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Volatility may take precedence
Wed, 16-Oct-2024 07:18 am
by Research Team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. The FBM KLCI closed higher (+0.3%) on Tuesday, thanks to mild buying in consumer products and services, telecommunication and banking stocks, amid a mixed regional market performance. Sector wise, the Property sector (+2.5%) attracted the highest buying interest, while the Energy sector (-2.4%) topped the laggards following the pullback in crude oil prices.

 

  • Global Markets Review. The US stock market saw all three major indices slip into the red as disappointing outlook from ASML and concerns about tighter US restrictions on chip sales spurred a selloff in the semiconductor industry. Similarly, the stock markets in Europe were uniformly negative, dragged by the technology sector. The Asian markets were mixed, supported by a strong Wall Street close and investor optimism about corporate earnings.

 

  • Market Outlook. We expect the FBM KLCI’s recent positive momentum to take a step back amid the renewed volatility in Wall Street overnight. Downside, however, will be cushioned in response to growing anticipation around the upcoming Budget 2025 announcement scheduled for this Friday. Anwar’s comment on GST only being reinstated upon minimum wage being set to RM3,000 provides investors with more confidence and a clearer policy outlook. Investors will continue keeping an eye on US performance this week, with the release of key economic data and further corporate earnings still in focus. We expect the technology sector to turn downbeat amid the negative developments surrounding AI chip export from Joe Biden administration. Meanwhile, defensive-related sectors such as REIT and consumer may thrive today.

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FBM KLCI Technical Review & Outlook

  • Technical Commentary: The FBM KLCI edged slightly higher to re-test the SMA50 level yesterday to float within the consolidation zone. 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)

  • Renewable energy producer Cypark Resources Bhd has formed a consortium to jointly explore and develop energy solutions for the 186ha German Technology Park in Ayer Keroh, Melaka.

 

  • Malayan Flour Mills Bhd said there will be no second earnout payment from Tyson Foods Inc in relation to the consideration for its 49% equity disposal in Dindings Tyson Group (DTSB) to Tyson Foods.

 

  • Construction and property company PLB Engineering Bhd has proposed to sell its 60% stake in a solar energy firm for RM19.8 million cash to help repay its bank borrowings.

 

  • IT services firm Infomina Bhd's net profit for the first quarter ended Aug 31, 2024 (1QFY2025) grew 10.25% from a year earlier despite a drop in revenue, thanks to a higher gross profit margin.

 

  • Perdana Petroleum Bhd has secured a RM7.3 million contract for the charter of an anchor handling tug and supply (AHTS) vessel.

 

  • Yinson Holdings Bhd has appointed Lim Poh Seong as its independent non-executive director with immediate effect.

 

  • Newly-listed pawnbroker Well Chip Group Bhd said it has appointed a third-party forensic consultant to investigate a cyber security incident affecting the company's IT servers.

 

  • Malaysia Aviation Group Bhd (MAG), the parent company of Malaysia Airlines Bhd, said delivery of its first of 20 Airbus A330 neo wide-body aircraft has been delayed for a second time due to findings identified by the European aircraft maker during the flight line stage.

 

  • Northeast Group Bhd ended its maiden trading day on the ACE Market at 50.5 sen on Tuesday, a 0.5 sen gain from its initial public offering (IPO) price of 50 sen per share.

Sentiment: Positive
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Market Mover
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