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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


Bursa Malaysia ends on cautious note

KUALA LUMPUR: Bursa Malaysia ended the day on a cautious note, pending further market direction amid global economic uncertainty.

The benchmark FTSE Bursa Malaysia (FBM KLCI) ended 0.49% or 7.88 points higher at 1,602.47, after hitting an intra-day high of 1,605.53, breaking the immediate support level of 1,601.0 at the eleventh hour before sliding back.

The market barometer opened 1.67 points higher at 1,597.26.

Market breadth, however, skewed to the negative as losers outpaced gainers 401 to 382, with 430 counters unchanged, 746 untraded and 14 others suspended.

Turnover was slightly higher at 2.04 billion units worth RM1.75 billion compared with 1.99 billion units worth RM1.62 billion yesterday.

VM Markets Pte Ltd managing partner Stephen Innes said that the market was in a capricious mood, which has a decidedly risk-off note.

“Most of the investors are awaiting what US Federal Reserve (US Fed) chairman Jerome Powell would be saying at the Jackson’s Hole symposium tomorrow, which would give an indication on the rate cut decisions,“ he told Bernama.

He added that investors are mostly certain that the US Fed would implement an interest rate cut, but it is still undecided on whether it would be 25 or 50 basis points.

Another analyst said that besides global reasoning, retail investors were absent from the local market as they implement a risk-off investment.

“With gold price on the rise, it is an indication that they are shifting to safe haven assets in bracing for a downturn,“ she said.

On the local bourse, AMMB added 24 sen to RM4.14, Dialog and Digi gained two sen to RM3.49 and RM5.00 respectively, while IHH and Sime Darby were up one sen at RM5.67 and RM2.10 respectively.

As for actives, Vsolar dropped 1.5 sen to 13.5 sen, Jaks shed half-a-sen to 81.5 sen, Berjaya Land firmed 1.5 sen to 24 sen, MNC Wireless was half-a-sen firmer at 8 sen and NETX was flat at 1.5 sen.

The FBM Ace rose 41.47 points to 4,647.64, the FBM 70 slipped 19.79 points to 14,135.95, the FBM Emas Index recovered 36.40 points to 11,338.79, the FBM Emas Shariah Index appreciated 36.26 points to 11,869.95 and the FBMT 100 Index was 38.41 points higher at 11,174.49.

Sector-wise, the Financial Services Index strengthened 75.95 points to 15,588.11, the Plantation Index rose 21.88 points to 6,772.65, and the Industrial Products and Services Index was 0.75 point higher at 150.39.

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

Warrants turnover decreased to 404.69 million units worth RM95.73 million compared with 418.17 million units worth RM92.27 yesterday.

Volume on the ACE Market, meanwhile, increased to 317.62 million units worth RM55.75 million from 303.94 million units valued at RM50.73 million.

Consumer products and services accounted for 286.64 million shares traded on the Main Market, industrial products and services (222.62 million), construction (106.14 million), technology (110.58 million), SPAC (nil), financial services (40.32 million), property (164.73 million), plantations (12.17 million), Reits (14.75 million), closed/fund (20,000), energy (186.29 million), healthcare (25.89 million), telecommunications and media (100.72 million), transportation and logistics (29.82 million), and utilities (17.00 million).

The physical price of gold as at 5.00pm stood at RM194.96 per gramme, up 22 sen from RM194.74 at 5.00pm yesterday. — Bernama


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Bursa Malaysia ends at intraday low amid global economic concerns

KUALA LUMPUR, Aug 21 — Bursa Malaysia ended at its intraday low today in mild trading due to lack of catalysts amid global economic uncertainty. The benchmark FTSE Bursa Malaysia (FBM KLCI) ended 0.51 per cent or 8.16 points lower at 1,594.59,…


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Bursa Malaysia ends higher on institutional support

KUALA LUMPUR, Aug 20 — Bursa Malaysia wrapped the day on a slightly higher note and moderately above the immediate resistance level of 1,600 backed by institutional support. The benchmark FTSE Bursa Malaysia (FBM KLCI) ended 0.39 per cent or 6.30…


Australia dlr cheered by prospect of policy action in China, EU

SYDNEY: The Australian dollar found a sliver of support on Monday as the prospect of stimulus in China and Europe soothed risk sentiment, though the Sino-U.S. trade dispute remained a nagging worry.

The Aussie was idling at $0.6780, corralled between support around $0.6735 and stiff resistance at $0.6822.

