Follow Us For The Latest Updates

Follow Us For The Latest Updates

market pulse

Neutral tone ahead of festive break

The FBM KLCI settled lower in tandem with the regional peers as market sentiment was dampened by nationwide expansion of MCO. Taking cues from the negative Wall Street overnight performance, we expect lacklustre trade on the local bourse ahead of the Aidilfitri holiday. However, we believe bargain hunting activities may emerge within the energy sector as Brent oil price gained momentum due to the lingering fears of gasoline shortage as North America’s biggest petroleum pipeline was affected for days following the cyberattack.
market pulse

Muted sentiment

The FBM KLCI retreated yesterday after a two-session gain as investors stayed cautious sidelines of the release of Malaysia's 1Q21 GDP data today as well as trading activities were softer on the holiday-shortened trading week. Tracking the weakness from the Wall Street overnight, we expect market sentiment to remain weak following the announcement regarding the expansion of MCO 3.0 to the whole country starting from Wednesday. Meanwhile, the CPO future price contracted after registering a hefty rally recently.
market pulse

1Q21 GDP in focus

The FBM KLCI finished the Friday’s session on a positive note on the back of bargain hunting activities in glove and plantation heavyweights. However, market sentiment may remain cautious throughout the holiday-shortened trading week while focusing on Malaysia’s 1Q2021 GDP growth rate, which might still be weak on the back of Covid-19 affected environment. Nevertheless, traders may focus on commodities that are on a rising tone such as CPO, which has jumped more than 5.0% last week as well as Brent oil price that has a slight uptick as of this juncture.
market pulse

Spurred by bargain hunting

The FBM KLCI closed with modest gains after paring the morning session losses, but gains were capped by the weakness in index-linked glove counters amid softer glove ASP expectation and market talks over windfall tax on glove companies. Meanwhile, Bank Negara Malaysia (BNM) kept the OPR unchanged at 1.75% and this may suggest that Malaysia’s economic outlook may be neutral to upward bias despite the resurgence of Covid-19 cases as well as the implementation MCO3.0. In the US, however, jobless claims fell more than forecast as market condition improved following the economy reopen. Commodities wise, the copper price rose above USD10,000 while the CPO price surged above RM4,200.
market pulse

Bank Negara’s OPR decision in focus

The FBM KLCI declined for the fourth consecutive session due to persistent selling pressure from the foreigners and the broader market may further consolidate as concerns over the expansion of MCO 3.0 to several districts in Johor, Perak and Terengganu, which may dampen the buying interest today. Investors will keep an eye on the overnight policy rate (OPR) announcement by Bank Negara Malaysia (BNM). On a side note, the government has launched a RM3.5bn Jaringan Prihatin stimulus package to subsidise data plan subscriptions and mobile device purchases. Commodities wise, oil prices have been rising, boosted by higher fuel demand amid easing of lockdowns in the US and parts of Europe during summer.
market pulse

No reprieve yet

The FBM KLCI posted losses for the third consecutive session as upward momentum on glove heavyweights has waned quickly on profit taking in the afternoon session. Tracking the negative performance on overnight Dow, our local exchange is expected to remain subdued on the back of rising Covid-19 cases which led to a tighter MCO implementation on six districts in Selangor. Meanwhile, the technology sector may see further pullback following the overnight decline of Nasdaq in Wall Street. On commodities, Brent oil price has seen a spike near to 2-month high on the back of demand optimism, while lumber futures charged towards all-time-high region.
market pulse

Dour trend persists

The FBM KLCI stayed on a downbeat note despite solid expansion of Malaysia’s PMI in April as the key index succumbed to selling in most index components, led by PETDAG and glove heavyweights. The key index is likely to trade in consolidation over the near term as investors’ are still cautious switching among recovery and healthcare-related stocks. Commodities wise, the CPO price jumped around 5.0% to close above the RM4,000 level, while tin futures are at another record high position. On a side note, according to Intel’s CEO, the global chip shortages situation may not resolve anytime soon.
market pulse

