Opening Daily Highlight
Mixed
Growing cautious undertone
Mon, 18-Nov-2024 06:44 am
by Research Team • Apex Research

Market Review & Outlook 

  • Malaysia Market Review. FBM KLCI (-0.5%) extended its decline as profit taking activities persisted, with half of the key index constituents retreated. The lower liners ended mixed, with the consumer sector (-1.4%) emerging as the biggest laggard among its sectoral peers.

 

  • Global Markets Review. Wall Street slumped overnight as investors react negatively on Powell’s hawkish remarks on interest rate, while also bracing for potential post-election volatility. Similarly, the European market fell while the Asean stock market closed mixed as investor digest the recent release of China’s mixed economic data and Japan's stronger-than-expected 3Q24 GDP growth.

 

  • Market Outlook. The absence of fresh leads on the global front is expected to keep the local bourse within the downward bias consolidation band over the near term. Although Malaysia 3Q24 GDP came within market expectations, we opined investors will stay on the sideline as trade tensions with China might resurface following Trump’s re-election. While Trump slapped tariffs on USD380bn of US imports during his first trade war with China, his proposals this time around would cover goods worth 10x that amount. These include a blanket tariff of 10% to 20% on all imports, along with an additional 60% or more on goods from China. Back home, investors will be focusing on the ongoing quarterly results season. Sector wise, we reckon the REIT sector will maintain upbeat momentum, given its defensive nature and potential to gain from future interest rate cut. We also expect some weakness in oil & gas stocks following the retracement in crude oil prices on last Friday.

 

FBM KLCI Technical Review & Outlook

  • Technical Commentary: The FBM KLCI formed another bearish candle to slip below the 1,600 psychological level as well as below SMA200. Indicators remained negative as MACD Line hovered below the Signal Line, while the RSI lingered below 50. Immediate resistance is located at 1,625. Support is envisaged around 1,570.

 

Company News 

  • A consortium led by Khazanah Nasional Bhd and the Employees Provident Fund on Friday made a formal takeover offer for Malaysia Airports Holdings Bhd at RM11 per share, after securing relevant regulatory approvals. 

 

  • Kossan Rubber Industries Bhd reported a 28.15% year-on-year drop in its net profit to RM29.44 million in its third quarter ended Sept 30, 2024 (3QFY2024), from RM40.97 million, dragged by higher raw material costs and unrealised foreign exchange (forex) losses.

 

  • Malaysia Smelting Corporation Bhd has boosted its dividend payout to 24 sen per share for the financial year ending Dec 31, 2024 (FY2024), comprising a special dividend of 17 sen and an interim dividend of seven sen.

 

  • Contract manufacturer Ge-Shen Corp Bhd said it remains confident of sustaining growth and profitability after its third quarter net profit rose 46% to RM3.13 million from RM2.14 million a year earlier, driven by contributions from both existing manufacturing plants as well as from a newly acquired subsidiary in Kedah.

 

  • Prolintas Infra Business Trust said it will not face any financial losses after its subsidiary, Prolintas Expressway Sdn Bhd (GCE Co), was ordered by an arbitrator to pay RM46.13 million to Bina Puri Holdings Bhd’s associate company KL-Kuala Selangor Expressway Bhd (Latar).

 

  • Vegetable supplier Farm Price Holdings Bhd has scrapped its recently announced plan for a one-for-two bonus issue of warrants, saying it will revisit the plan next year instead, but did not elaborate.

 

  • Citaglobal Bhd has signed an agreement to build a 5.4-megawatt solar plant integrated with a battery energy storage system in Azerbaijan. The facility will supply power to the Port of Bak.

 

  • Petra Energy Bhd has secured a four-year contract from Sarawak Shell Bhd and Sabah Shell Petroleum Company Ltd for the provision of offshore crane operations and maintenance services.

 

  • Sunsuria Bhd is acquiring a 20% stake in property developer KL City Gateway Sdn Bhd (KLCG) for RM10.47 million and subsequently inject about RM40 million in shareholder advances to the company to develop a 9.66-acre site in Kampung Sungai Baru in Kampung Baru, Kuala Lumpur.

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Market Mover
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