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Paconline - Latest Update

Latest Update

Mar

29

Buying interest appeared to have diminished on lack of new leads, says Inter-Pacific

THE EDGE: Inter-Pacific Securities Sdn Bhd said the buying interest appeared to have diminished on the back of the lack of new leads and the directionless trading environment looks to persist over the near term. In its daily bulletin on Tuesday (March 29), the research house said with fewer catalysts, the market is likely to stay fluid and most market players are likely to remain on the sidelines for the time being. More detailsSurin Murugiah. (2022, March 29). Key index stocks may retrace over the near term. The Edge.Retrieved from https://www.theedgemarkets.com/article/buying-interest-appeared-have-diminished-lack-new-leads-says-interpacific

Mar

25

Key index stocks may retrace over the near term

THE EDGE: Inter-Pacific Securities Sdn Bhd said despite Thursday’s (March 24) gains, conditions on Bursa Malaysia are still fluid and the near-term outlook will be largely dictated by overseas events for the time being.In its daily bulletin on Friday, the research house said this could also mean that key index stocks may retrace over the near term, in line with the weakness in key global indices overnight with the re-emergence of inflationary concerns as crude oil and other commodity prices remain elevated due to the ongoing geopolitical conflict in eastern Europe that shows little signs of abating.More detailsSurin Murugiah. (2022, March 25). Key index stocks may retrace over the near term. The Edge. Retrieved from https://www.theedgemarkets.com/article/key-index-stocks-may-retrace-over-near-term

Mar

24

Conditions on Bursa Malaysia are still fluid, sentiment remains cautious

THE EDGE: Inter-Pacific Securities Sdn Bhd said despite Wednesday’s (March 23) gains, conditions on Bursa Malaysia are still fluid and the near-term outlook will be largely dictated by overseas events for the time being. In its daily bulletin on Thursday, the research house said this could also mean that key index stocks may retrace over the near term, in line with the weakness in key global indices overnight with the re-emergence of inflationary concerns as crude oil and other commodity prices remain elevated due to the ongoing geopolitical conflict in eastern Europe that shows little signs of abating. More details Surin Murugiah. (2022, March 24). Conditions on Bursa Malaysia are still fluid, sentiment remains cautious. The Edge. Retrieved from https://www.theedgemarkets.com/article/conditions-bursa-malaysia-are-still-fluid-sentiment-remains-cautious

Mar

22

Cautious market sentiment prevails, KLCI to stay range-bound

THE EDGE: Inter-Pacific Securities Sdn Bhd said The market appears to have hit a plateau, unable to move past the 1,580 points convincingly of late in the absence of more compelling impetuses to provide the much-needed lift. More details Surin Murugiah. (2022, March 22). Cautious market sentiment prevails, KLCI to stay range-bound. The Edge. Retrieved from https://www.theedgemarkets.com/article/cautious-market-sentiment-prevails-klci-stay-rangebound

Mar

18

KLCI likely to end week on firmer footing

THE EDGE: Hong Leong Investment Bank (HLIB) Research said that tracking further relief rally from Wall Street, the FBM KLCI could inch higher to retest 1,600-1,620 levels but cautious sentiment prevails, as investors continue to weigh on the slow progress in Russia-Ukraine ceasefire talks, FOMC’s latest hawkish tilt policy coupled with worries over the Covid-19 situation in China.More detailsSurin Murugiah. (2022, March 18). KLCI likely to end week on firmer footing. The Edge.Retrieved from https://www.theedgemarkets.com/article/klci-likely-end-week-firmer-footing

Mar

15

Market players likely to remain cautious, says Inter-Pacific

THE EDGE: Inter-Pacific Securities Sdn Bhd said with the immediate market outlook remaining unsettled, most market players are likely to remain cautious in their approach.In its daily bulletin on Tuesday (March 15), the research house said the ongoing war in eastern Europe and the corresponding high input cost is also keeping market players wary over its near-term direction.More detailsSurin Murugiah. (2022, March 15). Market players likely to remain cautious, says Inter-Pacific. The Edge.Retrieved from https://www.theedgemarkets.com/article/market-players-are-likely-remain-cautious-says-interpacific

Mar

11

There could be more near-term upsides on bargain-hunting activities, says Inter-Pacific

THE EDGE: Inter-Pacific Securities Sdn Bhd said with market conditions showing mild signs of improvement, there could be more near-term upsides as bargain-hunting activities look to continue, supported by sustained buying from foreign funds.More detailsSurin Murugiah. (2022, March 11). There could be more near-term upsides on bargain-hunting activities, says Inter-Pacific. The Edge.Retrieved from https://www.theedgemarkets.com/article/there-could-be-more-nearterm-upsides-bargain-hunting-activities-says-interpacific

