Opening Daily Highlight
Mixed
All eyes on U.S. non-farm data
Fri, 06-Sep-2024 07:48 am
by Research Team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. The FBM KLCI closed 0.3% lower overnight as investors awaited key U.S. labor data due later this week. Lower liners also declined by over 1%, with only three sectors closing in the green—Transport, Healthcare, and Financial. The remaining sectors saw declines, led by Technology (-3.3%), Utilities (-1.5%), and Energy (-1.1%).

  • Global Markets Review. The US stock markets experienced a volatile intraday session and ultimately closed mixed, with the Dow and S&P ending in the red while the Nasdaq finished marginally higher. This came after the release of mixed labor data, with investors also awaiting the key non-farm payrolls data tonight. European markets closed lower, impacted by weaker US private non-farm data. Meanwhile, Asian markets showed mixed performance amid a strong wage report in Japan and a hawkish tone from the Bank of Japan.

  • Market Outlook. Market sentiment is expected to remain turbulent as investors anticipate the key US non-farm payroll data, which will serve as a crucial indicator of the US economy's health. Last month’s weaker-than-expected data triggered a significant sell-off in August, heightening risk aversion in the markets. On the local bourse, funds are continuing to shift away from riskier, high-valuation industries such as Technology and Utilities. Given the uncertainty, caution is warranted on this final trading day of the week, ahead of tonight's crucial payroll release. However, the Energy and Technology sectors might find some stability today, buoyed by steadier oil prices and a resilient Nasdaq index. Meanwhile, the Financial sector remains our preferred pick at this juncture, serving as a safe haven while drawing foreign fund inflows.

 

FBM KLCI Technical Review & Outlook

  • Technical Commentary: The FBM KLCI edged lower for the fourth straight session to close at the EMA9 level. 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)

  • Binastra Corporation Bhd's unit has received a RM283.3mil contract for the main building works of a major residential development in Taman Desa, Kuala Lumpur.

  • Inta Bina Group Bhd has secured another construction contract from Sime Darby Property Bhd worth RM96.55 million to undertake main building and construction works for a 37-storey serviced apartment project in Putra Heights. 

  • Sentoria Group Bhd said  Messrs Grant Thornton Malaysia PLT (GTM) has voluntarily resigned as the company’s external auditor. 

  • Systech Bhd has teamed up with Pinetop Technology Venture Sdn Bhd to develop and operate data centres. 

  • Kerjaya Prospek Property Bhd's chief executive officer Joanne Lee Sor Phaik has resigned from her role after only slightly more than a year helming the property developer. 

  • IHH Healthcare Bhd’s planned acquisition of Island Hospital is done at an attractive valuation and would deepen the hospital operator’s presence in the medical tourism market, analysts said. 

  • PPB Group Bhd is optimistic about its 2H2024 outlook, saying that the strengthening of the ringgit against the US dollar could lead to higher consumer spending and reduced raw materials cost.

  • Steel Hawk Bhd, which has transferred its listing to the ACE Market of Bursa Malaysia via an initial public offering (IPO), said the group is bidding for more long-term Petroliam Nasional Bhd (Petronas) contracts and expanding its renewable energy business.
Sentiment: Negative
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