Opening Daily Highlight
Local
Profit taking preludes
Thu, 23-May-2024 07:22 am
by Research Team • Apex Research

  • Malaysia Market Review. The FBM KLCI (-0.33%) halted a three-day winning run as profit taking took precedence in two third of the key index components ahead of the mid-week break. The lower liners also closed mostly downbeat, with the Technology (+0.55%) and REIT (+0.45%) sector outperformed the negative sectorial peers. 
  • Global Markets Review. US stock markets experienced a setback as the Dow slipped -0.51% after the US Federal Reserve signals no rush to cut interest rates in the latest FOMC minutes meeting. Similarly, European stock markets turned downbeat, while Asia stock markets ended mostly in red. 
  • Market Outlook. Expectedly, the local bourse’s rally took a pause with investors locking in recent gains ahead of the mid-week break. We expect a consolidation to take shape with the key index looking to defend the 1,600 level with foreign funds turning into net selling position. The lower liners are also bracing for an extended pullback as investors turn their attention towards the on-going batch of corporate earnings releases. Further weakness is expected to be reinforced by the hawkish US Federal Reserve stance in the latest FOMC minutes meeting. We expect gloves-related stocks to march higher in view of the improved financial performance delivered by Hartalega and Kossan. Meanwhile, the REIT sector that is defensive in nature may turn popular amid the potential renewed volatility.
Sentiment: Negative
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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.170987 4.204276
EUR 4.872100 4.877133
CNY 0.589575 0.590185
HKD 0.537072 0.540837
SGD 3.222926 3.245616