rakuten trade market reports : Page 26

Debates whether banking stocks which had been on a mild free fall are ripe for pickings continue. Whilst we were also guilty of recommending the banks earlier, we did not envisage the severity of the sell-down particularly from the foreign funds.
Most of the big cap banks have had fallen by between 10-22% YTD which was unheard of before. Interestingly, only RHB and BIMB registered positive returns for the year possibly due to their lower foreign shareholding.
Reflecting the weak banking stocks, the Bursa Malaysia Finance Index declined 12% YTD. Looking at the prevailing scenario, maybe one should start to look at some banking stocks for such opportunity may not come too often.
Of the lot, Maybank, Public Bank, CIMB, Alliance and Hong Leong Bank seems a decent bet.

Download

Gold has always been deemed as the preferred asset class amid high volatility between the equity and treasury markets. As a result, gold prices have had seen solid buying support with year to date gain of almost 16% to around US$1,500/oz which is a multi-year high.
Though the level is still way below the high of US1,900/oz during the gold rush in 2012, it nonetheless has been steadily creeping up over the past few months.
With market volatility not relenting anytime soon, we reckon there could be more upside for gold prices moving forward. Judging from the prevailing gold fever, we believe Bahvest which is producing gold in Tawau, Sabah should be in prime position to take advantage of the situation.

Download

Global stock market ended on mixed note last week. Shanghai Composite Index posted a weekly loss of 2.32% following weak numbers from China’s third-quarter GDP growth. FBM KLCI was 0.23% higher and closed above 1,570 level at 1,571.2.
Weekly foreign funds turned positive, posted net inflow of RM184.6m with year-to-date net outflow of RM8.7bn. Gainers of 15 outnumbered 10 losers in KLCI last week.
Top 3 performers include AMBANK (+4.69%), HLB (+3.03%) and DIALOG (+1.76%) while the 3 losers were AIRPORT (-6.98%), AXIATA (-1.86%) and IHH (-1.73%).

Download

The local bourse seems to be rather well supported at current levels. Interestingly we also saw the return of foreign buying after a lengthy hiatus. Over the last 2 days, there were net foreign buying of almost RM300m which was unheard of during the past months.
If such buying is sustained, we may see the FBM KLCI to re-test the 1,600 anytime soon. Meanwhile, we reckon liquidity remains gravitated to the small/mid cap companies amid some rotational plays.
Technology and Construction related companies remain as our preferred picks namely SKP Resources, PIE, D&O, Vertice, Vizione and KAB.

Download

Looks like market volatility is not relenting anytime soon. With fund managers now working overtime jumping from equities to treasuries and vice versa, one can expect profit taking activities to emerge on the local bourse following yesterday’s rather reasonable gains.
Overall sentiments on Bursa Malaysia namely the blue chips remain a big yawn as foreign funds remain net sellers with a net outflow of almost RM9bn YTD.
Nonetheless, we expect liquidity continues to channel into the small/mid cap space on rotational plays. Immediate support for the FBM KLCI is seen at the 1,560 level.

Download

Market Reports