Daily Market Report (13 May 2019)
  • US tariff hike of 25% on China has kicked in last Friday on US$200bn worth of Chinese imports. Markets will continue to be volatile and is reacting to the headline news or tweets as evidenced by the rebound on Dow Jones from 359 points loss to close 114 points higher last Friday to 25,942.37.
  • Larry Kudlow, Donald Trump’s economic adviser said there is a “strong possibility” that Trump will meet Chinese President Xi Jinping at G20 summit in late June. Our view is that it is trading market for now and there are opportunities to selectively buying and follow our technical reports.
Weekly Market Review (13 May 2019)
  • Major markets ended on negative territory last week following the escalating trade tension between US and China. The Dow Jones Industrial Average index declined 1.9% or 496 points while Hong Kong’s Hang Seng Index lost 2.3% or 660 points.
  • Meanwhile, the FBM KLCI closed at 1,610.27 points, indicating a weekly loss of 1.4%. Weekly foreign funds flow continued with RM450.2m net outflow pushing YTD outflow to over RM3.3bn. Performance amongst the FBMKLCI components saw 26 losers to 4 gainers.
  • Top 3 performers include GENM (+1.27%), PCHEM (+1.02%) and PETDAG (+1.00%) while the top 3 losers were AXIATA (5.39%), AIRPORTS (-5.17%) and IOI CORP (-4.72%).
Daily Market Report (10 May 2019)
  • Massive knee jerk reaction is happening all over the place mainly thanks to Trump’s bullying tactics. As mention numerous times, we remain positive and would use these as an opportunity to accumulate on blue chips.
  • Banking stocks have had been sold down of late due to the cut in OPR coupled with the continuous exodus of foreign funds thus we believe it is excellent chance to look at banks namely Maybank, Public Bank, CIMB and Hong Leong Bank.

 

Daily Market Report (09 May 2019)
  • It is going be a volatile few days for equities and the Ringgit in view of the US tariff warning on China and the recent reduction in our OPR (overnight policy rate). Nonetheless, we remain positive on the equity market primarily due to the “push” by the government as seen recently.
  • We believe the government is now seriously looking to improve the ailing domestic economy and that the impending implementation of the mega projects as to kickstart their initiatives and expect more in the offing.
Daily Market Report (08 May 2019)
  • As predicted, Bank Negara Malaysia Monetary Policy Committee has cut overnight policy rate (OPR) by 25 basis points to 3% making the first easing in almost three years.
  • This is a good move by BNM in view of increasing signs of slowdown in global and domestic economic activities. The rate cut is expected to provide relief and lowers borrowing cost for individuals and many businesses.
  • Our stock market stands to benefit from the rate cut hence investors should take the opportunity to selectively buy on weakness in the current market.