Opening Daily Highlight
Mixed
Turbulence continues
Thu, 05-Sep-2024 07:22 am
by Research Team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. The FBM KLCI closed 0.38% lower yesterday, mirroring broader regional market weakness as soft US manufacturing PMI data raised recessionary concerns. Lower liners also declined, reflecting the broader market's weakness. Only two sectors closed in the green (Telecom and Plantation), while 11 sectors ended in the red, with Technology (-2.73%) and Energy (-2.06%) leading the losses.

  • Global Markets Review. The US stock markets experienced a volatile intraday session and ultimately closed mixed, with the Dow marginally higher while the Nasdaq and S&P 500 ended lower. This came after the release of US job openings data, which fell short of expectations, marking the lowest level since January 2021. Similarly, European markets closed lower, led by losses in Technology stocks, while most Asian stock markets also ended in the red.

  • Market Outlook. Market sentiment remains turbulent as recessionary concerns linger, with investors anxiously awaiting labor data for clearer insights into the strength of the US economy and potential Fed interest rate decisions. We reckon caution is warranted following the recent US job openings report, which suggests a slowing labor market. More clarity is expected with the upcoming labor data releases on Thursday and Friday, including jobless claims and nonfarm payrolls. Riskier sectors, such as Technology and AI-related stocks, may continue to face selling pressure amid the uncertainty, along with the Energy sector, which is impacted by ongoing declines in oil prices. Meanwhile, funds may adopt a defensive stance, seeking safe havens in the financial and REITs sectors.

 

FBM KLCI Technical Review & Outlook

  • Technical Commentary: The FBM KLCI remained downbeat for the third straight session, despite its attempt to recover throughout the intraday session. Indicators, however, remained positive as the MACD Line hovered above the Signal Line, while the RSI lingered above 50. Immediate resistance is located at 1,700. Support is envisaged around 1,630.

 

Company News (source: various)

  • Central Global Bhd (CGB), via its wholly-owned sub-subsidiary RYRT International Sdn Bhd, has accepted a letter of award from Pembinaan Urusmesra Sdn Bhd for road upgrades to the Sabah Pan Borneo Highway project, worth RM616.4mil.

  • IHH Healthcare Bhd said it is acquiring the 600-bed Island Hospital in Penang for RM3.92 billion in cash from Comprehensive Care Sdn Bhd.

  • YTL Power International Bhd has confirmed that its subsidiary YTL Communications Sdn Bhd (YTL Comms) has been questioned by the Malaysian Anti-Corruption Commission (MACC) about the Ministry of Education's 1BestariNet project, valued at RM4 billion. 

  • Jentayu Sustainables Bhd said it has received a letter of notification from the Energy Commission of Sabah (ECOS) for Project Oriole — a 162MW run-of-river hydropower plant in the state. 

  • Loss-making Ocean Vantage Holdings Bhd announced the emergence of three new Sarawak-based substantial shareholders, following the disposal of a collective 23.32% stake by executive directors Martin Philip King Ik Piau and Yau Kah Tak, and one other. 

  • Vetece Holdings Bhd was the most active stock on Wednesday, though the share price of the newly listed enterprise software company was volatile amid strong interest. 

  • Shares of UWC Bhd fell by more than 15% on Wednesday, prompting Bursa Malaysia to suspend the counter’s intraday short-selling (IDSS). 

  • Shares of Tan Chong Motor Holdings Bhd slipped on Wednesday to their lowest in two decades, as analysts took a dim view following a larger-than-expected quarterly loss.
Sentiment: Negative
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Market Mover
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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