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Negative sentiment prevails
Fri, 01-Nov-2024 07:58 am
by Research Team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. On Wednesday, the FBM KLCI declined by -0.8%, reversing the previous day's gains and aligning with the broader regional market downturn. Lower-tier stocks also experienced further pullback, with the Construction sector being the sole gainer, rising by +0.5%. In contrast, the Technology and Plantation sectors led the losses, falling by -1.2% and -1.1%, respectively.

     

  • Global Markets Review. US stock markets sank yesterday, led by a -2.8% decline in the Nasdaq, after Meta and Microsoft as reported figures and guidance disappointed. This was compounded by a higher-than-expected PCE price index data. Similarly, European markets closed lower, marking the month’s largest losses as investors continued to digest recent earnings. Asian markets also ended mostly lower, mirroring global sentiment amid the local bourse closure.

     

  • Market Outlook. Market sentiment remains subdued as investors retreat from stock markets ahead of the US presidential election. The local bourse is likely to be influenced by negative spillovers from Wall Street's overnight performance. Caution is advised, as volatility may persist until the election results are announced. Meanwhile, the lower liners may remain lackluster as most of the investors are still on the sidelines due to the mid-week festive break. Additionally, the US unemployment rate, scheduled for release tonight, will be closely monitored for insights into economic conditions and potential Federal Reserve actions. We anticipate that the Technology sector may lead today's losses, following the Nasdaq's decline and concerns over rising AI development costs.

     

FBM KLCI Technical Review & Outlook

  • Technical Commentary: The FBM KLCI formed a bearish candle to reverse all its previous session gains as the key index lingered near the 1,600 psychological level. Indicators 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, followed by 1,580.

     

Company News (source: various)

  • Sunway Construction Group Bhd has been awarded additional tenant improvement works (TIWs) for its data centre construction project at the Sedenak Tech Park in Johor for RM347 million. 

     

  • YTL Power International Bhd is “seeking legal advice regarding potential steps” against unnamed parties that it said are spreading accusations of misconduct by the company in the 1Bestarinet project currently under investigation.

     

  • Deleum Bhd's 86.67%-owned indirect subsidiary Deleum Technology Solutions Sdn Bhd (DTS) has bagged two contracts for the provision of Pan Malaysia offshore maintenance, construction, modification (MCM) and hook-up commissioning (HUC) services. 

     

  • Haily Group Bhd has secured a contract worth RM65 million for the construction and completion of a housing project in Tebrau, Johor. 
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  • Utilities engineering services firm MN Holdings Bhd has secured a RM63 million contract from Tenaga Nasional Bhd to develop a battery energy storage system (BESS). 

     

  • Duopharma Biotech Bhd has secured five additional supply contracts from Pharmaniaga Bhd, totalling RM87.66 million, to provide 10 pharmaceutical and non-pharmaceutical products to government offices and facilities that Pharmaniaga operates.

     

  • FGV Holdings Bhd has appointed Fakhrunniam Othman as group chief executive officer of the plantation group effective Nov 1.
  • Datuk Shahriman Shamsuddin, managing director of property and aviation outfit Sapura Resources Bhd, has tendered his resignation with immediate effect.

     

  • Bursa Malaysia Bhd reported its highest quarterly net profit in three years, thanks to higher income across its business segments, including the securities and derivatives market.

     

  • British American Tobacco (Malaysia) Bhd posted a 14.1% rise in its net profit for the third quarter ended Sept 30, 2024 (3QFY2024), as its operating expenses were significantly reduced by 28.9% year-on-year (y-o-y)
Sentiment: Negative
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