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Lunch Break Review – 23rd Nov 2018

 

BURSA MALAYSIA (FRI, 23 NOV 2018)

MID-DAY LUNCH BREAK REVIEW

 

 

 

BRIEF MARKET REVIEW:

The FBM KLCI pared some of its loss at the midday break and was down 0.13% in line with regional weakness. The FBM KLCI shed 2.15 points to 1,693.47 and earlier slipped to its intra-morning low of 1,689.14.

Losers led gainers by 508 to 184, while 271 counters traded unchanged. Volume was 821.68 million shares valued at RM486.87 million.

Meanwhile, stocks in Asia mostly slipped on Friday morning (Japan market is closed for a holiday) as investors remained wary about uncertainties surrounding the U.K.’s divorce negotiations with the European Union, as well as heightened tensions between the United States and China.

It was reported that the U.S. government is attempting to sway companies that sell wireless and internet services in allied countries to stay away from telecommunications equipment from China’s Huawei Technologies, according to the Wall Street Journal which cited people familiar with the situation.

 

STOCKS IN THE LIMELIGHT:

 

KESM (RM9.25, -12.4%)

Shares of burn-in tester and chip maker KESM Industries tumbled to a two-year low of RM9.00 on Friday as its earnings disappointed the market. The stock closed mid-day at 9.25, down 12.41%, with 6.1m shares traded.

KESM reported a net profit of RM2.64mil in its first quarter compared with RM11.38mil a year ago. Its revenue declined to RM81.56mil from RM90.71mil.

A brokerage house said that KESM’s 1QFY7/19 results fell below its and consensus’ expectations due to lower-than-expected utilization following inventory adjustment from its customers.


CIMB GROUP HOLDINGS (RM5.62, -0.5%,), RHB BANK (RM5.18, +0.4%)

Local media, The Star, reported that a fresh wave of change at government-linked outfits appears to be happening, with at least two chief executive officers (CEOs) being rumored to leave their respective organizations in the near future.

Among those that could go soon, according to its sources, are from the banking industry, namely, RHB Bank Bhd managing director Datuk Khairussaleh Ramli and CIMB Group CEO Tengku Datuk Seri Zafrul Aziz.

Other CEOs likely to leave are those currently serving at smaller financial institutions, and construction and property firms that are owned by government-linked entities.

CIMB closed 3 sen down at mid-day at RM5.62 on a small volume traded of 1.69m shares while RHB Bank traded 2 sen up to RM5.18 on 0.24m shares traded.

 

 

Prepared by:

Malacca Securities Quantitative Trading and Analytics Division

BO1-A-13A, Level 13A, Menara 2,

No.3, Jalan Bangsar, KL Eco City,

59200 Kuala Lumpur

TEL: 03-2201 2100 (General)

The Quantitative Trading and Analytics Division houses the elite data scientists, programmers and proprietary traders that work the proprietary algorithm trading desk of Malacca Securities. Join and network with us at our elite mPower Algorithm program, mPower Trading program and Elite Education courses.