Previous Day Highlights

The FBM KLCI closed higher due to bargain hunting activities. The benchmark index gained 0.26% or 3.66 points to close at 1,406.69 Gainers were led by PETDAG, PCHEM and IOICORP. Market breadth was mixed with 470 gainers against 443 losers while 413 were unchanged. Total volume stood at 3.64bn shares valued at RM2.07bn.

Key regional indices closed mostly lower yesterday. Nikkei225 and STI lost 1.23% and 0.11% to end at 32,490.52 and 3,271.56 respectively. HSI and SHCOMP slipped 0.13% and 0.92% to 18,9928.02 and 3,169.52 respectively.

Wall Street closed mixed with the DJIA registering its longest winning streak since 2017. The DJIA climbed 0.47% to close at 35,225.18. Meanwhile S&P500 and Nasdaq lost 0.68% and 2.05%, respectively to end at 4,534.87 and 14,063.31.

News For The Day

Malaysia's trade slips 16.3% to RM222.14bn in June

Malaysia's overall trade contracted 16.3% in June 2023 to RM222.14bn as compared to a year ago as the value of shipments exchanged with its major trading partners remained on a slide. According to the Ministry of Investment, Trade and Industry (MITI), the decline in trade value was owing to a 14.1% drop in exports to RM123.98bn and 18.9% contraction in imports to RM98.16bn. -The Star

Sime Darby, Ramsay to sell US$1.3bn healthcare venture

Australia's Ramsay Health Care and Malaysia's Sime Darby have hired Bank of America and Deutsche Bank to sell their US$1.3bn (RM5.9bn) healthcare JV, two sources with direct knowledge of the matter said. The companies could launch the sale of Selangor, Malaysia-based Ramsay Sime Darby Health Care within the next two months depending on market conditions, one of the sources said. -The Edge Markets

Bumi Armada says Kraken FPSO operating at 90%

Bumi Armada has announced that the operational performance of its Armada Kraken floating production storage and offloading (FPSO) vessel has returned to about 90% of pre-shutdown levels. "Bumi Armada will continue to announce material updates as and when they are known," it said. -The Star

MST Golf optimistic on financial outlook

Newly listed MST Golf Group said it is optimistic on its financial outlook on the back of sustainable demand persisting after the golf boom caused by the Covid-19 pandemic, as well as a lack of competition in quality retail golf merchandise. During a press conference on Thursday (July 20) following its listing ceremony, the group shared that they are upbeat about the golf market, sustained by growing golf activity owing to the influx of the younger generation picking up the sport. - The Edge Markets

Installation of EV charging stations to be given attention

The installation of more charging stations is an aspect that needs to be looked into in the effort to expand the country’s electric vehicle (EV) ecosystem, according to Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. He said Tesla Superchargers will contribute to the achievement of the government’s target of having 10,000 EV charging stations by 2025.-The Edge Markets

Our Thoughts

Wall Street closed mixed as earnings from the broader market came in uneven especially for Netflix and Tesla. In view of this, the DJI Average maintained its uptrend by adding 164 points while the Nasdaq lost 295 points as the US 10-year yield edged higher to 3.856%. Over in Hong Kong, the HSI pared earlier gains to end 24 points lower as sentiment turned cautious over China’s economic growth outlook. On the local front, the FBM KLCI closed firmer from some bargain hunting activities across the board. For today, we reckon such accumulation may persist and expect the index to hover within the 1,400- 1,410 range with interest returning to Telco related stocks which have underperformed of late. Nonetheless, we believe regional sentiment to remain vigilant with an eye on the FOMC meeting next Tuesday and Wednesday rendering another possible lacklustre day today. Meanwhile, the Plantation sector may see some buying as the CPO price surged past the RM4,000/tonne or to a 4-month high.

Source: Rakuten Research - 21 Jul 2023

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