The kiwi dollar slipped to $0.6411, after snapping support at $0.6420 and threatened to revisit the recent trough of $0.6378.

China’s central bank on Saturday unveiled a key interest rate reform to help steer borrowing costs lower for companies and support the economy.

Also helping sentiment was growing speculation about government stimulus in Europe.

Germany has the fiscal strength to counter any future economic crisis “with full force”, Finance Minister Olaf Scholz said on Sunday, suggesting Berlin could make available up to 50 billion euros ($55 billion) of extra spending.

At home, minutes of the Reserve Bank of Australia’s (RBA) August policy meeting are due on Tuesday and should reiterate that rates could be cut again if needed to lower unemployment and get inflation moving.

Futures imply around a 76% chance of another quarter-point cut to 0.75% in October, though the odds did widen a little last week when jobs data proved surprisingly robust.

An easing is fully priced for November, with another pencilled in by March.

Analysts suspect the RBA will be very reluctant to cut below 0.5% given the pressure that would put on profits and lending in the domestic banking system.

Policy makers have recently said they would consider unconventional easing if required, but doubt it will come to that.

RBA Governor Philip Lowe speaks at the Jackson Hole central bank conference on Saturday and will likely have more to say on the policy outlook.

“We see below-trend growth and below-target inflation and a central bank which is running out of patience, and increasingly mindful of elevated global risks and policy easing by other central banks, which is blunting the currency-lowering impacts from its own easing,” said Nomura economist Andrew Ticehurst.

He is tipping cuts in November and February, and puts the chance of unconventional policy as high as 40%.

“We still see further downside risk for AUD too, incorporating our cautious house views around global growth and trade tensions.”

Across the Tasman, the Reserve Bank of New Zealand (RBNZ) stunned market this month by cutting rates by 50 basis points to 1% and even touting the idea of taking them negative.

Futures are priced for a reduction to 0.75% by February, with 0.5% implied by mid-year.

All the chatter on stimulus saw bonds lose just a little of their huge recent gains. The three-year bond contract eased 2 ticks to 99.325, while the 10-year contract lost 4 ticks to 99.0750. – Reuters


Gain your share of wealth on the stock market

BURSA MALAYSIA: HOW WEALTH-BUILDERS INVEST

EVERYONE has a financial goal. Aside from savings and/or fixed deposits, insurance-linked investments or unit trusts and property, one of the best options is still the stock market – for better returns in a shorter timeframe. Is it risky, hard to learn, and too expensive? Not really, if you understand the fundamentals of what you’re doing.

What kind of investor should you be?

Generally, there are two extremes – on one end, there are investors who depend on technical readings and technology to trade frequently, and then there are those who buy and hold shares for the long term. Both methods can be profitable, and many investors are a mix of both.

You don’t need a lot of money to begin.

Low Chern Hong, head of operations and certified trainer of 8VIC Malaysia Sdn Bhd, adds, “You can start with only RM100. The secret formula is Time + Savings + ROI (return on investment). Before you invest, do your research; go online and read books and articles on finance; understand it thoroughly.”

You need to open a CDS account, and any registered broker can help you. At first, it is natural to want to spend every minute watching the market – like an active trader who buys and sells with every movement. Although they can generate high returns quickly, always remember this truism – the higher the potential returns, the higher the risk.

What if you’re not a full-time investor?

If you don’t have the time, or the appetite for such risk, consider the “Value Investing” strategy – as used by famous investors such as Warren Buffet, Charlie Munger, Walter Schloss and Sir John Templeton. Essentially, they look to invest in three things – a great business model, a company with good management and a good price.

It is slower and less exciting, but their gains can be outstanding. According to Benjamin Graham, a famous value investor, “The real money is made from dividends, and from long-term increases in value.”

So many choices. Which companies should you invest in?

Do your research. Read their annual reports, understand their business models and environment, and look at their track record of dividends and share price history.

You can start with Bursa Malaysia’s top 30 stocks – companies in the banking, oil and gas, property and telecommunications sectors. They are “blue-chip” stocks that pay regular dividends, and can deliver strong gains if you buy them at a good price.

Or you can start with Exchange Traded Funds (ETFs). An ETF is a basket of stocks that represents a sector of the market. If the market goes up, so does the ETF and vice versa. There are various types of ETFs for you to choose from. Real Estate Investment Trusts or REITS are similar – except that they represent the business per-formance of a group of properties.

Once you’re more advanced, you can look at Bursa Malaysia’s Derivatives Market for products that can potentially deliver gains no matter which way the market is moving. Although riskier, they offer better potential gains.

