Market Pulse | M+ Online

Market Pulse

Market Pulse ·

Still eyeing 1,600

The FBM KLCI took a breather following a seven-day winning streak, as the key index retreated from the 1,600 psychological level on the back of profit taking activities. However, tracking the strong gains from Wall Street overnight, we expect local equities to gain momentum and investors could focus on the upcoming Budget 2022 beneficiaries, which we anticipate some goodies to be revealed for construction, telecommunication, and solar sectors. Commodities wise, the CPO price declined after a surge in the previous session, while the crude oil price rebounded above the USD84 per barrel mark.

15/10/2021 8:01 AM·

Market Pulse ·

Spurred by foreign buying

The FBM KLCI closed above the 1,600 psychological level amid persistent buying from foreign funds over the past week and sentiment remained positive on the back of the discussion of international borders reopening going forward. The recovery theme sectors such as construction, building material and financial services sectors saw substantial gains and may remain under the limelight in the near term ahead of Budget 2022. Meanwhile, the plantation counters are gaining traction amid a jump in CPO price; the CPO price has rebounded and surged by 3.4% to close above the RM5,000 level.

14/10/2021 8:22 AM·

Market Pulse ·

Still on the ascend

Bucking the regional markets, the FBM KLCI extended its winning streak for the sixth session, buoyed by persistent buying interest in index-linked banking and telecommunication heavyweights on the back of positive sentiment in tandem with the rising foreign buying interest. Despite the overnight negative performance on Wall Street, we believe the local bourse may remain bullish over the near term and move closer to the 1,600 psychological level, supported by the reopening of economic activities as vaccination rate of adult population has achieved above 90%. Meanwhile, commodities wise, both the CPO and crude oil prices saw a pullback as inflation concerns picked up.

13/10/2021 8:21 AM·

Market Pulse ·

Stretching higher

The FBM KLCI climbed for another session, with banking stocks leading the way higher as investors’ sentiment turned more positive following the government’s announcement on interstate border reopening over the weekend. Despite the selling pressure on Wall Street, we expect the foreign funds that has continuously buying into the local equities, coupled with the firmer commodity prices in crude oil and crude palm oil will provide a healthy sentiment to the local exchange over the near term. As Malaysia is ready to enter the endemic phase, prospects of the economic recovery should persist and positive momentum could continue at least for the near term. The crude oil price was traded above USD83 per barrel mark, while the CPO price is consolidating around the all-time-high region.

12/10/2021 8:13 AM·

Market Pulse ·

Sustained buying momentum

The FBM KLCI continued to build on positive sentiment and elevated commodities prices on Friday, taking cue from buoyant regional markets. We expect the buying momentum on the local bourse to continue, backed by brighter economic prospects as the country will resume the interstate and overseas travel from today onwards after adults’ vaccination hitting 90%. Also, with the interstate travel may reboot the tourism and transportation companies specifically for the tourism segment. Meanwhile, the CPO price rallied, trading above RM4,950 level while the crude oil price stood above USD82 per barrel mark.

11/10/2021 8:06 AM·

Market Pulse ·

Holding up well

The FBM KLCI rose for the third consecutive session as the key index raced higher into the closing bell, in tandem with regional peers that tracked the overnight Wall Street rally. The key index may continue to track the positive sentiment in Wall Street given the fading US debt ceiling worries, coupled with the interstate border reopening talks as well as the firmer crude oil price, which has rebounded and is trading above the USD81 per barrel level. Meanwhile, the CPO price saw a mild pullback. Besides, we believe traders may lookout for sector that may benefit under the Budget 2022, which will be tabled at the end of this month.

08/10/2021 8:22 AM·

Market Pulse ·

Turning the tide

The FBM KLCI jumped and closed at intraday high for the second session, lifted by the firm buying momentum in plantation stocks amid the surge in CPO price to above RM4,800. The market sentiment may remain positive-bias with both the Johor and Pahang states moving into the next phase of NRP starting from 8th of October, while vaccination rate for adult population stood at 88.4%. Commodities wise, the CPO price rallied amid tighter supply, while the copper and aluminium prices fell on demand fears. Over to the Brent crude oil, it retraced from the USD83 but still trading above the USD80 per barrel mark for now.

