Opening Daily Highlight
Mixed
Resumption of recovery
Fri, 20-Sep-2024 06:19 am
by Research Team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. The FBM KLCI (+0.3%) advanced after recouping all its intraday losses in the second half of the trading session yesterday. The broad-based rally also sent the lower liners higher, while the Healthcare (-0.8%) underperformed the mostly positive sectorial peers.

 

  • Global Markets Review. US stock markets charged sharply higher to close at fresh record high levels as the Dow jumped 1.3% on expectations that the US Federal Reserve will be able to maneuver for a soft landing, while weekly jobless claims fell to the lowest level since May 2024. Likewise, both European and Asia stock markets cheered onto the start of interest rate downcycle from the US.

 

  • Market Outlook. The key index took a step forward as investors turned slightly bullish over the larger-than-expected rate cut from the US Federal Reserve. We expect the local bourse to stage further steps of recovery overtime as buying momentum gathers pace, taking cue from the positive developments on Wall Street overnight. The lower liners are also on a bright spot amid rotational play alongside with bargain hunting activities from beaten down stocks in recent months. Economic wise, investors will be focusing onto Bank of Japan’s interest rate decision (which we expect to be kept unchanged) as well as UK retail sales data today. We continue to favour the construction sector on optimism ahead of the tabling of Budget 2025. Meanwhile, the technology sector may mirror the gains on Nasdaq overnight.

 

FBM KLCI Technical Review & Outlook

  • Technical Commentary: The FBM KLCI formed a hammer candle as the key index bounced off EMA9 level yesterday to eke out mild gains. 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 

  • Bina Darulaman Bhd has clarified that Messrs KPMG PLT's resignation as its external auditor was part of a routine governance practice.

 

  • Pharmaniaga Bhd’s newly launched biopharmaceutical plant is expected to lift its gross profit margin to about 30% to 35% for the financial year ending Dec 31, 2026 (FY2026).

 

  • Country Heights Holdings Bhd said it will request a contractor for the group's residential project in Kedah to withdraw its legal action against the group's subsidiary, Country Heights Smart Living Sdn Bhd, over alleged unpaid payments.

 

  • Eco World Development Group Bhd reported a 21.26% year-on-year increase in its third quarter net profit, driven by improved earnings contributions from its Malaysian operations. 

 

  • Softer consumer demand in the first quarter ended July 31, 2024 (1QFY2025) sent SSF Home Group Bhd’s net profit down by more than half to RM1.25 million compared to a year ago of RM2.65 million. 

 

  • United Malacca Bhd’s net profit rose by nearly five times to RM13.29 million for its first quarter ended July 31, 2024 (1QFY2025) from RM2.68 million a year earlier, thanks to higher contributions from its Malaysian operations.

 

  • Agricultural and industrial chemicals manufacturer Ancom Nylex Bhd is acquiring a 70% stake in Colorex Sdn Bhd for RM14 million, cash.

Sentiment: Positive
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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.186344 4.224837
EUR 4.692802 4.707788
CNY 0.594564 0.595974
HKD 0.537155 0.542118
SGD 3.243708 3.273864