Opening Daily Highlight
Mixed
Embracing renewed volatility
Thu, 12-Sep-2024 07:27 am
by Research Team • Apex Research

  • Malaysia Market Review. The FBM KLCI (-1.2%) experienced another session volatility due to selling pressure in major banking stocks as investors brace for the upcoming US CPI data. Similarly, the lower liners closed negative, while the energy sector (-2.8%) was the worst performer among the sectoral peers.

 

  • Global Markets Review. Wall Street advanced with Nasdaq leading the pack following news that the US government is considering allowing Nvidia to export advanced chips to Saudi Arabia. European markets closed mixed spurred by the release of US inflation data, while Asian markets retreated.

 

  • Market Outlook. We expect to see a positive spillover from Wall Street into the local market today driven by extended inflow of foreign funds. Earlier, the US Labor Department reported that core CPI increased by +0.3% mom, surpassing the market expectation of +0.2% mom. However, the modest increase suggests that the Fed is likely to opt for a smaller rate cut of 25bps, tempering market hopes for a larger 50bps reduction. Economic wise, investors will be keeping a close tab onto the release of UK interest rate decision as well as US PPI tonight. Moving forward, we anticipate buying interest in the technology sector that is expected to mirror the positive performance on Nasdaq. Meanwhile, bargain hunting may emerge within the oil & gas sector following the rebound in crude oil prices, but gains may be capped as the fundamental demand for oil remained weak.

  • Technical Commentary: The FBM KLCI resume its downbeat momentum as the key index slipped below 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)

  • IHH Healthcare Bhd’s indirect wholly-owned subsidiary, Pantai Holdings Sdn Bhd (PHSB), has lodged documents with the Securities Commission (SC) to establish sukuk wakalah programmes of up to RM15bil.

  • Genting Malaysia Bhd's indirect subsidiaries, Genting New York LLC (Genny) and Genny Capital Inc, are offering US$525 million (RM2.28 billion) in 7.25% senior unsecured notes due 2029 to refinance existing debt. 

  • EP Manufacturing Bhd is issuing shares representing 30% of its capital, with 15% allocated each to its largest shareholder, Mutual Concept Sdn Bhd, and Bermaz Auto Bhd’s subsidiary, Bermaz Capital Sdn Bhd. 

  • Bermaz Auto Bhd has reported a 29.94% fall in first quarter net profit to RM70.22 million, from RM100.22 million a year earlier, dragged by lower sales amid competition. 

  • ICT Zone Asia Bhd’s net profit for the first half ended July 31, 2024 (1HFY2024) more than doubled to RM4.37 million from RM2.02 million a year earlier, thanks to higher contributions from its technology financing and cloud solutions and services segments. 

  • Mikro MSC Bhd plans to enter the signage and interior fit-out industry by acquiring Singapore’s TES Productions & Projects Pte Ltd for RM30 million. 

  • Citaglobal Bhd has secured two construction contracts totaling RM50.95 million. The first is a 20-month project to build a riverwall in Kuching, Sarawak, subcontracted by NL Builder Sdn Bhd. 

  • Suria Capital Holdings Bhd has signed a joint development agreement for the "Jesselton Docklands 2" project, a mixed commercial development covering 11.54 hectares in the Kota Kinabalu port area.

  • Kerjaya Prospek Group Bhd has secured a RM292.8 million contract to build a 57-storey serviced apartment in Kuala Lumpur, featuring 1,126 units, podium parking, and a sub-basement.

  • Southern Steel Bhd plans to issue new shares to Green Esteel Pte Ltd, potentially giving the Singapore company control with at least 50.1% of the enlarged share capital. 

  • Hextar Technologies Solutions Bhd is negotiating exclusively with Widad Group Bhd to sell five industrial plots in Negeri Sembilan.

Sentiment: Positive
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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.226942 4.260444
EUR 4.723982 4.728876
CNY 0.598324 0.598990
HKD 0.542537 0.546362
SGD 3.269503 3.292710