07/10/2021 8:18 AM·

Market Pulse ·

Rebound from support

The FBM KLCI snapped three-session losing streak to close in the positive territory, underpinned by bargain hunting activities in selected heavyweights. Tracking the rebound on Wall Street, the key index may continue to trade higher over the near term. Also, the reopening of economic activities should support the market sentiment and the recovery narrative at least for now. Commodities wise, the crude oil price stood above USD82 per barrel mark, while the crude palm oil price advanced, closing above RM4,700. Meanwhile, the Baltic Exchange Dry Index saw gains for the third straight session, rising to above 5,400.

06/10/2021 8:06 AM·

Market Pulse ·

Hovering near support

The FBM KLCI ended marginally lower, as foreign funds inflow declined for the session amid mixed regional market performances on the back of concerns over US debt ceiling crisis as well as China Evergrande’s issues. However, trading interest was noticed in recovery theme sector as recovery in sight with the adult vaccination rate hitting 88.0%, and the number of Covid-19 daily confirmed cases trending lower. Meanwhile, the crude oil price settled above USD81 per barrel mark as OPEC+ stick to its schedule of gradual monthly output increases. The CPO price stood firmer above the RM4,500 mark.

05/10/2021 8:08 AM·

Market Pulse ·

Sentiment turned murky

The FBM KLCI ended the week in the negative territory, mirroring the overnight losses in Wall Street on the back of inflation fears as well as the regional weaknesses. Entering the final quarter of 2021, investors may expect for further economic recovery as the government eyes international border reopening in December, as well as interstate travelling resume once 90% adults have been fully vaccinated (currently stood at 87.6%). Commodities wise, the crude oil price advanced while the CPO price retreated.

04/10/2021 8:33 AM·

Market Pulse ·

Sideways prolonged

On the final day of 3rd quarter, the FBM KLCI ended lower after hovering mostly in the negative territory as broad-based sentiment remained cautious amid mixed regional performances as well as concerns from the US. Given the weak sentiment from the Wall Street, we expect the consolidation phase to persist for the near term. Commodity wise, we noticed the CPO price traded above RM4,500 per tonne mark on the back of supply concerns as production normally peaks in Sept-Oct and decent prospects of rising demand under the recovery environment. Meanwhile, the Baltic Exchange Dry Index continued to hover above the 5,000 mark.

01/10/2021 8:11 AM·

Market Pulse ·

Sustained buying support

The FBM KLCI finished in the positive territory on the back of final hour buying despite cautious sentiment after World Bank revising downwards on Malaysia’s 2021 economic growth projection. Meanwhile, transportation and logistics players were under the limelight amid surging strong result posted by HARBOUR and Baltic Exchange Dry Index. Note that the index climbed near 5,000 amid ongoing shipping constraints and rising global demand. Meanwhile, the energy sector staged a pullback in tandem with declined crude oil price, but CPO rebounded and may retest the RM4,500.

30/09/2021 8:17 AM·

Market Pulse ·

Outlook still choppy

The FBM KLCI finished higher on the back of positive sentiment as investors digested the positive economic outlook in the 12th Malaysia Plan as well as powered by a rally in the energy sector after the crude oil price climbed above USD80 per barrel mark on the intraday due to improved demand amid reopening of economic activities. However, investors may remain cautious while waiting for the economic activities to return to normalcy, considering the significant pullback on Wall Street overnight. Meanwhile, the CPO price advanced near the RM4450 level.

29/09/2021 8:46 AM·

Market Pulse ·

Finding stability

The FBM KLCI rebounded from the earlier session and edged higher as investors picked up shares in midday after digesting the 12th Malaysia Plan (12MP) that highlighted economy may improve to around 4.5-5.5% and a development expenditure allocation of around RM400.0bn for 2021-2025. Several highlights under the 12MP include nationwide 5G roll-out, infrastructure project resumptions, and a greater focus on renewable energy. On a side note, the crude oil price advanced to close above the USD79 per barrel level.

