Opening Daily Highlight
Local
Dawn of the easing monetary policy cycle
Thu, 19-Sep-2024 05:51 am
by Research Team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. The FBM KLCI (-0.2%) pared some of its previous session gains as profit taking activities emerged in half of the key index components yesterday. The lower liners, however, ended mixed, while the Healthcare sector (-1.3%) underperformed on profit taking from yesterday’s surge.

 

  • Global Markets Review. US stock markets retreated after erasing all their intraday gains after the US Federal Reserve cut interest rates by 50 bps and signals a hawkish remark over the pace and quantum of future rate cuts. European stock markets also staged a pullback, while Asia stock markets ended mixed.

 

  • Market Outlook. With the key index’s recovery stance took a pause, we expect a consolidation may take shape as optimism over future rate cuts from the US Federal Reserve took a backseat. The lower liners which ended mixed may experience rotational play with selected sectors remain in focus. Further gains, however, may be capped by the absence of domestic fresh leads. Key economic data in focus later today would be Bank of England’s interest rate decision as well as US new home sales. The construction sector is expected to build onto its extended recovery move which advanced over the past four sessions as we approach the tabling of Budget 2025. In search for higher yields in the interest rate downcycle environment, we expect the Banking and REIT sector to come in favour.

 

FBM KLCI Technical Review & Outlook

  • Technical Commentary: The FBM KLCI formed a bearish candle as the key index stay afloat above the middle Bollinger Band yesterday. Indicators 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 

  • Press Metal Aluminium Holdings Bhd (PMAH) has entered into a shareholders’ agreement and a share subscription agreement for 80% equity interest in PT Kalimantan Alumina Nusantara (KAN) for RM1.04 billion.

     

  • Securemetric Bhd's subsidiary Securemetric Technology Inc has been awarded a contract valued at PHP186.99mil (RM14.38mil) to provide subscription and support and maintenance services for public key infrastructure, hardware security module (“HSM”), SigningCloud and electronic Know Your Customer (eKYC).

     

  • Capital A Bhd’s subsidiary, Asia Digital Engineering Sdn Bhd (ADE), and PT Garuda Maintenance Facility Aero Asia Tbk (GMF) have entered a strategic partnership for a new landing gear maintenance, repair, and overhaul (MRO) business with a combined investment of US$12 million (US$1 = RM4.25).

     

  • WCT Holdings Bhd has proposed to dispose of three retail properties for RM2.44 billion to a newly established real estate investment trust (REIT) named Paradigm REIT, which will be listed on the Main Market of Bursa Malaysia. 

     

  • Capital A Bhd said Bursa Malaysia has approved its extraordinary general meeting (EGM) circular detailing the proposed disposal of its aviation business to sister company AirAsia X Bhd.

     

  • Eco World International Bhd posted a narrower net loss of RM8.19 million for the third quarter ended July 31, 2024 (3QFY2024), compared to RM12.3 million a year earlier, attributed to improved results from joint ventures with Ballymore Group, lower marketing expenses, and the absence of interest costs due to full loan repayment in the previous year.

     

  • Scientex Packaging (Ayer Keroh) Bhd's net profit in the full year ended July 31, 2024 (FY2024) fell 9.43% to RM32.55 million from RM35.94 million a year ago, as the group flagged heightened market competition and freight costs to have impacted its latest quarter earnings. 

     

  • Practice Note 17 (PN17) firm Barakah Offshore Petroleum Bhd has received an offer from a potential buyer for its pipe-laying barge Kota Laksamana 101. 

     

  • Kimlun Corp Bhd has secured a RM128.13 million contract to build a residential development in Johor Bahru, the fifth contract win it has announced this year. 

     

  • Pekat Group Bhd has secured a contract worth RM115 million to develop a 29.99MW (megawatt) solar farm in Kinta, Perak. 

     

  • YBS International Bhd is acquiring the entire stake of Allied Technologies Holdings Pte Ltd’s precision manufacturing services units for a total indicative price of US$38 million (RM167.2 million) via cash and share issuance.

Sentiment: Negative
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The report is for internal and private circulation only and shall not be reproduced either in part or otherwise without the prior written consent of Apex Securities Berhad. The opinions and information contained herein are based on available data believed to be reliable. It is not to be construed as an offer, invitation or solicitation to buy or sell the securities covered by this report.

Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.

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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