” Muhammad Afif said.

Across Bursa Malaysia, decliners led gainers by 453 against 344 respectively. A total of 3.07 billion shares changed hands for RM2.3 billion.

Malaysian shares bucked Asian equity gains. Japan’s Nikkei 225 rose 1.86% while Hong Kong’s Hang Seng climbed 1.23%.

Reuters reported that Asian shares scaled a 10-year high on Wednesday on the back of solid economic growth globally, while oil prices extended a bull run on hopes that major producers will maintain their output cuts.


Source: The Edge

Tuesday, October 31, 2017

Market Daily Report: KLCI in the red despite late bargain hunting




KUALA LUMPUR (Oct 31): Last-minute bargain hunting dampened losses but could not help lift the FBM KLCI out of the red today, after the index was dragged down by a slew of foreign sell-offs an hour before close.

The benchmark index eked minimal gains in early trade and traded mostly sideways throughout the day before the steep sell-off, hitting a low of 1,742.60 before closing at 1,747.92, down 0.02% or 0.43 points.

"Foreign funds sold off non-GLC shares such as BAT, Genting and Sime Darby," said Inter-Pacific Securities research head Pong Teng Siew. "The local funds have bought into GLCs like Tenaga, but there was more profit-taking after a few days of uptrend," he told theedgemarkets.com.

The local equity market also took cue from news about uncertainties on the highly anticipated tax cut bill in the US, which has a self-imposed deadline set on Wednesday, added Pong.

Wall Street pulled back from record-high territory on Monday, weighed down by a drop in drugmaker Merck and a report that US lawmakers are discussing gradual phase-in corporate tax cuts rather than reducing it all at once, Reuters reported.

Across Asia, Hong Kong's Hang Seng Index slipped 0.32%, South Korea's Kospi rose 0.86% while Japan's Nikkei 225 traded flattish to close 0.06 points lower.

Back home, Bursa Malaysia saw 420 gainers and 412 losers, while 461 counters traded unchanged. Some 3.15 billion shares were traded, for a total value of RM2.78 billion.


Source: The Edge

Monday, October 30, 2017

Market Daily Report: KLCI gains on Petronas stocks, well-received Malaysian budget




KUALA LUMPUR (Oct 30): The FBM KLCI climbed 2.22 points or 0.1%, lifted by oil and gas and plantation-linked counters and as investors reacted positively to Malaysia's Budget 2018.

At 5pm, the KLCI closed at 1,748.35 points on gains in stocks like Petronas Dagangan Bhd, Petronas Chemicals Group Bhd, Sime Darby Bhd and Kuala Lumpur Kepong Bhd (KLK).

“The market is reacting positively to the Budget,” Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew told theedgemarkets.com.

Petronas-linked stocks rose as Brent crude oil were traded above US$60 a barrel. Meanwhile, Sime Darby and KLK climbed as Malaysian palm oil futures tracked rival soybean oil gains.

Across Bursa Malaysia, 2.88 billion shares valued at RM2.15 billion exchanged hands. Gainers led decliners by 489 to 380 respectively.

Top gainers included Nestle (M) Bhd and Carlsberg Brewery Malaysia Bhd.


Source: The Edge

Friday, October 27, 2017

Malaysia Budget 2018 Highlights

* Najib: Malaysia has created 2.26 million jobs, representing 69% of the 3.3 million target by 2020

* Budget 2018 allocates a sum of RM280.25b, up from RM260.8b in 2017

* Per capita income expected to rise to RM42,777 in 2018, from RM40,713 now, says PM

* Federal government's revenue collection projected at RM239.86b in 2018

* Budget 2018 to see RM234.25 billion allocated for operating expenditure, RM46 billion for development expenditure

* Additional RM200m allocated to Amanah Ikhtiar Malaysia in Budget 2018, raising fund size to RM2.7b

* Budget 2018 allocates RM6.5b to assist farmers, fishermen, smallholders and rubber tappers

* Budget 2018 allocates RM200m to SMEs for training programmes, grants and soft loans under the SME Corp

* Najib declares 2020 as Visit Malaysia Year with APEC, WCIT, CHOGM being held

* Najib: Works on ECRL to start by January 2018

* Budget 2018 allocates RM2b to SME Tourism Fund to provide soft loans to tour operators with interest subsidy of 2%

* Najib: Listing Pulau Pangkor as tax free island, except for alcohol, cigarettes, motor vehicles

* Najib: New airport in Tioman is being planned

* Penang International Airport and Langkawi International Airport to be upgraded

* Upgrade of international airports in Penang, Langkawi, Kota Baru, Sandakan with new airport in Mukah

* Najib: Alternative trading system will be introduced

* Feasibility study to be conducted for the building of a bridge from Labuan to mainland Sabah

* Construction of MRT3 to be expedited, with completion by 2025 instead of targeted 2027

* BNM to monitor payments of salaries to foreign workers (except maids) via accounts registered with local banks

*  MRT2 project to cost about RM32b, says Najib

*  Amanah Dana Anak Malaysia 2050 — Malaysian child born between Jan 1 2018 to 2022 to be awarded starting fund of RM200 via Amanah Saham PNB Units

