Opening Daily Highlight
Mixed
Turning into consolidation
Wed, 09-Oct-2024 07:54 am
by Research team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. The FBM KLCI ended the day flat as afternoon session buying of selected blue chips lifted the index out of the red. Lower liners were mixed. Sector wise, the Construction sector (+1.4%) and Property sector (+1.2%) led the gains, while the Technology sector (-0.5%) topped the laggard.

 

  • Global Markets Review. The US stock market rebounded following a downbeat session on Monday, with all three major indices ended in the green, as oil prices eased. The European markets closed the day lower (-0.5%), with all major bourses and the majority of sectors trading in the red. In Asia, stock markets were mixed. The rally in Chinese markets lost steam after a briefing from the country’s National Development and Reform Commission provided few details on further stimulus. While mainland China’s CSI 300 skyrocketed over 10% at the open in its return from the Golden Week holiday, the index pared gains to record a gain of 5.9% for the day. Similarly, Hong Kong’s Hang Seng Index plunged (-9.4%) as the authorities disappointed the market.

 

  • Market Outlook. We expect the local bourse to trade sideways amid the lack of fresh catalyst. Likewise, the lower liners may follow a similar pattern. Sector-wise, we expect profit taking in the Energy sector and Plantation sector, as the prices of both commodities plunged partly due to lack of further stimulus announced by the Chinese authorities, while tensions in the Middle East dialed down. 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 bullish candle as the key index closed relatively unchanged to hover near the SMA50 level yesterday. 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 1,600.

     

  • Company News (source: various)

  • A corporate development is brewing at Public Bank Bhd, sources say, with the country’s third-largest banking group by assets believed to be undertaking a potential acquisition of a related company. While it is not immediately clear which company it is, industry sources say the development may be in relation to LPI Capital Bhd.

 

  • Ireka Corp Bhd, a Practice Note 17 (PN17) construction company, has secured a sub-contract worth RM1.07 billion for the upgrade of a section of the Pan Borneo Highway in Sabah.

 

  • Perdana Petroleum Bhd has bagged two work orders worth a combined RM19.1 million for the provision of two units of accommodation workboat.

 

  • MClean Technologies Bhd plans to raise up to RM12.33 million via private placement to acquire a plastic injection moulding business as part of its strategy to diversify its service offerings and revenue stream.

 

  • Enest Group Bhd, which is seeking a transfer from the LEAP Market to the ACE Market of Bursa Malaysia, has received approval from the exchange to waive the requirement to extend the exit offer to shareholders. 

 

  • Sunsuria Bhd has won the exclusive rights to operate new British international schools in Malaysia, Singapore, Taiwan, Hong Kong, Japan, South Korea, India and other regions across Southeast and South Asia.

 

  • Media Prima Bhd has clarified that Tan Sri Syed Mokhtar Al-Bukhary remains a substantial media group shareholder. 

 

  • Property developer Seal Inc Bhd said it needs more time to evaluate and negotiate the additional 10% stake buy in MSR Green Energy Sdn Bhd.

 

  • Sime Darby Bhd is expanding its electric vehicle offerings as it is set to bring Denza, a premium sub-brand by BYD, into Malaysia.

 

Sentiment: Neutral
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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