rakuten trade market reports : Page 22

Despite some positive developments from the US China Tariff discussion, we believe the situation remains fluid and remain unconvinced until more concrete evidence surfaces.
With Wall Street charting all time highs, we reckon the US market is running ahead of its fundamentals hence becoming more susceptible to the slightest of negative newsflow.
As such, we would maintain our cautious stance and prefer to stay sidelined for the time being.
On the local front, there may be some buying activities today but the benchmark FBM KLCI should see some headwinds towards the 1,600 mark.

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Equities are not going anywhere for the time being judging by the performance on Wall Street.
The lack of catalysts couple with the fluid stance between the US and China, we believe investors would rather stay sidelined.
Meanwhile the Ringgit has also weakened to around the 4.15/US$1 level from 4.12 in tandem with the Chinese renminbi which had crossed the 7.0 threshold again.
Locally, we reckon the market to trend on a narrow range of between 1,595/1,600 in view of prevailing murky situation.

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The protracted outcome of the US China Trade discussion is making investors jittery as we are seeing some funds diverting to bonds and other safer haven like gold.
On the local front, yesterday’s sell-down was also exacerbated by regional weaknesses across the board.
As for today, we would expect some buyers to return to take advantage of yesterday’s decline which was a tad overdone.
Expect the FBM KLCI to trend higher today possibly retesting the 1,605 mark again.

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Ongoing turmoil in Hong Kong coupled with the US China trade talk that had stagnated thus far would continue to afflict some volatility onto the equity markets.
We reckon the local bourse to trade within a narrow range and envisage the FBM KLCI to trend between 1,605/10 over the immediate period.
Over to the ongoing results for the 3Q and so far corporate Malaysia have done pretty well which should induce some upward revision to corporate earnings for 2019.
Judging from the recent dip in Ringgit against the USD, foreign funds may be in our markets but without much conviction.

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We believe the local market may see a relief rebound today following yesterday’s dismal performance spearheaded by Hong Kong which shed by more than 700 points as violence escalated to unprecedented levels.
Meanwhile, we are still waiting for the US China Trade discussion outcome that seem to have gone a tad too quiet. The FBM KLCI may hit a road bump at 1,610 after which the 1,620 will act as the next resistance level.
Rotational plays still rule the day as interests are now centred on palm oil related counters in line with the stronger CPO prices.
The plantation index gained 6.2% over the past month and we have chosen the following which are deem laggards within the sector namely Batu Kawan, KLK, IOI Corp, Hap Seng Plantation, TSH Resources and Genting Plantation.

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