Opening Daily Highlight
Local
Mixed sentiment
Tue, 24-Sep-2024 07:53 am
by Research Team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. The FBM KLCI (-0.2%) edged lower due to profit taking activities, as investor tread cautiously amid a mixed regional trend. Similarly, the lower liners also staged a pullback, while the Construction sector (-1.1%) was the worst performer among the sectorial peers.

 

  • Global Markets Review. Wall Street closed in a positive territory, building onto last week's sharp market rally after the central bank's decision to lower interest rates. Both the European market and Asia stock market also marched higher, with the latter gaining from Japan holding their rates steady and China lowering its short-term policy rates.

 

  • Market Outlook. The local bourse is expected to consolidate after headline inflation eased to 1.9% yoy in August, below consensus forecast of 2.0%-2.3%. In the meantime, investors are likely to stay on the sidelines, while eagerly waiting for new catalysts to re-position into the market. Likewise, the lower liners may also brace for some weakness ahead, after enjoying a decent run over recent times. Key economic focus will be directed towards US Consumer Sentiment to be release today. With the Fed's recent rate cut, we anticipate renewed foreign interest in Malaysian assets, particularly in the banking sector due to the strengthening of the Ringgit. We also deemed gold-related stocks to be appealing, led by expectations of further US interest rate cuts and safe-haven inflows from rising tensions in the Middle East. The plantation sector may regain interest after CPO prices advanced towards RM4,000/MT.

 

FBM KLCI Technical Review & Outlook

  • Technical Commentary: The FBM KLCI staged a mild pullback as the key index defended the middle Bollinger Band yesterday. Indicators stayed 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 

  • EPB Group Bhd is acquiring a piece of industrial land at Plot P23B, Penang Science Park North measuring 7.8424 acres from Penang Development Corp for RM22.49mil.

     

  • After a long wait, Sarawak will finally formalise a deal to raise its stake in Affin Bank Bhd to around 30% after inking a sale and purchase agreement with two of Affin Bank’s shareholders — Lembaga Tabung Angkatan Tentera (LTAT) and Boustead Holdings Bhd.

     

  • Capital A Bhd’s aviation arm AirAsia Bhd expects its expanded domestic network and additional seats to boost revenue for the year by 10%.

     

  • Pharmaniaga Bhd has announced the resignation of PricewaterhouseCoopers PLT (PwC) as its external auditor. 

     

  • Investors had associated Globetronics Technology Bhd with the fate of another company following its auditor's resignation, which sent its stock tanking, erasing 38% of the company's market value in the past one month, according to executive chairman Kent Liaw Way Gian. 

     

  • Three directors have stepped down from APB Resources Bhd’s board amid a sharp fall in the company’s share price.

     

  • ITMAX System Bhd has been appointed by the Segamat Municipal Council (MPS) to operate 7,637 street parking in Johor's Segamat district, marking its fourth such contract in the state. 

     

  • Apollo Food Holdings Bhd reported a 26.66% year-on-year jump in its first quarter net profit to RM9.67 million, lifted by higher revenue amid an increase in domestic and export sales. 

     

  • KJTS Group Bhd has secured a contract worth RM23.75 million for sub-contract work for a data centre in Sedenak Tech Park, Johor. 

     

  • Alliance Bank Malaysia Bhd announced the appointment of Tan Sri Amirsham A Aziz, former president and chief executive officer of Malayan Banking Bhd, to its board. 

     

  • Hamburg-based chemical marketing firm Helm AG is subscribing for shares of Ancom Nylex Bhd that will give it control of 9.47% of the agricultural machinery manufacturer's shares through a private placement. 

     

  • Fiamma Holdings Bhd saw Casa Holdings Ltd cease to be its substantial shareholder after disposing of its entire stake in the electrical home appliance distributor.

Sentiment: Negative
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Market Mover
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USD 4.186146 4.219371
EUR 4.664934 4.669654
CNY 0.594782 0.595398
HKD 0.537928 0.541710
SGD 3.240672 3.263549