Weekly Market Review (21 Oct 2019)
  • Global stock market ended on mixed note last week. Shanghai Composite Index posted a weekly loss of 2.32% following weak numbers from China’s third-quarter GDP growth. FBM KLCI was 0.23% higher and closed above 1,570 level at 1,571.2.
  • Weekly foreign funds turned positive, posted net inflow of RM184.6m with year-to-date net outflow of RM8.7bn. Gainers of 15 outnumbered 10 losers in KLCI last week.
  • Top 3 performers include AMBANK (+4.69%), HLB (+3.03%) and DIALOG (+1.76%) while the 3 losers were AIRPORT (-6.98%), AXIATA (-1.86%) and IHH (-1.73%).   
Daily Market Report (18 Oct 2019)
  • The local bourse seems to be rather well supported at current levels. Interestingly we also saw the return of foreign buying after a lengthy hiatus. Over the last 2 days, there were net foreign buying of almost RM300m which was unheard of during the past months.
  • If such buying is sustained, we may see the FBM KLCI to re-test the 1,600 anytime soon. Meanwhile, we reckon liquidity remains gravitated to the small/mid cap companies amid some rotational plays.
  • Technology and Construction related companies remain as our preferred picks namely SKP Resources, PIE, D&O, Vertice, Vizione and KAB.

 

Daily Market Report (17 Oct 2019)
  • Looks like market volatility is not relenting anytime soon. With fund managers now working overtime jumping from equities to treasuries and vice versa, one can expect profit taking activities to emerge on the local bourse following yesterday’s rather reasonable gains.
  • Overall sentiments on Bursa Malaysia namely the blue chips remain a big yawn as foreign funds remain net sellers with a net outflow of almost RM9bn YTD.
  • Nonetheless, we expect liquidity continues to channel into the small/mid cap space on rotational plays. Immediate support for the FBM KLCI is seen at the 1,560 level.
Daily Market Report (16 Oct 2019)
  • With Budget 2020 done and dusted, we would expect the construction sector to see more activities moving forward. Already we saw Advancecon, Crest Builder, Econpile and Pintaras have had added new contracts into their orderbook of late.
  • Activities are also anticipated to heighten in Sabah and Sarawak along the Pan Borneo Expressway after a relatively subdued performance since its inception in 2017.
  • Most importantly, Consortium Zenith had also inked the RM6.3bn infrastructure project in Penang which is anticipated to commence on 31st October and we foresee companies namely Vertice and Vizione to play a large part in it.
  • For this, we reckon it is time to re-look at the smallish construction players to ride on another construction play soon.
Daily Market Report (15 Oct 2019)
  • Investing climate remains jittery as sentiments are now dictated by expectations of the US/China trade discussion outcome. With the situation still fluid, we believe regional markets to remain stuck in a realm of extreme volatility.
  • Meanwhile amid the geopolitical tension, tanker rates have had surged to a multi-year high with demand vastly outstrip supply for very large tankers.
  • Whether such a scenario would persist remains to be seen but we reckon MISC should be entering a boom year. As for the FBM KLCI, we anticipate some selling to emerge today with the 1,560 as the psychological support level.