FBM KLCI to trade higher next week on bullish divergence

KUALA LUMPUR: Bursa Malaysia is expected to trade higher next week on the back of bullish divergence.

Phillip Capital Management Senior Vice President (Investment) Datuk Dr Nazri Khan Adam Khan said this is a reversal pattern, which is an indication that the recent downtrend is nearing its end and the market is about to experience a fresh revival.

“The local bourse is expected to trend higher, remaining above the 1,600-point benchmark, which would also draw mild bargain hunting interest despite concerns over the global economic outlook amid the prolonged trade war,“ he told Bernama.

As the week just ended, the FTSE Bursa Malaysia (FBM KLCI) ended at a high note at 1,609.33, the highest since the slip on Aug 13 due to recession fears after Dow Jones Industrial Average slumped more than 800 points.

The local bourse persisted to break across the 1,600 resistance level backed by institutional support despite the backdrop of flattish regional markets as the trade war and recessions spooked investors

Going forward, Nazri said aside from continuous political turmoil in Hong Kong, the United Kingdom and Italy, investors are also cautiously awaiting US Federal Reserve chairman Jerome Powell’s speech at the annual Jackson Hole symposium about the outlook for interest rates.

The market would also react to the policies made during the G7 meeting in France over the weekend and the upcoming decision on whether or not Malaysia would remain in the World Government Bond Index (WGBI) in the coming week.

On Friday, the local market ended higher backed by institutional support in government-linked blue chips.

On a Friday-to-Friday basis, the FBM KLCI rose 10.11 points to 1609.33 from 1599.22.

Over the week, the market is was traded range-bound as the market was less enthusiastic pending further market direction especially from the Jackson Hole symposium and G7 meeting.

The FBM Emas Index recovered 78.04 points to 11386.15, the FBMT 100 Index added 73.68 points to 11,219.33 and the FBM Emas Shariah Index rose 80.97 points to 11,924.19.

The FBM 70 firmed 106.33 points to 14,180.45 and the FBM Ace Index declined 34.09 points to 4,555.63.

Sector-wise, the Financial Services Index expanded 130.82 points to 15,655.33, the Plantation Index advanced 83.32 points to 6,841.69 and the Industrial Products and Services Index inched up 0.85 point to 150.57.

Weekly turnover firmed to 10.32 billion units worth RM7.00 billion compared with 8.33 billion units valued at RM6.6 billion.

Main Market volume expanded to 6.95 billion shares worth RM6.28 billion from 5.38 billion shares worth RM5.99 billion.

Warrants turnover rose to 1.86 billion units worth RM421.67 million from 1.75 billion units worth RM449.52 million.

The ACE Market volume added 1.54 billion shares worth RM297.51 million from 1.17 billion shares worth RM187.90 million last week. – Bernama

Ringgit to trade within tight range next week

KUALA LUMPUR: The ringgit is expected to remain stuck in a tight range as the market seeks more direction from key US economic data expected to be released next week.

Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said a series of important economic indicators in the US will be out, including the second preliminary reading of second quarter 2019 gross domestic product data and the Conference Board Consumer Confidence Index.

“This would determine sentiments towards the upcoming Federal Open Market Committee meeting scheduled on Sept 17 and 18,“ he told Bernama.

Afzanizam said thus far, US economic indicators have been quite mixed, implying uncertainties over a possible cut in the Federal Funds Rate.

This, he said, would result in a strong dollar as the Fed may not be in a hurry to reduce the rates further.

Meanwhile, VM Markets Pte Ltd managing partner Stephen Innes expects the ringgit to trade with a negative bias within the range of 4.18 to 4.20.

“Unless we get a dovish surprise from the Federal Reserve. The prospect of a stronger dollar amid trade war uncertainty has turned views on the ringgit negative.

“The issue is the stronger greenback is playing into a weaker yuan and this is negative for Asia forex and the ringgit,“ he said, adding that the ringgit’s performance would also depend on Fed chair Powell’s policy messaging at the Jackson Hole symposium.

For the week just ended, the local market was mostly lower as investors cautiously awaited the Jackson Hole outcome and developments in the US-China trade war.

The ringgit ended the week weaker at 4.1900/1930 from 4.1760/1810 recorded last Friday.

The local currency also traded lower against most other major currencies.

It was down against the Singapore dollar to 3.0213/0237 from 3.0097/0140 and depreciated versus the Japanese yen to 3.9284/9327 from 3.9230/9288

The local unit also edged down vis-to-vis the pound to 5.1147/1201 from 5.0763/0828 and dropped against the euro to 4.6333/6383 from 4.6283/6346. – Bernama

Bursa Malaysia to trade higher next week on bullish divergence

KUALA LUMPUR, Aug 24 ― Bursa Malaysia is expected to trade higher next week on the back of bullish divergence. Phillip Capital Management Senior Vice President (Investment) Datuk Dr Nazri Khan Adam Khan said this is a reversal pattern, which is an…

DRB-Hicom turns black in Q1 with RM46.21m net profit

KUALA LUMPUR, Aug 23 — DRB-Hicom Bhd returned to the black with a net profit of RM46.21 million in the first quarter (Q1) ended June 30, 2019 after having chalked up a net loss of RM66.60 million in the same period last year. Revenue jumped 29.5…

Bursa Malaysia ends at intra day high on institutional support

KUALA LUMPUR: Bursa Malaysia ended at an intra-day high backed by institutional support in selected heavyweights, especially government-linked counters.

