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Awaiting outcome of China’s NPC meeting
Fri, 08-Nov-2024 08:27 am
by Research Team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. FBM KLCI snapped 4 days of winning streak, having tumbled 0.7% on Thursday as investors took profit following recent gains. The market broadly declined, with lower liners also ending the day in the red. Except for Technology (+1.3%) sector, all other sectors closed lower. The Telecommunications and Media sector (-1.4%) and Consumer Products and Services sector (-1.4%) topped the laggard.

 

  • Global Markets Review. The US stock market extended its post-election rally on Thursday as traders weighted the latest 25bps rate cut by the Federal Reserve, which is in-line with market expectations. S&P 500 and Nasdaq powered to fresh records, while the Dow was little changed. Meanwhile, European market closed higher boosted by technology and resources shares, as investors digest Donald Trump’s presidential election victory and political upheaval in Germany. Asian markets mostly rose in a choppy trading yesterday. Japan’s Nikkei 225 dropped 0.3% while Chinese stocks rallied. China reported October exports data that sharply beat market expectations. Chinese state media also reported that the National People’s Congress (NPC) standing committee, the country’s parliament, had reviewed the plan to raise local government debt for another day, after initially discussing the plan on Monday.

 

  • Market Outlook. Market may extend its decline as investors reposition into Chinese stocks in anticipation of fresh stimulus from the NPC meeting to boost its economy. China concludes its 5-day NPC standing committee meeting today. Sector-wise, the Plantation sector may attract buying interest as crude palm oil (CPO) prices continue to surge. Meanwhile, the Technology sector may see some profit taking activity following two days of rally.

 

FBM KLCI Technical Review & Outlook

  • Technical Commentary: The FBM KLCI formed a bearish engulfing candle as the key index snapped a four-day winning run yesterday. Indicators turned negative as MACD Line hovered below the Signal Line, while the RSI slipped below 50. Immediate resistance is located at 1,645. Support is envisaged around 1,600.

 

Company News 

  • Ekovest Bhd’s largest shareholder Tan Sri Lim Kang Hoo is exploring selling his toll-road business Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd (Kesturi) for up to RM5 billion, Bloomberg reported citing people with knowledge of the matter.

     

  • Eco World Development Group Bhd, via its 81%-owned subsidiary Mutiara Balau Sdn Bhd, is buying 10 parcels of land measuring 847.25 acres in Semenyih, Selangor for RM742.41 million, cash.

     

  • Mah Sing Group Bhd has acquired a 5.24-acre freehold parcel in Old Klang Road for approximately RM113 million from Team Keris Bhd to develop a new transit-oriented development (TOD) named M Aurora.

     

  • Pentamaster Corp Bhd said its net profit fall 49.9% to RM11.77 million for the third quarter ended Sept 30, 2024 (3QFY2024), from RM23.49 million a year ago, dragged down by lower automated test equipment (ATE) sales performance and foreign exchange losses.

     

  • Sentral REIT, which mainly manages office towers, said its net property income rose 25% in the third quarter ended Sept 30, 2024 from a year earlier, boosted by revenue from a newly acquired property.

     

  • KKB Engineering Bhd has secured contracts worth a combined RM93 million from several companies with key projects in the industrial and infrastructure sectors.

     

  • Software company Microlink Solutions Bhd has secured a RM83.51 million contract from the Ministry of Home Affairs (KDN) to develop and supply an advanced passenger screening system for the Immigration Department.

     

  • FGV Holdings Bhd said its indirect subsidiary FGV Bulkers Sdn Bhd is being sued for allegedly breaching an agreement for the supply of palm kernel shells.

     

  • Southern Steel Bhd has settled its legal dispute over the construction of a hot-rolled coils plant with Italian plant builder Danieli & C Officine Meccaniche SpA, which started in August 2016.

     

Sentiment: Negative
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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.452920 4.487673
EUR 4.698373 4.707035
CNY 0.612094 0.612693
HKD 0.572113 0.576600
SGD 3.311112 3.337265