Bursa CFD Market News & Reviews

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The Week Ahead (20/09/2021)

The FBM KLCI eased 27.46 points to end the week at 1,548.51 from 1,575.97 previously. KLCI is expected to move between 1,560 and 1,580 points next week with the return of foreign participation in the local stock market on the back of economic activities resumption.

Read More: Bursa CFD Weekly

Global Economy

Japan’s benchmark stock index hit its highest level in 31 years on Tuesday, spurred by hopes that Japan’s next prime minister will spend big to boost the economy.

Hong Kong shares fell to their lowest since early November, as concerns over a major Chinese property developer’s debt woes and rising government scrutiny on Macau casino operators drove investors to sell. The Hang Seng Index closed 1.5% lower.

European stocks fell on Friday, capping their third straight week in the red, as the basic resources sector was hit by declines in Anglo American PLC, but news that the UK was mulling easing travel restrictions boosted airlines and hotel groups.

All three major U.S. stock indexes lost ground in a broad sell off on Friday, ending a week buffeted by strong economic data, corporate tax hike worries, the Delta COVID variant, and possible shifts in the U.S. Federal Reserve’s timeline for tapering asset purchases.

Gold has suffered a major sell off as the US dollar hit a near 3 week high against a basket of currencies following a stellar US Retail Sales outcome. Gold price close 2.27% lower for the week.

Oil prices edged lower Friday, but are heading for a fourth consecutive weekly gain as supply in the important U.S. Gulf of Mexico region is only slowly returning to normal after Hurricane Ida.

Company in Focus 

Scientex Bhd (SCI.MY) has proposed to acquire all the remaining shares and warrants of Daibochi Bhd that it does not already own at an offer price of RM2.70 per share and 32 sen
per warrant, amounting to RM345.3 million in total. Scientex does not intend to maintain the listing status of Daibochi.

Top Glove Corp Bhd (TOG.MY) expects to continue to experience headwinds amid the industry wide practice of downtrending average selling price (ASP) for gloves, increasing market competition from Chinese glove makers, and slower growth in demand due to customers holdings back on their purchase in anticipation of a normalising of ASP. Top Glove Corp Bhd’s net profit slumped 70.14% quarter on quarter (q o q) to RM607.95 million in the fourth quarter ended Aug 31, 2021 (4QFY21), compared with RM2.04 billion in the immediate preceding quarter.

The Employees Provident Fund (EPF) has ceased to be a substantial shareholder of Cahya Mata Sarawak Bhd ( CMS.MY ), its Bursa Malaysia filing showed today. The provident fund’s stake in the group dropped below 5% after it disposed of a total of 1.8 million shares on Sept 10.

Wynn Resort ( WYNN) & Las Vegas Sand (LVS) Macao related casino stocks dipped again as authorities weigh tighter regulations on Macao’s gaming industry. JPMorgan downgraded both stocks to neutral from overweight following the governmental action, writing in a note to clients that they “don’t like the uncertainty and opacity surrounding Macao and China policy.”

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