As always, you should balance your investment portfolio. We recommend diversifying – spreading your capital over a variety of investment options and sectors to protect yourself.

Bursa Malaysia can help.

It’s important to always keep learning. Billionaire investor Warren Buffet spends many hours a day reading. He says, “Risk comes from not knowing what you are doing.” Rather than trade on emotion, tips or rumours – do your own objective research, understand the risk involved and stay within your risk profile.

At Bursa Malaysia, we provide access to tools and the knowledge to help you. Beyond your capital, the real investment lies in your efforts to educate yourself, and to develop the patience and tenacity that it takes to be a successful investor.

For further information, visit www.bursamarketplace.com or download the BursaMktPlc app, a one-stop investment portal for market knowledge, insights, trading ideas and to improve your financial literacy. There’s also a full schedule of the investment seminars and workshops – do join us.

Part of a series of articles by Bursa Malaysia to educate, develop and empower everyday investors.


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Bursa Malaysia ends mixed on better GDP results

KUALA LUMPUR: Bursa Malaysia wrapped up the week mixed on the back of the better than expected second quarter gross domestic product (GDP) announcement by Bank Negara Malaysia, today.

The benchmark FTSE Bursa Malaysia (FBM KLCI) almost recouped earlier losses following the GDP announcement, as it briefly breached the 1,600 resistance level, before sliding back to 1.599.22 at close.

However, on the broader market, sentiment remained strong as gainers outpaced losers 390 to 325, while 420 counters remained unchanged, 795 untraded and 14 others suspended.

The market barometer opened 2.23 points lower at 1,598.06 from yesterday’s close of 1,600.29 and moved between 1,590.18 and 1,600.17 throughout the day.

Turnover was lower at 1.78 billion units worth RM1.44 billion compared with 1.94 billion units worth RM1.85 billion yesterday.

Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew said investors remained cautious after two days of heavy selling and in line with the dip by the Dow Jones Industrial Average on Monday and Wednesday.

“We can see from the scoreboard that the gainers did overcome losers, but it was marginal. This is an indicator that investors do not want to jump right in and be caught in the volatile market situation,” he told Bernama.

He said the market barometer would continue to trade between 1,580 to 1,600 before reaching the resistance level.

“All eyes remain on global conditions. However, the domestic economy has proven its resilience despite the challenging economic situation,” Pong added.

As for the performance of heavyweights, Kuala Lumpur Kepong rose 12 sen to RM24.02, Digi and Press Metal both gained three sen to RM5.02 and RM4.79 respectively, while Petronas Dagangan and Tenaga Nasional both shed four sen to RM22.80 and RM13.68.

For the most active stocks, Eduspec and KNM gained half a sen to six sen and 38 sen respectively, while PCCS bagged 3.5 sen to 54 sen.

However, Sime Darby Property lost two sen to 85 sen and My E.G dropped one sen to RM1.47.

The FBM Ace declined 3.89 points to 4,587.72, the FBM 70 was down 27.11 points to 14,074.12, the FBM Emas Index lost 9.37 points to 11,308.11 and the FBM Emas Shariah Index depreciated 5.61 points to 11,843.22 as the FBMT 100 Index slid 10.77 points to 11,145.65.

Sector-wise, the Financial Services Index was 31.87 points lower at 15,5524.51, the Plantation Index declined 45.06 points to 6,758.37, and the Industrial Products and Services Index inched down 0.09 point to 149.72.

Main Market volume declined to 1.13 billion units worth RM1.30 billion from 1.19 billion shares worth RM1.67 billion yesterday.

Warrants turnover also fell to 404.74 million units worth RM95.41 million compared with 497.67 million units worth RM129.53 million.

Volume on the ACE Market, meanwhile, increased to 250.02 million units worth RM387.33 million from Thursday’s 245.44 million units worth RM42.77 million.

Consumer products and services accounted for 250.56 million shares traded on the Main Market, industrial products and services (184.23 million), construction (72.65 million), technology (101.79 million), SPAC (nil), financial services (39.62 million), property (116.02 million), plantations (9.97 million), REITs (16.51 million), closed/fund (3,000), energy (187.48 million), healthcare (11.41 million), telecommunications and media (114.29 million), transportation and logistics (16.77 million) and utilities (10.68 million).

The physical price of gold as of 5.00pm stood at RM196.46 per gramme, down RM1.04 from RM197.50 at 5.00pm yesterday. — Bernama