Struggling above 1,600

In tandem with regional weakness, the FBM KLCI ended the week lower with persistent selling in technology counters on the broader market. Investors are likely to stay cautious as Covid-19 daily confirmed cases remained elevated and may keep an eye on Malaysia's Markit Manufacturing PMI that will be released today and the Bank Negara Malaysia’s interest rate decision on Thursday. Commodities wise, both the CPO and Brent oil prices have seen a decline. In the US, growth momentum is building in line with higher estimated payrolls and lower unemployment in April on the back of climbing vaccination rate.
market pulse

Hovering around 1,600

After recouping all the intraday losses, the FBM KLCI closed with marginal gains of 0.1% and remained above 1,600 psychological level. Meanwhile, we expect the glove heavyweights to resume its rebound move over the near term given the rising Covid-19 infections globally. On the commodities wise, the CPO price staged a pullback after recent rallies, while the oil price climbed above USD68.
market pulse

Back into consolidation

The FBM KLCI staged a pullback partly dragged by profit taking activities in glove heavyweights following the recent rebound. We expect investors to remain on tenterhooks and focus on sectors with high earning certainties with the interstate travel ban remaining in force while stricter Covid-19 curbs were implemented in more parts of the country. Commodities wise, the CPO price has seen a surge on the back of gains in soybean oil, while Brent oil price has seen a mild spike. Meanwhile, a 10-year O&G services blueprint was launched to push export and R&D.
market pulse

Momentum building up

The FBM KLCI extended gains for the third consecutive session, partly powered by the persistent buying interest in glove counters on the back of surging Covid-19 infections in several countries such as India and Brazil. Nevertheless, the upward momentum in glove stocks may be waning once the Covid-19 cases, coupled with the ongoing vaccination programme. Meanwhile, we believe market sentiment may remain cautious ahead of any potential lockdown announcement in the near future.
market pulse

Rising Covid-19 cases kept gains in check

The FBM KLCI finished the week on a flat note amid tepid market sentiment, but the key index was supported by buying interest in glove counters over the past week. We opine the key index may continue to trend sideways in the holiday-shortened week without significant catalyst in the market. The market may focus on the US’s Federal Reserve interest rates decision to gauge their investing direction. Trading interest may remain robust on small cap and lower liners.
market pulse

Dampened by rising Covid-19 cases

The FBM KLCI mirrored the regional weakness to dip below the 1,600 level, but the glove counters finished in the positive region following the release of Kossan’s remarkable results, bucking the market downtrend. However, the sector may see some pullback due to concerns over glove’s ASP on the back of the ongoing Covid-19 vaccination programme. Meanwhile, the CPO prices continue to hover near the RM4,000 level, but positive impact was not reflected on the plantation counters. Tracking the overnight gains on Wall Street, the local bourse may see some mild rebound.
market pulse

Still in consolidation

The FBM KLCI bucked regional downtrend to close higher on the back of bargain hunting activities in selected beaten-down stocks. Although market sentiment may remain tepid tracking the overnight losses on Wall Street, the local bourse may be supported by buying interest in high earning certainty stocks ahead of the earnings season. Meanwhile, the CPO price has seen a surge back above RM3,800/MT following a mild pullback in the previous session.
market pulse

Re-visiting 1,600

The FBM KLCI closed lower as market sentiment remained cautious despite the roll-out of the second phase of Covid-19 vaccination. We expect the local bourse to continue its sideways movement on the back of market concerns over inoculation rate coupled with the daily Covid-19 confirmed cases staying above the 2,000 level for the fifth consecutive day. Meanwhile, the technology sector has seen a surge after the announcement regarding Microsoft partnership under the US$1.0bn Bersama Malaysia initiative.
market pulse

Recovery in progress

The FBM KLCI finished marginally higher last week on the back of persistent buying support in glove counters despite weak market sentiment on the broader market. Investors’ interest returned to the glove stocks as concerns loomed over the possible new wave of Covid-19 cases. We expect the local bourse to extend its sideways move as investors may weigh the progress of the vaccination programme and the recent spike in the number of daily Covid-19 confirmed cases which will be detrimental to the economy. Meanwhile, the CPO price has seen a surge back above RM3,700/MT.
market pulse

