Opening Daily Highlight
Mixed
Wall Street setback dampening local markets
Tue, 08-Oct-2024 07:22 am
by Research team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. The FBM KLCI (+0.3%) ended higher on Monday amid advances in the regional market and overnight rally in the US. Lower liners were also firmer for the day. Sector wise, the Technology sector (+1.7%) and Healthcare sector (+1.1%) led the gains, while the Utilities sector (-0.6%) topped the laggard.

 

  • Global Markets Review. The US stock market closed lower, with all three major indices ended in the red, as rising oil prices due to the Middle East tension and higher treasury yields weighed on market sentiment. The European markets eked out marginal gains (+0.1%). In Asia, stock markets were mostly higher. Hong Kong’s Hang Seng Index extended its rally on Monday (+1.6%) ahead of China market’s opening today after a week-long holiday.

 

  • Market Outlook. We expect the local bourse to enter profit taking mode today as foreign investors continue to reposition themselves into Chinese stocks. Likewise, the lower liners may follow a similar pattern. Senior officials from China's top economic planning agency will brief reporters today on steps to implement policies to promote economic growth. Meanwhile, sentiment is likely to be weak as the market waits for Israel’s retaliation against Iran. Sector-wise, we expect the Energy sector and Plantation sector to outperform, as the prices of both commodities continued to rise. 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. Also, the on-going corporate earnings releases in the US will be in focus.

 

FBM KLCI Technical Review & Outlook

  • Technical Commentary: The FBM KLCI formed a hammer candle as the key index hovered near the SMA50 level yesterday. Indicators, however, 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 1,600.

     

Company News (source: various)

  • ITMAX System Bhd said it has secured a 15-year contract to operate 8,640 open-space smart parking lots in Muar, marking its fifth such contract in Johor state.

 

  • Aurora Mulia Sdn Bhd, a company linked to tycoon Tan Sri Syed Mokhtar Al-Bukhary, has exited Media Prima Bhd after five years as the largest shareholder in the media group.

 

  • HeiTech Padu Bhd has terminated its agreement to acquire a 30% stake in Souqa Fintech Sdn Bhd, less than two weeks after entering into the share subscription agreement (SSA).

 

  • Oil and gas services provider Uzma Bhd said its maiden 50MW LSS4 project located in Sungai Petani, Kedah has reached its commercial operation date on Sept 25.

 

  • Dayang Enterprise Holdings Bhd has secured order awards from Petronas Carigali Sdn Bhd for six accommodation work boats.

 

  • Hibiscus Petroleum Bhd has completed the farm-in arrangement with Petronas Carigali Sdn Bhd to acquire a 30% participation interest in the PM327 production sharing contract.

 

  • Sapura Resources Bhd said its managing director Datuk Shahriman Shamsuddin has been placed on a leave of absence effective Sept 11, pending ongoing investigations, confirming a report in The Edge Malaysia weekly.

 

  • Dialog Group Bhd's chief operating officer (COO) Mustaffa Kamal Abu Bakar has been promoted to chief executive officer, effective Monday. Mustaffa currently holds 3.11 million shares in Dialog.

 

  • Tuju Setia Bhd's joint venture (JV) company has secured a RM317.6 million contract to build a new block at Gleneagles Hospital in Jalan Ampang.

 

  • Ramssol Group Bhd, a human capital management provider, has been appointed as the authorised business partner for sales and marketing activities for a Singapore-based company.

 

  • HE Group Bhd, which debuted on the ACE Market in January, has proposed a special issue of 45.6 million new shares or 9.39% of its enlarged share capital to meet its Bumiputera equity condition.

 

  • Ge-Shen Corp Bhd’s proposed acquisition of a 40% stake in electronic manufacturing services (EMS) firm Local Assembly Sdn Bhd for RM48 million is deemed fair and reasonable and is not detrimental to non-interested shareholders, according to independent adviser Strategic Capital Advisory Sdn Bhd (SCA).

Sentiment: Positive
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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