Daily Commentaries 30th September 2009

The FBM KLCI inched up 2.26 points in tandem with regional markets following a rebound on the Dow Jones. The corporate headlines include Asas Serba to finalise a proposal to the Government on the privatisation of the country’s tolls, Berjaya Corporation proposes to relist Singer and 7-Eleven Sdn Bhd, the Government reaffirmed its commitment to the ongoing fiscal stimulus spending, Prime Minister Datuk Seri Najib Razak is expected to reveal a major Middle Eastern Investment in Malaysia, KWAP has emerged as a substantial shareholder in PLUS, Sime Darby has proposed to undertake an Islamic Medium Term notes programme of RM4.5bn, Sunway Holdings has secured a RM147m construction contract from Putrajaya Holdings and Omar Ong of Ethos & Co has been appointed non-executive director of Petronas. Overnight. The Dow Jones slid 47 points after the consumer confidence index came in lower than expected.

Daily Commentaries 29th September 2009

The FBM KLCI languished for the greater part of the day, closing just off the low of 1204.2 in mixed trading. Aside from a string of results from BLand, ECM Libra and Glomac, the news flow remains thin, save for TSR Capital bagging an RM80m contract from the Federal Government and Petra Perdana selling a vessel for US$2.65m. With the Dow snapping its 3-day losing streak, the local bourse should attempt to overcome the immediate resistance level of 1212. The important US economic data to be released over the next few days, namely the unemployment numbers and consumer confidence, will be closely watched.

Daily Commentaries 28th September 2009

Last Friday, the FBM KLCI shed 0.67 pts to 1,217.4 pts as most investors were still away for the Hari Raya holidays and investors were cautious after consecutive losses on Wall Street. Market news was thin, with among others, Multi Sports to acquire land and factories in China, AZRB close to securing a RM50m dam-related project, Malaysia Airlines’ CEO dismissed news reports that the company is considering replacing its order for six Airbus A380s with smaller wide-body aircraft as unfounded, Malaysian Bulk Carriers Bhd’s subsidiary buys a vessel for US$23.8m, eBworx buys out SpringWorx and HELP International’s 3Q profit jumps 80%. US stocks fell 42.25 pts to 9,665.19 after disappointing housing and durable goods reports raised concerns that the market’s record six-month rally has outpaced the prospects of an economic recovery. While trading interest is likely to pick up this week as investors come back from the long vacation, the market’s performance will mainly depend on the regional market as we do not expect any major local news.

Daily Commentaries 25th September 2009

The FBM KLCI ended 1.01 points lower to end at 1,218.06. Moody’s Investor Service has revised the outlook on Maybank’s financial strength rating from negative to stable. DRB-Hicom Bhd is pitching for CKD operations with General Motors while AirAsia X is looking to fly to France next year. Tycoons Tan Sri Quek Leng Chan and Tan Sri Chua Ma Yu have agreed to invest US$80m and US$70m respectively in Wynn Macau Ltd’s IPO on the Hong Kong Stock Exchange. Penang Port’s listing is again on the cards while Jobstreet raised its stake in a Taiwanese online recruitment company. Finally, US stocks as well as crude oil price ended lower, with oil price dropping US$3.08 to US$65.89. US stocks lost ground as an existing home sales report showed a surprise slide and on concern that the G20 summit in the US may signal a gradual reduction in liberal financial policies.

Daily Commentaries 18th September 2009

The FBM KLCI advanced by another 5.8 points to close at 1218.8 on further improved volume of 877m shares. Market breadth was positive, with gainers beating losers by nearly 2 to 1. Among the regional markets, Tokyo and Hong Kong both gained 1.7% each. Meanwhile, the US market was flat and Europe was just half a percent higher. The news headlines include IJM Corp winning a RM327m award for the construction of a highway in India, KNM Group buys a 50% stake in a company with an Euro220m oil storage contract, Unisem proposes a 10% private placement, SP Setia reported a RM42.7m quarterly profit, General Motors severs ties with DRB-Hicom, Malaysia’s August car sales rose 2.8% y-o-y. Without any major market moving factors, the local market is likely to take a breather ahead of the long Hari Raya weekend.