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Extended volatility
Fri, 13-Sep-2024 07:37 am
by Research Team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. The FBM KLCI (-0.1%) ended flattish as uncertainty arose following the recent release CPI data. On the other hand, the lower liners rebounded, while the technology sector (+2.8%) was the biggest outperformer among the sectoral peers.

  • Global Markets Review. Wall Street’s rally gained momentum as investors continued to snap up the "Magnificent 7" technology stocks following the recent sell-off, while the recent batch of economic data remains in favour of 25bps rate cut next week. European and Asia markets both closed higher, with the former boosted by a 25bps rate cut from the ECB, and the latter lifted by a tech rally on Wall Street.

  • Market Outlook. While FBM KLCI took a breather yesterday due to persisting profit taking activities, the selling pressure appears to have eased.  The lower liners enjoyed a decent run as trading sentiment was uplifted by strong expectations of a rate cut next week.  Economic wise, investors will be keeping a close tab onto the release of EU industrial production data as well as US Michigan consumer sentiment tonight. In terms of sectors, we hold a bullish outlook on commodities-related stocks, particularly for gold and aluminium as commodity prices remain elevated. We also anticipate buying interest in the technology sector that is expected to mirror the positive performance on Nasdaq.

  • Technical Commentary: The FBM KLCI remained downbeat after erasing all its intraday losses in the final trading hour yesterday. Indicators turned negative as the MACD Line hovered below the Signal Line, while the RSI tripped below 50. Immediate resistance is located at 1,700. Support is envisaged around 1,630.

     

    Company News (source: various)

     

    CCK Consolidated Holdings Bhd is divesting 40% stake in its Indonesian subsidiary, PT Adilmart, to Creador, a prominent private equity firm for RM163.1 million.

  • Ecobuilt Holdings Bhd, which is under an interim liquidator, has secured a RM190 million construction contract through its subsidiary Rexallent Construction. 

  • RHB Bank Bhd is in a legal dispute with Tokio Marine Life Insurance over a bancassurance deal.

  • Green Packet Bhd said that four out of six investors, originally set to subscribe to its private placement of over 598 million shares, have withdrawn from the exercise. 

  • Chin Hin Group Bhd's founder Datuk Seri Chiau Beng Teik is no longer a substantial shareholder in NCT Alliance Bhd after selling a 3.58% stake, or 59 million shares, in an off-market transaction. 

  • Fiamma Holdings Bhd has signed an MOU with Guangdong-based Zhuhai Samyou Environmental Technology Co Ltd to establish an air conditioning production facility in Malaysia, marking Samyou's first plant outside of China. 

  • Binastra Corp Bhd's net profit for the second quarter ended July 31, 2024 (2QFY2024) surged 171.4% to RM22.86 million from RM8.4 million, driven by increased construction activities and the launch of five new projects. 

  • Hibiscus Petroleum Bhd has proposed an additional one sen dividend per share for FY2024, bringing the total payout to 8.5 sen per share, up from 3.25 sen in FY2023.

  • IOI Properties Group Bhd plans to launch its IOI Industrial Park in Banting, Selangor by 2Q2024, and another in Melaka two quarters later.

  • ITMAX System Bhd's subsidiary, Southmax Sdn Bhd, has been appointed by the Tangkak District Council to manage 5,113 street parking bays for 15 years. 

  • MN Holdings Bhd has signed an MOU with Reservoir Link Energy Bhd to explore renewable energy opportunities.

Sentiment: Positive
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Market Mover
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EUR 4.723982 4.728876
CNY 0.598324 0.598990
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