* Tax incentives for new four- and five-star hotel investments extended until Dec 31, 2020

* Govt to build 14 sports complexes in the country at cost of RM112m

* RM61.6b allocation for education sector in 2018. Malaysia's education expenses is twice as high than that of other countries in Asean on average

* Govt aid of RM100 for students from low-income families continues in 2018, with RM328m allocation which will benefit 3.2 million students

*  RM550m allocation for the maintenance and upgrading of schools in 2018

* PTPTN discounts until Dec 31, 2018: 20% discount for full settlement, 15% discount for 50% outstanding settlement, 10% through direct debit from salary

* RM4.9 billion allocated for TVET Malaysia Plan

* Najib: MRT is a ‘success story’ as it was completed ahead of time and RM2b less than originally projected

* Exemption of stamp duty on contract note for transaction of Exchange Traded Fund and Structured warrant over three years from Jan 2018 onwards

* Budget 2018: RM6.5b allocation for rural development

* RM300m to be allocated for National Blue Ocean Shift, including for the building of new Urban Transformation Centres

* Over RM14b to be allocated for the Malaysian Armed Forces, of which close to RM9b for the Royal Malaysian Police and RM900m to the Malaysia Maritime Enforcement Agency

* Najib: To increase equity holdings and investment in strategic sectors, RM150m to be allocated to Pelaburan Hartanah Bhd and RM150m to Ekuinas

* Najib proposes that private sector increase paid maternity leave for employees from 60 days to 90 days, to be in line with the public sector

* 12-month income tax exemption for women returning to workforce (after minimum 2-year break) proposed

* Personal income tax cut for all 2.3m tax payers, with 2% cut in the RM20,000 to RM70,000 tax income bands

* BR1M to continue in 2018, with 7 million BR1M recipients to receive a maximum payout of RM1,200 each in 2018

* Toll collection on Federal Highway (at Batu Tiga, Shah Alam and Sungai Rasau, Selangor); Bukit Kayu Hitam (Kedah) and Eastern Dispersal Link (Johor) abolished from Jan 2018

* Civil servants to get RM1,500 special payment: RM1,000 in early-Jan 2018 and remaining RM500 towards Hari Raya 2018

* Special payment of RM750 for pensioners in 2018

* RM2.5 billion allocated for MARA higher education scholarships, which is the highest ever allocation and to benefit 90,000 students

* Government retirees to receive RM750 special payment each: RM500 to be paid in January 2018 and remaining RM250 towards Hari Raya next year

* 50 Kedai Rakyat 1Malaysia outlets to be transformed to KRIM 2.0 in 2018, with 3,000 outlets set up within 3 years

* Domestic helpers can now be sourced directly from country of origin or online with Immigration Dept, at existing levy and processing fee rates

* Tax exemption on 50% of home rental income up to RM2,000 per month to Malaysians residing in Malaysia. Exemption given from Year Assessment 2018 to 2020

* Cost of hiring foreign domestic helpers to be reviewed, with a view on reducing it in future

* To encourage more affordable housing, Step Up Financing Scheme for PR1MA homes to be extended to private developers, based on criteria to be set

* RM27b allocation for healthcare, of which RM1.4b to maintain and upgrade facilities, RM50m for Voluntary Health Insurance Scheme

* RM1.5b allocated for PR1MA over two years to build 210,000 housing unit priced under RM250,000 per unit

* No GST for reading materials, including magazines, comics and journals, from Jan 1, 2018

* GST exemption for O&G firms that import rigs, floating structures from Jan 1

* RM5b to be allocated under Green Technology Financing Scheme to boost green technology investments

* Capital allowances on ICT equipment to be eligible for full claims between 2018 and 2020

* Civil servants who retire early due to health reasons to get retirement benefits similar to their retired counterparts


Source: The Edge

Market Daily Report: FBM KLCI gains on Tenaga's rise as PM Najib unveils Malaysia's Budget 2018




KUALA LUMPUR (Oct 27): The FBM KLCI gained 9.33 points or 0.5% on index-linked Tenaga Nasional Bhd's share price rise and as investors reacted positively to Prime Minister Datuk Seri Najib Tun Razak's Budget 2018 speech.

At 5pm, the KLCI closed at 1,746.13 points, after rising to its intraday high at 1,751.50 points. Bursa Malaysia top gainer Tenaga added 62 sen to close at RM14.96, on the state-controlled utility's latest dividend and after the company announced a new dividend policy.

Across Bursa Malaysia, 2.76 billion shares, worth RM2.66 billion were traded. There were 476 gainers versus 310 decliners.

Yesterday, Tenaga proposed a dividend of 44 sen a share for its fourth quarter ended Aug 31, 2017 (4QFY17). The quarterly dividend brings full-year dividends to 61 sen.

Tenaga also said "with effect from the financial year ended 31 August 2017, TNB (Tenaga) will adopt a new dividend policy for the company. TNB intends to distribute dividends based on 30% to 60% dividend payout ratio, based on the reported consolidated net profit attributable to shareholders after minority interest, excluding extraordinary, non-recurring items."

