Opening Daily Highlight
Mixed
Anticipating improved sentiment
Mon, 02-Sep-2024 07:30 am
by Research Team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. The FBM KLCI rose by 1.53% last Friday, as bargain hunting emerged following Thursday's sell-off. Lower liners also rebounded, benefiting from improved market sentiment, with gainers outnumbering losers (771 to 421). All sectors closed in the green, with Property (+3.45%) and Utilities (+3.05%) leading the gains.

  • Global Markets Review. Wall Street closed in positive territory despite a choppy session last Friday, as the US PCE price index came in favorably, raising expectations of a potential rate cut. European markets continued their upward momentum, with the main index hitting a record high during intraday trading. Meanwhile, most Asian stock markets ended higher, led by gains in the Hong Kong market.

  • Market Outlook. We observed a reduction in panic and negative sentiment last Friday as investors began to digest recession fears in the US. We anticipate that market sentiment will improve following August's heavy selling. The end of the local corporate earnings season, is expected to reduce the volatility and further support this positive trend. Key economic events to watch this week include the US August jobs data and Bank Negara Malaysia's interest rate decision. Currently, we favor the technology and utilities sectors, expecting improved sentiment and bargain hunting, as these sectors are well-positioned for bottom fishing. Conversely, we anticipate some selling pressure in oil and gas stocks due to the declined in international oil prices amid expectations of rising supply.

     

FBM KLCI Technical Review & Outlook

  • Technical Commentary: The FBM KLCI formed a bullish candle as the key index recovered all its previous session losses to close at fresh multi-year high. Indicators stayed remained positive as the MACD Line hovered above the Signal Line, while the RSI steadied above 50. Immediate resistance is located at 1,700. Support is envisaged around 1,630.

     

Company News

  • Yinson Holdings Bhd is divesting its offshore marine business, Regulus Offshore, to Icon Offshore Bhd as part of its strategic focus on its floating production storage and offloading (FPSO) and energy transition businesses.

  • CIMB Group Holdings Bhd posted an 11% increase in net profit for the second quarter ended June 30, 2024 (2QFY2024) to RM1.96 billion from RM1.77 billion in 2QFY2023, due to higher net interest income and non-interest income. 

  • Malaysia Airports Holdings Bhd’s net profit for 2QFY2024 doubled to RM205.80 million from RM102.53 million a year earlier, thanks to higher contributions from associate and joint venture companies. 

  • Malaysian Resources Corp Bhd’s net profit for 2QFY2024 surged more than fourfold to RM51.18 million from RM10.87 million a year earlier, as contribution from its construction segment doubled. 

  • IGB Bhd reported that its net profit for 2QFY2024 fell 33% to RM75.2 million from RM112 million in 2QFY2023, mainly due to reduced contribution from its property development and construction segments, alongside lower foreign exchange gains. 

  • Mah Sing Group Bhd’s net profit for 2QFY2024 climbed to RM60.2 million from RM50.5 million a year earlier, driven by higher margins and lower net finance costs. 

  • Tan Chong Motor Holdings Bhd net losses ballooned to RM40.11 million for 2QFY2024 from RM18.13 million a year earlier, amid intense competition in the automotive industry at home and abroad. 

  • EA Technique (M) Bhd booked a net profit of RM94.65 million or 7.14 sen per share for 2QFY2024, over 12 times the RM7.8 million or 1.47 sen per share it made in 2QFY2023, primarily due to writebacks to other income. 

  • MSM Malaysia Holdings Bhd has secured a deal to export grain sugar to China and targets to deliver 45,000 tonnes by the end of this year.

  • Pansar Bhd has clinched an RM804.7 million contract for the Kuching Urban Transportation System (KUTS) Blue-Line Package 2 in Sarawak.

  • Axis Real Estate Investment Trust is proposing a private placement to raise up to RM454.99 million for repayment of bank financing. 

  • SkyWorld Development Bhd has proposed to jointly develop a property in Vietnam's  Binh Duong Province, its  second venture in that country. 

  • Pharmaniaga Bhd announced on Friday the appointment of Zulkifli Jaafar as its managing director, effective Sept 1.
Sentiment: Positive
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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.283853 4.317705
EUR 4.765844 4.774924
CNY 0.605865 0.606556
HKD 0.549396 0.553768
SGD 3.299365 3.325824