28/09/2021 8:12 AM·

Market Pulse ·

Tabling of 12th Malaysia Plan

The FBM KLCI finished the volatile week in the negative territory, mirroring the weakness across China and Hong Kong stock markets amid investors’ fret over Evergrande debt concerns; the key index was mainly dragged by TENAGA and selected banking heavyweights. The local bourse may remain sideways with investors eyeing on the 12th Malaysia Plan (12MP) which will be tabled today; we noticed construction and property sectors have some trading activities prior to this event. Commodities wise, the crude oil price rose above the USD78 level, while the CPO price declined. Baltic Exchange Dry Index still hovered at its 12 years high despite a retreat on Friday.

27/09/2021 8:09 AM·

Market Pulse ·

Stability ensured

We think that there will be more immediate upsides for Malaysian equities towards the end of the week, on the back of the extended bargain hunting activities with the key index now finding stability at current levels. With further clarity on US fiscal policy direction and the calmer Chinese markets, this would help to provide some measure of stability after enduring a volatile spell over the past couple of weeks. Elsewhere, the broader market will be largely supported by rotational play with traders capitalising on the improvement in trading activities alongside with the positive market undertone.

24/09/2021 7:28 AM·

Market Pulse ·

Recovery in store

The FBM KLCI ended the day mildly negative as investors mulled the possible imposition of capital tax rate and one-off higher tax rate with windfall profits. On the broader market, shares linked to telecommunications network infrastructure soared on the JENDELA tender news, which was said to be issued within 4 weeks. We opine that the overnight gains on Wall Street, news on cross state travel to be allowed when the adult population vaccination rate reaches 90.0% coupled with government’s decision to move three more state to the next phase of NRP could lift investors’ sentiment.

23/09/2021 8:12 AM·

Market Pulse ·

Recovery still premature

The FBM KLCI bucked the overnight weakness on Wall Street, staging a rebound after seven straight declining sessions as investors indulged in bargain hunting activities, especially in the technology sector. Mild extension of the rebound might take place in selected sectors as government proposed three more destinations to be opened via domestic tourism bubble on the back of reducing active Covid-19 cases. Meanwhile, both CPO and crude oil prices increased, while the Baltic Exchange Dry Index continued to charge higher to 4,410 after reaching its all-time high since November 2009.

22/09/2021 7:59 AM·

Market Pulse ·

Mirroring regional weakness

Tracking the performance in the regional markets, the FBM KLCI registered its 7th straight session of decline as investors’ sentiment remained sour; foreign funds turned net seller for the second session (net selling of RM120.8m). Given the negative Wall Street overnight, we believe market may perform a knee jerk selling at the opening bell and bargain hunting activities may emerge once the selling pressure is overdone. In the meantime, government’s discussion on possibility of allowing interstate tourism which may be seen as a mode for gradual economic recovery might be one of the few catalysts to cushion the downside risk for the near term. Meanwhile, both the CPO and crude oil prices extended their retreat.

21/09/2021 8:05 AM·

Market Pulse ·

Dour trend still on horizon

The FBM KLCI finished the week lower last Friday, as foreign funds turned into net seller; the net selling stood at RM72.6m, snapping the 4 days of inflow by the foreign funds. However, the local bourse may see bargain hunting activities emerging on the back of declining daily Covid-19 confirmed cases, while waiting for Malaysia’s inflation rate that will be released this Friday. Meanwhile, both the CPO and crude oil price declined, while Baltic Exchange Dry Index rose to 4,275, its record high since 2009.

20/09/2021 8:11 AM·

Market Pulse ·

Cautious undertone prevails

The FBM KLCI drifted lower earlier Wednesday but rebounded to close flat on lastminute buying amid cautious market sentiment. Nevertheless, we believe bargain hunting activities should emerge with the return of foreign participation in our local stock markets on the back of our reopening of economic activities following several relaxations of SOPs under our National Recovery Plan; month-to-date foreigners have registered an inflow of RM904.6m. Commodities wise, the crude oil price hovered above USD75 per barrel, CPO price surged, while the gold price retreated.

17/09/2021 8:17 AM·

Market Pulse ·

Still downbeat

The FBM KLCI sank for a fourth consecutive session as the key index accelerated to the downside throughout the session, mainly dragged down by PMETAL and most banking heavyweights. Concerns over the possible interest rate exemption for loan moratorium repayments, coupled with the possibility of imposing windfall tax spooked the market. However, we believe market may be turning oversold soon and likely to expect bargain hunting activities to emerge. Meanwhile, both the CPO and crude oil prices extended gains, while the Baltic Dry Index (BDI) continued its uptrend movement.

