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Weakness from Wall Street may spillover
Thu, 24-Oct-2024 07:21 am
by Research Team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. The FBM KLCI (-0.1%) ended with little change amid cautious trading in the broader market. The lower liners were mixed, while the Telecom sector (+0.4%) outperformed the mostly positive sectorial peers.

 

  • Global Markets Review. US stock markets ended with sharp losses as uncertainty surrounding the US presidential election has dampened investors risk appetite, while the Fed Beige Book highlights economic activity was mostly flattish. The European retreated with most sectors in the red, reflecting cautious sentiment on the recent upswing in US treasury yield, while Asia stock markets ended mostly positive.

 

  • Market Outlook. We anticipate the FBM KLCI index to maintain a negative trajectory today as sentiment is expected to drag by heightened geopolitical tensions and surging Treasury yields in the US, prompting a risk-off sentiment. We advise investors to consider accumulating fundamentally sound stocks during this period of weakness. Meanwhile, we also gather that foreign funds have turned net selling position for the first time in seven trading session. Over the interim, key focus lies onto the release of Malaysia inflation rate which will be release today. With the on-going volatility, we advocate investor to be defensive, focusing on gold-related stock and utilities sector. Meanwhile, the technology sector may stage a pullback in line with the weakness on Nasdaq overnight.

 

FBM KLCI Technical Review & Outlook

  • Technical Commentary: The FBM KLCI formed another bearish candle to erase all its intraday gains as the key index continues to trade in a tight range. Indicators remained mixed as MACD Line hovered above the Signal Line, while the RSI treaded below 50. Immediate resistance is located at 1,675. Support is envisaged around 1,600.

     

Company News

  • Capital A Bhd has terminated an agreement with Aetherium Acquisition Corp meant to pave the way for it to inject its AirAsia brand management business into the Nasdaq-listed special purpose acquisition company (SPAC) for US$1.15 billion (RM5 billion).

 

  • ABM Fujiya Bhd said Chinese battery maker Jujiang Power Technology Co Ltd will subscribe for a 40% stake worth RM48 million in one of its wholly-owned unit.

 

  • Protasco Bhd said its affordable housing project awarded by Perbadanan Putrajaya in 2022 to its wholly-owned subsidiary Protasco Development Sdn Bhd has been revised with a new name and with a lower number of units.

 

  • Construction and engineering company LFE Corp Bhd has secured a related-party construction contract worth RM81.71 million.

 

  • TAS Offshore Bhd has secured shipbuilding contracts for eight units of tugboats worth about RM49.1 million.

 

  • Kerjaya Prospek Group Bhd, via its wholly-owned subsidiary Kerjaya Prospek (M) Sdn Bhd, has secured two new contracts from Pixel Valley Sdn Bhd and Greencove Sdn Bhd totalling RM34.4 million.

 

  • Leong Hup International Bhd has appointed Chong Choon Yeng as its new chief financial officer (CFO), effective Jan 1, 2025. Chong, 53, last Friday (Oct 18) left the same position at Tan Chong Motor Holdings Bhd after four years at the Nissan vehicle franchise holder company.

 

  • MNRB Holdings Bhd's second quarter net profit more than doubled to RM92.74 million, from RM41.57 million a year earlier, on the back of an RM85 million jump in the group's insurance service earnings amid improved claims.

 

  • Steel pipes, valves and fittings solutions provider Pantech Group Holdings Bhd said its second quarter net profit fell 27% to RM20.74 million from RM28.42 million a year earlier, hurt by lower sales delivery to local oil and gas (O&G) projects at its trading division and foreign exchange losses.

Sentiment: Neutral
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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.336150 4.370372
EUR 4.691289 4.695890
CNY 0.609228 0.609838
HKD 0.558267 0.562168
SGD 3.284778 3.307913