The benchmark FTSE Bursa Malaysia (FBM KLCI) ended 0.42% or 6.86 points higher at 1,609.33, after trading between it and the lowest point of 1,594.59.

The market barometer opened 6.70 points lower at 1,595.77.

Market breadth, however, was on a negative note as losers slightly outpaced gainers by 400 to 381, with 397 counters unchanged, 780 untraded and 13 others suspended.

Turnover was slightly lower at 2.01 billion units worth RM1.74 billion compared with 2.04 billion units worth RM1.75 billion yesterday.

Bank Islam chief economist Dr Mohd Afzanizam Abdul Rashid said that the local bourse ended in range-bound trading as the market was less enthusiastic pending further market direction.

“It seems that 1600 points remains as the psychological level, and it remained steady as it was supported by local institutional funds.

“At the moment, investors especially retail are very cautious about the external environment as there have been clear signs of a global economic slowdown,” he told Bernama.

He added that the government is now conducting demand management to help the economy to grow.

“While the intervention is welcome, the markets are very cautious especially areas relating to the trade war which is very edgy. At this juncture, a second rate cut by the central bank is quite possible,” he said.

On the local bourse, Tenaga Nasional rose 10 sen to RM13.76, IHH and CIMB Group gained one sen to RM5.68 and RM5.07 respectively, Maybank added eight sen to RM8.64 and Petronas Chemicals added two sen to RM7.22.

As for actives, Ekovest expanded four sen to 84.5 sen, Iskandar Waterfront leaped eight sen to 95 sen, AirAsiaX slid one sen to 18.5 sen and Dayang Enterprise lost three sen to RM1.49.

The FBM Ace declined 94.01 points to 4,553.63, the FBM 70 advanced 44.50 points to 14,180.45, the FBM Emas Index recovered 47.36 points to 11,386.15, the FBM Emas Shariah Index appreciated 54.24 points to 11,924.19 and the FBMT 100 Index was 44.84 points higher at 11,219.33.

Sector-wise, the Financial Services Index strengthened 67.22 points to 15,655.33, the Plantation Index rose 69.04 points to 6,841.69, and the Industrial Products and Services Index was 0.18 point higher at 150.57.

Main Market volume increased slightly to 1.38 billion units worth RM1.60 billion from 1.31 billion units worth RM1.60 billion, compared with yesterday’s 1.27 billion units worth RM1.47 billion.

Warrants turnover decreased to 369.33 million units worth RM82.98 million from 404.69 million units worth RM95.73 million yesterday.

Volume on the ACE Market declined to 354.58 million units worth RM54.87 million from 317.62 million units worth RM55.75 million yesterday.

Consumer products and services accounted for 247.14 million shares traded on the Main Market, industrial products and services (163.94 million), construction (253.59 million), technology (122.17 million), SPAC (nil), financial services (37.88 million), property (168.03 million), plantations (15.29 million), REITs (10.82 million), closed/fund (nil), energy (187.54 million), healthcare (21.57 million), telecommunications and media (111.80 million), transportation and logistics (26.11 million), and utilities (19.55 million).

The physical price of gold as at 5.00pm stood at RM194.91 per gramme, down five sen from RM194.96 at 5.00pm yesterday. — Bernama

Petronas Dagangan Q2 net profit slips to RM172.75m

KUALA LUMPUR, Aug 23 — Petronas Dagangan Bhd’s net profit slipped to RM172.75 million in the second quarter ended June 30, 2019 (Q2 2019) from RM314.42 million, mainly due to lower gross profit coupled with higher operating expenditure and lower…

Ringgit ends easier in cautious trade

KUALA LUMPUR, Aug 23 — The ringgit closed lower against the US dollar today as market players await more clues on the global monetary policy direction from the highly-anticipated Jackson Hole symposium. At 6pm, the ringgit finished at 4.1900/1930…

Malakoff posts RM52.25m net profit for Q2

KUALA LUMPUR, Aug 23 — Malakoff Corporation Bhd’s net profit was marginally lower at RM52.25 million for the second quarter ended June 30, 2019, from RM52.55 million recorded in the same period last year. Revenue also declined to RM1.81 billion…’s analytics reveal 14.7% hike in serviced residences demand

PETALING JAYA: There has been a 14.7% year-on-year (yoy) hike in demand for serviced residences despite an 8.2% decline in capital growth on a national level, according to Malaysia’s 1H 2019 Portal Demand Analytics.

General manager of customer data solutions Premendran Pathmanathan said sellers might not be selling at a loss, but this could reflect the rebates offered by developers four years ago.

“We are looking at a trend where people are actually focusing on the conveniences and proximity to amenities than the actual size of the unit,” he told the media at the launch of the portal analytics results.

Premendran pointed out that the demand hike suggest that condominium demand has been slowly moving towards serviced residences.

On a national level, condominium demand fell 5.9% yoy and capital growth shrunk 2.2%, while terrace house recorded a 3.7% and 6.7% yoy increase in demand and capital growth respectively.

Overall, residential property reported a 4.1% growth on a national level across all categories.

The property portal arrived at the figures from over 3 million site visits it receives each month, taking into account the number of unique views as a measure of demand, while the listing on its website serves as an estimate for supply.

Bursa Malaysia mixed at mid-day

KUALA LUMPUR, Aug 23 ― Bursa Malaysia turned mixed at mid-day as the benchmark index was in positive territory, while market breadth remained negative. At 12.30pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) was 1.20 points higher at 1,603.67,…