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Local
Advocate cautiousness on market pullback
Mon, 24-Jun-2024 07:35 am
by Research Team • Apex Research

  • Malaysia Market Review. The FBM KLCI extended its downward trend by 0.15%, dragged by the impact of the quadruple witching rebalancing day on key index constituents. The fall is in line with regional market performance, which also ended mostly in the red. Meanwhile, lower liners showed mixed closing. The Construction sector was the top gainer, rising by 0.69% due to emergence of bargain hunting, while the Energy sector was the worst performer, falling by 1.07%.

  • Global Markets Review. The US market closed mixed, with the Nasdaq and S&P 500 losing momentum as profit-taking emerged in AI-related stocks accelerates. Meanwhile, European stock markets closed lower, dragged down by declines in technology and bank stocks. In Asia, stock markets mostly ended in the red after Japan's inflation data came in cooler than expected.
  • Market Outlook. We expect to see bargain hunting on the local bourse after last week’s pullback. However, we suggest investors remain cautious and monitor the extent of this pullback amid the absence of fresh leads. Economically, investors should closely watch Malaysia’s inflation rate and US consumer expenditures and sentiment this week. We advocate for the gradual accumulation of blue-chip stocks with sound fundamentals as the broader market took a larger hit. Additionally, we are positive on utilities sector, driven by the increasing demand for electricity due to the development of data centers in the country. Conversely, investors may want to avoid oil & gas companies due to the recent dip in oil prices.
Sentiment: Positive
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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.170987 4.204276
EUR 4.872100 4.877133
CNY 0.589575 0.590185
HKD 0.537072 0.540837
SGD 3.222926 3.245616