Market Reports

• I-Stone Group Bhd, a specialised automation machine manufacturer is seeking to list on the ACE Market today. It mainly involves in manufacturing automation business primarily offering design, manufacture and modification services of specialised automation machines.
• The group has over 100 active clients from various industries and among the top renowned clients are Dyson, V.S. Group and ATA Industrial. See our Investment Idea on ISTONE today.

• The impending results season in the US may be a crucial one as we understand investors would be highly susceptible by the earnings reported as Wall Street is currently trending at record highs.
• Therefore we may be entering into a rather volatile period for equities. With the US market now trading at an estimated PER of 17x which is a premium vis a vis its historical of 15x, any shortfall from the corporate results may posed as a reason to take profit by investors.
• Meanwhile, expectations of lower interest rates may curtail any excessive selling. Interesting times ahead for equities indeed.

• All is looking good at the moment for the domestic equity market. Liquidity is building up with foreign funds inflow though not significant has been rather consistent.
• Sentiments we gather has also improved with Wall Street charting new record highs recently. Therefore, we believe the regional markets should do well today which will prop up the FBM KLCI as well. We expect the FBM KLCI to challenge the 1,700 level very soon.

• Regional markets were mostly in positive territory with US markets continued its record high closing on the back of the hopes of rate cut after dovish comments by the Feds. The DJI continued its positive run surging 1.96% or 525.89 points to 27,332.03.

The FBM KLCI succumbed to profit taking easing 8.19 points for the week to 1,669.45. Foreign funds flow continued to be positive for the week with 84.93m inflow.

Performance amongst the FBMKLCI components saw gainer 15 losers to 12 gainers. Top 3 performers include PMetal (+2.09), MISC (+1.25%) and MAHB (+0.92%) while the 3 losers were CIMB (-3.35%), PetDag (-3.05%) and PetChem (-2.09%).

• A more dovish statement from the Federal Reserves had sent stocks soaring on Wall Street and we expect the same on regional markets today.
• With expectations of a lower rate in the US, the MYR climbed higher against the greenback to around the 4.11 breaking its consolidation phase of between 4.13-4.15 recently.
• We maintain our stance that the MYR will appreciate to 4.00 by end of this year.