Daily Market Reports Issued By Rakuten Trade Research : Page 236

Corporate Malaysia so far have had reported a decent set of earnings for the 1Q2019. We noticed that earnings from the banking sector have been within expectations thus far.
If any, figures from the oil & gas sector were a tad disappointing. As for the others, it is so far so good. As a result, we may not see any major downgrade to our earnings growth forecast which is pegged at 2% for 2019.

Download

Teo Seng, one of the largest vertically integrated chicken egg players in Malaysia has recently kicked off FY19 on higher note boosted by its poultry farming business. It has a daily egg production of four million and with 40% exports to Singapore and Hong Kong and has a market share of 8% and 19% in Malaysia and Singapore respectively.
We continue to like Teo Seng due to its intact fundamentals while chart-wise also signalling buying opportunity to accumulate the stock. Refer to our Technical View on Teo Seng Capital Bhd today.

Download

Major markets closed mostly mixed last week amid the trade tension between US and China. The DJI eased marginally by 94.2 points or 0.37% lower to 25,585.69. The DJI slid for the fifth straight week, its longest streak since 2011.
The local bourse also ended lower with the FBM KLCI losing 5.4 points or 0.34% to close the week at 1,598.32. Weekly foreign funds outflow continues totalling RM383m pushing YTD net outflow to over RM4.8bn.
Performance amongst the FBMKLCI components saw 16 losers to 11 gainers. Top 3 performers include SIME (+1.38%), AXIATA (+1.37%) and IOI Corp (+0.95%) while the top 3 losers were RHB (-3.91%), SIMEPLT (-3.21%) and GENTING (-1.57%).

Download

Being the worst performer within the region the FBM KLCI (-5.25% year to date) is fairly well supported at the 1,600 mark amid the prevailing market volatility. With the MYR now at RM4.20/USD, the local bourse presents an alluring value proposition especially for foreign investors.
We continue to advocate market participants to look at index linked stocks as these would be the first to rebound once the market sees a reversal in fortune. We estimate that the FBM KLCI is currently trading at a PER of 15x which is below its average of 16.5x hence the window of opportunity for stock accumulation.

Download

The on-going trade tension between US and China continues and now seems like “technology war” as can be seen with the announcement last week the US president signed an order that could restrict Chinese telecommunications companies from selling their equipment in the United States.
This will have an impact on the sentiment on tech related stocks in Bursa Malaysia. Hence it presents buying opportunity amidst the share price weakness which is more palatable now.

Download

Market Reports