15/09/2021 8:02 AM·

Market Pulse ·

Sentiment turns jittery

Tracking the overall negative regional performances, the FBM KLCI dipped for a third straight session amid sour market sentiment on heavy selling in selected heavyweights led by TOPGLOV. However, tracking the positive rebound on Wall Street, coupled with the stability in the political landscape following the MoU inked between the federal coalition and Pakatan Harapan yesterday, we believe the recent bashed down in broader market may to be cushioned out by potential bargain hunting activities at least for this week. Commodities wise, both the CPO and crude oil prices advanced, while aluminium prices continue to charge higher.

14/09/2021 7:57 AM·

Market Pulse ·

Finding a footing

The FBM KLCI extended its decline with marginal losses on Friday, after erasing most of the earlier gains and the sentiment remained mixed. Nevertheless, the local bourse continued to see buying support from foreign and retail investors on the back of brighter economic recovery prospects driven by positive developments in NRP and vaccination rate. Meanwhile, aluminium price remained elevated, surging above USD2,900 level as market digested the predictions from the Harbor Aluminum Summit attendees that supply shortage is unlikely to be alleviated in the short term. Crude oil price reversed and closed above USD72 per barrel level, while CPO dropped below RM4300.

13/09/2021 8:06 AM·

Market Pulse ·

Volatility returns

Overall, the FBM KLCI and broader market declined with the returned of selling pressure from foreign funds; it turned net sellers with a net outflow of RM63.0m, snapping 12 sessions of net buying streak. Glove counters extended their retreat amid the on-going vaccination progress. Going forward, we expect recovery theme to stay focus in the anticipation of the reopening of more economic activities, where most stocks might be oversold after being bashed down yesterday. Commodities wise, both CPO and crude oil prices dipped, while the aluminium price continued trending higher.

10/09/2021 8:07 AM·

Market Pulse ·

Bank Negara OPR in focus

The FBM KLCI was up firmly in the positive territory following a volatile session, as last-minute buying in selected heavyweights led by PMETAL (+17.0 sen) and MISC (+30.0 sen) lifted the key index. Economic recovery seems to be on track with Kuala Lumpur, and Putrajaya transitioning to Phase 2 of the NRP from Friday, and active cases dropping for the eighth consecutive day; investors might turn more optimistic going forward. Nevertheless, investors may mildly cautious ahead of the OPR decision by Bank Negara today, where BNM statement may provide clues to the current economic situation and future recovery outlook for Malaysia. Commodities wise, both CPO and crude oil prices advanced.

09/09/2021 8:11 AM·

Market Pulse ·

Turning sideways

After fluctuating between modest gains and losses for most of the day, the FBM KLCI (+0.1%) inched up as gains in PMETAL outweighed losses in selected banking and plantation heavyweights, powered by a surge in aluminium price. However, tracking the weaker performance on Wall Street overnight, the local bourse may turn sideways amid profit taking activities on the broader market. Nevertheless, we expect the support from the recent net foreign buying amid the recovery hopes following more sectors to be allowed to operate in Klang Valley in the anticipation of moving into Phase 2 of NRP should be able to cushion the downside risk in the market. Meanwhile, CPO price climbed while the crude oil price saw a pullback.

08/09/2021 8:05 AM·

Market Pulse ·

Quick profit taking

Bucking regional uptrend move, the FBM KLCI dipped into the negative territory in mid-morning as selected plantation, banking and Petronas-linked stocks went through some profit-taking activities. We believe the ongoing discussion on SOP relaxation in preparation for the Covid-19 endemic phase, coupled with the declining Covid-19 daily infections may continue to drive the recovery theme play across the board. Commodities wise, CPO price climbed, while aluminium price also increased on the back of concerns over raw material supply amid a coup in Guinea, the major supplier of bauxite.

