Market Review & Outlook
Malaysia Market Review. FBM KLCI (-0.7%) gave up gains in the early session to close lower today, mirroring weak regional sentiment after negative cues from global equities overnight. The market broadly declined, with lower liners ending the day in the red. Most indices ended lower, with the top gainer being Energy (+0.7%), while the top decliner was Construction (-0.9%).
Global Markets Review. US indices performance was skewed towards the negative, with investors digesting producer inflation data which added to concerns that price increases might remain sticky. Asian stocks fell on Thursday, extending recent losses as signs of sticky U.S. inflation fueled uncertainty over future interest rate cuts, while investors held out for more stimulus measures in China. European stocks, on the other hand rose Thursday, with investors digesting a deluge of corporate earnings as well as regional growth and employment data. Japan’s Nikkei 225 fell -0.5%, while the SSE fell -.17%. The HSI and KOSPI moved in a negative direction.
Market Outlook. We believe the FBM KLCI is poised for a rebound. Expect the FBM KLCI to float above 1,600 psychological level over time. Ongoing concerns over China’s economic outlook may dampen risk appetite across the region in the near-term. Malaysia will be announcing its third-quarter GDP data and the US will release its retail sales report, both of which are expected to draw significant attention. 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 bearish candle after reversing all its intraday gains to close at three-months low. 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, followed by 1,570.
Company News
Engineering outfit Pestech International Bhd said Shandong Power Equipment Co Ltd (Speco) has initiated arbitration proceedings against its wholly owned PESTECH Sdn Bhd (PSB) over what Speco claimed were unpaid dues related to the supply of transformers.
Cash-rich Lysaght Galvanized Steel Bhd has declared a special dividend of 35 sen per share as its quarterly earnings rose to an eight-year high.
Property developer Seal Incorporated Bhd is seeking its shareholders' approval at an extraordinary general meeting to be convened to provide corporate guarantee to a RM293 million banking facility that its 20%-owned associate MSR Green Energy Sdn Bhd (MSRGE) is obtaining from a licensed financial institution based in Malaysia.
ACE Market-listed Farm Price Holdings Bhd, a Johor-based wholesaler and distributor of fresh vegetables, food and beverage (F&B) products, is expanding its distribution reach to Sabah.
Electrical and mechanical engineering firm LFE Corp Bhd has secured a subcontract worth RM18.95 million to undertake electrical system installation works from GDP Architects Sdn Bhd.
Prolintas Infra Business Trust, which owns highways, nearly tripled its net profit for the third quarter thanks to a jump in toll collection and tax credit.
Scomi Energy Services Bhd, a Practice Note 17 (PN17) company, said it is "in a preliminary discussion with a white knight to formulate a regularisation plan to be submitted before Jan 31, 2025". It did not elaborate.
Disclaimer
The report is for internal and private circulation only and shall not be reproduced either in part or otherwise without the prior written consent of Apex Securities Berhad. The opinions and information contained herein are based on available data believed to be reliable. It is not to be construed as an offer, invitation or solicitation to buy or sell the securities covered by this report.
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.
Apex Securities Berhad does not warrant the accuracy of anything stated herein in any manner whatsoever and no reliance upon such statement by anyone shall give rise to any claim whatsoever against Apex Securities Berhad. Apex Securities Berhad may from time to time have an interest in the company mentioned by this report. This report may not be reproduced, copied or circulated without the prior written approval of Apex Securities Berhad.
Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.471088 | 4.501214 |
EUR | 4.716896 | 4.721211 |
CNY | 0.617809 | 0.618311 |
HKD | 0.574231 | 0.578627 |
SGD | 3.318606 | 3.341159 |