Market Review & Outlook
Malaysia Market Review. The FBM KLCI (+0.7%) ended the week on a positive note after Bank Negara announced 2Q24 GDP growth of +5.9%, highlighting Malaysia's robust economic strength. Similarly, the lower liners also rebounded, while the energy sector (+2.5%) was the biggest winner among the other mostly positive sectoral peers.
Global Markets Review. US stock markets extended their rally on last Friday, as retail sales data released Thursday came in much stronger than expected, while weekly jobless claims fell. European stock markets remained strong, led by gains in automotive and oil and gas shares, while Asian stock markets finished mostly higher.
Market Outlook. Despite the rebound in the FBM KLCI, we reckon that profit taking activities may resurface as the key index approaches the 1,630 resistance level. That said, spill over positive sentiment from Wall Street along with the return of foreign funds may provide some support to the local bourse. For now, investors will be monitoring onto the upcoming barrage of corporate earnings release later this week. On the global front, all eyes will focus onto speeches from Fed governor Waller. We favor the consumer sector in light of the recent salary adjustment for civil servants, which is expected to boost spending activity. Also, gold-related stocks remain appealing on the back of softer US Dollar, supported by the widely anticipated upcoming rate cut next month.
FBM KLCI Technical Review & Outlook
Technical Commentary: The FBM KLCI formed a gap up to extend its gains for the sixth straight session and stayed above SMA50 last Friday. Indicators remained positive as the MACD Line climbed above the Signal Line, while the RSI hovered above 50. The immediate resistance is located at 1,630. Support is envisaged around 1,580.
Company News
CelcomDigi Bhd's net profit rose 18% in the second quarter to RM406.02 million, compared to RM342.52 million a year earlier, driven by lower depreciation charges and tax incentives.
Genting Bhd is seeking legal advice following allegations by the Nevada gaming regulator that it failed to ban criminals from its Resorts World Las Vegas.
MNRB Holdings Bhd’s net profit for its first quarter ended June 30, 2024 surged 32.6% to RM92.2 million from RM69.54 million a year ago, driven by stronger reinsurance and general takaful businesses.
Engineering supporting services provider SFP Tech Holdings Bhd's net profit for 2QFY2024 grew by 21.22% to RM12.89 million from RM10.63 million a year earlier, driven by higher orders in its engineering supporting services (ESS) segment.
SBC Corporation Bhd is selling a 2.2-acre land in Kuala Lumpur for RM36.6 million to MEGX Holdings Sdn Bhd.
Mi Technovation Bhd's net profit for the second quarter ended June 30, 2024 increased by 21.3% to RM27.6 million from RM22.7 million in the same period last year, supported by higher revenue.
Bumi Armada Bhd's subsidiary, Bumi Armada Holdings Labuan Ltd, has secured syndicated facilities totalling up to US$400 million (RM1.77 billion) to refinance a RM1.5 billion sukuk issued in 2014.
Privately owned rail construction company Dhaya Maju Infrastructure (Asia) Sdn Bhd has agreed to acquire up to a 51% stake in electrical engineering firm Pestech International Bhd.
Petronas Chemicals Group Bhd reported a 24% increase in net profit for the second quarter ended June 30, 2024, rising to RM777 million from RM628 million a year earlier, driven by higher sales volume and finance income.
LKL International Bhd announced a partnership with Karl Group to explore and collaborate on hospital furniture manufacturing in the Philippines.
ITMAX System Bhd has secured an additional RM539.46 million order from Kuala Lumpur City Hall (DBKL) to install 5,000 more surveillance cameras and video signages in Kuala Lumpur.
Parkson Retail Asia Ltd (PRA), a 67.96%-owned subsidiary of Parkson Holdings Bhd has applied to exit the Singapore Exchange (SGX) watch-list, as its average daily market capitalisation has surpassed the S$40 million threshold.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.449264 | 4.480081 |
EUR | 4.653002 | 4.657428 |
CNY | 0.611489 | 0.612097 |
HKD | 0.571899 | 0.576406 |
SGD | 3.300709 | 3.323891 |