Opening Daily Highlight
Local
All Eyes on the US Fed
Wed, 18-Sep-2024 05:59 am
by Research Team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. The FBM KLCI (+0.7%) took another step forward with more than half of the key index components closed in green yesterday. Likewise, the lower liners also extended their recovery trend, while the Technology (-1.2%) and Transport & Logistic (-0.1%) sectors underperformed the sectorial peers.

 

  • Global Markets Review. US stock markets turned wobbly ahead of the US Federal Reserve move to cut interest rate later tonight with the Dow slipping - 0.04%, while the S&P 500 edged +0.03% higher. European stock markets advanced to close near two-week high, while Asia stock markets closed mostly positive.

 

  • Market Outlook. Expectedly, the FBM KLCI started off the week with fresh legs to build onto last week recovery more as investors remain optimistic over the widely anticipated interest rate cut from the US Federal Reserve. The lower liners also marched higher as investors continue to nibble onto beaten down stocks, while the improved trading liquidity also shored the local markets higher. Going forward, we expect gains to remain in store on the return of foreign funds with the Ringgit hitting the highest level in 20-months against the Greenback, while there is also possibly of the US Fed may opt for a larger-than-expected interest rate cut later tonight. Investors will also be keeping a close tab onto UK and Europe’s inflation data later today. Sector wise, we expect some profit taking in gloves-related stocks following yesterday outperformance, while the extended recovery in crude oil prices may lift the Energy sector higher.

 

FBM KLCI Technical Review & Outlook

  • Technical Commentary: The FBM KLCI formed another bullish candle to climb above the middle Bollinger Band yesterday. Indicators, however, remained mixed as the MACD Line hovered below the Signal Line, while the RSI steadied above 50. Immediate resistance is located at 1,700. Support is envisaged around 1,630.

 

Company News 

  • Supermax Corp Bhd will begin commercialising glove production at its first US manufacturing facility in Texas by January 2025.

     

  • Two of Genting Malaysia Bhd’s subsidiaries, video lottery facility operator Genting New York LLC and its unit Genny Capital Inc, have priced an additional US$100 million (RM427 million) of 7.25% senior unsecured notes, due 2029. 

     

  • Samaiden Group Bhd plans to expand its renewable energy (RE) business into Indonesia via the setting up of a joint venture (JV) company. 

     

  • Pipes and fittings maker Resintech Bhd is forming a joint venture (JV) with a unit of a Sarawak state agency to jointly trade industrial plastic products in the state.

     

  • Debt-ridden Perak Corp Bhd has been given another six-month extension by Bursa Malaysia to submit its regularisation plan, with the deadline now being postponed to Feb 9, 2025. 

     

  • MyEG Services Bhd has teamed up with the Federation of Malaysian Freight Forwarders (FMFF) to promote ZTrade — a blockchain-based trade document system — as Malaysia's National Single Window (NSW) for cross-border trade facilitation. 

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