Weekly Market Review (17 June 2019)
  • Regional markets closed mixed last week on the back of on-going trade tension between the US and China. The DJI continued its positive close rising 0.1% or 26.93 to 26,089.61 with markets expecting the Feds to ease before year end.
  • The local bourse FBM KLCI succumbed to profit taking after rallying to 1,650 points and have since lost 1.02% or 16.84 points for the week to 1,638.63.
  • Foreign funds have turned negative again after a week of positive inflow. Performance amongst the FBMKLCI components saw 19 losers to 8 gainers.
  • Top 3 performers include AIRPORTS (+3.94%), Sime Plantation (+1.97%) and MISC (+15.7%) while the top 3 losers were TNB (-4.55%), P Metal (-4.24%) and IOI (-3.02%).
Daily Market Report (14 June 2019)
  • Interests on the construction sector is certainly gathering momentum of late. We noticed that more and more construction related players are highlighting their interests on the impending RM44bn ECRL (East Coast Rail Link) project.
  • Meanwhile, we believe there to be loads of speculation on the potential ECRL participants and we prefer the likes of Gamuda, IJM Corp, Econpile, George Kent, Crest Builder, Vizione and Sunway Construction.

 

Daily Market Report (13 June 2019)
  • Expectations of further rate cut in the US has heightened with the US 10-year yield declined to 2.12% yesterday from the year high of 2.79% earlier this year.
  • It is now widely anticipated that there may be two rate cuts by end 2019. In view of this, we can also anticipate that the US dollar to experience some weaknesses ahead.
  • Meanwhile, crude price volatility continued with the Brent now trading at below the US$60/barrel due to higher than expected stockpile in the US.

 

Daily Market Report (12 June 2019)
  • Oil prices continue to be volatile impacted by both the demand and supply. D
  • Despite the move to reduce supply, crude oil price remain off their peak as the ongoing US/China trade spat has had affected demand to decline amid an expected slowing global economy.
  • As a result, Brent has dropped to US$61.50 a barrel from US$72.50 in mid-May with the WTI easing to US$52.50 from US$63.00 over the same period. There remain a lot of uncertainties thus we anticipate crude price to be volatile over the immediate term.

 

Daily Market Report (11 June 2019)
  • Equities may be back in favour judging by the resurgence of major global indices.
  • The Dow Jones Industrial Index have had an impressive rebound from below 25,000 to now 26,062. Similarly, regional markets also staged a rebound of sorts.
  • We believe this uptrend to persists in view of expectations that the Federal Reserves may be looking to reduce interest rates which have already been reflected from the downtrend of the US 10-year Treasury rates now at 2.15% from the high of 2.80% earlier this year.