Momentum build-up

Market update: The FBM KLCI marched higher to brush off the negative sentiment on the broader market, powered by the buying interest in glove counters as global Covid-19 cases ticked higher. Although the key index may trend higher in line with overnight gains in Wall Street, concerns over a possible fourth wave to hit the country may continue to dampen investors’ sentiment with the daily Covid-19 confirmed cases breaching the 2,000 mark yesterday. Commodities wise, both the CPO and oil prices climbed with the latter marking its fourth straight winning streak.
market pulse

Finding a footing

The FBM KLCI finished on a flattish note as buying interest interspersed with profit-taking activities on selected heavyweights. With Covid-19 infections in the country showing an upward trend, overall market sentiment may remain jittery. Despite that, the surged in crude oil prices amid the optimism about returning demand after the Covid-19 lockdowns may provide some alleviation, particularly to the oil & gas players.
market pulse

Back below 1,600

Again, the extended selling pressure dragged the FBM KLCI below the critical 1,600 level amid the cautious market sentiment as Covid-19 cases remained obstinately high. We believe local bourse may continue to trade sideways with negative-bias mode in view of the lack of fresh catalyst. In the US, the Nasdaq outperformed other major indexes with more than 1% gains. Commodities wise, the CPO price may continue to face downside pressure as inventory level continues to build-up.
market pulse

Profit taking looms

In tandem with the regional weakness, the FBM KLCI staged a pullback after a three-session climb as profit taking on telecommunication and selected heavyweights weighed. Amidst the lack of fresh catalyst, the local bourse may stage a further pullback, but the weakness may be cushioned by technical rebound. The unstable number of Covid-19 daily confirmed cases has resulted in the extension of CMCO and RMCO in several states may also impact on the smoother economic recovery. Commodities wise, the CPO price slipped below RM3,700/MT.
market pulse

Still on the ascend

The FBM KLCI locked in third consecutive gains last Friday, as focus was shifted from glove counters to the telecommunication sector following Celcom-DiGi merger talks. Tracking the overnight improvement on Wall Street, the local bourse may trend on a slightly positive tone after hovering firmer above the critical 1,600 level. However, we believe the market sentiment will remain choppy amid rising Covid-19 cases (albeit the ongoing vaccine rollout plan for Covid-19), coupled with the development regarding the new wave of Covid-19 outbreak in some countries and Europe and Asia.
market pulse

Defending 1,600

The FBM KLCI posted mild gains yesterday as investors piled into glove heavyweights with the narrative of potential surge in demand for gloves amid the recent waves of Covid-19 outbreak in Europe and parts of Asia. Tracking the overnight gains on Wall Street, Nasdaq especially, we expect the positive sentiment to spill over to technology stocks on the local front. Commodities wise, the CPO prices saw a modest decline while the Brent oil price edged higher.
market pulse

Back above 1,600

The FBM KLCI snapped the two-day losing streak and buying interest pushed the key index to close above the 1,600 psychological level. We believe the foreign buying support yesterday may continue to lift the FBM KLCI members in the near term. Given the higher oil prices resulting from the recovery of global economy, coupled with the smooth on-going Covid-19 vaccination, it should bring some optimism to the market. Meanwhile, the crude palm oil price has rebounded again above the RM3,800 level.
market pulse

Dour trend to persist

The FBM KLCI extended its losses for the second straight session after Sri Lanka banned imports of palm oil. However, we expect bargain hunting to emerge in the near term amid higher crude palm oil price. Nevertheless, taking cues from the overnight Wall Street, we expect the sentiment to remain on the sidelines without any significant market leads and the FBM KLCI may continue to trend sideways. On a side note, the use of e-wallet payment method may pick up at farmer and public markets soon following the Retail Digitalisation Initiative (ReDI) framework being implemented.
market pulse

Still sideways

The FBM KLCI struggled to sustain its gains during the first trading hour as the key index succumbed to profit taking led by gloves counters and selected banking heavyweights. On the broader market, we believe the MRT3 project, coupled with the reversion of ECRL to the original alignment may continue to serve as an upside catalyst for the construction sector. Meanwhile, the Covid-19 vaccination phase 2 programme is set to begin on 19th April 2021 in eight states. On the Brent crude oil, it has fallen 3.7% overnight.
market pulse

