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market pulse

Escalating political uncertainties

The FBM KLCI edged lower amid uncertainties surrounding the recent political developments, as well as the Covid-19 pandemic, contributing to the investors staying sidelines. This would result in heightened volatility in the market and traders should turn more cautious over the near term in selecting stocks to trade. On a side note, China’s move to raise export tariffs on some steel materials, and removed rebates on cold-rolled products may exert pressure on the commodities prices as demand continues to rise over the past year.
market pulse

Still in consolidation

The FBM KLCI closed mildly positive following the late bargain hunting activities, but gains were capped amid unrelenting Covid-19 cases as well as the recent political developments. Despite daily Covid-19 infection continue to be on the rise amid ramped up testing in Klang Valley, we expect the vaccination rate should brush off negative sentiment and traders may look for recovery opportunities. Also, both the Hang Seng Futures and overnight Wall Street could be due for a technical rebound and may spillover towards stocks on the local front, especially on the tech sector. Commodities wise, CPO price was down as demand were seen slowing down from India and China, while the crude oil extended its gains.
market pulse

Tepid recovery

Bucking the regional downtrend move, the FBM KLCI rebounded and posted modest gains on the back of bargain hunting activities as well as expectation on the economy reopening by October. Although investors will be shifting their focus from daily Covid-19 infections to the positive vaccination rate locally, the local sentiment may still remain cautious following the negative performances in China and Hong Kong after Beijing announced additional measures for the technology, education and real estate’s sectors. On a side note, foreign investors are net seller for the third session.
market pulse

Mirroring regional weakness

Investors started off the week on a softer note as both the FBM KLCI and the broader market slumped, in line with the negative performances in China and Hong Kong shares amid concerns over tightening regulations on selected sectors. However, we expect bargain hunting activities to emerge on the local bourse after the selldown as market players might have priced in news from China or Hong Kong. Meanwhile, investors should focus on vaccination rate instead of ongoing high number of daily Covid-19 cases as government will be looking on reopening of business activities going forward. Commodities wise, both the CPO and crude oil prices extended their gains.
market pulse

Still wobbly

The FBM KLCI finished the week on a negative note, in line with the mixed regional performances due to resurgence of Covid-19 infections globally. While the local bourse has been trading in upward bias consolidation mode last week, investors may remain cautious with the five-day special Parliament sitting this week. Nevertheless, we expect investors to shift their attention from the daily Covid-19 infection rates to the current ongoing vaccination rate, which is above the 400k doses per day; this should provide some booster in stabilising the market sentiment and focus on recovery theme stocks. Meanwhile, both the CPO and Brent oil price surged last week.
market pulse

On better footing

The FBM KLCI is expected to build onto its previous session gains with the focus now shifting back towards the economic recovery progress. Still, we remain cautious as there were few domestic leads over the near-term outlook and this will further curtail any extended potential upsides. Nevertheless, the general market undertone is improving and this will allow the lower liners to develop decent recovery after a difficult two-month period that has seen many stocks veering into the oversold region.
market pulse

Sentiment still murky

The FBM KLCI extended its losses after a volatile session due to persistent selling activities as Covid-19 infection rates stayed high amid the Delta variant. However, we believe the high numbers in Covid-19 cases may shift investors’ focus on healthcare sector, while broader market sentiment could stay tepid without any fresh catalysts. Investors may watch Malaysia's inflation rate which will be released tomorrow. Commodities wise, oil price has staged a rebound in expectation for a higher demand amid economic recovery.
market pulse

Still sideways

The FBM KLCI retreated on Monday due to last minute profit taking activities prior to the Hari Raya Haji public holiday, mirroring the weakness across the regional markets. Nevertheless, buying interest emerged in selected recovery theme sectors after the EMCO was lifted in Selangor and Kuala Lumpur. Despite the rebound on Wall Street, we expect some initial selling activities on the local bourse before recovering for the session, but upside is likely to be capped amid the high number of daily Covid-19 cases, which may be a concern that could dampen the pace of the economic recovery.
market pulse

