Opening Daily Highlight
Mixed
Stay defensive amid global volatility
Thu, 08-Aug-2024 07:56 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review. The FBM KLCI (+1.1%) extended its rebound from oversold position, in line with the positive regional market performance. Lower liners rebounded higher as investors turned risk-on mode amid improved sentiment. Energy, Utilities, and Construction sectors led the sectorial gainers, each rising more than 3%, while the Plantation sector was the sole decliner.

Global Markets Review. Wall Street experienced a choppy session, reversing intraday gains to close in the red, led by losses in technology stocks following missed quarterly earnings. In contrast, European markets closed higher, with the main index climbed 1.6%. Asian stock markets extended their rebound, buoyed by a less hawkish tone from Japan's BOJ.

Market Outlook. On the global stage, sentiments remain jittery as demonstrated by the volatile sessions on Wall Street, with lingering concerns over economic slowdown. Back to the local bourse today, the stock market is expected to mirror Wall Street's overnight weakness was profit taking activities seeps back into the picture. We advise investors to remain defensive and stay on the sidelines due to ongoing global headwinds such as potential US recessions and geopolitical tensions between Iran and Israel. Despite maintaining a positive longer-term outlook, we continue to favor the Financial and REIT sectors to outperform others, serving as safe havens during this volatility.

 

FBM KLCI Technical Review & Outlook

Technical Commentary: The FBM KLCI formed another bullish candle as the key index build onto its recovery from the recent sell down. Indicators, however, remained negative as the MACD Line treaded below the zero level, while the RSI remain below 50. Immediate resistance is located at 1,600. Support is envisaged around 1,530.

 

Company News 

Uzma Bhd has accepted a contract award from PTTEP Sarawak Oil Ltd (PTTEP) for the provision of one hydraulic workover unit (HWU) and associated services for PTTEP, pursuant to the latter’s letter of award dated July 4, 2024 and subsequently approved on Aug 5. 2024.

 

Willowglen MSC Bhd has been awarded a contract valued at RM27.82mil from Kadenko Co Ltd, Singapore, for the provision of supervisory control and data acquisition and condition monitoring system, monitoring and control network.

 

Cape EMS Bhd managing director and chief executive officer Christina Tee Kim Chin continued her divestment of company shares, selling 112.74 million shares for RM53.56 million on Tuesday. 

 

Businessman Tan Sri Robert Tan Hua Choon is no longer a substantial shareholder of Paragon Globe Bhd after selling half of his stake. 

 

Heineken Malaysia Bhd's net profit for second quarter ended June 30, 2024 rose 0.72% to RM91.13 million from RM90.47 million earlier, thanks to lower operating expenses. 

 

Biscuit maker Hup Seng Industries Bhd reported a net profit increase of 3.53% to RM9.03 million, or 1.13 sen per share, for the second quarter ended June 30. 

 

Sentral Real Estate Investment Trust, or Sentral REIT, saw a 30% increase in net property income to RM76.06 million for the first half of FY2024, from RM58.49 million a year ago, driven by contributions from Menara CelcomDigi and key properties like Building 4 and Platinum Sentral. 

 

Kawan Renergy Bhd’s subsidiary, Kawan Engineering Sdn Bhd (KESB), secured a RM58 million contract from KAB Energy Holdings Sdn Bhd for mechanical, firefighting, and electrical works at a 52-megawatt power plant in Sipitang, Sabah.

Sentiment: Positive
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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 3.933208 3.960978
EUR 4.575563 4.585407
CNY 0.571282 0.571899
HKD 0.503427 0.507495
SGD 3.076058 3.100967