Opening Daily Highlight
Local
Reinforced US interest rate cut
Wed, 14-Aug-2024 06:38 am
by Research Team • Apex Research

Market Review & Outlook

  • Malaysia Market Review. The FBM KLCI fluctuated between gains and losses before closing 0.2% higher yesterday, driven by gains in Petronasrelated heavyweights. The lower liners, however, retreated, while the Construction sector (-1.8%) underperformed amongst the mostly negative sectorial peers.

  • Global Markets Review. Wall Street took a step forward as the Dow jumped 1.0% after the weaker-than-anticipated PPI data spurred speculation over an interest rate cut in September. European stock markets advanced after recouping all their intraday losses, while Asia stock markets closed mostly upbeat.

  • Market Outlook. The local bourse managed to defend the 1,600 psychological level and eked out marginal gains yesterday. Expectedly, the lower liners recovery took a bump as investors booked in recent gains. As we enter towards the quarterly reporting earnings season, we expect sentiment to turn cautious. Still, the positive developments on Wall Street is expected to bring cheer towards to local markets as the widely anticipated interest rate cut may materialise next month. Looking ahead, investors will be keeping a close tab onto US inflation data later today. Sector wise, we favour the technology sector, potentially mirroring the gains in Nasdaq overnight. With CPO prices languishing below RM3,700/MT (weakest year-to-date), we expect plantation sector to be downbeat.

 

FBM KLCI Technical Review & Outlook

  • Technical Commentary: The FBM KLCI formed a hammer candle after recouping all its intraday losses as the key index defended the 1,600 psychological level yesterday. Indicators, however, stayed 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 

  • Natural rubber processor Seng Fong Holdings Bhd’s net profit jumped by more than five-fold year-on-year to RM16.49mil in the fourth quarter ended June 30, 2024 (4Q24).

  • Uzma Bhd is set to begin operating its 50MW large-scale solar 4 (LSS4) project in Sungai Petani, Kedah, within the next two weeks after receiving approval from Tenaga Nasional Bhd.

  • LBS Bina Group Bhd's subsidiary, Gerbang Mekar Sdn Bhd (GMSB), is facing a RM43.03 million claim filed by Mega Planner Jaya Sdn Bhd, now in liquidation. 

  • Felda’s 81.9%-owned FGV Holdings Bhd reaffirmed its plans to undertake a bonus issue, intended to reduce Felda’s stake in FGV to meet public shareholding spread requirements, was initially set for completion in 4Q2023. 

  • Enest Group Bhd, a bird's nest supplier listed on the LEAP Market since August 2019, plans to transfer to the ACE Market on Bursa Malaysia.

  • Minetech Resources Bhd has secured a RM36.79 million contract to upgrade the sewage system in Terengganu.

  • Signature International Bhd is selling two parcels of freehold land in Negeri Sembilan's Techpark @ Enstek Phase 2 for RM25.7 million.

  • Mr DIY Group (M) Bhd said its second quarter net profit rose 3.3% to RM155.21 million, from RM150.32 million a year earlier, driven by higher revenue but offset by increased expansion costs. 

  • Axiata Group Bhd’s 63%-owned tower company, Edotco Group Sdn Bhd, signed MOUs with Malaysia Digital Economy Corporation (MDEC) and Boost Holdings Sdn Bhd to boost Malaysia's digital economy.

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