Market Review & Outlook
Malaysia Market Review. The FBM KLCI (+0.7%) started off the week on a buoyant manner with more than two-third of the key index components closed in green yesterday. The lower liners remained upbeat, while the Healthcare (-0.3%) and Transportation & Logistics (-0.1%) sectors underperformed the mostly positive sectorial peers.
Global Markets Review. Wall Street turned wobbly as the Dow slipped - 0.4% on heightened Middle East geopolitical tension while investors turned to the sidelines ahead of the release of US inflation data on Wednesday night. Both the European and Asia stockmarkets ended mixed.
Market Outlook. Expectedly, the key index advanced and subsequently rose above 1,600 psychological level yesterday. Looking ahead, we expect the local bourse may attempt to defend the aforementioned level. Meanwhile, the unabated volatility on Wall Street overnight may keep any further gains in check. The lower liners recovery may also come into a minor halt as investors may take this opportunity to book in recent short-term profits to monitor the geopolitical developments in the Middle East. For today, investors will be keeping a close watch onto the release of US Producer Price Index (PPI) data later tonight. Surge in oil prices due to the escalated geopolitical tension in the Middle East whereby Brent oil prices rallied above US$80/bbl may present some trading opportunities within oil & gas sector. Gold-related stocks may also turn into the limelight with gold prices firmed above US$2,400/oz.
FBM KLCI Technical Review & Outlook
Technical Commentary: The FBM KLCI formed a bullish candle and closed above the 1,600 psychological level yesterday. Indicators have turned mixed as the MACD Line stayed below the zero level, while the RSI hooked above 50. The next resistance is located at 1,630. Support is envisaged around 1,530.
Company News
Kitacon Bhd's wholly-owned subsidiary Kitacon Sdn Bhd has accepted a contract from Sime Darby Property (Bukit Raja) Sdn Bhd for main building works valued at RM111.23mil.
Encorp Bhd, with Felda Investment Corp Sdn Bhd (FIC) holding 67.13% stake, has suspended group chief executive officer Hazurin Harun to facilitate an internal investigation related to allegations involving the Malaysian Anti-Corruption Commission (MACC).
Maxis Bhd and Huawei Technologies (Malaysia) Sdn Bhd have announced a strategic partnership to establish a joint innovation centre focused on developing 5G-advanced technology.
Icon Offshore Bhd confirmed that an explosion occurred on its platform supply vessel, Icon Amara, off the coast of Sarawak on Aug 2.
Carlo Rino Group Bhd has received approval from Bursa Malaysia for its transfer from the LEAP Market to the ACE Market.
Straits Energy Resources Bhd plans to list its 76.68%-owned subsidiary, TMD Energy Ltd (TMDEL), on the NYSE American, an exchange for growing companies, by the fourth quarter of 2024, instead of Nasdaq as initially planned.
The Employees Provident Fund (EPF) has become a substantial shareholder in SMRT Holdings Bhd for the first time, increasing its stake to 5.017%, or 22.73 million shares.
Recently-listed Well Chip Group Bhd reported a net profit of RM14.28 million in the second-quarter ended June 30,2024 (2QFY2024), a 20% increase from RM11.9 million in the first quarter.
Censof Holdings Bhd has secured a RM14.6 million contract from the Penang Development Corp (PDC) for the provision of an enterprise-wide financial management information system.
The chairman of Karyon Industries Bhd and independent non-executive director of Enra Group Bhd, Loh Chen Yook, has become a substantial shareholder in Sycal Ventures Bhd.
Mikro MSC Bhd plans to acquire TES Productions & Projects Pte Ltd, a Singapore-based sign and advertising display manufacturer, for RM30 million in shares.
Pekat Group Bhd has secured a RM21.78 million contract from Gamuda Engineering Sdn Bhd for installing earthing and lightning protection at a data centre.
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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 |