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Faltering market sentiment
Thu, 22-Aug-2024 07:22 am
by Research Team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. The FBM KLCI (-0.5%) took a breather yesterday in line with the mixed performance of regional stock markets. Lower liners, however, edged higher, while the transportation sector (+0.6%) outperformed among its sectoral peers.

  • Global Markets Review. Wall Street advanced overnight as FOMC minutes highlights a strong inclination towards rate cut in September 2024. European stock markets rebounded with nearly all sectors traded positive, while Asian stock markets finished mostly lower. 

  • Market Outlook. We deemed the pullback in the local bourse to be healthy as investors took a breather from the recent rally. Positive momentum is likely to resume over the near term, supported by the return of foreign funds, spillover rate cut optimism and Malaysia's strong economic fundamentals. Bargain hunting activities may also emerge in stocks that have staged a pullback over the past two sessions. For now, investors will be closely monitoring the ongoing wave of corporate earnings set to be released this week. Attention will also be directed towards today's key economic data releases, including US home sales and Malaysia’s inflation rate later today. Moving forward, we expect plantation, O&G and manufacturing counters to attract buying interest following Anwar's recent trip to India, during which Malaysia secured potential trade deals worth RM8bn. 

     

FBM KLCI Technical Review & Outlook

  • Technical Commentary: The FBM KLCI formed a bearish candle as the key index snapped a seven-day winning run and retreated from the upper Bollinger Band. Indicators remained positive as the MACD Line trended above the zero level, while the RSI hovered above 50. Immediate resistance is located at 1,680. Support is envisaged around 1,600.

     

Company News (source: various)

  • Tenaga Nasional Bhd (TNB) has received notices of additional assessment from the Inland Revenue Board (IRB) for the years of assessment 2020 and 2021, amounting to RM685.82mil and RM705.24mil, respectively.

  • Petronas Dagangan Bhd posted a net profit of RM276.4 million for the second quarter ended June 30, 2024, little changed from RM275.7 million a year earlier, amid higher operating and tax expenses.

  • AMMB Holdings Bhd reported a 32.2% increase in net profit to RM500.2 million for the first quarter ended June 30, 2024, compared with RM378.37 million a year ago, driven by lower impairment charges and higher interest income.

  • Sentoria Group Bhd has denied former CEO Datuk Loh Yuen Tuck's claim of constructive dismissal, asserting that Loh breached his contract by not reporting for duty as requested.

  • Magma Group Bhd said that its 75%-owned unit, Impiana Selo Tioman Resorts Sdn Bhd, is being sued by Marc Bovell Paul Desmidt and Erin Camille Desmidt for US$974,968 (RM4.59 million). 

  • Star Media Group Bhd reported a significant increase in net profit for 2QFY2024, rising to RM7.49 million from RM791,000 a year earlier, driven by gains from its property development segment, which offset losses in its print business. 

  • Johor Plantations Group Bhd, which went public last month, saw its net profit nearly quadruple in the second quarter, reaching RM49.74 million compared to RM12.65 million a year earlier, driven by higher prices and increased sales volume. 

  • MCE Holdings Bhd has secured RM52.13 million in contracts from Proton Holdings Bhd to supply automotive electronic and mechatronic components. 

  • Willowglen MSC Bhd has secured a RM42.84 million contract from Singapore's Ministry of Education through its subsidiary, Willowglen Services Pte Ltd. 

  • South Malaysia Industries Bhd has received a RM47 million takeover offer from major shareholders Francis Leong and two Techbase Industries Bhd subsidiaries.

  • Solarvest Holdings Bhd and Agmo Holdings Bhd are partnering to develop digital products for the clean energy sector through a joint venture (JV). 

  • Kinergy Advancement Bhd net profit for the second quarter ended June 30, 2024 grew by 66% to RM5.57 million from RM3.35 million a year ago, driven by improved margins from its sustainable energy solutions segment. 

Sentiment: Negative
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Market Mover
Settlement Rates
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