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US inflation in focus
Wed, 13-Nov-2024 07:00 am
by Research Team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. FBM KLCI (-0.1%) took another step back on Tuesday, which is in line with regional market profit-taking activities. The market broadly declined, with lower liners ending the day in the red. Most indices ended lower, with the top decliner being Industrial Products & Services (-1.5%), while the top gainer was Construction (+0.02%).

     

  • Global Markets Review. In line with global performance, the US stock market declined, breaking the post-election rally as the ten-year treasury yields soared. Asian market performance was broadly negative, dragged by Chinese markets and chip shares as investors worried about Trump’s policies. European stocks moved in a similar direction on fear of possible tariffs from the new administration. Japan’s Nikkei 225 fell -0.1%, while the SSE fell -1.4%. The HSI and KOSPI also moved in a negative direction. 

     

  • Market Outlook. Despite the disappointing regional performance, we believe the FBM KLCI is poised for a rebound, as bargain hunting activities may emerge bolstered by rate cuts by the US Fed and Bank of England and the continual promising support from the recent Republican election victory. We expect the FBM KLCI to float above 1,600 psychological level over time. For today, investors will be focusing onto the release of US inflation data which will provide a clearer picture over the future interest rate direction. Profit taking activities in plantation sector may kick in following the pullback in CPO prices. Meanwhile, we favour the export-related sectors such as gloves, furniture and technology, riding onto the strength of the Greenback.

 

FBM KLCI Technical Review & Outlook

  • Technical Commentary: The FBM KLCI formed a doji candle as the key index reversed all its intraday gains to close marginally lower yesterday. Indicators remained negative as MACD Line hovered below the Signal Line, while the RSI lingered below 50. Immediate resistance is located at 1,645. Support is envisaged around 1,600.

 

Company News 

  • Malayan Banking Bhd is considering options including buying out Ageas SA’s minority stake in Etiqa, as Malaysia’s biggest lender seeks to boost the value of the Southeast Asian insurer, according to people with knowledge of the matter.

     

  • Hartalega Holdings Bhd saw its net profit fall 69% in the second quarter as export revenue declined with the rising ringgit while raw material costs surged.

     

  • Heineken Malaysia Bhd net profit jumped 28.6% to RM112.29 million in the third quarter ended Sept 30, 2024 (3QFY2024), from RM87.33 million a year earlier, lifted by higher revenue and effective cost management. 

     

  • Construction and engineering firm Kelington Group Bhd has reported a 3.94% increase in its third quarter net profit to RM32.92 million from RM31.67 million a year earlier, thanks to higher gross profit margin driven by a "strategic focus on revenue composition", favourable project mix and higher contributions from the industrial gases division.

     

  • Logistics and warehousing services provider Tiong Nam Logistics Holdings Bhd has declared a share dividend to reward its shareholders, on the basis of one treasury share for every 40 existing shares held. a lacklustre debut on Bursa Malaysia on Monday, becoming the fourth company so far this year to close below the initial public offering (IPO) price on the first trading day.

     

  • Paragon Globe Bhd has secured the rights to develop 67.42 acres of land in Iskandar Puteri, Johor, for a residential project with an estimated gross development value of RM733.12 million.

     

  • Atlan Holdings Bhd's 75.53%-owned unit Duty Free International Ltd (DFIL), which is listed on the Singapore Exchange, said it is not satisfied with the RM69.9 million compensation for two pieces of land in Bukit Kayu Hitam, Kedah, that Malaysia's Ministry of Home Affairs (KDN) has compulsorily acquired for a road construction project.

     

  • Sapura Energy Bhd has accepted the terms and conditions set forth by its multi-currency financing creditors for the proposed disposal of its 50% stake in SapuraOMV Upstream Sdn Bhd to TotalEnergies Holdings SAS for US$705.3 million (RM3.37 billion).

Sentiment: Negative
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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 4.455268 4.488135
EUR 4.716585 4.723137
CNY 0.616518 0.616862
HKD 0.572409 0.576643
SGD 3.318330 3.343262