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The Star
2 days ago
- Business
- The Star
Investors seek relief on Bursa Malaysia after six losing sessions
KUALA LUMPUR: There was a welcome bounce on Bursa Malaysia as trading commenced on Wednesday, giving investors some respite amid the persistent market weakness. At the opening bell, the FBM KLCI rose 3.85 points to 1,507.1, alleviating the risk of the index falling through the 1,500 psychological support. Having endured six straight sessions of losses, the market's benchmark index is ripe for bargain-hunting. However, the market undertone remains weak with net selling by foreign funds sapping momentum from the market. According to TA Securities Research, investors are wary of committing to the Malaysian stock market as it is beset by a weaker earnings outlook and uncertainties over global tariffs. The research firm noted weaker first-quarter earnings from local corporate and weaker China manufacturing numbers as the culprits behind the dampened investor sentiment, which took the market briefly below 1,500 points in the previous session. "Immediate index support stays at 1,490, while stronger supports can be found at 1,465 and 1,444. Immediate resistance is kept at 1,564 with next upside hurdles seen at the recent high of 1,586, followed by 1,610 ahead," it said in its technical outlook. Blue chips leading the rebound on Wednesday included Nestle up 30 sen to RM78.90, Kuala Lumpur Kepong adding 10 sen to RM19.74 and Hong Leong Financial Group gaining eight sen to RM16.38. Active stocks were KNM down 0.5 sen to three sen, Avangaad unchanged at 28 sen and Sunview flat at 38 sen.
The Star
3 days ago
- Business
- The Star
Slight rebound as Bursa reopens from holiday weekend
KUALA LUMPUR: Malaysian equities rebounded on Tuesday following an extended weekend, although the market is expected to remain in consolidation moade as it awaits more clarity on the global trade situation. At the open, the FBM KLCI was up 4.37 points to 1,512.72, pulled higher by heavyweight stocks that were oversold at last Friday's close. TA Securities Research said blue chips are expected to remain in profit-taking consolidation mode this week as investors should remain cautious while they await further developments regarding the judgment against US President Donald Trump's trade policies. Meanwhile, uncertainty surrounding a potential cabinet reshuffle on the local political scene, and a lack of strong buying catalysts should also keep investors on the sidelines, it said. The broker said borth short- and medium-term technical momentum and trend indicators on the FBM KLCI are turning increasingly bearish. "Immediate index resistance is kept at 1,564 with next upside hurdles seen at the recent high of 1,586, followed by 1,610 ahead. Immediate support is maintained at 1,490, while stronger supports can be found at 1,465 and 1,444," it said in its market commentary. Among the heavyweights leading the rally, PETRONAS Dagangan rose 62 sen to RM20.32, Kuala Lumpur Kepong gained 40 sen to RM19.88 and Hong Leong Bank added 14 sen to RM19.72. Top actives were Harvest Miracle unchanged at 18 sen, Bintai Kinden down 0.5 sen to seven sen and Alam Maritim unchanged at three sen.
The Star
27-05-2025
- Business
- The Star
FBM KLCI drifts sideways amid heightened uncertainty
KUALA LUMPUR: The lack of movement in Malaysia's benchmark stock index at Tuesday's open showed investor indecision as the corporate earnings period entered its final stretch. Opening just 0.94 points higher at 1,535.24, the FBM KLCI has taken on a sideways direction due to an absence of leads, especially as Wall Street markets were closed overnight for the US Memorial Day holiday. However, there is a downward bias on the market amid the ongoing consolidation. Investors are expected to continue selling down Malaysian equities given the weak sentiment and disappointing earnings announced during this first-quarter results period. Rakuten Trade said the FBM KLCI closed marginally weaker yesterday as it suspects foreign selling may still be prevalent. "These short term trades by foreign funds would certainly lengthen the consolidation of the benchmark index," it said in its review. TA Securities Research noted that investors are uncertain over how to react to US President Donald Trump's erratic deicsion to impose a 50% tariff hike on EU imports, and the subsequent delay of the imposition to early July. "Most investors are likely to reduce commitments as they await the final leg of earnings updates from local corporates this week and pending more details on the US trade deals with key trading nations. "Immediate resistance stays at the recent high of 1,586, with next major resistance seen at 1,610 followed by 1,644. Immediate support remains at 1,526, with 1,490 and 1,444 acting as stronger chart supports," said the broker in its market commentary. Following its earnings announcement yesterday, Maybank slipped four sen to RM9.88. MBMR, which also posted earnings, fell four sen to RM5.64. Other laggards included Gas Malaysia shedding seven sen to RM4.08 and Nestle dropping 28 sen to RM79.32. Leading actives were NexG up one sen to 37.5 sen, OCR flat at 3.5 sen and Velesto unchanged at 17 sen.
