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The Week Ahead (06/12/2021)

The FBM KLCI clawed back to above the 1500-point level after Thursday sell down, but the broader market remained weak with over 700 counters in the red.

Read More: Bursa CFD Weekly

Global Economy

A brutal 2021 sell-off for Chinese stocks trading in the US has now erased more than US$1 trillion in value since February and shows no signs of easing as regulators on both sides of the globe continue to put pressure on the firms.

Hong Kong stocks fell on Friday as concerns about Chinese companies being kicked off American stock exchanges delivered a punch to technology giants, compounded by Didi Global’s move to delist from New York.
The Hang Seng Index retreated 0.1 per cent to 23,766.69 at the close of Friday trading, reversing a two-day gain to finish the week down 1.3 per per cent.

Japan’s Nikkei share average slid on Friday, dragged down by declines in SoftBank Group and other heavyweights, as investors assessed the impact of the new Omicron coronavirus variant.

European stock markets pushed higher on Friday, in what has been a rollercoaster week, amid easing concerns surrounding the Omicron coronavirus variant and its impact on the global economy recovery.

Wall Street’s major indexes closed lower on Friday, with the Nasdaq Composite Index leading the declines as investors bet that a strong United States jobs report would not slow the US Federal Reserve’s withdrawal of support –all while investors grappled with uncertainty around the Omicron coronavirus variant.

Gold prices moved higher on Friday as the market tried to gauge the potential impact of a weak US jobs report on the Federal Reserve’s monetary policy, as the new coronavirus variant continues to spark uncertainty in the economy.

Oil prices rose by 3% early on Friday, extending gains from late Thursday, after the OPEC+ alliance said it could immediately revisit the planned 400,000 bpd increase for January if demand suffers in coming weeks.

Company in Focus 

CIMB Group Holdings Bhd (CIMB.MY) sinks into red ink, posting a net loss of RM100.59 million for the third quarter ended Sept 30, 2021 (3QFY21) from a net profit of RM194.44 million a year ago, underpinned by impairment of CIMB Thai goodwill amounting to RM1.22 billion in the current quarter. In a Bursa Malaysia filing on Tuesday (Nov 30), the group said its quarterly revenue declined slightly by 0.42% to RM4.40 billion from RM4.41 billion, as the previous quarter under review saw recovery in trading & foreign exchange (FX) activity and wealth management.

Share prices of rubber glove makers including Top Glove Corp Bhd (TOG.MY) rebounded on bargain hunting on Thursday (Dec 2) after investors took profit in recent days and as they assessed updates on the Omicron variant of Covid-19.

Public Bank Bhd (PBK.MY) saw improvements in its core lending and deposit-taking business during the nine-month period ended Sept 30,2021 posting a 15% increase in net profit to RM4.28bil compared with RM3.72bil in the previous corresponding period.

Apple shares (AAPL) closed down slightly negative Thursday, paring back losses of as much as 3%. Apple warned its suppliers demand is lower than expected for new iPhones, rattling the stock that resisted the omicron-fueled volatility in the market this week.

United Health Group’s (UNH) revenue will surpass $300 billion next year for the first time as the diversified healthcare giant continues to successfully meld its insurance business with the provision of medical care.

On October 20, the electric utility firm NextEra Energy Inc. (NEE) reported third quarter 2021 earnings that missed consensus top-line estimates but beat consensus bottom-line estimates. The company reaffirmed its medium-term guidance in conjunction with its earnings report.

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