07/09/2021 8:06 AM·

Market Pulse ·

Eking out last-minute gains

The FBM KLCI finished on a positive note after a volatile session with selected banking, plantation and shipping counters taking the lead, despite mixed performances in the regional markets. Investors may look ahead to Malaysia’s unemployment rate and the Bank Negara’s decision on interest rate which will be released on Thursday. Meanwhile, the CPO price extended its gain to close above RM4,300, the gold price rose, while the crude oil price retreated. Still, we expect the recovery tone for the economic activities to pick up once with the decent vaccination rate at this juncture.

06/09/2021 7:59 AM·

Market Pulse ·

Drifting slightly lower

The FBM KLCI witnessed another session of pullback despite buying from local retail and foreign investors, as the index constituents succumbed to further profit taking activities after rebounding in mid-morning. With the average infection rate (R-naught) dipping below 1.0 (based on 1st Sept data), while Melaka and Negeri Sembilan being moved to Phase 2 and 3 of NRP from 4th September 2021, we believe optimism remains in the recovery theme on the local bourse. Meanwhile, the crude oil price rebounded and stood above USD72 per barrel, while CPO price rose above RM4,200 level.

03/09/2021 8:03 AM·

Market Pulse ·

Profit taking looms

The FBM KLCI retreated yesterday, snapping a seven-day winning streak and backing away from the 1,600 psychological level as profit taking activities kicked in. However, we believe the local stocks to continue to eke out gains after taking a breather as investors’ confidence could be boosted by the pre-budget statement issued by the Finance Ministry which is believed to spur economic recovery. Meanwhile, OPEC+ is expected to stick to the existing gradual output hike despite revising up the 2022 demand outlook, which may boost the oil price in the long run.

02/09/2021 8:11 AM·

Market Pulse ·

FBM KLCI above 1,600

The FBM KLCI jumped to close above the key 1,600 level amid persistent buying interest from foreign funds into heavyweights, in response to the positive cues from regional markets and Wall Street overnight as well as the decent progress heading towards of achieving 80% vaccination rate in Malaysia. However, with the key index notching 7th-straight winning sessions, upside may be capped as the market may digest the recent gains before more sectors showing significant recovery considering the recent overbought signals. Nevertheless, we believe resumption of business activities should bode well for the economy as more states are moving into Phase 3-4 of the NRP going forward. Commodities wise, both CPO and crude oil prices retreated.

01/09/2021 8:05 AM·

Market Pulse ·

1,600 within reach

The FBM KLCI maintained its winning streak throughout the week, spurred by strong buying interest from foreign funds (positive inflow streak: 5 days, cumulative net buying: RM964.3m) amid easing political risk and reopening of business activities. We believe the positive sentiment will continue to be supported by the Prime Minister’s target to achieve a vaccination rate of over 50.0% for adult population in another 6 states by the end of September, while considering moving Klang Valley into Phase 2 of NRP. Nevertheless, trading may slow down ahead of the National Day public holiday. Meanwhile, the crude oil prices closed above USD72 per barrel and gold prices shot up above USD1800 level.

30/08/2021 8:07 AM·

Market Pulse ·

Turning toppish

The FBM KLCI continued its winning run yesterday as the key index outperformed most of its regional peers following the return of foreign funds which saw a net buying value of RM310.8m. Also, investors will be waiting for the Cabinet line-up that will be releasing today and it is likely to boost investors’ confidence further. On the global front, investors are taking a breath while waiting for the outcome of the Jackson Hole symposium which may provide signals on the US Fed’s monetary policy. Meanwhile, the rising geopolitical tension surrounding the developments in Afghanistan could be concerning the markets at this point of time. Commodities wise, Brent oil retreated while the CPO price increased.

27/08/2021 8:09 AM·

Market Pulse ·

Another solid performance

The FBM KLCI posted another day of gains, supported by foreign buying which saw highest daily net buying of RM236.5m since mid-June amid a calmer political environment. While the key index continues to building on its rebound momentum, note that potential profit taking activities may emerge following recent strong surge. Internationally, investors are waiting for the outcome of the US Fed annual Economic Policy Symposium to gauge the monetary policy outlook which will affect the market sentiment. Commodities wise, both the CPO and crude oil prices climbed significantly overnight.

