Opening Daily Highlight
Mixed
Finding stability
Tue, 10-Sep-2024 07:18 am
by Research Team • Apex Research

  • Malaysia Market Review. The FBM KLCI (-0.1%) extended its pullback with more than half of the key index components closed in red. Similarly, the lower liners retreated, while the energy sector (-1.98%) was the biggest loser among its sectorial peers in tandem with the weakness in crude oil price.

 

  • Global Markets Review. Wall Street's main indexes closed higher on Monday, as investors seized the opportunity to buy the dip ahead of the widely expected interest rate cut. European markets also rebounded, while Asian markets fell following the weaker-than-expected U.S. jobs report on Friday.

 

  • Market Outlook. We anticipate that the selling pressure on the local bourse to ease today, with some bargain hunting likely to emerge following the recent pullback, while the stable labour market outlook may provide some alleviation. Economic wise, investors will be keeping a close tab onto the release of Malaysia industrial production data as well as UK unemployment rate later tonight. We advise investors to remain defensive and focus onto fundamentally sound stocks during the volatile period. Given that rate cut is likely to be on the table at the upcoming central bank meetings, we maintain a preference for bullion, as lower interest rates reduce the opportunity cost of holding this zero-yield asset.  Meanwhile, the consumer sector could regain ground as strengthening of Ringgit coupled with stable job market may boost spending capacity.

  • Technical Commentary: The FBM KLCI remained downbeat to re-test middle Bollinger Band yesterday. Indicators turned mixed as the MACD Line slipped below 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)

  • Kelington Group Bhd has secured new contracts from projects in Malaysia and China totalling RM413 million since July 2024.

 

  • Shares of 99 Speed Mart Retail Holdings Bhd closed up 23 sen or 13.94% on its market debut at RM1.88, valuing the mini market group at RM15.79 billion, based on its issued capital of 8.4 billion shares. 

 

  • Tenaga Nasional Bhd has obtained an interim stay from the High Court over it having to pay RM1.39 billion in additional tax to the Inland Revenue Board (IRB). 

 

  • Eversendai Corp Bhd won new contracts worth RM1.1 billion in India, Singapore and Saudi Arabia, bringing its order book to a new record high of RM6.7 billion. 

 

  • Binastra Corp Bhd has secured a project worth RM574.4 million from Exsim Jalil Link Sdn Bhd for a proposed development of a data centre. 

 

  • Infrastructure and engineering solutions provider Jati Tinggi Group Bhd said it has bagged two contracts worth RM36.36 million for the installation of underground cables.

 

  • Plastic pipes and fittings maker Resintech Bhd has secured a joint venture (JV) partner and a tenant for a proposed hostel development in Kuala Langat, Selangor, with an estimated gross development value of RM34.1 million.

 

  • Gadang Holdings Bhd said a sum of RM9.77 million allegedly owed by its units for work done related to the Johor Bahru–Singapore Rapid Transit System (RTS) Link project are idling costs that are not payable.

 

 

Sentiment: Neutral
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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.186344 4.224837
EUR 4.692802 4.707788
CNY 0.594564 0.595974
HKD 0.537155 0.542118
SGD 3.243708 3.273864