Opening Daily Highlight
Mixed
Caution prevails ahead of US labour data
Wed, 04-Sep-2024 07:34 am
by Research Team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. The FBM KLCI closed slightly lower yesterday, declining by 0.09%, in line with broader weakness across regional markets. Lower liners had a mixed performance, with decliners outnumbering gainers, reflecting the broader market's slight weakness. Five sectors closed in the green, led by the Healthcare sector (+1.08%) as the top gainer, while eight sectors ended in the red, with the Telecom sector (-0.94%) being the top decliner.

  • Global Markets Review. The US stock markets slumped, with the Nasdaq leading the decline, closing down by over 3% after manufacturing PMI data came in below expectations and concerns grew over the upcoming labour market data set to be released later this week. European markets also showed weakness, with the main index dropping 1%, while most Asian stock markets ended in the red ahead of the US labour data.

  • Market Outlook. Market sentiment remains cautious ahead of the upcoming US labor data. We expect a sell-off on the local bourse today following the unfavorable US PMI release and the slump in Wall Street, which has heightened recessionary fears. We continue to advise investors to stay on the sidelines ahead of the US labor market data releases scheduled for Wednesday, Thursday, and Friday (job openings on Wednesday, jobless claims on Thursday, and nonfarm payrolls on Friday). The technology sector may face selling pressure today given the Nasdaq’s decline and Nvidia’s nearly 10% drop. Meanwhile, funds may seek safer havens in the financial and REITs sectors amid the volatility.

     

FBM KLCI Technical Review & Outlook

  • Technical Commentary: The FBM KLCI extended its marginal decline after erasing all its intraday gains yesterday. 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 

  • Malaysia Marine and Heavy Engineering Holdings Bhd has entered into a memorandum of understanding (MoU) with HD Hyundai Marine Solution Co Ltd (HD HMS) to establish a partnership focusing on marketing and delivering green retrofit solutions, enhancing vessel energy efficiency and reducing environmental impact.

  • Solarvest Holdings Bhd has bagged a RM113.29mil contract under the Corporate Green Power Program (CGPP), through its wholly-owned subsidiary, Atlantic Blue Sdn Bhd.

  • Affin Bank Bhd has launched its private banking service designed for individuals with investable assets of RM2 million or more. 

  • Cypark Resources Bhd is deferring its periodic distribution for its RM235 million tranche 1 perpetual sukuk, due Wednesday, to focus on meeting the commercial operations date for its 60MW floating solar plant in Kelantan. 

  • AWC Bhd has received a letter of award worth RM19.9 million from Gamuda Engineering Sdn Bhd for construction works related to a data centre project in Rawang, Gombak. 

  • Magni-Tech Industries Bhd reported a 36.4% increase in net profit to RM44.64 million for its first quarter ended July 31, 2024 (1QFY2025), from RM32.73 million a year earlier, on the back of higher revenue across its business segments. 

  • Euro Holdings Bhd said the High Court on Tuesday struck out the lawsuit filed by Surian Creation Sdn Bhd against the furniture maker and its former managing director Datuk Seri Lim Teck Boon. 

  • Hexza Corp Bhd said on Tuesday it had acquired 50,000 shares in British semiconductor and software design giant Arm Holdings PLC for US$6.36 million (RM29.48 million), cash, with the intention of deriving dividend income and for potential capital gains. 

  • Wellcall Holdings Bhd is acquiring three parcels of leasehold land in Ipoh, Perak for RM32 million. 

  • Power Root Bhd has filed for a sukuk wakalah programme with the Securities Commission of Malaysia (SC) to raise funds for working capital, capital expenditure, and to refinance existing borrowings or future financing. 
Sentiment: Negative
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