Opening Daily Highlight
Local
Recovery may extend
Tue, 15-Oct-2024 07:53 am
by Research Team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. The FBM KLCI closed lower (-0.5%) on Friday following a reserved and cautious market sentiment, most notably dragged the decline of Public Bank. Lower liners ended the day mixed. Sector wise, the Transportation and Logistics sector (+1.2%) attracted highest buying interest, while the Technology sector (-1.2%) topped the laggards.

 

  • Global Markets Review. The US stock markets saw all three major indices move in a positive direction as investors await key economic data and corporate news in coming days. In Europe, the stock market was uniformly positive, following a choppy performance seen this week. The Asian markets were muted in comparison. Japan’s Nikkei 225 climbed 0.6%, while South Korea’s Kospi was unchanged. Meanwhile, Hong Kong and Chinese stocks were unchanged following a dramatic rebound seen in the last couple of days.

                                                                                      

  • Market Outlook. We expect a potential recovery to take place today over at the FBM KLCI, taking cue from the positive developments on Wall Street last Friday as we approach the tabling of Budget 2025. Meanwhile, the lower liners may remain onto the consolidation mode amid the absence of fresh leads.  Investors will continue keeping an eye on US performance this week, with the release of key economic data a core indicator of interest rate movements as determined by the Fed. The Middle East tension continue to escalate, keeping traders on edge. The on-going corporate earnings releases in the US will be in focus. Sector wise, we favour the Plantation sector with CPO price advanced above RM4,300/MT.

     

FBM KLCI Technical Review & Outlook

  • Technical Commentary: The FBM KLCI capped off the week on a dour note after reversing all its intraday gains as the key index retreated below the middle Bollinger Band yesterday. Indicators stayed 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)

  • Less than two weeks after being appointed director of Alliance Bank Malaysia Bhd, Tan Sri Amirsham A Aziz has been named the bank’s new chairman. His appointment took effect on Thursday.

 

  • Pertama Digital Bhd, whose share price dived to a more than four-year low on Wednesday, saw its non-independent and non-executive chairman Datuk Ahmad Nazri Abdullah reemerge as a substantial shareholder after raising his stake to 34.3 million shares or 7.83% in the company.

 

  • Pharmaniaga Bhd has secured funding from the government for research and development (R&D) of vaccines through the National Vaccine Production Development and Strengthening Fund (DPVN).

 

  • Oil and gas service provider Steel Hawk Bhd has been awarded an operational pigging supply and services contract by Petronas Gas Bhd.

     

  • Kerjaya Prospek Group Bhd has filed a new lawsuit against Yong Tai Bhd and its chief executive officer Datuk Boo Kuang Loon over an alleged unpaid contract sum of RM105.14 million related to a construction project in Melaka.

     

  • Gadang Holdings Bhd is disposing of a leasehold land in Damansara Perdana for RM65 million to partially finance its existing construction projects and repay borrowings.

     

  • Construction company Fajarbaru Builder Group Bhd has proposed to dispose of its 44.44% stake in an Australian property development company in a related-party transaction.

     

  • Exsim Borneo Sdn Bhd and a person acting in concert have proposed to acquire a 70% stake in Sabah-based property developer WMG Holdings Bhd at 16.5 sen per share, and make a general offer for the remaining shares at the same price.

Sentiment: Negative
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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.280309 4.314204
EUR 4.691762 4.700774
CNY 0.605908 0.606536
HKD 0.551176 0.555582
SGD 3.275615 3.301851