Opening Daily Highlight
Mixed
Bargain hunting expecting
Tue, 06-Aug-2024 11:25 am
by Research Team • Apex Research

Market Review & Outlook

  • Malaysia Market Review.  The FBM KLCI (-4.63\%) plummeted, dragged by the concern arising from US recession, further exacerbated by the sell-off in the Japanese stock market due to potential interest rate hikes by the BOJ. The decline in lower liners was more severe as investors booked in recent profits. The Property, Technology, and Construction sectors led the losses, with their indices dropping by more than 9% respectively.
  • Global Markets Review. US stock markets sell-down remain unabated on fears of a recession, with the "fear gauge" CBOE Volatility Index jumping higher. Similarly, European markets led losses in the Technology and Energy sectors. Asian stock markets also faced significant declines, particularly in Japan, where the index experienced its greatest sell-off (-12.4%) since 1987.
  • Market Outlook. Global markets extended their sell-down amidst concerns over recession fears and geopolitical tensions between Iran and Israel, following recent months of an uptrend. However, for the local market today, we anticipate some stability and bargain hunting to emerge from yesterday's correction. This expectation is supported by a rebound in global stock market futures and a slight recovery from intraday losses on Wall Street, following better-than-expected US PMI Services data that helped ease panic. Traders might find opportunities in fundamentally strong stocks for bargain hunting after the recent sell-down. Despite this, we advise investors to remain cautious during the current market turmoil. While we maintain a positive long-term outlook for the local bourse, we advocate a cautious approach. Investors can gradually accumulate stocks that have dropped below their intrinsic value during this period of market volatility.

 

Company News 

  • Jati Tinggi Group Bhd (JTGB) has accepted a letter of award (LOA) from Gamuda Engineering Sdn Bhd worth RM33.8mil to perform engineering, procurement, construction and commissioning of horizontal directional drilling works for incoming power supply in Gombak, Selangor.
  • Berjaya Food Bhd said on Monday its international arm has secured the rights to operate Starbucks stores in Iceland, Denmark and Finland. 
  • Sasbadi Holdings Bhd has secured two contracts from the Ministry of Education to supply reprinted textbooks to schools, worth an estimated RM11.71 million. 
  • Notion VTec Bhd logged an 11-fold increase in net profit for the third quarter ended June 30, 2024 (3QFY2024) to RM20.25 million from RM1.82 million a year earlier, on the back of higher revenue. 
  • MISC Bhd chief operating officer Zahid Osman will take over as the group’s president and group chief executive officer from Aug 16, replacing Captain Rajalingam Subramaniam, who will step down from his role on Aug 15, after less than two years on the job. 
  • Malayan Banking Bhd has appointed two new independent non-executive directors, Chiam Sou Hong and Vittorio Furlan, effective Monday. 
  • The High Court has allowed RHB Bank Bhd’s application for a summary judgement against Ireka Corp Bhd for the bank's RM6.53 million claim over an alleged default in a revolving credit facility. 
  • Talam Transform Bhd said it plans to dispose of a 27.72-acre piece of land in Sepang to a unit of IJM Corp Bhd as partial debt repayment. 
  • Handal Energy Bhd said a firm in which its group managing director Sunildeep Singh Dhaliwal is a substantial shareholder is suing the offshore crane services provider over an alleged unpaid payment.
Sentiment: Negative
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Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.

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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