Opening Daily Highlight
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All eyes on the Fed
Thu, 07-Nov-2024 07:26 am
by Research Team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. FBM KLCI gained 0.8% yesterday, buoyed by increased risk appetite following Bank Negara Malaysia’s decision to maintain the Overnight Policy Rate (OPR) unchanged at 3%, and Donald Trump’s claimed victory in the US presidential election, which strengthened the US dollar. Similarly, lower liners ended the day higher. Sector-wise, the Technology (+6.2%), Construction (+2.7%) and Healthcare sector (+2.2%) led the gains, while the Energy sector topped the laggard (-0.1%).

 

  • Global Markets Review. The US stock market rallied sharply on Wednesday, with all three indices closed at record highs as Donald Trump, whom is touted as pro-domestic business friendly won the 2024 presidential election. Meanwhile, European market generally closed lower, dragged by utilities shares on fears that Trump could halt fresh approvals for offshore wind projects. Asian markets were mixed, with Japan’s Nikkei 225 up 2.6%. Chinese stocks tumbled on fears of US tariffs affecting the economy. 

 

  • Market Outlook. Market may continue its rally, reflecting optimism in Wall Street overnight. Following the conclusion of the US election, all eyes are now turned towards the Federal Reserve’s interest rate decision on 7 Nov. The CME FedWatch tool currently shows around 97.5% probability of a 25bps cut. Meanwhile, the Technology sector may continue attracting buying interest as US dollar continues to strengthen against Ringgit. The dollar index has just climbed to its highest level since July, buoyed by expectations of tariffs that could contribute to a renewed rise in US inflation and lead to less rate cuts moving forward.

 

FBM KLCI Technical Review & Outlook

  • Technical Commentary: The FBM KLCI formed another bullish candle to extend its recovery momentum as the key index climbed above the middle Bollinger Band. Indicators turned mixed as MACD Line hovered below the Signal Line, while the RSI rose above 50. Immediate resistance is located at 1,645. Support is envisaged around 1,600.

 

Company News 

  • 3REN Bhd climbed 11.5 sen on its ACE Market debut on Wednesday to close at 39.5 sen, up 41.07% from its initial public offering price (IPO) of 28 sen.

     

  • The Federal Court has dismissed a businesswoman's appeal against a Court of Appeal decision that overturned a High Court ruling awarding her RM200,000 in damages from CTOS Data Systems Sdn Bhd (CDS), a subsidiary of CTOS Digital Bhd.

     

  • Pharmaniaga Bhd has revised its regularisation plan to address its Practice Note 17 (PN17) status, by adjusting its capital reduction and excluding warrants from its rights issue.

     

  • The net profit of biscuit maker Hup Seng Industries Bhd rose 32.65% y-o-y in the third quarter ended Sept 30, 2024 (3QFY2024) to RM17.27 million — its highest quarterly net profit since the company was listed in 2000 — from RM13.02 million a year ago, boosted by higher sales from increased production capacity following the commercial run of a new oven.

     

  • Lotte Chemical Titan Holding Bhd reported larger third quarter losses, dragged by inventory write-downs, higher losses from its 40%-owned associate Lotte Chemical USA Corp due to a maintenance shutdown, and increased foreign exchange losses.

     

  • Security-based ICT provider Datasonic Group Bhd has proposed to undertake bonus issues of up to 1.55 billion warrants on the basis of one warrant for every two shares held by shareholders.

     

  • Haily Group Bhd has secured a contract worth RM89.9 million from Mah Sing Group Bhd to build terrace homes for a housing project in Taman Tiara Indah, Johor Bharu, Johor, which pushes the value of its outstanding orders past RM1 billion.

     

  • AMMB Holdings Bhd's wholly-owned subsidiaries, AmBank (M) Bhd and AmBank Islamic Bhd, have set up debt programmes to raise up to RM7 billion to finance their working capital, among others.

     

  • Direct selling company DXN Holdings Bhd, which sells health and wellness products, said on Wednesday it plans to charter a Gulfstream G550 corporate jet from its major shareholder that will cost up to US$6.60 million (RM29.06 million) a year to expand its global business.

     

  • JAKS Resources Bhd has agreed to pay RM5 million, cash, within 12 months to Star Media Group Bhd to settle their legal dispute over the development of a parcel of land in Section 13, Petaling Jaya.

Sentiment: Positive
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Market Mover
Settlement Rates
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