26/08/2021 8:50 AM·

Market Pulse ·

Towering higher

Tracking the gains on regional bourses, the FBM KLCI surged mainly spurred by buying interest in plantation and banking heavyweights. While the market may anticipate some potential pullback on profit taking activities, we believe overall sentiment on the local bourse should continue to be supported by broad-based recovery tune amid the rising commodities prices following the smooth vaccination progress as well as investors appears to be optimistic with the ongoing reporting season. Meanwhile, the Baltic Dry Index was above 4,200 point on Tuesday, marking its highest point since mid-2010 and the Brent oil price rebounded to close above the USD71 level.

25/08/2021 8:15 AM·

Market Pulse ·

Holding up

The FBM KLCI extended gains for a second session on the back of buying interest in recovery-theme stocks as well as optimism over political stability following the appointment of Malaysia’s new Prime Minister. Also, with the declining trend in Covid-19 daily cases, it may trigger more focus in the recovery theme sectors from market participants. Meanwhile, the local sentiment is supported by optimism amid the earnings season. Commodities wise, both the CPO and crude oil prices rebounded, with the Brent oil closing above the USD68 per barrel level.

24/08/2021 8:01 AM·

Market Pulse ·

SOPs relaxation brings cheer

The FBM KLCI found itself on firmer footing above the 1,500 level over past week and finished the week with modest gains, driven by investors’ optimism over further relaxed SOPs in Phase 1 states. Also, we believe the stability on the political scene following the appointment of the new Prime Minister may give rise to positive sentiment, but risks remain with the elevated Covid-19 cases in Malaysia. Meanwhile, investors are eyeing Malaysia’s inflation rate which will be released on Wednesday. Commodities wise, CPO is trading below the all-time-high zone, while Brent crude oil is trading below USD66 zone.

23/08/2021 8:34 AM·

Market Pulse ·

Rebound short-lived

The FBM KLCI snapped two-session winning streak and closed lower in tandem with regional peers, as investors booked profit amid a fragile sentiment following US Fed’s bond-buying taper talks. However, we believe the factors such as a clearer picture on the political front, further relaxed SOPs in NRP Phase 1 states as well as corporate earnings season by this month could contribute to the trading interest within the local bourse. Nevertheless, the downside risks include the high Covid-19 daily infections as well as the declining crude oil price. Also, the CPO price has been retreating below the RM4,500 level.

20/08/2021 7:58 AM·

Market Pulse ·

Awaiting more clarity in the political scene

Final hour bargain hunting activities sent the FBM KLCI to close higher for the second session, as the key index booked marginal gains while investors awaiting for more clarity on the political front. Despite the overnight negative Wall Street performance, we believe investors will be monitoring on the news flow regarding the new PM to be appointed and government to be formed to decide their investment exposure. Besides, traders might be brushing off the political developments and focusing on recovery theme sectors in view of the further easing of business SOP in NRP Phase 2 states. Commodities wise, both CPO and crude oil prices declined.

19/08/2021 8:05 AM·

Market Pulse ·

Rising against the tide

The FBM KLCI saw a steep rise as market sentiment was positive brushing off the political uncertainty and buying interest was driven by gradual reopening of more economic activities and steady rise in vaccination rates in Malaysia. Note that foreign fund has been a net buyer for three consecutive sessions. However, we believe the sentiment could remain cautious while waiting for a new Prime Minister being appointed after the king urging the party leaders to unite in addressing the current Covid-19 and economic woes. Commodities wise, the CPO price fell on concerns over production uncertainty in the coming weeks, while Brent oil declined.

18/08/2021 8:02 AM·

Market Pulse ·

Some stability ensued

The FBM KLCI edged lower despite bargain hunting activities in the latter of the trading session, as upside has been capped by concerns over lingering political uncertainty after Prime Minister’s resignation. While investors’ sentiment is expected to remain jittery given ongoing battle with Covid-19 pandemic, focus will be on the upcoming corporate earnings season with robust results. Commodities wise, the CPO continued to hover around the all-time high region, while the crude oil price fell below the USD70 level.

17/08/2021 8:01 AM·

Market Pulse ·

Staying afloat

The FBM KLCI eked out marginal gains after recovering in the final trading hour, underpinned by the gains in plantation stocks. Despite the 2Q21 GDP grew by 16% YoY, BNM has revised the full-year GDP growth forecast lower to between 3-4% (as compared to previous forecast of 6-7.5%) and investors should have digested the downward revision of the numbers. While the non-essential activities in manufacturing, construction, mining and quarrying sectors are allowed to resume operation starting from today may lift investors’ sentiment, the fluid political developments may limit the upside potential in the stock market over the near term.

