Market Review & Outlook
Malaysia Market Review. The FBM KLCI (-0.1%) bucked the positive trend across regional markets as the key index took a step back with half of the key index components closed in red yesterday. The lower liners were mixed, while the energy sector (-1.7%) was the worst performer among its sectoral peers in tandem with the weakness in crude oil price.
Global Markets Review. US stock markets closed higher as investors sentiment were restored following the announcement of a strong 2Q24 GDP growth rate at 3%, along with lower-than-expected weekly jobless claim. Both European and Asia market advanced with the latter buoyed by China and Hong Kong markets following news on China leader looking further to stimulate the economy by strengthening fiscal and monetary policy support.
Market Outlook. We expect the positive momentum may resume today taking cue from the positive closing on Wall Street. 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 recover with bargain hunting activities taking over the near interim. Economic wise, investors will watch for economic data such as EU economic and consumer sentiment, as well as US Michigan Consumer Sentiment to be release today. Sector wise, the technology sector may stage a rebound, taking cue from the recovery of Nasdaq overnight. On the other hand, the market may avoid O&G counters following the extended dip in oil prices due to concerns over higher supply this year. Saudi Arabia has given up its initial price target of USD100/bbl and is preparing to boost production, further weighing on prices.
FBM KLCI Technical Review & Outlook
Technical Commentary: The FBM KLCI formed a gapped down and closed marginally lower as the key index defended the 1,600 psychological level 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
Sapura Energy Bhd, which slipped into losses in its latest second quarter due to the stronger ringgit, cautioned shareholders that “foreign exchange volatility” may continue in upcoming quarters.
AirAsia Bhd, the short-haul airline business of Capital A Bhd, is planning to introduce mandatory carbon fees on air travel across all AirAsia operations starting January 2025.
Gamuda Bhd, whose share price has gained 74.5% year to date, proposed a one-for-one bonus issue, involving an issuance of up to RM2.98 billion bonus shares. Separately, it reported an 8.2% increase in net profit to RM272.49 million for the fourth quarter ended July 31, 2024 (4QFY2024) against RM251.75 million in the same quarter a year ago.
AEON Credit Service (M) Bhd saw its net profit decline 40.8% to RM71.16 million for the second quarter ended Aug 31, 2024 (2QFY2025) from RM120.19 million a year ago, owing to higher impairment losses on financing receivables.
Hiap Teck Venture Bhd’s net profit for the financial year ended July 31, 2024 (FY2024) more than tripled to RM106.3 million from RM30.91 million a year ago, driven by stable steel prices, improved margins and sales volume.
HCK Capital Group Bhd is issuing new shares to settle the bulk of an outstanding RM113.35 million debt that its subsidiary owes its executive chairman Tan Sri Clement Hii Chii Kok @ Hii Chee Kok.
MSR Green Energy Sdn Bhd (MSR-GE), an associate company of Seal Incorporated Bhd, has roped in Sungrow, a China-based solar photovoltaic inverter and energy storage system provider, to develop a RM645 million battery energy storage system (BESS) project in Sabah.
Censof Holdings Bhd has secured a RM5.44 million contract from Pertubuhan Keselamatan Sosial (Perkeso) to provide maintenance services for an accounting system.
Animal health and nutrition products manufacturer Yenher Holdings Bhd is purchasing a fish mill and pet food and silos (machinery) — for US$4.42 million (RM18.56 million), cash.
Citaglobal Bhd has secured a RM47.56 million road construction project in Terengganu.
Trading in the shares of Lambo Group Bhd will be suspended from Oct 4, following Bursa Malaysia’s rejection of the company’s application for a further extension of time to submit its regularisation plan.
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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 |