Opening Daily Highlight
Mixed
Cautious amidst softer sentiment
Mon, 09-Sep-2024 07:57 am
by Research Team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. The FBM KLCI (-0.7%) ended the week on a soft note in tandem with the weak sentiment in the global markets. Likewise, the lower liners ended the day in red. Most of the sectors closed negative, with the Construction (-1.6%) and Energy (-1.4%) sectors leading the losses.
  • Global Markets Review. US stock markets plunged after the release of weaker-than-expected August jobs data, raising concerns about slowdown in economic growth. European markets also fell dragged by the technology and mining stocks, while Asian markets finished mostly in red as weak household spending data has constrain the Bank of Japan’s options to raise rates.

  • Market Outlook. We expect the KLCI index to trade in a negative tone today, mirroring the sharp losses seen in Wall Street. Similarly, the lower liners are expected to be dragged down by softer sentiment as investors await new catalysts. On the global front, investors will be keeping a close tab onto the release of US consumer inflation sentiment as well as China inflation data later tonight. We advise investors to remain defensive and focus onto fundamentally sound stocks during the volatile period. Given the weaker-than-expected job growth, we prefer gold-related stocks, as we believe a rate cut is likely to be on the table at the upcoming central bank meetings. Meanwhile, the technology sector may stage a pullback in line with the weakness on Nasdaq last Friday

 

FBM KLCI Technical Review & Outlook

  • Technical Commentary: The FBM KLCI edged lower for the fifth straight session to close at the EMA20 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)

  • Gamuda Bhd said its joint venture (JV) to build the Ulu Padas hydroelectric project has been approved by the Sabah energy regulator.

  • OSK Holdings Bhd is expanding its cable manufacturing operations by acquiring the assets of Universal Cable (M) Bhd, currently under liquidation, for RM85 million. 

  • Varia Bhd has secured a subcontract for flood mitigation works worth RM334.69 million. 

  • Duopharma Biotech Bhd has extended its group managing director (MD) Leonard Ariff Abdul Shatar’s contract for another year until Dec 31, 2025. 

  • MISC Bhd has agreed with Netherlands-based floating production storage and offloading (FPSO) operator SBM Holding Inc to exchange ownership interests on two FPSO vessels. 

  • The Malaysian Anti-Corruption Commission confirmed that it has initiated a probe against YTL Communications Sdn Bhd - a 60%-owned subsidiary of YTL Power International Bhd, saying it was based on complaints of alleged graft, embezzlement and power abuse that it had received over the Education Ministry’s 1BestariNet project.  

  • MyEG Services Bhd said it has teamed up with an agency of China's customs in a bid to secure the Royal Malaysian Customs's “single window” project.

  • Gadang Holdings Bhd said its subsidiaries have been hit with a civil suit by their subcontractor, claiming an amount of RM9.77 million in alleged outstanding payments for works done related to the Johor Bahru–Singapore Rapid Transit System (RTS) Link.

Sentiment: Negative
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