Key highlight for the week is the positive net buy of RM21.1m by local retail as opposed to net sell of RM23.8m in week 34. The 2Q earnings season helped carry the positive sentiment from previous week, but failed to attract foreign buying interest as the net selling resumed due to concerns on US-China trade issues and a weaker ringgit. To-date foreign selling of Malaysian equities is RM8.7bn.
Meanwhile, the US markets closed at a new high during the week, lifted by positive momentum as the NAFTA agreement between the US administration and Mexico buoyed sentiment.
Key domestic event for week 36 are BNM’s MPC meeting to be held on 5 September. We foresee the OPR will be at 3.25%, remaining unchanged for this year. Earnings announcement for 2Q18 period concluded on 30 August, and we do not expect this to have a significant impact on the market as most results were in in-line with expectations.
The performance of the ringgit this week as emerging currencies, i.e. Indonesia, Turkey and Argentina faced renewed selling will be the main focus, in our view.
Source: BIMB Securities Research - 3 Sept 2018
Created by kltrader | Aug 12, 2024
Created by kltrader | Aug 12, 2024
Created by kltrader | Aug 09, 2024
Created by kltrader | Aug 09, 2024