Tip-toeing higher

The FBM KLCI finished the week on a softer note after a sharp sell down last Wednesday and we expect the market to remain on the cautious tone. However, we opine that investors are likely to remain optimistic on the technology stocks given the positive close last week on Wall Street. As some of the global markets are still off for public holiday, we expect the trading activities may tone down for the day and the FBM KLCI should hover below 1,600 psychological level for the time being.
market pulse

Broad-base recovery

The FBM KLCI rebounded after a heavy selldown in the prior session, supported by bargain hunting as investors took cue from the regional gains and the 8-month high IHS Malaysia Manufacturing PMI in March 2020. Tracking the overnight improvement at Wall Street, we expect the local bourse may extend the rebound formation, especially in the technology stocks, mirroring the gains in Nasdaq. Commodities wise, both crude palm oil price and oil price have seen a strong surge of more than 3.0%.
market pulse

Bargain hunting may emerge

The FBM KLCI tumbled over 2.2% as investment jitters mounted over US bond yields surge and political uncertainties on the local front; the healthcare sector took the biggest downfall on continued selling in glove counters. However, we think the FBM KLCI is steeply oversold, bargain hunting may emerge over the near term tracking Wall Street overnight gains on technology stocks. We believe the broader market may recover, but we expect the rebound to be short lived and traders may adopt selling into strength strategy. Meanwhile, the CPO price rose on solid exports data for March 2021.
market pulse

Keeping gains in check

The FBM KLCI closed with modest losses as the key index succumbed to the selldown in index-linked glove counters. Tracking the negative performance on the Wall Street overnight, we expect the FBM KLCI and the broader to trend sideways at least for the near term. Meanwhile, oil prices declined as investors looked beyond the Suez Canal incident and traded cautiously prior to the upcoming OPEC+ meeting. However, we noticed that the media is reporting on the chip crunch situation amid the US-China tensions, this might see some trading interest within the technology stocks going forward.
market pulse

Gaining traction

Mirroring the regional positive performance, the FBM KLCI extended last Friday’s gains as market sentiment was lifted by higher YoY trade surplus data announced yesterday. Meanwhile, Malaysia will retain its membership in FTSE World Government Bond Index. With Malaysia's Covid-19 daily confirmed cases falling below 1,000, the lowest since December 2020, we believe the local bourse is generally on an uptrend move, barring any unpredicted political developments. Commodities wise, the CPO price has seen some improvement following three days of pullback.
market pulse

Back above 1,600

In line with the regional market improvements, the final-hour buying pushed the FBM KLCI into positive territory. The local market sentiment may extend its positive move on Wall Street last Friday, but the continued political developments may cap the upside potential on the local bourse. Meanwhile, oil price may see improvement amid concerns over Suez Canal blockage which may potentially lead to some supply disruptions. Moreover, market players may focus on shipping rates in the near term.
market pulse

Prolonged muted trading

The FBM KLCI surrendered its early gains yesterday weighed by the losses in index-linked plantation counters, while technology stocks went lower as investors took cue from the sell down in Chinese technology stocks. As trading volume and value has declined over the past 3 days, we expect the local bourse to trade in a consolidation mode as market sentiment remained cautious due to the absence of fresh catalysts amid lower oil and CPO price. Given the subdued trading interest on the market, traders will be selective in looking out for trading opportunities.
market pulse

Signs of bargain hunting

The FBM KLCI managed to stage a recovery, despite the weaker-than-expected inflation data, but we remain cautious on the possible extended gains, given the prevailing uncertainties, coupled with the lack of fresh leads. Nevertheless, we think that the bargain hunting activities may emerge on selected beaten down stocks as investors’ risk appetite remains strong within the equities market (as defined by the surge in the recent oversubscription rates of IPO). Meanwhile, the rebound in crude oil prices may provide further alleviation to the market sentiment.
market pulse