Holding well

The FBM KLCI registered modest gains for the week on the back of bargain hunting activities after a recent downtrend move, but daily Covid-19 cases which remained above the 10k mark continued to weigh on market sentiment. Nevertheless, the new immunisation target set by the government to fully vaccinate 100 percent of the adult population by October 2021 is expected to boost investors’ confidence towards the path of economic recovery. On a side note, OPEC+ has agreed to increase oil production beginning in August amid improving demand, which may ease the pressure on the supplies as well as oil prices.
market pulse

Base building

The FBM KLCI marched higher amid mixed regional sentiment, underpinned by the buying interest in glove stocks after successive days of record-high Covid-19 daily cases in the country. The overall market sentiment was also lifted by the Fed’s dovish comment as well as the improvement in China’s economic data. Nevertheless, upside might be capped as investors are still waiting for more economic sectors to reopen. Commodities wise, the CPO price has surged in tandem with soybean futures, while the crude oil price extended its losses.
market pulse

Prolonged consolidation

The FBM KLCI trended lower on the back of the alarming rise in Covid-19 daily cases, overshadowing optimism on the improving vaccination rates in the country. We reckon the local bourse should continue to trade in consolidation mode until Malaysia could transition into Phase 2 in the National Recovery Plan. Meanwhile, the market may watch a series of China’s economic data which will be released today. Commodities wise, the CPO price climbed above the RM4,000 level in line with soybean futures, while the crude oil price staged a pullback.
market pulse

In search for stability

The FBM KLCI rebounded from losses as the key index was buoyed by bargain hunting activities, coupled with positive sentiment in the regional market following upbeat China economic data. Nevertheless, we expect the buying interest may be limited as the daily Covid-19 cases in the country increased to record high as more Delta variant cases were detected. Meanwhile, International Energy Agency (IEA) warned of a tighter oil market as OPEC+ is set to keep output levels unchanged despite rising global demand underpinned by global economic growth amid rising vaccination rates; the crude oil is hovering above USD75, while CPO traded closer to RM4,000.
market pulse

Marred by political developments

Consumer, banking and glove stocks pulled the FBM KLCI down amid regional uptrend, reflecting negative sentiment in the market affected by political developments and potential downward revision of country’s economic growth projection. However, we still expect mild bargain hunting activities to emerge amid the improvement in vaccination rate across the country. Commodities wise, oil price fell marginally (but still hovering above USD75) over concerns about global economic recovery on the back of spreading Covid-19 variants.
market pulse

Bargain hunting taking charge

The FBM KLCI finished the week on a positive note as the key index rebounded from the previous five consecutive losses on the back of bargain hunting activities. However, investors are likely to remain cautious due to dearth of fresh leads and the concerns over the ongoing political developments as well as the high Covid-19 infection rates which may overshadow the improvements on vaccination rates. Meanwhile, market may watch the Malaysia’s industrial production and retails sales data which will be released today. Commodities wise, both the CPO and oil prices have seen a surge.
market pulse

On uneven grounds

The FBM KLCI pulled back for the fifth session as investors’ sentiment stayed cautious on the back of high number of daily confirmed Covid-19 cases which climbed above the 8,000 mark, coupled with recent political development. We expect the current trading tone to persist as market is lack of fresh positive catalysts. However, we believe bargain hunting activities may emerge in the near term due to the significant selldown and oversold tone across the board. Commodity wise, the oil price has seen a rebound following an improved inventory draw.
market pulse

Bank Negara OPR in focus

The FBM KLCI sank for another session despite final hour bargain hunting activities as investors mulled the high number of Covid-19 confirmed cases while awaiting Bank Negara’s interest rate decision today. Meanwhile, there are several developments in the political scene, which may contribute to volatility in the markets. Also, we expect the ongoing lockdown in several localities, coupled with the Covid-19 status in Malaysia will continue to weigh on the local bourse. Commodities wise, both the CPO and oil prices extended their pullback
market pulse

Marking time

The FBM KLCI posted a mild decline as investors remained cautious while awaiting for the release of minutes from the US Fed Reserve June’s meeting for more clarity on the monetary policy. With the Covid-19 cases spiking above 7,000 mark per day despite the improvement in vaccination rate, the local bourse is likely to stay wary, while monitoring Malaysia’s Bank Negara interest rate decision tomorrow. Meanwhile, oil prices dropped after talks between OPEC and the rally was unable to sustain following failure to agree on production policy.
market pulse

