Daily Market Reports Issued By Rakuten Trade Research : Page 228

It need not require a genius to see that equity markets are set to see some selling today following our favourite president Trump imposing additional tariffs on Chinese goods.
Whilst the move will see higher prices for US consumers, overall impact on global economy is expected to see a setback. Although the local bourse is anticipated to see support at 1,630 level, we continue to advocate investors to BUY on dips especially for index linked stocks.
On our radar would be banking stocks which were sold down over the last few days in particular Maybank, Public Bank, CIMB and RHB Bank.

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Though the quantum of revision is very much expected, the less than dovish comments from the Feds following a 25bps rate cut may not be too positive for the equity markets.
Nonetheless, the markets have already imputed such impact thus may consolidate further in the absence of any fresh catalysts.
Yesterday the local bourse saw a net foreign outflow of RM339m.

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We believe the equity markets are in for a choppy ride today following the trade talk impasse between the US and China. The situation could be exacerbated by the earnings shortfall in the US which so far had been below expectations.
Though we expect the FBMKLCI to be flattish today, regional markets are seen to experience some profit taking today. Expect the FBMKLCI to retest the 1,640 level again with immediate resistance at the 1,650 level.

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Equity markets are set to remain rather volatile in view of the ongoing corporates earnings in the US which has been less than impressive so far. In addition, fresh protests in Hong Kong could further exacerbate the already fragile buying sentiments.
Therefore, we reckon the FBM KLCI to remain stuck within a range of 1,640-1,660 over the immediate term.

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Regional markets were mixed last week with the Shanghai Composite Index rose 1.99% and the Dow inched up 0.08% to 27,192.45 points. The FBM KLCI remains on profit taking mode easing 7.4 points for the week to 1,647.96.
Foreign funds flow was negative for the week with RM53.4m net outflow. Performance amongst the FBMKLCI components saw 24 losers to 5 gainers.
Top 3 performers include GENM (+16.07%), GENTING (+7.13%) and PMETAL (+3.11%) while the 3 losers were PETGAS (-4.02%), SIME (-2.23%) and AMMB (-2.08%).

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