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Caution prevails ahead of U.S. labor releases
Mon, 30-Sep-2024 07:33 am
by Research Team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. The FBM KLCI declined by -0.7%, extending its weakness that bucked the mostly positive performances in regional markets, as foreign funds shifted their interest towards the China and Hong Kong stock markets. Lower liners also closed lower, with the Utilities sector (-1.4%) emerging as the biggest loser, while the Industrial sector (+0.3%) was the top gainers list for the day.

 

  • Global Markets Review. US stock markets ended mixed, with the Dow Jones closing at a fresh record high, while the Nasdaq and S&P 500 closed slightly lower following the release of subdued inflation data. Meanwhile, both European and Asian markets continued their advances, buoyed by optimism over China's government unveiling new stimulus measures. 

 

  • Market Outlook. We expect bargain hunting to emerge in the local bourse today following last week’s weakness, as funds may shift back with China’s markets closed for the national holiday. However, volatility is likely to persist due to the upcoming release of key US labor data, which will offer insights into the economic outlook amid the interest rate downcycle environment. This week, investors will focus on US Fed Chair's speech, job openings, and nonfarm payrolls data. We advise cautiousness when trading export-oriented companies, particularly in the technology sector, given the strengthening of the MYR/USD. Additionally, investors may want to avoid oil and gas counters, as extended dips in oil prices suggest higher supply expectations.

Sentiment: Negative
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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