Back below 1,600

The FBM KLCI extended its losing streak for the third straight session, despite the earlier positive momentum on Wall Street. Although bargain hunting may emerge in certain bashed-down stocks, but we believe the upside may be capped in the near term as investors may trade in a cautious mode given the overnight losses at Wall Street amid concerns over US bond yield, weaker oil price and intensifying Covid-19 cases in Europe. Meanwhile, the CPO price has continued its uptrend move.
market pulse

Mild Reprieve

The FBM KLCI retreated for the second session in line with the regional weakness. Mirroring overnight gains on Wall Street, Nasdaq in particular, we reckon there will be some bargain hunting activities emerging on the local bourse despite cautious market sentiment amid continued political developments. Commodities wise, Brent oil price remain sideways while crude palm oil price surged. On a side note, another batch of Sinovac Covid-19 vaccine arrived yesterday in the country.
market pulse

Still sideways

The FBM KLCI finished the week mildly lower in line with the regional weakness last week and tracking the mixed sentiment on Wall Street overnight, we expect the local bourse to trade in a cautious mode as investors will monitor the status of the US bond yield, as well as the emergence of geopolitical tensions after North Korea cut off diplomatic ties with Malaysia. However, we expect recovery theme should remain intact at least for the near term. On CPO, we expect to see some rebound on following the recent pullback.
market pulse

Profit taking may set in

The FBM KLCI climbed higher driven by the index-linked recovery-theme stocks market optimism over economic recovery following PM’s announcement on the “Pemerkasa” economic stimulus package. However, we believe the overnight declines on Nasdaq may spillover to the broader market and tech sector today. Meanwhile, on the Brent oil and crude palm oil price, both have performed a significant pullback, after hitting their respective peaks, which may set a negative tone for the energy sector as well.
market pulse

Pemerkasa stimulus booster

The FBM KLCI extended mild gains for the third session driven by buying interest prior to PM’s announcement of another stimulus package – “Pemerkasa”. The RM20bn economic stimulus package includes several programmes such as an increase in micro credit financing and the extension of wage subsidy, which we believe will strengthen the economic recovery and market sentiment moving forward. Meanwhile, the government intends to implement a more targeted approach in combating the Covid-19 pandemic to replace the MCO nationwide or in a state.
market pulse

Consolidation beckons

The FBM KLCI finished higher yesterday as the key index tracked overnight gains on Wall Street despite weaker oil price and crude palm oil prices. Meanwhile, we believe the year-to-date low Covid-19 daily confirmed cases recorded yesterday may continue to drive market sentiment on the positive tone, but the upside may be capped by the overnight Wall Street mixed sentiment. Commodity wise, the Brent crude oil has seen a decline on renewed demand concerns due to the new wave of Covid-19 cases in Europe, while the crude palm oil dropped on market expectation on production improvement.
market pulse

Marching on

In line with most regional peers, the FBM KLCI started off the week on a positive tone on bargain hunting activities following the two-session pullback last week. With the arrival of another batch of Pfizer-BioNTech and Sinovac vaccines yesterday, we believe the key index should be trending higher amid expectation on brighter economic outlook as well as firmer crude palm oil and Brent oil prices. Also, tracking the rebound in Nasdaq, we expect some minor rebound in technology counters today.
market pulse

Bargain hunting may emerge

The FBM KLCI extended its losses amid profit taking activities prior to the weekend following the mixed performance in the regional markets. Although the Wall Street was traded higher overnight, we expect the market sentiment on the local bourse to remain cautious ahead of the upcoming US Federal Reserve (Fed) Meeting where the Fed will deliver its decision on interest rate. Meanwhile, the technology sector may see a mild pullback after its four-day rallies, mirroring the overnight losses on Nasdaq overnight. For commodities, crude palm oil has hit multi-year highs, while crude oil is hovering near USD70.
market pulse

Sentiment still strong

The FBM KLCI took a breather following its rally since last Friday, mainly dragged by the losses in NESTLE, Petronas-related counters and telecommunication heavyweights. Tracking the gains on Wall Street overnight after the US President Joe Biden signing the Covid-19 relief bill, we expect the local bourse to see some rebound amid growing optimism in the market, especially after a bash down in technology stocks recently. Meanwhile, we believe the lower liners should continue to move higher at this juncture. Commodities wise, the CPO price has climbed above the RM4,000 per tonne level, recorded at RM4,060.
market pulse

