Opening Daily Highlight
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Mon, 07-Oct-2024 07:29 am
by Research Team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. The FBM KLCI (-0.7%) bucked the uptrend seen in regional stock markets, weighed down by geopolitical tensions in the Middle East. Lower liners were also retreated for the day. Sector wise, the Energy sector (+4.1%) led the gains, driven by rising oil prices amidst ongoing Middle East tensions, while the Telecommunication sector (-1.8%) topped the laggard.

     

  • Global Markets Review. The US stock markets soared, with the Dow notching fresh record high as September’s jobs report massively overshot expectations, suggesting that labour market remains robust and the economy remains resilient. Similarly, European markets closed higher, with the main index up 0.5%. In Asia, stock markets were mostly higher. Hong Kong’s Hang Seng Index surged 2.8%, resuming its rally after profit taking on last Thursday.

 

  • Market Outlook. We expect the local bourse to stage a rebound following the expectation-defying jobs report in the US. Likewise, the lower liners may follow a similar pattern in tandem with the positive sentiment from the major index. The robust jobs report builds a case for a smaller Fed rate cut in November, propelling the dollar index to the highest level since August. Meanwhile, investors will be assessing the impact of stimulus measures from the re-opening of Chinese markets today. Sector-wise, we expect the technology sector to outperform, tracking the Nasdaq index on Friday. For the week ahead, the market will focus closely on the US inflation data and the FOMC minutes’ release on Thursday for further clues on the Federal Reserve’s rate decision moving forward. 

     

FBM KLCI Technical Review & Outlook

  • Technical Commentary: The FBM KLCI formed a bearish candle as the key index slipped below the SMA50 level on last Friday. Indicators remained negative as MACD hovered below the Signal Line, while the RSI lingered below 50. Immediate resistance is located at 1,700. Support is envisaged around 1,635.

     

Company News

  • HeiTech Padu Bhd said on Friday that it is not aware of any corporate development that caused the unusual market activity (UMA) in its shares which spiked to a record high.

     

  • Construction firm Aneka Jaringan Holdings Bhd said on Friday that it has aborted its planned private placement of up to 10% of its issued share capital, which was intended to raise up to RM15.51 million.

     

  • EG Industries Bhd said it is acquiring a 24.08% stake in Thai-based ND Rubber Public Company Ltd (NDR) for 198 million baht (RM26.05 million) as part of its expansion into the 5G photonics and embedded electric vehicle (EV) market in that country.

     

  • Renewable energy company Solar District Cooling Group Bhd announced on Friday its plans to expand its solar and energy efficiency services into Brunei.

     

  • MMAG Holdings Bhd, which has been classified as a Guidance Note 3 (GN3) status company, clarified it is not facing cash flow issues, having raised close to RM240 million via a right issuance and conversion of warrants this year.

     

  • Gamuda Land Bhd, the property arm of Gamuda Bhd, has taken over the management and operations of Paya Indah Discovery Wetlands at Gamuda Cove, Kuala Langat.

     

  • Velesto Energy Bhd has inked a memorandum of understanding (MOU) for a three-year collaboration with SLB to enhance its rig capabilities.

     

  • Precision plastic injection moulding manufacturer Sanichi Technology Bhd has proposed to consolidate its shares on a 10-to-one basis.

     

  • Privately owned rail construction company Dhaya Maju Infrastructure (Asia) Sdn Bhd is taking up a 57.52% stake in Pestech International Bhd for RM160 million through a restricted issue.

     

  • OCR Group Bhd said the group is suing Kumpulan Jetson Bhd over alleged breaches of a RM88.03 million contract to build four blocks of serviced apartments in Jalan Yap Kwan Seng, Kuala Lumpur.

     

  • Pertama Digital Bhd hit its limit down again during the early trading session on Friday, with the stock plunging below the RM1 mark, reaching its lowest level since April 2022.

Sentiment: Negative
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Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.

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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.264979 4.298658
EUR 4.691027 4.700048
CNY 0.605014 0.605686
HKD 0.548687 0.553098
SGD 3.270511 3.296626