On Bursa Exchange, it has been fairly negative as market players continue to sell off on several heavyweights last week. Despite the higher Covid-19 confirmed cases globally on a daily basis, selling pressure continues to mount on healthcare stocks especially the glove segment and this has contributed to the negative broad market sentiment. Besides, Apple and Amazon’s forward guidance seems to be on the weaker tone; resulting in selldown across technology stocks.
Another factor could be the listing of Ant Group, which is the largest IPO after the previous Saudi Aramco IPO. To recap, prior to Saudi Aramco, the biggest IPO back then with nearly 3 times of oversubscription went for listing, S&P500 dipped from peak to trough near to 3%. We think this is due to market players cashing out their exposure in the market to get a piece of Saudi Aramco on the listing day itself.
For Ant Group, it is oversubscribed more than 870 times and in our view we think the euphoria moment is there for market players to reduce most of their exposure in the market to get a piece of Ant Group to trade on listing date this week. Nevertheless, this is just our assumption on the recent negative sentiment on the broader market.
What was triggered in our M+ Wiz list today?
Although the sentiment is weaker than expected, we noticed there is a strong sector outperforming the market since last week; the Transportation and Logistic sector. We opine that the improved trading interest within this sector was due to MCMC putting on hold the issuance of courier service license for the next 2 years. Besides, the upcoming global shopping festival, Singles’ Day (11.11) and Double 12 should also boost shipping orders higher over the near term.
We have then put in counters such as CJCEN and GDEX today.
So we will post some of the examples in this blog post for your reference.
CJCEN – Triggered at the start of the trading day
Source: M+ Wiz
GDEX – Signal was alerted at 9.01am
Source: M+ Wiz
We would like to emphasize that the examples above are not a recommendation for buying and selling purposes, please take advice from your brokers to get a clearer picture of the market before making any important decisions in the market.
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