Feb

24

Cover Story: Softer corporate earnings seen in first half

THE EDGE: FACED with the ongoing Omicron wave, which saw new Covid-19 cases per day breach the 20,000 mark in Malaysia last Friday, local corporates may find themselves having to battle a potential decline in earnings because market sentiment has soured.More detailsLee Weng Khuen. (2022, February 24). Cover Story: Softer corporate earnings seen in first half. The Edge.Retrieved from https://www.theedgemarkets.com/article/cover-story-softer-corporate-earnings-seen-first-half

Jan

17

Technology the focus in 2022 as market remains flush with liquidity

THE EDGE: AFTER a lacklustre performance by most sectors in 2021, investors are hoping for a rebound this year. But is that likely and, if so, in which sectors?Early indications are not so promising. Last Wednesday, investors in the US were spooked by the latest Federal Reserve meeting minutes that signalled interest rate hikes may take place sooner than expected. The tech-heavy Nasdaq plunged more than 3% while the Dow Jones and S&P 500 lost 1.07% and 1.94% respectively.More detailsLee Weng Khuen. (2022, January 17). Technology the focus in 2022 as market remains flush with liquidity. The Edge.Retrieved from https://www.theedgemarkets.com/article/technology-focus-2022-market-remains-flush-liquidity#.YiWvh5cN9kM/

Jan

14

Bursa technology stocks tumble again as US tech shares crash on US tapering concern

THE EDGE: Technology stocks on Bursa Malaysia tumble again as US big tech shares crashed on US tapering concerns.It was again a sea of red for the sector with Bursa Malaysia Technology Index slipping 5.52 points or 6.2% to 83.45 on Friday’s (Jan 14) noon break.More detailsTan Siew Mung. (2022, January 14). Bursa technology stocks tumble again as US tech shares crash on US tapering concern. The Edge.Retrieved from https://www.theedgemarkets.com/article/bursa-technology-stocks-tumble-again-us-tech-shares-crash-us-tapering-concern

Dec

06

Rate hikes in developed markets and strong US dollar may prompt fund outflow

THE EDGE: FOREIGN funds have been net buyers of Malaysian equities for seven straight weeks, although their net buying narrowed sharply to RM66.61 million for the week ended Nov 19 from RM359.14 million in the previous week.More detailsLee Weng Khuen. (2021, December 06). Rate hikes in developed markets and strong US dollar may prompt fund outflow. The Edge.Retrieved from https://www.theedgemarkets.com/article/rate-hikes-developed-markets-and-strong-us-dollar-may-prompt-fund-outflow/