Today, analysts said Najib's Budget 2018 speech, which began at 3:30pm, augured well for the stock market.

“The oversold KLCI, coupled with the optimistic budget speech by PM Najib, boosted the key index to close higher,” Hong Leong Investment Bank Bhd head of retail research Loui Low told theedgemarkets.com.


Source: The Edge

Thursday, October 26, 2017

Market Daily Report: FBM KLCI falls after Wall Street's drop




KUALA LUMPUR (Oct 26): The FBM KLCI shed 2.25 points or 0.1% on profit taking in IHH Healthcare Bhd shares and after US shares at Wall Street closed lower overnight.

At 5pm, the KLCI closed at 1,736.80 points. IHH fell 14 sen to RM5.65 to become Bursa Malaysia third-largest decliner.

Across Bursa Malaysia, 2.53 billion shares worth RM2.13 billion were traded. There 415 gainers versus 335 decliners.

“Despite opening higher at the strike of the trading bell this morning, the FBM KLCI remained mostly in negative territory throughout the day, mainly due to the weak (overnight US share) performance at Wall Street. Domestically speaking, there was some heavy profit taking in IHH,” Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com.

Malaysia's Budget 2018 will be closely watched as investors evaluate its potential impact on the stock market. Prime Minister Datuk Seri Najib Tun Razak will table Budget 2018 in Parliament tomorrow.

Today, Leong said Budget 2018 is not expected to largely impact the KLCI's performance. He said “the impact is likely to be neutral on the stock market so we do not expect any big surprises.”

US shares fell overnight on Wednesday. Reuters reported that US stocks fell on Wednesday, with the Dow Industrials and S&P 500 indexes suffering their worst day in seven weeks, on a batch of soft quarterly earnings and a rise in bond yields.

The Dow Jones Industrial Average fell 112.3 points, or 0.48 percent, to end at 23,329.46, the S&P 500 lost 11.98 points, or 0.47 percent, to 2,557.15 and the Nasdaq Composite dropped 34.54 points, or 0.52 percent, to 6,563.89.

Source: The Edge

Wednesday, October 25, 2017

Market Daily Report: FBM KLCI seen oversold, up on Genting Malaysia gains



KUALA LUMPUR (Oct 25): The FBM KLCI settled 2.91 points or 0.2% higher, mainly on index-linked Genting Malaysia Bhd share gains.

At 5pm, the KLCI closed at 1,739.05 points after falling to its intraday low at 1,733.67 points. Genting Malaysia shares rose 13 sen to RM5.13 to become Bursa Malaysia's ninth-largest gainer.
Across Bursa Malaysia, 2.46 billion shares worth RM1.89 billion were traded. There were 349 gainers and 433 decliners.

“The (Malaysian) stock market is actually oversold, and (the KLCI) will probably hold at the 1,740-1,750 level for the next few days. There’s no reason for it to fall further,” Malacca Securities Sdn Bhd head of research Victor Wan told theedgemarkets.com.

Looking ahead, Wan said besides Malaysia's Budget 2018 which will be announced this Friday (Oct 27), investor sentiment will be largely dependent on announcements of more infrastructure projects, which in turn will affect Bursa Malaysia construction counters.

Today, investors' interest on Bursa Malaysia construction counters was apparent. The Bursa Malaysia Construction Index rose 5.87 points or 1.83% to close at 326.98 points.


Source: The Edge

Tuesday, October 24, 2017

Market Daily Report: FBM KLCI dragged down by foreign selling on US rate hike cue




KUALA LUMPUR (Oct 24): The FBM KLCI closed down 5.33 points or 0.3% as foreign selling of Malaysian blue-chip shares continued amid near-term US interest rate hike expectation. At 5pm, the KLCI closed at 1,736.14 points.

Across Bursa Malaysia, 2.49 billion shares were transacted for RM2.13 billion. Decliners outpaced gainers by 578 versus 255 respectively.

TA Securities Holdings Bhd technical analyst Stephen Soo said foreign selling of Malaysian shares is not over yet.

“It is quite big selling pressure on blue chips and until and unless there is significant buying and local funds coming in, I don’t see a reversal soon. However, the market is oversold and it is ripe for a rebound.

“I believe it could happen by the end of the week with the tabling of the Budget (Malaysia's Budget 2018). The (KLCI's) immediate resistance would be 1,750 points,” Soo told theedgemarkets.com.
Prime Minister Datuk Seri Najib Tun Razak will table Budget 2018 in Parliament this Friday (Oct 27).

Across Asia today, the impact of US interest rate hike expectation was apparent in Hong Kong markets.

Reuters reported that Hong Kong stocks fell on Tuesday amid signs of tighter liquidity, which some analysts attributed to the prospects of another US rate hike by year-end. The Hang Seng index fell 0.5 percent, to 28,154.97, while the China Enterprises Index lost 0.7 percent, to 11,405.55 points.
It was reported that Hong Kong's 3-month interbank fixing rate spiked to the highest level in five months on Tuesday, and the one-month rate has also been rising.


Source: The Edge