Opening Daily Highlight
Mixed
Rebound on Wall Street spurs optimism
Fri, 09-Aug-2024 07:53 am
by Research Team • Apex Research

Market Review & Outlook

  • Malaysia Market Review. The FBM KLCI (-0.1%) ended marginally lower after two days of oversold recovery. Lower liners also finished in the red, mirroring the weak performance of the US market. The Telecom (+0.5%) sector emerged as the top gainers, while Construction (-1.5%) and Utilities (-0.7%) sectors were the top decliners as profit-taking emerged.

  • Global Markets Review. Wall Street surged with a strong rebound overnight, as recession fears eased following better-than-expected jobless claims data, indicating improved job market conditions after last week's unexpectedly high unemployment rate. European market ended mixed, with main index closing just +0.02% higher, while Asian markets mostly closed lower, mirroring the earlier performance of the US market on the release of Japan's trade data and India's monetary policy decisions ahead.

  • Market Outlook. On the global stage, concerns on U.S. recession have eased, leading to a strong rebound on Wall Street. We anticipate that this positive sentiment will spill over into the local bourse today, driven by the expected return of foreign funds. Additionally, news of direct domestic investment by the six government-led GLICs is likely to further bolster market sentiment. However, the upside could be limited as investors might stay on the sidelines, given that today is the last trading day of the week, with many awaiting the upcoming corporate results season and the release of more US economic data next week. We expect improve sector performance in Construction, Utilities, and Technology today, as these sectors remain the preferred choice of foreign investors.

 

FBM KLCI Technical Review & Outlook

  • Technical Commentary: The FBM KLCI staged a minor pullback after recovering most of its intraday losses yesterday. 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 

  • ATA IMS Bhd has teamed up with Shanghai-listed Jinhua Chunguang Technology Co Ltd (Chunguang) to venture into the household and electrical appliances sector.

 

  • MK Land Holdings Bhd has reached a settlement with the tax authority that would cut the additional bills and penalty imposed on its unit by nearly 85%.

 

  • Seal Inc Bhd is raising its shareholding in loss-making MSR Green Energy Sdn Bhd to 30% by acquiring an additional 10% for RM21 million.

 

  • Ge-Shen Corp Bhd net profit for the second quarter doubled to RM4.47 million from RM2.19 million a year earlier, on increased sales revenue from a higher utilisation rate across its factories in Penang, and Hanoi, Vietnam.

 

  • TSH Resources Bhd’s land sales, which would have fetched roughly 2.43 trillion Indonesian rupiah (RM731.09 million), in North Kalimantan have been downsized to RM447.17 million.

 

  • Ranhill Utilities Bhd announced the appointment of five new directors, four of whom are linked to YTL Power International Bhd following the successful takeover of Ranhill by YTL Power and its 70%-owned unit, SIPP Power Sdn Bhd, on July 9, when they completed their mandatory general offer (MGO) for the Johor-based utility company, securing a controlling stake of 53.19%.

Sentiment: Negative
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Market Mover
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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