Base Building

The FBM KLCI started the week with mild losses as market sentiment remained tepid on the back of high number of Covid-19 infections despite improvement in vaccination rates. Nevertheless, the local bourse may see bargain hunting activities emerging especially in most of the oversold counters. Meanwhile, millions of Covid-19 vaccine doses are expected to arrive in Malaysia in July, which could see another breakthrough in vaccination rate. Commodities wise, both the CPO and oil prices extended their uptrend move.
market pulse

Still subdue

The FBM KLCI edged lower in a volatile week following the implementation of EMCO over in parts of Selangor and Kuala Lumpur. Having said that, market sentiment may improve as five states in the country are moving into Phase-2 of the National Recovery Plan (NRP). Nevertheless, upside could be capped on the FBM KLCI as investors could stay cautious as Covid-19 daily cases remained above 6,000. Meanwhile, investors may monitor BNM’s interest rate decision this week to position themselves in the stock markets. Commodities wise, the CPO price rose for the fourth consecutive day, while Brent oil is trading near USD76.
market pulse

Baby steps recovery

The FBM KLCI started off the second half of year 2021 with modest gains as bargain hunting activities emerged after the heavy selloff in the previous session. The imposition of EMCO in most areas in Selangor and Kuala Lumpur due to the continued high infection rates may further weigh on investors’ sentiment. Crude palm oil surged after India reduced import duty of CPO to 10%, while Brent oil price climbed mildly after OPEC+ postponed its decision on the oil production plan amid recovering demand for oil, while market participants are expecting an increase in oil production going forward.
market pulse

Downward momentum persists

The FBM KLCI wrapped up the first half of 2021 with a new year-to-date low as the high number of Covid-19 daily confirmed cases which stayed above the 6,000 mark, coupled with uncertainties in the recent political developments. However, we expect bargain hunting activities on the local bourse to emerge as Parliament may reconvened by August 2021, where MPs will be able to discuss and resolve issues revolving the nation going forward. Commodities wise, the oil prices rose on the report of lower US inventories. Market may monitor the decision on the next phase of production policy in the upcoming OPEC+ meeting amid demand recovery.
market pulse

Recovery still premature

The FBM KLCI rebounded from on the back of bargain hunting activities, but gains were capped as investors took cue from the weak sentiment in the regional markets. The bullish momentum, however, might not sustain on the back of the recent political developments as well as ongoing combat of Covid-19 pandemic; daily confirmed cases are still ranging between 5000-7000 levels. Meanwhile, technology stocks remain attractive with the ongoing developments on IoT,5G and electric vehicle. Commodities wise, both the CPO and oil prices moved a tad high.
market pulse

Pemulih aid package alleviation

The FBM KLCI plummeted to hit the lowest level in 2021, while the broader market saw more than 900 stocks closing in the red as investors sentiment was further dampened by the extension of the full lockdown which may derail the economic recovery pace. However, we believe bargain hunting activities should emerge after the heavy selldown, following the Prime Minister’s announcement on the PEMULIH stimulus package amounted to RM150bn to assist households and businesses affected by the pandemic. Commodities wise, both the CPO and oil prices experienced a pullback.
market pulse

Phase 1 of MCO 3.0 extended

The FBM KLCI moved a tad high alongside the uptrend move in the regional markets on the back of bargain hunting after the key index closing at the year’s low in its previous session. The lower liners and broader market which were traded in a negative bias tone suggesting that investors are still cautious. The local bourse may see another round of pullback following the extension of the MCO3.0 as Covid-19 cases remained above the 4k mark. Meanwhile, investors may look ahead to the announcement of assistance schemes from the government, as well as the OPEC meeting scheduled for 1st July 2021.
market pulse

Dour trend may persist

The unabated Covid-19 spread in the country which may lead to further pressure on the economy, coupled with the concerns over the revised nation’s growth projection by World Bank have sent the FBM KLCI lower. Following a heavy selldown, we might anticipate bargain hunting activities to emerge on the local bourse. On a side note, the government has approved the licence and incentives for Risen Energy Co Ltd to manufacture solar cells and solar modules in Malaysia amounting to RM42.2bn, which would make Malaysia an integrated production hub for solar products.
market pulse

