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Extended recovery
Mon, 23-Sep-2024 05:58 am
by Research Team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. The FBM KLCI (+0.2%) took another step higher, lifted by gains in more than half of the key index components following the Fed's announcement of a 50bps rate cut. The lower liners also advanced, while the Property sector (+1.7%) outperformed the mostly positive sectorial peers.

 

  • Global Markets Review. US stock markets finished mixed with the Dow added +0.1%, while the S&P 500 and Nasdaq both shed -0.2% respectively as investors digested gains from the week’s rally. The European market closed lower as caution persisted following the Bank of England and Norway’s Norges Bank both holding rates steady, while Asia stock markets closed mostly upbeat.

 

  • Market Outlook. Although the key index managed to notch higher, the increasing bouts of profit taking are setting into space with the local bourse reversing most of its intraday gains yesterday. We expect a pullback to take place over the interim as investors lock in their recent gains. Likewise, the lower liners may also brace for some weakness ahead, after enjoying a decent run over recent times. Looking ahead, investors will be monitoring Malaysia’ inflation data to be release today. We reckon some weakness to prevail over the technology sector, mirroring the weakness on Nasdaq overnight. Also, gold-related stocks have turned appealing with gold price inching above USD2,600/oz, stem from expectations of further US interest rate cuts and safe-haven inflows from rising tensions in the Middle East.

 

FBM KLCI Technical Review & Outlook

  • Technical Commentary: The FBM KLCI marched higher after forming a gap up formation to stay 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 

  • NCT Alliance Bhd has inked a memorandum of understanding to acquire a 51% equity interest in Setara Juara Sdn Bhd as part of plans to expand its property development business.

     

  • Tenaga Nasional Bhd has inked an agreement with Singapore’s Keppel Electric Pte Ltd to supply up to 100MW of electricity to the island-state.

     

  • The upcoming increase in US tariffs on China-made gloves provides an opportunity for Malaysian players to increase production, said Top Glove Corp Bhd managing director Lim Cheong Guan.

     

  • Health products manufacturer Sunzen Biotech Bhd is eyeing double-digit revenue growth for its financial year ending June 30, 2025 (FY2025), driven by strong demand for its bird's nest products and loan financing services.

Sentiment: Positive
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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.186095 4.224386
EUR 4.685732 4.700656
CNY 0.595462 0.596801
HKD 0.537358 0.541779
SGD 3.239345 3.269267