The FBM KLCI started off the week on a dour note alongside with the weakness across regional peers on the increasing geopolitical tension between US and China. Still, the FBM KLCI recorded 95.82 pts on gain (+6.5% MoM) during November 2020. Although we see renewed volatility unfolding, we reckon that bargain hunting activities may take precedence after the sharp fall yesterday. On the other hand, we think that the lower liners are poised for further upsides, driven by the improved trading liquidity which may extend the rotational play.
Down, but not out
Vaccine companies continue to deliver positive news, as a third candidate, AstraZeneca has reported another positive trial results, casting hope for a foreseeable end to the pandemic despite raging increases in case numbers. Vaccine news, coupled with diminishing uncertainties on the political front in the US saw positive market sentiment globally throughout the week
The Bursa Exchange has been quite volatile last week and the FBM KLCI has turned negative at the time of writing going into the final day of the reporting season. Although the market was slightly negative, things are going well for our Daily Pick list
The overall warrants market turnover came in at RM593.0mil last week, dropping by approximately 26.8% versus the previous week as stocks over glove makers took a breather. Warrants over Malaysian shares still dominated the total turnover, making up approximately 85.2% of the total warrants turnover at RM505.5mil, followed by warrants over indices with RM41.8mil (7.0%) and warrants over foreign underlyings which made up the balance.