The Star
26-05-2025
- Business
- The Star
Analysts expect sideways trading on Bursa ahead of final corporate results
KUALA LUMPUR: The extension of the deadline to impose tariffs on European imports to the US is giving investors some breathing room as trade tensions surfaced again over the weekend. Following an impasse in negotiations between US and EU policymakers, Trump's announcement of 50% tariffs on shipments from the bloc sparked another sell-down in equities as investors sought out safer investments. As the trading week commenced on Monday, Asian markets showed some relief at the tariffs postponement. Malaysia's benchmark index opened 0.95 points higher at 1,536.33 on Monday. TA Securities Research noted that the previous week's profit-taking correction has significantly weakened technical momentum and trend indicators on the FBM KLCI. As such, the broker expects last Friday's rebound to be short-lived. Looking ahead, local stocks should likely trade sideways with downside bias ahead of the final release leg of a slew of earnings results from local corporates in the upcoming week. "However, the likely presence of bargain hunters anticipating cheaper levels should provide much needed support to the local benchmark," it said in its market commentary. TA Securities added that investors will be paying close attention to announcements from this week's Asean Summit 2025, for cues on the future direction of the region, especially in response to external trade uncertainties. The firm's stock picks for the week include key banking, construction, oil and gas, and technology-related blue chips. Lower liners such as CIMB, RHB Bank, Gamuda, Gadang, Dialog, Hibiscus, DNEX and Unisem should attract bargain hunters for looking for recovery plays ahead, it said. Among the early gainers, Allianz rose 30 sen to RM19.10, Aurelius Tech gained 18 sen to RM3.40 and Nuenergy added 4.5 sen to 47 sen. Leading actives were Harvest Miracle flat at 18 sen, Eco-shop down one sen to RM1.19 and Sarawak Cable down 0.5 sen to 1.5 sen.
The Star
22-05-2025
- Business
- The Star
Bursa investors await fresh leads as corporate results underway, US debt discussions weigh
KUALA LUMPUR: Concerns over rising US debt sent Wall Street equities lower overnight, ripples of which are weighing on the Malaysian stock market. The benchmark FBM KLCI dropped 3.34 points to 1,541.46, putting the index on the back foot yet again after five consecutive days of losses. Over at Capital Hill, US President Donald Trump is attempting to push through a budget bill, which the Congressional Budget Office estimates could add about US$2.3 trillion to the US national debt over the next 10 years. TA Securities Research said the ongoing correction on the local market is owing concerns over the US fiscal deficit and downbeat economic outlook expressed by Federal Reserve officials. "Traders remain concerned that a new budget bill could exacerbate the U.S. deficit, adding to economic uncertainty," it said in a note. Meanwhile, Rakuten Trade said in its review it expects the local market to stay in consolidation mode given the lack of fresh catalysts. "Still lacking any catalysts, we expect the local bourse to stay in consolidation mode with the index to oscillated between the 1,540-1,550 range today," it said. Investors are expecting more profit results from Corporate Malaysia over the coming days as the first-quarter earnings period enters its stride. Laggards in the opening minutes of trade included F&N down 56 sen to RM26.02, Hong Leong Bank dropping 18 sne to RM19.82, IE Industrial shedding 13 sen to RM4.06 and Gamuda slipping 10 sen to RM4.48. Top actives were Ta Win unchanged at two sen, Velesto unmoved at 16.5 sen and Harvest Miracle down 0.5 sen to 18 sen. Over in other parts of Asia, Japan's Nikkei was down 0.63% to 37,060 while Singapore's Straits Times index dipped 0.2% to 3,874.
