Daily Market Report (4 Dec 2019)
  • Trusting Trump to come clean on the US China trade talk is likened to the sun rises from the west. As it is, global equity markets are again roiled by the diminishing hopes of any agreement between the US and China.
  • Looks like we may have to endure the stalemate till 2020 amid heightened market volatility.
  • We are indeed surprised by the way foreign funds are shunning Malaysia as we are indeed heading towards a more positive direction next year. With corporate earnings estimated to grow above 6% in 2020, valuations on the local bourse seems to be very reasonable.
  • Based on 1,560 the FBM KLCI is trading on a market PER of below 15x which is deem highly attractive. Therefore, we maintain our view that foreign funds would return anytime soon.
  • For today, we expect the benchmark index to test 1.560 before rebounding towards the 1,565 mark.
Daily Market Report (3 Dec 2019)
  • As suspected, the US China trade talk will never be resolved amicably as Trump continues to use his dirty tactics to prolong our sufferings. Meanwhile, he is also looking to impose tariffs at certain European countries making him the most popular person in the world at this instance.
  • With uncertainties abound, we will be forced to ride the volatility wave again hence may see some downside bias on regional markets today.
  • Though the FBM KLCI downside should be capped with immediate support at 1,560, we continue to see the lack of participation from the foreign funds over the immediate term.
Daily Market Report (2 Dec 2019)
  • The FBM KLCI broke all immediate support levels last Friday following what we suspected were rather drastic selling from the foreign funds.
  • Amid prevailing uncertainties over the US China trade talk, regional weaknesses and fresh portfolio realignments amongst the foreign funds we reckon the local bourse may continue to experience volatility ahead.
  • Nonetheless, we anticipate there to be some bargain hunting activities today hence may see the FBM KLCI to trend higher with immediate resistance at the 1,570 mark.
Weekly Market Review (2 Dec 2019)
  • Major global indices were in negative territory last week. Hong Kong equities were heavily sold down amid the political uncertainty as the HSI lost 646.5 points to settle at 26,346.5 last week. On the local front, FBM KLCI tumbled 29.6 points to 1,561.4.
  • Weekly foreign fund flows were negative with a total net outflow of RM761.22m. Year-to-date net outflow hit a massive RM9.9bn. There was only 1 gainer against 28 losers in KLCI last week.
  • The performer was HLB (+0.84%) while the top 3 losers were PETGAS (-4.91%), PETDAG (-4.18%) and AXIATA (-3.95%).   
Daily Market Report (28 Nov 2019)
  • Equities market is expected to remain volatile regionally. Nonetheless we expect foreign funds to eye at emerging markets mainly due to prevailing bloated valuations on Wall Street and are hopeful that Asia would be their preferred destination.
  • On the forex front, we noticed that the Ringgit has also been rather volatile oscillating between 4.12 to 4.17 per USD over the past month suggesting year end re-alignments of funds for the coming calendar year.
  • On the local front, we continue to anticipate nibblings on local stocks and see the FBM KLCI to nudge closer to the 1,590 level