Daily Market Report (9 July 2019)
  • The Government has heeded our call and announced the resumption of 2 mega infra related projects yesterday. First and foremost, the RM44bn East Coast Rail Link (ECRL) will commence later this month while the double tracking around Klang Valley worth RM3bn will be rehabilitated soon.
  • Slowly but surely, we expect more infra related projects to be revived soon with Penang being the hub and of course the High Speed Rail (HSR) estimated at RM75bn is another catalyst to boost the domestic economy.
  • Expect interests on construction companies to return with focus on Gamuda, IJM, Econpile, HSS and Gadang.
Daily Market Report (8 July 2019)
  • Talks of another rate cut by Bank Negara resurfaced again but does it really do the business? We doubt a rate cut would be effective in resuscitating the ailing domestic economy amid a dearth of economic activities.
  • What we need now is a swift kickstart of mega infra projects plus a flow of foreign funds into the economy to reignite the confidence of investors. Of late, our status as an investment haven has been battered as our investment ranking within the Southeast Asia region has slipped down to lower ranks.
Weekly Market Review (8 July 2019)
  • Regional markets were mostly in negative territory except for the Philippines stock market last week. The Dow Jones Industrial Average continued its positive trend rising 0.77% or 204.7 points to 26,922.1 for the week.
  • Meanwhile, the FBM KLCI retraced 0.06% to close the week at 1,682.53. Foreign funds flow continued to be net positive for the week with RM230.2m inflow.
  • Performance amongst the FBMKLCI components saw gainer 16 gainers to 11 losers. Top 3 performers include DIALOG (+2.45), SIME (+2.19%) and MAXIS (+2.15%) while the 3 losers were TOP GLOVE (-2.62%), TNB (-2.58%) and PMETAL -2.04%).
Daily Market Report (5 July 2019)
  • The Construction sector did not disappoint since our recommendation in February. The FBM Construction Index gained almost 26% since then and we expect there to be more upside despite the cautious stance from some of our peers.
  • Nonetheless, the index remains 25% below its peak prior to GE14. Our positive stance on the sector stems on the fact that the sector thrives on positive news flow and believe there to be more in the pipeline.
  • We remain buyers on Gamuda, IJM, Econpile and laggards like TRC, Gabungan AQRS, Vizione, George Kent and Crest Builder could potentially offer substantial upside.

 

Daily Market Report (4 July 2019)
  • We expect buying interests on equities to prevail in view of yesterday’s record close on Wall Street coupled with the decline in the US 10-year yield to a 2 year low at 1.95%.
  • Consensus remain adamant that the Feds will cut rates in due course and expect the 10-year treasury rate to continue hovering at below the 2.0% level.
  • Meanwhile, we expect the MYR to strengthen vis-à-vis the USD and may hit our 2019 target of RM4.10 rather soon.