Opening Daily Highlight
Local
Middle East tensions may bring volatility
Wed, 02-Oct-2024 07:26 am
by Research Team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. The FBM KLCI rebounded by 0.5% as bargain hunting emerged, tracking the positive performance of Wall Street overnight. Lower liners also closed in positive territory, with only the Energy (-0.4%) and Construction (-0.2%) sectors ended in the red. The Healthcare sector (+1.9%) and Technology sector (+1.9%) led the gainers list, contributing to the market's overall upward momentum.

 

  • Global Markets Review. US stock markets ended in the red, with all three major indices closed lower. The Nasdaq saw a notable slump of more than 1% as geopolitical tensions escalated after Iran launched several missiles at Israel. Similarly, European markets also closed lower, reflecting the rising concerns. Meanwhile, Asian markets finished mixed, as investors reacted to the US Fed Chairman's remarks, which eased expectations of a more aggressive rate cut.

 

  • Market Outlook. The local bourse is likely to reflect the negative sentiment from the US stock markets today, as funds may shift away from riskier assets amid the escalating turmoil in the Middle East. Investors are expected to closely monitor developments in the Middle East, alongside key US economic indicators this week, such as manufacturing PMI, job openings, and nonfarm payrolls data, for further clarity on the US economic outlook. We anticipate a potential rebound in the Oil & Gas sector following a recent dip, as oil prices surged due to the Middle East conflict. Gold-related stocks may also turn into the spotlight as safe haven asset investment attracts attention. Conversely, the Technology sector may face selling pressure in light of the Nasdaq’s decline overnight.

     

FBM KLCI Technical Review & Outlook

  • Technical Commentary: The FBM KLCI formed a bullish candle to recoup most of its previous session losses to defend the SMA50 level yesterday. Indicators, however, remained negative as MACD hovered below the Signal Line, while the RSI ticked below 50. Immediate resistance is located at 1,700. Support is envisaged around 1,635.

 

Company News 

  • MISC Bhd has signed a shipbuilding contract with Samsung Heavy Industries Co Ltd for the construction of two new LNG carriers, scheduled for delivery in 2027.

 

  • Malaysia Marine and Heavy Engineering Holdings Bhd has secured a RM43 million subcontract from a subsidiary of Uzma Bhd for the conversion of a mobile offshore drilling unit (MODU) into a mobile water injection facility (WIF).

 

  • Sunzen Biotech Bhd is venturing into the ophthalmic industry through the acquisition of a 70% stake in Eye Nation Medical Sdn Bhd for RM6.37 million.

 

  •  Aemulus Holdings Bhd is taking full control of its loss-making Chinese associate company Tangming Shengshi Technology (Jiashan) Co Ltd before looking for new investors to turn around the firm.

 

  • Central Global Bhd is acquiring a four-storey office and showroom space, measuring approximately 48,690 sq ft, in Kota Kinabalu, Sabah, for RM19.5 million. 

 

  • Ho Hup Construction Company Bhd's 52%-owned unit, Golden Wave Sdn Bhd (GWSB), has obtained an interim restraining order from the High Court in Kota Kinabalu, shielding it from legal actions by its creditors. 

 

  • Tanco Holdings Bhd's 79%-owned subsidiary, Midports Holdings Sdn Bhd (MHSB), had received the nod from the Malaysian Marine Department (MMD) to develop a container port in Port Dickson, Negeri Sembilan. 

 

  • PA Resources Bhd said its wholly owned subsidiary PA Extrusion (M) Sdn Bhd, has secured a 0% dumping rate for its aluminium extrusion exports to the US. 

Sentiment: Positive
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