Hovering near support

The FBM KLCI failed to extend its gains amid pervasive negative sentiment and weak buying interest, bucking the regional uptrend. With the World Bank cutting Malaysia’s 2021 GDP growth projection amid slower-than-expected economic recovery, the sideways trade is likely to persist without a fresh catalyst under the current economic and public health crisis. Investors may also look at the US's 1Q21 GDP growth rate, while Bank of England’s interest rate decision, which will be releasing tonight. Commodities wise, the oil price has risen above the USD 75 per barrel level.
market pulse

Muted rebound

Mirroring the overnight performance on Wall Street, the FBM KLCI posted mild gains as bargain hunting activities emerged after a heavy selldown in the previous session. With the continuation of the rebound on US stock markets, coupled with the improvement in vaccination rate in Malaysia, we expect buying interest may spillover to stocks on the local front. Meanwhile, the non-ferrous metal prices remained under pressure due to the overall surplus market condition, while the CPO price saw a decline.
market pulse

Bargain hunting may take shape

The FBM KLCI surrendered its gains amid hawkish comments from the Feds, alongside its regional peers. However, with the strong rebound overnight on Wall Street, coupled with the gradual subsiding in Covid-19 daily cases, bargain hunting may lift the sentiment on the local bourse. Also, we believe market participants should focus on recovery theme stocks given the vaccination rate is improving in Malaysia. Meanwhile, the oil price climbed near the USD75 on the back of weaker USD; while the CPO price continued its downtrend move.
market pulse

Striding high, but volatility still a feature

The FBM KLCI snapped the three consecutive sessions of losses on the back of bargain hunting activities after recent selldown, bucking the downtrend in the regional markets. Investors may continue to stay defensive amid the ongoing battle of the Covid-19 health pandemic and the recent political developments, but the downside risks may be cushioned by the rising daily vaccination rate as the government target to achieve 80% herd immunity by the third quarter of this year. Meanwhile, the constituents changes following the semi-annual review of the FTSE Bursa Malaysia Index Series will be taking effect today.
market pulse

Quadruple witching

Taking cues from most of the regional markets, the FBM KLCI was firmly lower in the negative territory after the US Federal Reserve brought forward its outlook for the interest rate hike. The market may continue to trade sideways to negative bias tone with mild bargain hunting activities as investors mulled on the four-phase National Recovery plan. However, we believe the positive performance on Nasdaq may spillover to tech stocks on the local front. Commodities wise, oil price slipped as the USD strengthened, while the CPO price extended its losses.
market pulse

Cautiousness prevails

The FBM KLCI sank into the negative territory as investors were concern on the outcome of the FOMC meeting. Despite the tepid sentiment, downside risks on the local bourse might be capped by declining Covid-19 cases trend, coupled the acceleration in vaccination rate following the implementation of Public-Private Partnership Industrial Covid-19 Immunisation Programme (PIKAS) yesterday. Meanwhile, selected commodities prices dropped following China’s announcement on its campaign to control raw material prices by expanding its oversight of commodities trading and pledging to release the nation’s reserves of base metals.
market pulse

Marking time

The FBM KLCI finished a see-saw session mildly lower after bargain hunting activities emerged in the previous session as market sentiment remained cautious prior to the National Recovery Plan announcement. We expect the projection that Malaysia might gradually open up the economy by September according to the announcement, coupled with the accelerating daily vaccination rate in the country to lift the market sentiment on the local front. Commodities wise, the CPO price rebounded after a sixth-session decline, while the Brent oil price stayed firmly above USD73.
market pulse

Signs of bargain hunting

Mirroring the overnight gains at Wall Street and advances in regional markets, the FBM KLCI recouped losses from previous sessions as the key index witnessed signs of bargain hunting after recent selldown. There might be some portfolio rebalancing activities by index-linked funds towards the end of the week before the June semi-annual review of the FBM Index Series taking effect after coming Friday. Commodities wise, the CPO price has seen a pullback in line with the weakness in soybean oil as well as concerns over higher production and stock level, while Brent oil steadied above USD70 at this juncture.
market pulse

