Opening Daily Highlight
Mixed
Local market ends flat amid mixed sentiment
Thu, 10-Oct-2024 07:28 am
by Research team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. The FBM KLCI ended the day flat amid mixed performance in the regional market. Lower liners were also mixed. Sector wise, the Construction sector (+1.9%) and the Real Estate Investment Trust sector (+1.3%) led the gains, while the Industrial sector (-1.3%) and the Energy sector (-1.3%) experienced strong selling pressure.

 

  • Global Markets Review. The US stock market continued their rally from Tuesday ahead of the September CPI inflation reading. Both S&P 500 and the Dow closed at record highs, led by gains in technology stocks as investors shook off geopolitical concerns. Similarly, the European market’s STOXX 600 index closed the day higher (+0.6%), with the Automobiles and Parts sector among the top gainers. In Asia, the stock markets were mixed. Japan’s Nikkei 225 climbed 0.9%, while broad based Topix was up 0.3%. Meanwhile, Mainland China’s stocks ended their impressive 10-day winning streak. Both Shanghai Composite Index (-6.6%) and Hang Seng Index (-1.4%) dipped as officials failed to inspire confidence in stimulus plans intended to revive the economy.

 

  • 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 the Construction sector to continue attracting buying interest ahead of tabling of Malaysia’s Budget 2025 next Friday as investors anticipate higher allocation for infrastructure building. The market will focus closely on the US inflation data 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. The Finance Ministry of China is due to hold a briefing on Saturday that could provide further details on planned government outlays.

     

FBM KLCI Technical Review & Outlook


Technical Commentary: The FBM KLCI formed closed relatively flattish after reversing all its intraday gains to remain within the consolidation pattern yesterday. Indicators remained negative as MACD hovered below the Signal Line, while the RSI lingered below 50. Immediate resistance is located at 1,675. Support is envisaged around 1,600.

 

Company News (source: various)

  • Souqa Fintech Sdn Bhd is mulling to take legal action against HeiTech Padu Bhd, following the latter's decision to terminate a deal to subscribe to new shares in the fintech company.

 

  • Guan Chong Bhd is seeking to take up a 25% stake in Ivory Coast-based cocoa manufacturing outfit Transcao Côte d'Ivoire (Transcao CI).

 

  • Berjaya Food Bhd has signed a master franchise agreement that would allow the company to exclusively operate Paris Baguette stores in Brunei and Thailand.

 

  • Fuel retailer Petron Malaysia Refining & Marketing Bhd said its Port Dickson refinery in Negeri Sembilan will undergo an eight-week maintenance shutdown for furnace repairs.

 

  • Property developer Tropicana Corp Bhd has inked an agreement to dispose of 38.527 acres of freehold land in Johor to a data centre company for RM239.99 million, marking its second land sale for such development in the region this year.

 

  • SkyWorld Development Bhd and Perbadanan PR1MA Malaysia (PR1MA) have signed a joint development agreement to build PR1MA homes in Brickfields, Kuala Lumpur.

 

  • Construction firm Kumpulan Kitacon Bhd has secured a contract worth RM64.05 million to undertake main building works for proposed double-storey houses in Shah Alam, Selangor.

 

  • Key ASIC Bhd has entered into a five-year collaboration agreement with Japanese system solution developer NSW Inc to develop the application-specific integrated circuit design business.

 

  • Sapura Resources Bhd is extending the leave of absence placed on its managing director Datuk Shahriman Shamsuddin for another month.

 

  • Home furniture specialist Ecomate Holdings Bhd has proposed to acquire a single-storey factory in Muar, Johor, along with machinery and components, from SWS Capital Bhd.

 

  • Property developer LBS Bina Group Bhd has awarded renewable energy company Solarvest Holdings Bhd a contract to build a 43-MWp solar farm in Senawang, Negeri Sembilan, valued at RM104 million.

 

  • Property developer Kuchai Development Bhd has proposed a 20 sen per share dividend for the financial year ended June 30, 2024 (FY2024).

 

  • Atlan Holdings Bhd's net profit rose 5.27% for the second quarter ended Aug 31, 2024 (2QFY2025), driven by higher revenue contributions from all business segments.

Sentiment: Neutral
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