rakuten trade market reports : Page 12

Wall Street staged a relief rebound but we reckon it is insufficient to prop regional markets up to recoup yesterday’s losses. With sentiments still affected by the virus, investors may opt to wait and see on how the situation pens out.
Nonetheless, we believe the FBM KLCI to see a mild uptrend with 1,560 as the immediate resistance. As usual, glove makers benefitted during such crisis as demand would have heightened.
Meanwhile, CPO price slumped to around the RM2,600/mt level fearing the virus may affect demand coupled with the import ban by India.

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Not going to be an auspicious start for the regional stock markets today. The spreading of the Wuhan coronavirus had investors scurrying for cover as many unloaded their position pushing the DJI Index 420 points lower.
Meanwhile, crude oil price also retreated citing the virus may impact negatively on demand with the Brent crashed through the US$60 level to close at US$58.58/barrel.
Looking at a plethora of adverse developments, we believe trading on the local bourse to be muted with the FBM KLCI facing some downward pressure with support seen at 1,560 today.

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Market participation is expected to be rather muted today amid a shortened trading hour.
With Bursa Malaysia closed for CNY celebration until Tuesday, we reckon the FBM KLCI to hover within a tight range of between 1,570/75 today.
Meanwhile, the spreading of the coronavirus may be added dampener for the regional markets.
All in all, we believe the local bourse to remain rather docile.

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Bank Negara Malaysia cut OPR by 25bps to 2.75% yesterday. The move surprised us as there were no such pre-emptive measure elsewhere. With the move, Banks may have to reprice their products with the MGS to see some buying activities pushing the 10-year rate closer to the 3.0% level.
Amid the lower interest rate environment, we reckon investors may opt for high dividend stocks. Amongst others, we like Maybank, Ambank, CIMB and KIP REIT.
As for the performance of equities, we believe the prevailing fear of the Wuhan virus will continue to plague trading activities with the FBM KLCI to find some support at the 1,570 level.

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Global markets were on cautious mode on the news of the continued spread of Coronavirus which have reached US shores.
Memories of SARS epidemic back in 2002 and 2003 have caused knee jerk reaction to the markets, nevertheless the impact would be temporary.
On the local front, FBM KLCI is expected to be listless and hover around the 1,590 level with focus continue to be in gloves, healthcare and tech related stocks.
Today’s IPO listing of Powerwell Bhd which have been heavily oversubscribed could see investors chasing the stock up and will be good for trading.

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