Daily Market Report (2 Oct 2019)
  • Trump may have shot himself in the foot as the US economic data deteriorated much steeper than anticipated. With almost 60-70% of corporate America earnings are derived overseas one should almost expect results for Wall Street to be adversely impacted amid the prevailing tariff war with China.
  • In our view, Trump has had singlehandedly created existing global market volatility and we do not reckon he is relenting anytime soon.
  • Meanwhile, we are also monitoring the ascension of the Thai Baht (YTD +6% vs USD) boosted by the influx of hot foreign funds triggering a mild déjà vu feeling prior to the 1997 Asian Financial crisis.
Daily Market Report (1 Oct 2019)
  • A lot has been said by the property related players in cutting the RPGT (Real Property Gains Tax) to improve the ailing property market.
  • While this is deemed as a beneficial move, this will not improve the participation of first time buyers rather will encourage those with high speculative interests.
  • To address the prevailing property overhang, it would require both the banks and developers to collaborate. For once, the developers may need to relook at their pricing while the banks should not be too stringent on their scrutiny of applicant especially for first time buyers.

 

Daily Market Report (30 Sept 2019)
  • Global markets are expected to remain volatile with eyes on China’s economic data manufacturing & PMI data to be released later today and US data including ISM manufacturing and employment in the coming days.
  • On our local front with our Budget 2020 about two weeks away, there will be much speculation on what good news it may bring to corporates, investors and man on the street.
  • Historically, there has been pre-budget rally for our markets running up to the Budget Day on 11 October 2019 and we remain optimistic it will rally above 1,600 level, hence we recommend investors to accumulate at current level.    
Weekly Market Review (30 Sept 2019)
  • Major stock markets ended mostly in negative territory last week amid the slowing down of global economic growth. Shanghai Composite Index fell the most, dropping 1.51% due to disappointing economic numbers from China and the escalating trade tension.  
  • In local market, the FBM KLCI lost 0.55% to its lowest level since Aug 2015. Weekly foreign funds were negative with RM150.9m of net outflow. Performance amongst the FBMKLCI components saw 10 gainers to 20 losers.
  • Top 3 performers include SIMEPLT (+1.05%), AXIATA (+0.93%) and PETDAG (+0.77%) while the 3 losers were TOP GLOVE (-3.79%), GENTING (-3.37%) and DIALOG (-2.02%).   
Daily Market Report (27 Sept 2019)
  • The verdict is out, and Malaysia remains in the FTSE Russell World Government Bond Index, however it remains on the watch list and will be reviewed again next March in 2020.
  • The potential bond outflow feared by many is now behind us as we look forward to the upcoming Budget to be in focus.
  • Pre budget rally for our markets could be in the making as our market continue to hover near the 1,600 level, we advocate investors to position themselves.