16/08/2021 7:35 AM·

Market Pulse ·

All eyes on 2Q21 GDP

The FBM KLCI retreated on the back of rising Covid-19 cases and investors continue to the recent political developments. Meanwhile, investors are eyeing on the 2Q2021 GDP data which will be released today. Commodities wise, both the CPO and crude oil prices saw a decline, while the metal commodities rose amid booming demand on the global front, coupled with the fresh logistics disruptions in China due to the partial shutdown of the world’s third-busiest container port due to Covid-19 infection.

13/08/2021 8:05 AM·

Market Pulse ·

Back above 1,500

The FBM KLCI notched gains for a second consecutive session amid buying interest following the announcement of the relaxation of SOPs for fully vaccinated citizens. While the recovery-theme stocks continued to garner investors’ interest, the market sentiment may still be affected by the ongoing Covid-19 cases and political developments in Malaysia. Meanwhile, the Malaysian Rubber Council’s (MRC) projected a double-digit growth in 2021 on rubber gloves demand in volume. Commodities wise, the CPO price jumped above RM4500 after end-July palm oil stocks slumped due to delayed harvesting amid labour shortages. On a side note, foreign investors have turned into net buyers after 12 session of net selling.

12/08/2021 8:12 AM·

Market Pulse ·

Downward bias consolidation prolongs

The FBM KLCI and broader market turned higher on Monday mainly boosted by gains in consumer-related and transportation & logistics sectors after the announcement on SOP relaxation for fully vaccinated individuals, as well as better than expected Malaysia’s Industrial Production Index (IPI) which rose 1.4% YoY in June. Despite an upward trending mode on Wall Street, the current Covid-19 and political developments in Malaysia may continue to supress buying interest on the local bourse. Meanwhile, CPO price eased as investors stayed on sidelines while awaiting for the August export data from the MPOB today, while the crude oil price climbed to close above the USD70 per barrel.

11/08/2021 7:56 AM·

Market Pulse ·

Volatility unabated

In line with the regional downtrend, the FBM KLCI finished the volatile week in a sour note amid selling in selected heavyweights on the key index. Tracking the recovery in the US and the announcement from the Prime Minister over the weekend on SOP relaxations for fully vaccinated citizens will be positive for the market, especially on the recovery theme sectors. Meanwhile, Malaysia’s 2Q21 GDP growth rate which will be released on the coming Friday may draw attention.

09/08/2021 8:07 AM·

Market Pulse ·

Heading towards 1,500 again

Despite regional peers ending mixed, the FBM KLCI rebounded and booked modest gains on the back of bargain hunting activities. We believe the market sentiment should be recovering further with the Finance Minister stating that the hospitalisation rate will be used as a metric to ease curbs for states once they enter the second phase of the national recovery plan, instead of daily confirmed cases; that may boost a little on the recovery theme, in the near term. Commodities wise, the crude oil rebounded and hovers above UD70, while the CPO price retreated after a two-day rebound.

06/08/2021 8:05 AM·

Market Pulse ·

Sentiment still dour

The FBM KLCI reversed previous session’s gains to close in the negative territory as investors recoiled following the record high Covid-19 daily confirmed cases and the ongoing political noises in the country. The local bourse witnessed outflow of foreign funds for nine continuous trading sessions on the back of the overall negative market stance. Nevertheless, the Prime Minister’s announcement on the resumption of Parliament sitting next month as well as the increasing vaccination rate could reduce the uncertainties in the market.

05/08/2021 8:14 AM·

Market Pulse ·

Re-capturing 1,500

The FBM KLCI snapped a three-day losing streak to close in the positive territory, bucking the regional downtrend. However, sentiment may remain cautious amid heightened uncertainties surrounding the recent political developments. Meanwhile, the move of three more states into Phase Three of the National Recovery Plan starting from today, coupled with the earning season may lift market sentiment. Commodities wise, crude oil price declined amid the spread of the delta virus variant which may pose a risk to oil demand.