Market Reports

• High expectations of a rate cut by the Feds soon may spur some buying in equities as investors will be hoping for further rate cuts going forward.
• Though the quantum of the rate revision may be lower than expected, many are expecting that this will not be the final rate revision by the Feds this year.
• Consensus is anticipating a 50bps reduction but the Feds may be looking to accede to a 25bps cut.

• In view of the prevailing volatility amongst the financial markets, Gold price has been creeping up steadily of late. We noticed that Gold has hit a five year high to US$1,426/oz with the domestic price even more pronounced at RM5,869/oz which is a 10-year high.
• Maybe it is time to re-look at some of the companies like Tomei and Poh Kong. If interested one can also take a look at Bahvest which is into gold mining in Sabah.

• Regional markets were mixed with US markets taking a breather following their record high closing on the back of rate cut expectations after dovish comments by the Feds. The DJI eased 0.75% or 205 points to 27,154.20.
• The FBM KLCI remain on profit taking mode easing 14.2 points for the week to 1,658.19. Foreign funds flow was slightly negative for the week with RM6.92m net outflow.
• Performance amongst the FBMKLCI components saw gainer 18 losers to 9 gainers. Top 3 performers include PMETAL (+2.08), DIALOG (+2.03%) and CIMB (+1.16%) while the 3 losers were PCHEM (-6.58%), SIMEPLT (-3.71%) and AIRPORT (-2.49%).

The news on international credit rating agency Fitch has affirmed Malaysia’s A-rating, with stable outlook shows our economic fundamentals remains intact and positive and the recent weakness in our local market in our view is a healthy pullback where KLCI has retraced from high of 1,694.55 to current level and we continue to advocate buy on weakness strategy as we expect a better 2H2019.   

• The Transport Ministry has approved Penang's Bayan Lepas Light Rail Transit (LRT) project. The Bayan Lepas LRT project, estimated to cost RM8.4bn and stretch some 29.9km from Komtar to Bayan Lepas, is part of the State Government's RM46bn Penang Transport Master Plan.
• The Master Plan features an undersea tunnel linking the island to the mainland, highways, LRT and monorail, and an extensive bus connectivity on both the island and mainland.
• Gamuda as one of the players for the project should see some buying interest today with the mega infra project finally taking off.