Opening Daily Highlight
Mixed
Recovery In Sight Post Extended Break
Tue, 17-Sep-2024 06:20 am
by Research Team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. The FBM KLCI (+0.8%) staged a sharp recovery with more than two third of the key index components advanced ahead of the extended weekend break. Meanwhile, the lower liners extended their recovery trend, while all 13 major sectors closed in green with the Property sector (+2.3%) leading the pack.

 

  • Global Markets Review. US stock markets advanced as the Dow climbed +0.6% ahead of the US Federal Reserve move to cut interest rate later this week. European stock markets were fairly wobbly, weighed down weakness in technology shares, while Asia stock markets closed mostly upbeat with the exception of China and Japan markets.

 

  • Market Outlook. With signs of stability alongside with the positive developments on Wall Street, we reckon the FBM KLCI may build onto last week gains in anticipation of the interest rate cut from the US Federal Reserve. The lower liners are also poised for an extended rebound as investors cheered onto the calmer market sentiment alongside with bargain hunting activities in recent beaten down stocks. Key economic data in focus include US retail sales, manufacturing production and industrial production to be release later tonight. We expect the construction sector to demonstrate further recovery ahead of the Budget 2025 announcement next month. Meanwhile, India’s move to hike import tax on crude palm oil, soybean oil and sunflower oil does not bode well for the plantation sector.

 

FBM KLCI Technical Review & Outlook

  • Technical Commentary: The FBM KLCI formed a bullish candle to recoup most of its weekly losses to tread near the middle Bollinger Band. Indicators turned mixed as the MACD Line hovered below the Signal Line, while the RSI hooked above 50. Immediate resistance is located at 1,700. Support is envisaged around 1,630.

 

Company News 

  • The Employees Provident Fund (EPF) and Lembaga Tabung Haji have ceased to be a shareholder in Globetronics Technology Bhd, following the sale of all its shares in the tech company.

 

  • Pansar Bhd has bagged a RM777.11 million road construction contract related to Phase 2 of the Sabah-Sarawak Link Road (SSLR) project.

 

  • Seal Incorporated Bhd’s associate company, MSR Green Energy Sdn Bhd, has accepted a letter of award from Sabah Electricity Sdn Bhd for a battery energy construction job worth RM645 million. 

 

  • HeiTech Padu Bhd has secured a RM133.73 million contract from the Road Transport Department Malaysia (JPJ). 

 

  • MMAG Holdings Bhd is going to take over Velocity Capital Partner Bhd's stake in its 86.09%-owned loss-making subsidiary, courier and logistic firm Line Clear Express Sdn Bhd (LCE).

 

  • Cosmos Technology International Bhd is disposing of its entire equity interest in MCI Etech Sdn Bhd to Loyal Fame Sdn Bhd for RM12.31 million, cash.

Sentiment: Positive
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Market Mover
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