Feb

21

Malaysian Stocks Stage Strongest Rise in Asia

PETALING JAYA: The FBM KLCI put up strong gains in yesterday’s trading session, rising 19.62 points or 1.15% to 1,726.18 points by the end of the day, recording its third day of gains. All Asian markets with the exception of Australia’s ASX rose, with gains in Malaysia being the strongest compared to other Asian markets. The local benchmark index also rose in line with increased risk sentiment in nearly all Asian markets after US president Donald Trump indicated that he might be willing to push back the trade talk deadline with China from March. The FBM KLCI has been rising for the past three days since the trading week began on Monday, racking up gains of 32.26 points from Monday’s open to Wednesday’s close. Gains were broad-based in yesterday’s trade, as all segments of the market were in the green. All indices of Bursa Malaysia posted gains yesterday, with the Bursa Malaysia Construction index rising the most by 3.91% closely followed by the Bursa Malaysia Energy Index going up 3.27% and the FBM Palm Oil Plantation Index gaining 2.35%. InterPacific Securities research head Pong Teng Siew told StarBiz that while gains have been seen since Monday, the big upward move materialised from Tuesday to Wednesday’s trade. “I believe the catalyst came from Wednesday’s news that the country was making progress in talks with China to revive the earlier scrapped East Coast Rail Link (ECRL) project. The biggest gainers on Bursa Malaysia for both Tuesday and Wednesday came from the construction index,” Pong said. “And also, there are other factors coming into play right now, including rising oil prices as we see Brent crude oil rising to its three-month high,” he added. As at press time, Brent crude oil was near its three-month high of US$65.89 per barrel. The commodity, which is still essential to the health of the Malaysian economy, has been rising since Christmas last year. Dealers contacted by StarBiz said it would appear that foreign money is buying into Malaysia once again. “We saw the data and this is what it showed. These are the big boys that are buying in again. The reason could be due to the Malaysian growth story, but this has yet to be confirmed on my end,” a dealer said. Locally, Finance Minister Lim Guan Eng had said in his speech in a government function in Kuala Lumpur City Centre on Monday that it was now the “best time” to invest in Malaysia, especially in the small and medium enterprises segment of the economy. “I strongly encourage you to buy into the Malaysian growth story as soon as possible before we fully recover in three years, in which it would be too late by then. If you had yet to invest in Malaysia and had waited for three years, I would hate to tell you I told you so,” Lim said. Malaysia last week announced that its fourth-quarter economic growth had surpassed expectations with gross domestic product (GDP) growing at 4.7% compared with the same quarter of the previous year. This marks the local economy’s first acceleration in growth over the last one year, following the continued slowdown in GDP growth after the third quarter of 2017 where it registered a 6.2% growth. Lee Heng Guie, an economist and the executive director of the Socio-Economic Research Centre, said the better FBM KLCI performance in January and the recent days of February had been fueled by several factors, including the better reading of the fourth-quarter GDP growth, which indicates that the Malaysian economy was coming out of the trough. “There is also renewed investor interest in Malaysian equities, as the stocks look attractively valued aided by the prospect of the ringgit’s appreciation; investors generally are positive about Khazanah Nasional Bhd’s divestment plan as it improves market liquidity,” Lee said. “Other than the ECRL, which would benefit many of these contractors, there are also other factors coming in. “I am looking at penny stocks and the oil and gas (O&G) stocks that have also risen along with the technology sector. Namely, there are stocks that are below the RM1 level in the O&G sector that are jumping on the rising crude oil theme,” Pong said. Among the active stocks yesterday were from the O&G space, including Sapura Energy Bhd which rose 4.84% to 32.5 sen, Hibiscus Petroleum Bhd that added 2.86% to RM1.08, and Bumi Armada Bhd that gained 4.65% to 22.5 sen. Top gainers were from the consumer sector, including Nestle (M) Bhd which rose RM1.50 to RM150.00, Fraser & Neave Holdings Bhd adding 90 sen to RM35.90, and Carlsberg Brewery Malaysia Bhd gaining 60 sen to RM23.74. Pong said these consumer stocks have been posting strong dividends on the back of commendable financial performance, and hence, investors were buying into their stocks. On whether the gains could continue and be sustained, Pong said that it would ultimately have to boil down to earnings, which he said have not been too bad. “The fourth quarter is turning out to be more mixed than many had thought. The third quarter was a disaster in terms of earnings and for things like the ECRL. Many of these stocks (in the construction sector) have been beaten down and are at very cheap levels now. If the project is reinstated, then these companies stand to benefit,” Pong said. Daniel, Khoo. (2019, February 21). Malaysia stocks stage strongest rise in Asia. The Star. Retrieved from https://www.thestar.com.my/business/business-news/2019/02/21/hattrick-for-bursa/

Feb

20

KLCI hits our 2H2018 base case target of 1630: What next?

The downswing in the KLCI exhibits all the hallmarks of a bear market at this point. 1) Liquidity has been progressively drained out of the market by a drawn-out foreign fund selloff that has drawn in local funds as well as retail participants. 2) Stock valuations remain at elevated levels despite eye-watering drawdowns from peak levels due to a dismal earnings report card for several reporting seasons already. 3) Poor personal income growth following an inflationary bout beginning 2015 that extended into 2017 did no favours for already waning animal spirits among domestic investors. Across the rural heartlands and the myriad little towns that serve them, falling agricultural commodity prices weighed heavily on incomes. In the near future, too many uncertainties about investment outcomes, and yet hopes are high Tech stocks may boom anew, contingent on a resolution of trade issues but a confidence reboot is still premature. Commodity prices may recover fleetingly in 1H2019 but too late to boost Plantation/O&G stocks. A global slowdown threatens to overshoot, paving the path for a hard landing. The Construction sector is at 2008 levels, a victim of wrecking balls swung by the Parkatan Harapan government at mega projects. Properties, still mired in Bank Negara Malaysia’s macroprudential muck and despite strong demographic trends and low rates, affordability stifles demand. A swift consumer recovery is unlikely as goods prices are sticky downwards. So, sky high sector valuations will not outlast any stock market bounce that unfolds. Loans growth pickup courtesy of a weak Ringgit straining working capital may falter again as the Ringgit stabilizes, maybe dampening optimism for a still inexpensive Finance sector. Our 1H2018 KLCI target of 1907 was achieved for all intents and purposes with the KLCI cresting at 1896. We were off by 11 index points. We still expect that at its worst valuation level the KLCI will retrace to will least match the –1 Standard Deviation below the mean valuation between[…]. Open an account with us to view full report.

Jan

23

Dow Jones Industrial Average

The Dow Jones Industrial Average fell 87.80 points to 21,812.09. The Nasdaq Composite lost 19.07 points to 6,278.41.Benchmark U.S. crude oil rose 58 cents to settle at $48.41 per barrel.