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All eyes on Budget 2025
Fri, 18-Oct-2024 07:25 am
by Research Team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. The FBM KLCI closed higher (+0.6%) on Thursday, bucking the downtrend seen in regional stock markets ahead of the Budget 2025 announcement today. Sector-wise, the REIT sector (+0.1%) attracted the highest buying interest, while the Telecommunications & Media sector (-0.6%) topped the laggards.

 

  • Global Markets Review. The US stock markets saw mixed performance, with indices closing near initial positions. Strength among semiconductor stocks supported the markets for much of the session before a late-day pullback. In Europe, the stock market was largely positive. The Asian markets were largely negative, as a housing policy briefing in China underwhelmed investors and property stocks slumped. Japan’s Nikkei 225 fell -0.7%, while South Korea’s Kospi Kospi fell -0.04%. The SSE fell by -1.1% while the HSI dipped -1.0%.

 

  • Market Outlook. We expect further stock market gains upon tabling of the Budget 2025 announcement scheduled today. We favour the consumer, construction, property and renewable energy sectors ahead of the tabling of Budget 2025. The lower liners are also making some strides as bargain hunting activities emerged, while the renewed buying interest from foreign funds also may continue to support the improved sentiment. Externally, solid macroeconomic indicators (namely, a better-than-expected September retail sales report) released by the US government implies lower possibility of rate cuts, which should bode well for the market as a whole. Still, key focus remains within the on-going flurry of corporate earnings releases as well as on-going developments surrounding the US Presidential election.

     

FBM KLCI Technical Review & Outlook

  • Technical Commentary: The FBM KLCI formed a bullish harami candle to recover most of its previous session losses 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)

  • Genting Malaysia Bhd said the lawsuit filed by RAV Bahamas Ltd, seeking over US$600 million (RM2.57 billion) in damages related to Resorts World Bimini's operations, will not materially impact the group's financial results or operations.

 

  • Varia Bhd has secured a contract worth RM571.8 million from the Social Security Organisation (Socso) to build a rehabilitation centre in Setiu, Terengganu.

 

  • Electrical Salcon Bhd’s wholly-owned subsidiary, Salcon Engineering Bhd, has won an external water reticulation work package for RM18.5 million.

 

  • SC Estate Builder Bhd and consortium partner JK Spark Sdn Bhd plan to bid for Sabah’s large-scale solar power plant projects, initiated by the Energy Commission of Sabah (ECoS).

 

  • AME Real Estate Investment Trust's proposed acquisition of four single-storey detached factories in Johor for RM119.45 million has been deemed fair and reasonable, according to independent adviser MainStreet Adviser Sdn Bhd.

 

  • 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.

 

  • Ancom Nylex Bhd reported a 36.5% decline in its net profit for 1QFY2025, as its agricultural chemicals business was affected by higher freight costs arising from geopolitical conflicts.

 

  • Malaysia Airports Holdings Bhd reported passenger growth of 36.1 million for the third quarter of 2024, representing a 10% y-o-y increase and coming close to pre-pandemic levels.

 

  • Medical equipment and furniture manufacturer LKL International Bhd has announced a proposed JV with PT Fasilitas Teknologi Nusantara (Fastech) to expand into the Indonesian healthcare market.

 

  • Mechanical and electrical engineering services provider Bintai Kinden Corp Bhd has joined forces with a China-based company to bid for construction projects in Malaysia.

Sentiment: Positive
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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.293336 4.333362
EUR 4.677568 4.688781
CNY 0.603165 0.604645
HKD 0.552517 0.557193
SGD 3.268549 3.296239