Opening Daily Highlight
Mixed
Anticipate negative momentum to continue
Mon, 05-Aug-2024 09:37 am
by Research Team • Apex Research

  • Malaysia Market Review. The FBM KLCI (-0.8%) experienced a sell-off due to broad global stock market weakness, mirroring Wall Street's performance amidst concerns about economic slowdown and downbeat earnings. Lower liners plummeted as funds pulled out after an uptrend sinceApril. The Construction (-5.0%) and Technology (-4.6%) sectors experienced the greatest sell-down among all sectors.
  • Global Markets Review. US stock markets experienced a two-day sell-off last Friday, driven by disappointing corporate quarterly results and a softer than-anticipated nonfarm payrolls report, which raised recession concerns. European stock markets mirrored this trend, with key indices closing 3% lower. Asian stock markets also saw heavy sell-offs, led by Japan's Nikkei, which sank -5.8%.
  • Market Outlook. On the global stage, markets are concern that the Fed may act too slowly in response to potential recession risks, highlighted by weaker-than-expected unemployment data. Domestically, we anticipate that the local bourse will continue to extend the negative momentum seen last week, following the sell-off on Wall Street. However, we foresee a rotation of funds from lower liners to blue-chip and index stocks, and we favor the financial sector and REITs as safe havens during the current global market volatility. Key economic focuses for the week will include China's PMI, EU retail sales, and some Malaysian economic data. We remain positive about the outlook longer term for the local bourse due to active development in the country and the strengthening of the ringgit, despite the short-term sentiment being affected by Wall Street's performance.
Sentiment: Negative
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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.183360 4.212600
EUR 4.873028 4.878308
CNY 0.589871 0.590472
HKD 0.538522 0.542295
SGD 3.220053 3.242721