Opening Daily Highlight
Mixed
Improving sentiment
Tue, 03-Sep-2024 07:06 am
by Research Team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. The FBM KLCI closed slightly lower yesterday, edging down by 0.04%, as funds rotated into lower liners. The broader market sentiment improved, with gainers outnumbering losers (679 to 467). Leading the gains were the Construction (+1.51%), Utilities (+1.41%), and Technology (+1.39%) sectors, while the Transportation (-0.84%) and Energy (-0.8%) sectors emerged as the largest decliners.

  • Global Markets Review. The US stock markets was closed in conjunction with the Labor Day public holiday. In Europe, stock markets closed slightly lower, with the key index dipping by 0.04%. Meanwhile, Asian markets ended mixed after China's manufacturing PMI fell to a six-month low, with investors awaiting a slew of economic data releases later this week.

  • Market Outlook. Market sentiment has continued to improve following the conclusion of the corporate earnings season and the easing of US recession fears in August. However, caution prevails as markets await key labor data to be released this week, which will provide further insights into ongoing recessionary concerns in the US. Other significant economic data this week include BNM’s interest rate decision. We advocate investors to stay defensive until the US labor market data is released to mitigate market volatility risk. If the jobs data is favorable, we believe the construction, utilities, and technology sectors will be the preferred destinations for funds, particularly in the lower liners. Conversely, we anticipate continued selling pressure in oil and gas stocks as international oil prices extend their losses.

 

FBM KLCI Technical Review & Outlook

  • Technical Commentary: The FBM KLCI formed a doji candle to edge marginally lower as the key index slipped from multi-year high. Indicators 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 

  • Binastra Corp Bhd has accepted a letter of award from Mightyprop Sdn Bhd for construction works to a serviced apartment building in Sungai Buloh, Selangor, worth RM235.48mil.

  • DRB-Hicom Bhd said it has received a notice of assessment from the Inland Revenue Board (LHDN) amounting to RM246.25 million for the year of assessment 2020. 

  • Econpile Holdings Bhd has secured a RM71.2 million contract to undertake demolition, substructure and basement work for a 55-storey building located along Jalan Sultan Ismail, Kuala Lumpur. 

  • Pekat Group Bhd’s indirectly-owned unit Solaroo RE (Maldives) Pvt Ltd has secured a 10-year contract worth US$6.9 million (approximately RM30 million) to supply solar-generated electricity to Maldives-based Sun Investments Pvt Ltd. 

  • FGV Holdings Bhd announced the departure of its group CEO, Datuk Mohd Nazrul Izam Mansor, effective Sept 1.

  • Kenanga Investment Bank Bhd or Kenanga IB has acquired an 8% stake in Singaporean fintech firm Helicap Pte Ltd at an undisclosed price, as part of a move to advance its own digitisation initiatives.
Sentiment: Neutral
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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