Opening Daily Highlight
Mixed
Subdued sentiment prevails despite key index rebounded
Wed, 30-Oct-2024 07:16 am
by Research Team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. The FBM KLCI rebounded by 0.3%, breaking a six-session losing streak as bargain hunting emerged. Lower liners, however, ended mixed, with losers outnumbering gainers. The Technology sector (+0.6%) led the gains, boosted by the US government finalising restrictions on semiconductor and AI investments in China. Meanwhile, the Property sector (-0.7%) was the day's top loser.

  • Global Markets Review. US stock markets closed mostly higher, with the Nasdaq reaching a record high and the S&P rising on the back of upbeat earnings from Alphabet. In contrast, European markets ended lower as investors continued to digest recent corporate earnings and await upcoming reports. Asian markets were mixed despite Wall Street’s positive close, with Japan’s Nikkei extending its gains following the post-election boost.

  • Market Outlook. Local sentiment remains subdued despite a rebound in the key index, as losers continued to outnumber gainers on the local bourse. We anticipate the market will stay muted due to global volatility, with the upcoming local earnings season, US employment data, and next week's US presidential election in focus. Also, the recent net selling from foreign funds continues to cap gains over the interim. The Technology sector is expected to outperform today, supported by positive tech earnings reports and a spillover effect from the Nasdaq's gains. Conversely, we advise investors to avoid the Energy sector due to ongoing pressure from declining oil prices.

 

FBM KLCI Technical Review & Outlook

  • Technical Commentary: The FBM KLCI staged a mild recovery as the key index formed a bullish candle to snap a six-day losing streak yesterday. Indicators, however, remained negative as MACD Line hovered below the Signal Line, while the RSI treaded below 50. Immediate resistance is located at 1,645. Support is envisaged around 1,600.

 

Company News (source: various)

  • Symphony Life Bhd’s former chief financial officer Ng Ying Yiing and former group adviser Datuk David Goh were charged at the Sessions Court in Shah Alam for using RM2.57 million in company funds to purchase shares in Cycle and Carriage Bintang Bhd (CCB), without board approval. 

  • Frontken Corp Bhd net profit surged 32% in its latest quarter ended September, as strong demand for its products drove revenue and utilisation higher at its Taiwan facility.

  • Unisem (M) Bhd’s net profit grew 48% year-on-year (y-o-y) and 60% quarter-on-quarter (q-o-q) in the quarter ended Sept 30, 2024 (3QFY2024), which it attributed to higher sales volume and foreign exchange gains.

  • General insurer LPI Capital Bhd’s net profit rose 27% in the third quarter ended Sept 30, 2024 (3QFY2024) from a year earlier, thanks to higher investment returns and lower reinsurance expenses.

  • Infoline Tec Group Bhd reported a 54.6% increase in net profit for the third quarter, driven by strong contributions from its managed IT services segment and the successful delivery of key IT infrastructure and cybersecurity projects. 

  • Integrated logistics solutions provider Tasco Bhd flagged a challenging operating environment ahead after its net profit fell 48.7% to RM8.13 million for its second financial quarter ended Sept 30, 2024

  • Telekom Malaysia Bhd has appointed Ahmad Fairus Rahim as its new group chief financial officer, effective Nov 1. 

  • Kumpulan Kitacon Bhd via its wholly-owned Kitacon Sdn Bhd, has secured a contract worth RM131.9 million to build terraced houses in Bandar Puncak Alam, Ijok, Selangor, for Tropicana Alam Sdn Bhd, a unit of Tropicana Corp Bhd.

  • Chin Teck Plantations Bhd on Tuesday said its fourth quarter net profit surged 64.32% from the year before, thanks to higher sales volume and average selling prices (ASP) of fresh fruit bunches (FFB), crude palm oil (CPO) and palm kernel.

  • Technology company Techna-X Bhd said it is unable to release its annual report for the financial period ended June 30, 2024 to Bursa Securities and shareholders by Thursday (Oct 31).
Sentiment: Negative
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