Opening Daily Highlight
Mixed
Eyes on US inflation rate
Wed, 11-Sep-2024 07:19 am
by Research Team • Apex Research

  • Malaysia Market Review. The FBM KLCI (+0.5%) rebounded after a six-day retracement, driven by renewed buying interest in banking heavyweights. However, the lower liners closed negative, while the financial services sector (+1.0%) was the top performer in contrast with the industrial sector which underperformed by -0.7%.

 

  • Global Markets Review. Wall Street was mixed with the S&P 500 and Nasdaq advanced +0.5% and +0.9% respectively, while the Dow slid -0.2% as investor took a more cautious approach ahead of the release of US inflation data. European markets closed lower with most sectors in negative territory, while Asian markets turned mixed.

 

  • Market Outlook. The FBM KLCI is expected to maintain the sideways trend as investors await the release of US CPI data that could heavily influence the magnitude of Federal Reserve's interest rate path. The lower liners may also see weakness on the back tepid trading sentiment. Economic wise, investors will be keeping a close tab onto the release of UK industrial and manufacturing production tonight. The construction sector may continue to ride onto government's plans to expedite numerous large-scale projects, including the recently approved 40 projects in Pahang, valued at over RM5.9b under the 12th Malaysia Plan. Meanwhile, we advocate investors to stay clear from oil & gas stocks given the weakness in oil prices, as OPEC has lowered its demand outlook in response to declining consumption in China.

     

  • Technical Commentary: The FBM KLCI snapped a six-day losing streak as the key index bounced off the middle Bollinger Band yesterday. Indicators remained mixed as the MACD Line hovered 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)

  • A fire broke out at the Press Metal Aluminium Holdings Bhd Phase 3 smelter in Samalaju Industrial Park shortly after 11pm last night, but has since been extinguished, said the company.

 

  • Globetronics Technology Bhd saw its share price plummet 32.5% or 26 sen after announcing that its external auditor, KPMG PLT, has resigned voluntarily, leading to the suspension of its intraday short-selling. 

 

  • Chin Hin Group Property Bhd is partnering with Atlan Holdings Bhd on a high-rise project in Johor Bahru with an estimated gross development value of RM478.42 million. 

 

  • HE Group Bhd has secured a RM30.6 million contract to build a 132kV power station for a semiconductor plant in Ulu Klang Free Trade Zone. 

 

  • Datin Afinaliza Zainal Abidin, a non-independent executive director at ITMAX System Bhd, has sold 61.9 million shares through her private vehicle Ganda Sensasi Sdn Bhd for over RM201.1 million. 

 

  • Land & General Bhd plans to launch the U10 Aria Rimba township in Shah Alam next year, with a total GDV of RM2.4 billion, developed in six phases. 

 

  • Zantat Holdings Bhd, after raising RM18.2 million from its March IPO, is now aiming to raise around RM14 million through a special issue of up to 40 million new shares to Bumiputera investors.

 

Sentiment: Neutral
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