Market Reports

• Regional markets were mixed with US markets taking a breather following their record high closing on the back of rate cut expectations after dovish comments by the Feds. The DJI eased 0.75% or 205 points to 27,154.20.
• The FBM KLCI remain on profit taking mode easing 14.2 points for the week to 1,658.19. Foreign funds flow was slightly negative for the week with RM6.92m net outflow.
• Performance amongst the FBMKLCI components saw gainer 18 losers to 9 gainers. Top 3 performers include PMETAL (+2.08), DIALOG (+2.03%) and CIMB (+1.16%) while the 3 losers were PCHEM (-6.58%), SIMEPLT (-3.71%) and AIRPORT (-2.49%).

The news on international credit rating agency Fitch has affirmed Malaysia’s A-rating, with stable outlook shows our economic fundamentals remains intact and positive and the recent weakness in our local market in our view is a healthy pullback where KLCI has retraced from high of 1,694.55 to current level and we continue to advocate buy on weakness strategy as we expect a better 2H2019.   

• The Transport Ministry has approved Penang's Bayan Lepas Light Rail Transit (LRT) project. The Bayan Lepas LRT project, estimated to cost RM8.4bn and stretch some 29.9km from Komtar to Bayan Lepas, is part of the State Government's RM46bn Penang Transport Master Plan.
• The Master Plan features an undersea tunnel linking the island to the mainland, highways, LRT and monorail, and an extensive bus connectivity on both the island and mainland.
• Gamuda as one of the players for the project should see some buying interest today with the mega infra project finally taking off.

• I-Stone Group Bhd, a specialised automation machine manufacturer is seeking to list on the ACE Market today. It mainly involves in manufacturing automation business primarily offering design, manufacture and modification services of specialised automation machines.
• The group has over 100 active clients from various industries and among the top renowned clients are Dyson, V.S. Group and ATA Industrial. See our Investment Idea on ISTONE today.

• The impending results season in the US may be a crucial one as we understand investors would be highly susceptible by the earnings reported as Wall Street is currently trending at record highs.
• Therefore we may be entering into a rather volatile period for equities. With the US market now trading at an estimated PER of 17x which is a premium vis a vis its historical of 15x, any shortfall from the corporate results may posed as a reason to take profit by investors.
• Meanwhile, expectations of lower interest rates may curtail any excessive selling. Interesting times ahead for equities indeed.