Extension of FMCO

The FBM KLCI retreated for the third straight session amid mixed regional sentiment as the key index succumbed to the extended profit taking activities. We reckon that sentiment to remain tilted towards the downside following the extension of Full Movement Control Order (FMCO) until 28th June 2021 as new daily Covid-19 cases stayed above the 5,000 level. Meanwhile, investors may focus on the upcoming Federal Open Market Committee (FOMC) meeting, as well as the daily number of vaccination doses administered in the country. Commodities wise, the CPO price may see some buying interest following recent pullback.
market pulse

Prolonged consolidation

The FBM KLCI closed marginally lower on the back of weaker sentiment amid some developments in the political scene. Despite a leap in the US inflation, Wall Street ended slightly higher as investors viewed the spike in consumer prices as a temporary effect of industries reopening following the lockdown. We reckon the positive sentiment on Wall Street, coupled with the climbing vaccination rate in the country should move the local stocks higher. Meanwhile, the oil price continued to stay above USD72.
market pulse

Drifting sideways again

The FBM KLCI reversed its gains from the previous session as the key index languished in the negative territory on profit taking, mirroring the regional declines. However, we believe investors’ sentiment may turn mildly positive following the government’s announcement to commence the dispensing of vaccines to critical economic sectors under phase four of the National Covid-19 Immunisation Programme, targeting to increase the vaccination rate. Commodities wise, the CPO price extended its losses, while the crude oil price remained flat around USD72.
market pulse

Tipping higher

Gains on the FBM KLCI was encouraged by the reducing Covid-19 transmission, coupled with the strong performance delivered by the Employees’ Provident Fund that saw gross investment income grew 58.6% YoY to RM19.29bn in 1Q21. We reckon that further upsides are in the cards, premised to the progressive step up in vaccination efforts, while investors may keep an eye on the unemployment rate data that demonstrate sequential improvements since January 2021. Meanwhile, the crude oil prices advanced, but the crude palm oil prices retreated.
market pulse

Back into consolidation

The FBM KLCI finished lower, dragged by pervasive selldown in glove stocks as healthcare weightage in the FBM KLCI declined after SUPERMAX was deleted from the key index, coupled with the ongoing vaccination programme. Tracking the sideways tone on Wall Street, investors may stay sidelines while monitoring Malaysia’s industrial production index to be released on Friday, and European Central Bank’s interest rate decision on Thursday. Also, we might expect the sentiment to stay weak on technology stocks as Joe Biden expands the list of Chinese companies banned from US investment. Commodities wise, both CPO and Brent oil prices are seeing mild pullback.
market pulse

Profit taking looms

The FBM KLCI snapped a two-day gain over the rising Covid-19 cases. Meanwhile, selldown was noticed in gloves and vaccine-related stocks, pulling the health care index down. Tracking the negative tone from the US stock markets, we expect the local exchange to trade sideways with the lack of fresh catalyst in the market. On a side note, MRDIY will be replacing SUPERMX in FBM KLCI following the FTSE semi-annual review. Commodities wise, we expect mild pullback on crude palm oil (tracking the soy bean futures movement), while crude oil has firmly stood above USD70 for now.
market pulse

1,600 within reach

The FBM KLCI climbed for the second session as market sentiment was aided by the higher CPO and Brent oil prices on the back of OPEC+ decision to gradually restore supply to the market amid stronger demand in view of the Covid-19 recovery. The CPO price surged more than 5.0%, while the Brent oil price stayed firmer above USD70 per barrel. Despite the rising Covid-19 cases, we expect the expedition of vaccination rollouts and FMCO should eventually translate to market players focusing in recovery theme at least for the near term.
market pulse

Inching higher

The FBM KLCI staged a mild rebound on the first day of full lockdown as investors were anticipating that the vaccination drive could boost the appetite for recovery theme stocks, restoring some optimism in selected heavyweights. Meanwhile, traders may be rotate into technology stocks as we believe the consolidation phase might be at the tail-end after stabilising over the past two weeks. Commodities wise, the CPO price extended its losses, but the oil price crossed above the USD70 level.
market pulse

