Weekly Market Review (19 Aug 2019)
  • Regional markets were generally positive while Dow Jones has registered a small loss - 0.08% to 25,886.01 points with no major negative news from the ongoing trade concern between US and China and the recovery of US bond yield hitting all time low.
  • The FBM KLCI managed to recoup some losses from sell down, inching up 6.3 points or 0.40% for the week to 1,599.22 still below the all-important 1,600 level.
  • Foreign funds continued its cautious stance on emerging markets with our markets seeing RM598m net outflow compared a more severe of over RM1bn outflow last week. Performance amongst the FBMKLCI components saw 19 gainers to 11 losers.
  • Top 3 performers include DIALOG (+4.13%), SIMEPLT (+2.17%) and KLK (+1.95%) while the 3 losers were HLFG (-2.20%), AMMB (-1.76%) and PETDAG (-1.72%).
Daily Market Report (16 Aug 2019)
  • We reckon the financial markets will continue to remain volatile over the next few weeks. Meanwhile we reiterate that a recession is not going to happen anytime soon, but we may see a slowdown.
  • As Wall Street is still trending at a premium, it is not surprising that funds are liquidating their holdings in view of a potential slowdown. The Dow Jones Industrial Average PER now hovering at 16.7x (FY19), above its 10-year average of 15.7x plus a potential downgrade on FY20 earnings.
  • Therefore, we may see a continued flight to safety out of equities to other asset class like bonds and gold. Yesterday gold price hit a 6-year high at US$1,530.
  • We just need to ride out the prevailing uncertainty and continue to advocate Buy on Weakness.
Daily Market Report (15 August 2019)
  • We are bracing ourselves for another possible regional sell-off following the steep decline over on Wall Street yesterday. Although it is still early days yet in determining recession, investors sentiments of late had been jittery and it does not take much to instigate a selling-down.
  • As such we reckon, the selling may have been overdone yesterday. Nonetheless, with investors now becoming more risk averse, any rebound would be met by “profit taking” activities hence we believe the equity markets will remain volatile over the short term. On the domestic front, the FBM KLCI is seen to be supported at the 1,575 level.

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Daily Market Report (14 Aug 2019)
  • Regional financial markets are anticipated to remain volatile over the short term. Following yesterday’s bloodbath, we reckon the equity markets may see some recovery today buoyed by the improved performance on Wall Street.
  • With the DJI Average trending above the 26,000 again (+370 points) we could see some bargain hunting on the local bourse. In addition, the US 10-year yield is now at a 3-year low hovering at 1.69% indicating a strong possibility for a rate cut again by the FEDs soon.
  • We expect the FBM KLCI to breach the psychological 1,600 level with the immediate resistance at 1,620.
Daily Market Report (13 Aug 2019)
  • Dow Jones Industrial Average Index tumbled 389 points yesterday amid the heightened uncertainties of US-China Trade war. The 10-year treasury yield dropped to 1.64%, its lowest since October 2016.
  • We expect KLCI to remain volatile due to global markets uncertainties. Hence, we recommend investors to buy on weakness with focus on the heavily oversold index-linked counters, and keep an eye on bargain hunting on small mid cap stocks and construction related stocks