Daily Market Reports Issued By Rakuten Trade Research : Page 231

Regional markets were mostly in negative territory except for the Philippines stock market last week. The Dow Jones Industrial Average continued its positive trend rising 0.77% or 204.7 points to 26,922.1 for the week.
Meanwhile, the FBM KLCI retraced 0.06% to close the week at 1,682.53. Foreign funds flow continued to be net positive for the week with RM230.2m inflow.
Performance amongst the FBMKLCI components saw gainer 16 gainers to 11 losers. Top 3 performers include DIALOG (+2.45), SIME (+2.19%) and MAXIS (+2.15%) while the 3 losers were TOP GLOVE (-2.62%), TNB (-2.58%) and PMETAL -2.04%).

Download

The Construction sector did not disappoint since our recommendation in February. The FBM Construction Index gained almost 26% since then and we expect there to be more upside despite the cautious stance from some of our peers.
Nonetheless, the index remains 25% below its peak prior to GE14. Our positive stance on the sector stems on the fact that the sector thrives on positive news flow and believe there to be more in the pipeline.
We remain buyers on Gamuda, IJM, Econpile and laggards like TRC, Gabungan AQRS, Vizione, George Kent and Crest Builder could potentially offer substantial upside.

Download

We expect buying interests on equities to prevail in view of yesterday’s record close on Wall Street coupled with the decline in the US 10-year yield to a 2 year low at 1.95%.
Consensus remain adamant that the Feds will cut rates in due course and expect the 10-year treasury rate to continue hovering at below the 2.0% level.
Meanwhile, we expect the MYR to strengthen vis-à-vis the USD and may hit our 2019 target of RM4.10 rather soon.

Download

Our Malaysian equity markets have seen some green shoots as KLCI has been steadily recovering to close at 1,691.00 and is likely to cross 1,700 points as we have seen five straight days of net foreign fund inflow amounting to RM468.8m into our markets recently.
We believe Maybank, which has been the laggard in the KLCI resurgence, should play catch up amongst the rise among the KLCI linked stocks. Currently trading at RM8.98 per share, Maybank is offering an attractive dividend yield of 6.35%.

Download

Just as we though the trade was between the US and China is off the boil, in come another kick in the mouth as the US are now targeting the EU (European Union) with additional tariffs.
Though the amount may not be huge of US$4bn nonetheless, such move may create a certain degree of volatility to the financial markets. Domestically, sentiments are improving with more foreign fund inflows amounting RM114.4m yesterday.
Recall, that we mentioned of net foreign inflows by the 3Q this year and hope that this will be sustainable.

Download

Market Reports