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Bargain hunting lifted Bursa Malaysia higher
Fri, 11-Oct-2024 07:32 am
by Research Team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. The FBM KLCI closed higher (+0.4%) on Thursday despite mixed performances in the regional markets, as bargain hunting emerged following the recent sell-off. Lower liners ended the day mixed. Sector wise, the Technology sector (+0.9%) and Property sector (+0.7%) attracted highest buying interest, while the Energy sector (-0.3%) topped the laggard.

 

  • Global Markets Review. The US stock markets retreated with all three major indices ended the day in the red as sticky inflation data weighed on investors’ sentiments. In Europe, the stock market similarly slipped (-0.2%) on Thursday, continuing the week’s choppy trade. The Asian markets traded higher after the Dow and S&P 500 chalked up fresh records on Wall Street overnight. Japan’s Nikkei 225 climbed 0.3%, while South Korea’s Kospi gained 0.2%. Meanwhile, Hong Kong and Chinese stocks both rebounded from massive sell-off after China’s central bank kicked off a USD 70bn financing facility to fund institutional buying and traders bet on more fiscal stimulus to shore up growth.

                                                                                      

  • Market Outlook. We expect the local bourse to reflect the negative sentiment from the US stock market overnight as inflationary pressure dampened the prospects of larger interest rate cuts ahead. The Middle East tension has also kept traders on edge. Oil prices surged as Israel’s security cabinet plans to meet Thursday evening to discuss how to retaliate against Iran. Sector-wise, the Energy sector may attract buying interest as oil price surged, snapping its two-day decline. The on-going corporate earnings releases in the US will be in focus. Meanwhile, 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 a bullish candle as the key index claw its way back above SMA50 yesterday. Indicators, however, 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)

  • Public Bank Bhd, the third-largest bank in Malaysia by assets, is acquiring a 44.15% stake in insurer LPI Capital Bhd for RM1.72 billion in cash from the family of the late Tan Sri Teh Hong Piow.

 

  • The estate of the late Tan Sri Teh Hong Piow and Consolidated Teh Holdings Sdn Bhd will reduce their stake in Public Bank Bhd to 10 per cent over five years via a restricted offer for sale (ROFS) from the current 23.4 per cent.

 

  • Top Glove Corporation Bhd‘s net losses narrowed sharply for the three months ended Aug 31, 2024 (4QFY2024) as sales surged, while the world’s largest glovemaker by capacity also booked gains from land sale.

 

  • Sunway Bhd’s unit Sunway Developments Pte Ltd (SDPL), together with Hoi Hup Realty Pte Ltd, have been awarded a parcel of land by the Housing and Development Board of Singapore.

 

  • KJTS Group Bhd has secured a subcontract worth RM12.3 million for a data centre project in Selangor from Sunway Engie DC Sdn Bhd, 70%-owned indirect unit of Sunway Construction Group Bhd.

 

  • MGB Bhd, which is 57.98%-owned by LBS Bina Group Bhd, will undertake mixed development and residential projects on 26 acres of land in Taman Bukit Serdang, Seri Kembangan with a combined gross development value of RM861.35 million.

 

  • Norway's sovereign wealth fund has ended observation of Supermax Corp Bhd, two years after placing the glovemaker under watch over allegations that the company contributed to human rights violations.

 

  • Sapura Resources Bhd has issued show cause letters to its managing director Datuk Shahriman Shamsuddin and appointed a new acting MD.

 

  • Trading in Sarawak Cable Bhd’s shares will be suspended on Friday as the company faces a judicial management order, according to its bourse filing on Thursday.

 

  • Johor-based furniture manufacturer SHH Resources Holdings Bhd said it is diversifying into the food industry by acquiring a majority stake in a health foods and frozen fruits company.

Sentiment: Positive
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Market Mover
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USD 4.278720 4.308688
EUR 4.691406 4.696229
CNY 0.605524 0.606140
HKD 0.550243 0.554588
SGD 3.270930 3.294192