Daily Market Report (01 Nov 2019)
  • Bursa Malaysia turned hero yesterday as the benchmark FBM KLCI jumped by almost 18 points to the 1,600 mark. Interests reverted to the blues with most Banking stocks gained by between 2-5%.
  • Whether yesterday’s uptrend is sustainable remains to be seen as sentiments are still jittery amid concerns over the US/China Trade talk resurfacing again.
  • Therefore, we reckon the local bourse may encounter some profit taking today as the FBM KLCI may face with some headwinds as it approaches the 1,600 level that is now a psychological resistance level.
Daily Market Report (31 Oct 2019)
  • The Federal Reserves has cut interest rate by another 25bps which is the 3rd in 2019. Though the equity market has had reacted positively on the move, we reckon funds will eventually return to bonds thus impede the uptrend of the equity markets.
  • Over in Asia, one can also expect interest rate sensitive countries namely Thailand and Indonesia to follow suit in due course.
  • Meanwhile, the local bourse seems to have found a strong support at the 1,570 level and we expect the FBM KLCI continue with its upward momentum to re-test the 1,600 mark over the immediate term.
  • Foreign funds outflow has had also taken a pause for the time being hence could be a positive sign especially for the blue chips. Maybe it is time to look at the banking stocks again.
Daily Market Report (30 Oct 2019)
  • US stocks were mixed as it hovers at record levels as market widely expects Fed to lower rates again Wednesday by 0.25%, having done the same back in July and September.
  • All eyes will be on Jerome Powell’s speech to see the tone of his outlook which will provide some direction for the next year’s rate directions. Expectations of phase 1 of trade deal next month during APEC meeting in Chile is likely to bolster the sentiments on equities.
  • On the local front, the up-coming 3Q19 corporate earnings may spring a positive surprise on the upside based on our estimates, hence now is the time to bargain hunt for stocks at our market as it is well below the 1,600 level.

 

Daily Market Report (29 Oct 2019)
  • US stocks surged to new highs supported by encouraging results plus expectations of a positive outcome from the US/China Trade talk.
  • However, many are expecting more rate cut during the FOMC meetings over the next 2 days and may trigger portfolio realignments again following the US 10-year Treasury rate touching a 6-week high recently above the 1.8%. In view of this, we do not foresee market volatility to diminish anytime soon.
  • Nonetheless, we reckon the local bourse to be relative well supported at current levels with focus again centred on the lower liners.

 

Weekly Market Review (29 Oct 2019)
  • Global stock markets closed on higher note last week with S&P 500 Index recorded an all-time high spurred by positive developments on the US - China trade talk progress. On the local front, FBM KLCI managed to find its support at 1,570 level.
  • Weekly foreign funds continued to be positive, posted net inflow of RM302.4m with year-to-date net outflow of RM8.4bn. Losers of 17 outnumbered 9 gainers in KLCI last week.
  • Top 3 performers were GENM (+1.31%), DIGI (+1.07%) and IHH (+1.06%) while the 3 losers were RHB (-1.93%), AIRPORT (-1.35%) and PETGAS (-1.08%).