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Lunch break review – 7th Dec 2018

BURSA MALAYSIA (FRI, 7 DEC 2018)

MID-DAYLUNCH BREAK REVIEW

BRIEF MARKET REVIEW:

The FBM KLCI dipped 0.23% at midday break today, in line with struggling regional markets, and looked poised to extend its losses for a fourth day in the running. At mid-day, the FBM KLCI dipped 3.90 points to 1,679.44.

Losers led gainers by 350 to 252, while 1,267 counters traded unchanged. Volume was 1.08 billion shares, valued at RM635.80 million.

Meanwhile, shares in Asia were mostly higher but traded cautiously on Friday afternoon on the back of a report suggesting the U.S. Federal Reserve could consider a slower tempo of increasing interest rates than had been previously expected.

The hard-hit mainland Chinese markets were slightly higher by the end of the morning session, as the Shanghai composite saw fractional gains and the Shenzhen composite rose 0.117 percent.

Part of the broad decline in Asian stocks on Thursday was attributed to news of the arrest of Huawei CFO Meng Wanzhou in Canada. That especially was thought to have hit tech stocks in the region. Investors will also be keeping an eye on any developments in Meng’s case — she is said to face extradition to the U.S.

STOCKS IN THE LIMELIGHT:

AMMB HOLDINGS (RM 4.43, +3.02%)

Shares of AMBANK rose to the high of RM4.44 on Friday after it was included into the benchmark FBM KLCI index of 30 stocks. The stock closed mid-day at RM4.43, up 3.02%, with a high volume of 3.4m shares traded.

A brokerage house said that Top Glove Corp Bhd and AMMB Holdings Bhd will be included in KLCI index effective Dec 24. It said they will replace Telekom Malaysia Bhd and KLCCP Stapled Group which will be excluded from the index on the same date. The house was surprised by the deletion of KLCC and addition of AMMB. This could be near-term positive for AMMB.

PERAK TRANSIT (RM 0.27, +3.85%)

Local media reported that Perak Transit Bhd shares rose 5.77% in active trade this morning after it received the Securities Commission’s approval to move from its current ACE market listing to the bourse’s main market.

The group said it had met the main market listing criteria of having an aggregate net profit of RM20 million for the past three full financial years and net profit of at least RM6 million in the most recent financial year.

PTRANS closed at RM0.27 at mid-day on a high volume traded of 15.8m shares.

Prepared by:

Malacca Securities Quantitative Trading andAnalytics Division
BO1-A-13A, Level 13A, Menara 2,
No.3, Jalan Bangsar, KL Eco City,
59200 Kuala Lumpur
TEL: 03-2201 2100 (General)

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