PEMERKASA+ stimulus booster

Bucking the trend in most regional markets, the FBM KLCI kicked off the week on a dour note as market sentiment was dampened by the imposition of full lockdown nationwide amid spiking Covid-19 confirmed cases. However, we believe market sentiment might be lifted by the PEMERKASA+ stimulus package that was unveiled yesterday prior to the full lockdown. Meanwhile, investors may see buying interest in essential sectors that are able to operate during the lockdown. Commodities wise, the CPO price fell below RM4,000 level, while the oil price climbed above USD 69.
market pulse

Full lockdown imposed

The FBM KLCI closed marginally higher after erasing all its intraday losses last Friday despite the gains in TM and selected index-linked banking stocks, marking its fourth straight session of gains. However, the local stocks may face selling pressure today following the National Security Council’s (MKN) decision to implement a total lockdown nationwide from 1st June 2021 on the back of spiking Covid-19 cases. Meanwhile, the CPO price climbed above RM4,000 while the oil price is hovering around USD68-69 level.
market pulse

Buoyed by heavyweights’ solid earnings

The FBM KLCI climbed for the third straight session, following the final hour buying particularly in the index-linked banking and telecommunication companies. Market sentiment may turn positive as the recovery theme is gaining traction following their release of growing earnings in selected corporates this reporting season. Moreover, the ongoing Covid-19 vaccination programme should support the economic recovery moving forward and investors should shift from pandemic beneficiaries to reopening of economic activities theme. Commodities wise, CPO staged a pullback while the oil price rose above USD 69.
market pulse

On higher ground

The FBM KLCI finished higher on Tuesday after a volatile session, boosted by late bargain hunting following recent selldown, coupled with the firmer crude oil prices. Market sentiment is likely to remain weak as Malaysia’s Covid-19 cases continued to increase as of this juncture, while vaccine rollout schedule is having slight delay. However, as the market sentiment has stabilised in the global context amid the easing concerns over interest rate prospects, traders may re-look into growth companies.
market pulse

Change in sentiment

The FBM KLCI snapped three-session losing streak as investors cheered the government’s decision to mandate a tighter Movement Control Order (MCO) instead of a full lockdown in the country. Although investors started to accumulate oversold stocks yesterday, we expect profit taking activities may emerge ahead of the Wesak holiday tomorrow. Commodities wise, the CPO continued in the pullback formation, while Brent oil price marched higher above USD68.
market pulse

Volatility remains a feature

The FBM KLCI finished lower for the third straight session as investors’ sentiment remains tilted to the downside amid record high Covid-19 confirmed cases. With the enhanced movement control order (EMCO) being implemented in wider areas in the country, we expect weaker trading sentiment for this week (do note that market will be closed for Wesak Day on Wednesday). Meanwhile, the selldown in technology stocks may continue following overnight declines in Nasdaq. Investors may focus on high earning certainties stocks amid reporting season.
market pulse

On the mend

The FBM KLCI extended losses for the second session as persistent fears over stricter lockdown offset the optimism over the ongoing vaccination programme, given the Covid-19 daily confirmed cases continued to stay above the 6,000 level. Mild bargain hunting may emerge, but market sentiment may remain cautious as investors will monitor the decision on a full MCO at National Security Council (NSC) meeting today. Commodities wise, both the CPO and oil prices staged a pullback following the recent rally.
market pulse

Beset by rising Covid-19 cases

The FBM KLCI succumbed to selling pressure as the Covid-19 daily confirmed cases jumped to all-time-high in the country. The ongoing pandemic, however, benefited the healthcare sector. Despite concerns over possible stricter lockdown in Selangor that could dampen the market sentiment, we expect mild bargain hunting activities to emerge following yesterday’s strong selldown. Meanwhile, buoyant crude palm oil prices have benefited companies’ performance in the plantation sector.
market pulse

Looking at 1,600 again

The FBM KLCI tracked regional uptrend to close at intraday high on bargain hunting following the selldown on broader market in the previous session, as well as the global commodities rally. CPO price surged close to 5.0% to end above RM4,450 in tandem with the rise in soybean oil on estimation of weaker output in Malaysia. Nevertheless, the commodities-fuelled rally may consolidate over the near term if concerns over stricter lockdown persist amid high Covid-19 infection rate in the country.
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