Market Review & Outlook
Malaysia Market Review. FBM KLCI reversed its earlier losses to close at its intraday high (+0.3%) on Tuesday, buoyed by expectations that Bank Negara Malaysia’s Monetary Policy Committee will maintain the Overnight Policy Rate (OPR) at its meeting later today. Similarly, lower liners ended the day higher. Sector-wise, the Healthcare sector (+0.7%) led the gains, while the Industrial Product and Services sector topped the laggard (-1.5%).
Global Markets Review. The US stock market broadly gained on Tuesday as investors awaited the results from the US presidential election. European market ended the day marginally higher, with the STOXX 600 index closed up by 0.1%. Meanwhile, Asian markets were mostly higher. The Shanghai Composite Index surged 2.3% while Hang Seng index soared 2.1% as China’s October Services PMI came in higher-than-expectations. Additionally, the ongoing China’s National People's Congress (NPC) meeting is expected to bring in major spending initiatives to boost the economy.
Market Outlook. Market may trade in range-bound manner as investors wait for the outcome of the US presidential election. Still, the recent pullback is an attractive entry point for bargain hunters with a long-term investment perspective. Besides the US presidential election, market will monitor closely the Federal Reserve’s interest rate decision on 7 Nov. The CME FedWatch tool currently shows around 94.1% probability of a 25bps cut in the upcoming meeting. Back home, we expect Bank Negara to keep OPR rate unchanged as local economic activities remain resilient. Meanwhile, the Healthcare sector may attract buying interest due to speculation of the return of Donald Trump as president. Trump has vowed to impose 60% duties on imports from China.
FBM KLCI Technical Review & Outlook
Technical Commentary: The FBM KLCI extended its recovery to march higher for the third straight session 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, followed by 1,580.
Company News
Fraser & Neave Holdings Bhd's net profit for the fourth quarter ended Sept 30, 2024 (4QFY2024) dropped 38.21% year-on-year to RM84.99 million from RM137.56 million, impacted by higher tax expenses and increased withholding taxes on dividends repatriated from its Thailand operations.
Logistics service firm Xin Hwa Holdings Bhd said its cargo transport unit’s licence to transport goods has been suspended by authorities, which it expects to adversely impact its operations.
IOI Corp Bhd has allocated part of its aged plantation landbank in Johor to build a solar power plant, in a move to venture into the renewable energy sector, according to its managing director and CEO Datuk Lee Yeow Chor.
T7 Global Bhd has secured a contract from ExxonMobil Exploration and Production Malaysia Inc for the provision of pan-Malaysia offshore maintenance, construction, modification (MCM) and hook-up commissioning (HUC) services.
TCS Group Holdings Bhd has secured a RM86.38 million contract from Sime Darby Property Bhd for the construction of 60 units of two-storey semi-detached factories at the Elmina Business Park in Sungai Buloh.
Construction firm Aneka Jaringan Holdings Bhd has secured a RM39 million contract to undertake earthwork, piling, pile caps and contiguous bored piling works in Jalan Pantai Sentral, Kuala Lumpur.
Electrical engineering services provider HE Group Bhd, which was listed on the ACE Market in January, said its major shareholders plan to dispose of 4.54% of their shares to comply with a Bumiputera equity condition set by the authorities.
Construction player Gagasan Nadi Cergas Bhd is buying two companies for RM185 million, cash, to gain control of Konsortium PAE Sepakat Sdn Bhd (KPSSB), which owns a facility management concession for student hostel facilities in seven polytechnic campuses.
Ann Joo Resources Bhd said its rights issue of 140.35 million shares with free detachable warrants has been oversubscribed by 31.4%.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.436869 | 4.470612 |
EUR | 4.675505 | 4.679374 |
CNY | 0.611103 | 0.611560 |
HKD | 0.570272 | 0.574102 |
SGD | 3.296965 | 3.319254 |