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Market sentiment still wobbly
Thu, 17-Oct-2024 07:37 am
by Research Team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. The FBM KLCI closed  lower (-0.6%) on Wednesday, in sync with most regional markets following a negative cue from global equities overnight with strong selling in technology stocks, as well as gloomy results from European heavyweights. Sector-wise, the  Consumer Products & Services sector (+0.6%) attracted the highest buying interest, while the  Industrial Products & Services sector (-0.9%) topped the laggards.

 

  • Global Markets Review. The US stock markets saw all three major indices close higher (making up for losses yesterday) in opposition to global counterparts, as focus returned towards the corporate earnings releases. In Europe, the stock market was largely mixed. The Asian markets were largely negative, following poor investor sentiment over a weak earnings season. Japan’s Nikkei 225 fell -1.8%, while South Korea’s Kospi fell -0.9%. The SSE rose by +0.1% while the HSI fell by -0.2%.

 

  • Market Outlook. Yesterday’s selloff creates an attractive entry point for bargain hunters, especially in anticipation of the upcoming Budget 2025 announcement scheduled for this Friday. With volatility taking a backseat, we anticipate a recovery may take shape today. Meanwhile, Anwar’s comment on GST only being reinstated upon minimum wage being set to RM3,000 and the Sabah government’s approval of a pay hike for the state’s civil servants should provide more confidence for investors. Investors should still be wary of US earnings performance this week, with the release of key economic data and further corporate earnings ahead. Key focus lies onto US retail sales, industrial production and manufacturing production data today. We favour the consumer, construction and property sectors ahead of the tabling of budget 2025.

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FBM KLCI Technical Review & Outlook

  • Technical Commentary: The FBM KLCI formed a bearish candle to wipe off its previous two session gains and rejected the SMA50 level as the key index remain within the consolidation band. 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)

  • Retail technology solution provider Radiant Globaltech Bhd has bagged a RM25 million contract from a utility company for the implementation of a hardware technical refresh project.

 

  • Econpile Holdings Bhd said it has been awarded a RM35.11 million contract to undertake bored piling, earthworks, and retaining wall and sub-structure works for an apartment project in Kuala Lumpur.

 

  • Electrical and mechanical engineering firm LFE Corp Bhd has secured a subcontract worth RM38.8 million at the hyperscale data centre being developed in Elmina Business Park in Sungai Buloh.

 

  • Kawan Food Bhd announced on Wednesday the redesignation of its independent non-executive director Lim Hun Soon @ David Lim, as its non-independent and non-executive chairman, effective immediately.

 

  • Construction outfit Fajarbaru Builder Group Bhd, which in April clinched a deal to build apartments under the first phase of WCT Holdings Bhd's  AdisonWest development in Johor Bahru, has now been awarded the contract for the second phase.

 

  • Malaysia Airports Holdings Bhd (MAHB) has appointed a team to oversee the Penang International Airport (PIA) expansion project, which comprises three major packages and is scheduled for completion by 2028.

 

  • Crescendo Corporation Bhd said on Wednesday that it is buying SGR Land Development Sdn Bhd and taking on its six land purchase obligations in Johor for RM168.85 million.

 

  • AirAsia X Bhd’s shareholders and proxies have voted 99.08% in favour of the proposed RM6.8 billion acquisition of AirAsia’s aviation business — AirAsia Bhd and AirAsia Aviation Group Ltd — from its sister company Capital A Bhd.

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Sentiment: Negative
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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.280860 4.314706
EUR 4.679774 4.684414
CNY 0.602954 0.603576
HKD 0.551122 0.555000
SGD 3.270876 3.293860