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Cautiousness persists
Thu, 26-Sep-2024 07:03 am
by Research Team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. The FBM KLCI (+0.2%) traded negative for the most of the day before marching higher on final hour buying due to lingering concerns about a potential economic slowdown amid unexpected decline in US consumer confidence data. The lower liners were downbeat, while the plantation sector (+1.0%) outperformed among its sectoral peers.

 

  • Global Markets Review. Wall Street staged a pullback as the Dow (-0.7%) snapped a four-day winning run, dragged down concern over economic slowdown. The European stock markets ended lower, weighed down by weakness in energy stocks following the softer crude oil prices, while Asia stock markets closed mixed.

 

  • Market Outlook. An extended consolidation may take shape with the key index likely to remain rangebound between 1,635-1,680 level with selling pressure from foreign funds capping further gains from local funds buying position. We anticipate the local stock market will continue to exhibit volatility in view of the absence of fresh catalyst. Similarly, the lower liners may also edge lower on the back of softer sentiment. Economic wise, investors will watch for economic data such as Malaysia PPI data, and US 2Q24 GDP to be release tonight. Moving forward, we expect REIT sector that is defensive in nature may turn popular amid the potential renewed volatility. Meanwhile, we deemed the consumer discretionary sector to be appealing led by a potential boost in spending from stronger Ringgit, coupled with the upcoming salary adjustments for civil servants in December.

 

FBM KLCI Technical Review & Outlook

  • Technical Commentary: The FBM KLCI took another step forward as the key index approaches near the previous peak. 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 

  • AirAsia X Bhd (AAX) has released a detailed circular on the RM6.8 billion acquisition of Capital A Bhd's entire equity stake in AirAsia Aviation Group Ltd (AAAGL) and AirAsia Bhd (AAB) for its shareholders’ review ahead of its Extraordinary General Meeting on Oct 16.

     

  • Reservoir Link Energy Bhd has secured a five-year contract from Hibiscus Oil & Gas Malaysia Ltd for well leak diagnostic and remedial services, marking its third contract win this year. 

     

  • LB Aluminium Bhd reported a net profit of RM8.86 million for the quarter ended July 31, 2024 (1QFY2025), up from RM4.32 million in 1QFY2024, driven by higher sales volume and selling prices. 

     

  • MCE Holdings Bhd reported a net profit of RM4.14 million for the fourth quarter ended July 31, 2024, a 40.7% increase from RM2.94 million a year earlier, primarily due to lower direct costs and higher other income. 

     

  • Keyfield International Bhd has secured eight work orders worth approximately RM130.3 million from Petronas Carigali Sdn Bhd for the provision of six accommodation workboat vessels and two anchor handling tug and supply vessels for offshore activities. 

     

  • SNS Network Technology Bhd's net profit fell 29.7% to RM6.35 million from RM9.02 million in 2QFY2024, dragged down by lower revenue alongside higher selling and distribution costs, which were driven by increased salaries, commissions to third-party online marketplaces and higher marketing expenses. 

     

  • Kuala Lumpur Kepong Bhd has formalised a memorandum of understanding with Alami Commodities Sdn Bhd for their joint venture, KLK Alami Edible Oils Sdn Bhd (KAEO), which will manufacture, sell and market palm oil and specialty fats. KLK will own 65% of KAEO, which will operate a refinery and packaging plant in Teluk Panglima Garang, Selangor, set to be fully commissioned in 2025. 

     

  • KJTS Group Bhd's subsidiary, KJTN Engineering Co Ltd, has signed a 20-year agreement with Central Plaza Hotel Public Company Ltd for retrofit work, operation and maintenance services, and the supply of chilled water at the Centara Grand Mirage Beach Resort Pattaya, Thailand. 

     

  • Farlim Group (Malaysia) Bhd, through its subsidiary Farlim (Perak) Sdn Bhd, is selling a leasehold housing scheme in Gopeng, Perak, to Gabong Holdings Sdn Bhd for RM33 million. 

     

  • Practice Note 17 (PN17) company Ivory Properties Group Bhd's wholly-owned subsidiary, Ivory Gleneary Sdn Bhd (IGSB), has appointed interim liquidators to initiate the winding-up of the company as part of its regularisation plan.

Sentiment: Positive
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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.375354 4.412699
EUR 4.573391 4.585347
CNY 0.603938 0.605575
HKD 0.561409 0.566244
SGD 3.236779 3.265133