Striding higher

Taking cues from the overnight rally on Wall Street, where the Dow made a record closing, we believe the buying interest may pick up on the local front and the FBM KLCI may extend its gains today. Also, as the daily Covid-19 confirmed cases continues to dip below the 2,000 mark, market players are likely to favour on the reopening of business activities moving forward; we believe the domestic travel will kick start the tourism economy as of this juncture. However, the technology sector may see mild consolidation phase as Nasdaq took another round of breather. On commodities, the CPO has climbed higher to RM3,974 per tonne level, while the Brent oil price has seen some mild rebound.
market pulse

Still on the ascend

As the economic recovery is taking shape following the declining of Covid-19 cases, the FBM KLCI continued its upward march; the key index is hovering steadily above the 1,600 psychological level. Meanwhile, tracking the strong rebound in tech heavyweights on Wall Street, we expect bargain hunting activities to emerge on the local technology stocks, which have been hammered down over the past week. Also, the CPO price has been trading firmer near the RM4,000 level.
market pulse

Profit taking looms

The FBM KLCI extended its winning streak and outperformed its regional peers as recovery play gained strength, offsetting the losses in glove heavyweights. The shift in investors’ interest to recovery play stocks, coupled with the selldown on Wall Street may continue to weigh on the technology sector. Commodity wise, the CPO price has surged near its 10-year high around RM3,963 per tonne level. Meanwhile, investors may look forward to Malaysia's unemployment rate today. At this moment, we believe the key index should hold above the 1,600 level.
market pulse

Back above 1,600

Last Friday, the FBM KLCI bucked the losses on Wall Street and surged above the 1,600 psychological level; the continued buying interest in banking heavyweights after BNM’s decision to remain the OPR, coupled with the gains in energy stocks spurred the key index rally. We reckon the positive momentum of the key index to continue as the rallies in the banking sector may indicate market’s hope for economic recovery. Meanwhile, the Brent oil price continued seeing its uptrend after OPEC and its allies decided to keep production steady through April.
market pulse

Still within consolidation mode

The FBM KLCI settled in red in tandem with the regional peers as selling pressure in the glove stocks returned, offsetting the gains on the banking heavyweights following the unchanged Overnight Policy Rate (OPR) by Bank Negara Malaysia. Tracking the losses on Wall Street overnight, we expect the local bourse may continue to consolidate further as market players are likely to trade on a cautious tone on the broader market. Nevertheless, we expect traders to position themselves for the recovery theme as Covid-19 vaccination is taking place. Meanwhile, the Brent oil price has surged firmly above USD65.
market pulse

Bank Negara’s OPR in focus

Bargain hunting activities emerged on the glove counters after more than one week of pullback, lifting the FBM KLCI and the healthcare sector higher. Market will be looking forward to the second Monetary Policy Committee meeting today to gauge market movements. However, economists anticipate an unchanged stance on the Overnight Policy Rate (OPR) amid expectation of an economic recovery. We believe the lower liners will continue to remain upbeat if the positive market sentiment persists. Meanwhile, the Brent oil price has seen a rebound.
market pulse

Streched valuations

Bucking the downturn across the regional markets, the FBM KLCI ended modestly higher as continued selling in glove heavyweights were offset by buying support in IHH and selected banking heavyweights. We believe the local bourse should trade in an upward bias tone following the change of MCO status for Selangor, Johor, Penang and KL. Meanwhile, the number of Covid-19 confirmed cases daily has dropped to year-to-date low. However, note that the negative sentiment on Wall Street overnight could cap the upside potential on the local front.
market pulse

Rebound in sight

The FBM KLCI ended the first trading session of March in red amid continued selling pressure in glove heavyweights following further developments on Covid-19 vaccine. Although the arrival of the Covid-19 vaccine has dented the sentiment on healthcare sector, the local bourse was supported by the positive sentiment on the recovery-theme sectors. Meanwhile, we also expect 5G and tech stocks to trade firmer following overnight Nasdaq performance.
market-pulse-m-online