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Upbeat on China’s Outlook
Mon, 11-Nov-2024 08:13 am
by Research Team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. FBM KLCI tumbled 0.1% on Friday as investors continued profit-taking activities. The market broadly declined, with lower liners ending the day in the red. Most indices ended lower with the top decliner was Financial Services (-0.3%), while the top gainer was Plantation (+0.7%).

 

  • Global Markets Review. The US stock market extended its post-election rally on Friday, spurring US stocks to the strongest week in a year. Asian market performance was mixed. Japan’s Nikkei 225 rose 0.3% while Chinese stocks fell. Some markets tracked strength in Wall Street after the Fed cut interest rates as expected, while anticipation of more fiscal stimulus in China also buoyed local markets.

 

  • Market Outlook. The FBM KLCI is anticipated to continue its upward trajectory this week, bolstered by rate cuts, China’s ongoing commitment to supportive monetary policy to drive economic recovery, as well as the continual promising support from the recent Republican election victory. We expect the FBM KLCI to float above 1,600 psychological level overtime. Still, the weakness in trading liquidity may cap any potential gains over the lower liners. We continue to favour the Plantation sector that is riding onto the uninterrupted rally in CPO prices which steadied above RM5,000/MT. Meanwhile, the Technology sector may advance in tandem with the gains in Nasdaq on last Friday. 

     

FBM KLCI Technical Review & Outlook

  • Technical Commentary: The FBM KLCI formed another bearish candle as the key index edged marginally lower on last Friday. Indicators remained 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 

  • Maxis Bhd’s net profit grew by 28% for the three months ended Sept 30, 2024 (3QFY2024), helped by a larger subscriber base, coupled with a drop in staff costs after earlier lay-offs.

     

  • Home appliance distributor Milux Corp Bhd received an unconditional mandatory takeover offer from ABS Capital Sdn Bhd to acquire all the remaining shares it does not own, at 43.2 sen per share. 

     

  • Oil and gas services provider Steel Hawk Bhd has secured a subcontract from Petra Energy Bhd to provide offshore living quarters maintenance and repair services for EPOMS offshore facilities in Sarawak.

     

  • Construction and property development outfit Fajarbaru Builder Group Bhd has pulled out from participating in the affordable housing development in Putrajaya dubbed Residensi Cemara, which is estimated to have a gross development value of RM192 million.

     

  • JF Technology Bhd is acquiring stakes in Singapore-based companies for a combined value of about RM26 million, in a bid to expand its business and market reach globally. 

     

  • Sarawak Cable Bhd said trading in its shares will be suspended from Nov 18, ahead of the court hearing of an application to place the company under judicial management (JM). 

     

  • Renewable energy producer Cypark Resources Bhd announced its chief financial officer (CFO) Vinie Chong Pui Ling has resigned, just three months after her appointment on Aug 15. 

     

  • Carlsberg Brewery Malaysia Bhd said its net profit increased 19.8% in the third quarter from a year earlier, bolstered by better performance in Malaysia. 

     

  • 99 Speed Mart Retail Holdings Bhd’s net profit dipped 3.5% to RM107.16 million in the third quarter ended Sept 30, 2024 (3QFY2024) from RM111.06 million a year ago, dragged by higher administrative and other operating spending. 

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Sentiment:
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Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.

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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.421916 4.455577
EUR 4.714448 4.718540
CNY 0.612158 0.612615
HKD 0.568644 0.572470
SGD 3.305294 3.327759