Opening Daily Highlight
Local
Small cap to outperform
Mon, 15-Apr-2024 07:50 am
by Research Team • Apex Research

  • Malaysia Market Review. The FBM KLCI (-0.16%) closed lower, mirroring the negative regional trend on last Friday. Conversely, small-cap stocks saw gains, buoyed by inflows from smart money. Within sectors, the Property sector (+1.74%) emerged as the top performer, driven by increased buying interest in Johor and Penang’s developments.
    • Global Markets Review. Wall Street ended with sharp losses, after banking sector’s earnings failed to surprise the market. Meanwhile, the negative sentiment lingers on concerns over ongoing geopolitical tensions and inflation, which could prompt a more hawkish stance from the Fed. European markets closed flat despite hints from the ECB about potential rate cuts. Asia stock markets finished mostly finished in red, with Hong Kong leading the losses following disappointing March export data from China.
    • Market Outlook. We expect the KLCI index to trade in a negative tone today, mirroring the sharp losses seen in Wall Street and the decline of the local currency against the USD. However, we anticipate extended positive momentum in small-cap stocks following strong gains last Friday after the festive break week. Meanwhile, investors will be keeping a close tab onto the release of US retail sales data later tonight. In terms of sectors, we hold a bullish outlook on commodities-related stocks, particularly for gold, crude oil, and aluminium as commodity prices remain elevated. Meanwhile, the technology sector may stage a pullback in line with the weakness on Nasdaq last Friday.
    Sentiment: Negative
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    Market Mover
    Settlement Rates
    Currency Buy Rates (RM) Sell Rates (RM)
    USD 4.214533 4.248909
    EUR 4.942032 4.952931
    CNY 0.589638 0.591023
    HKD 0.536766 0.541180
    SGD 3.305086 3.332493