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Lunch Break Review – 20th Dec 2018

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BURSA MALAYSIA (THU, 20 DEC 2018)

MID-DAY LUNCH BREAK REVIEW

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BRIEF MARKET REVIEW:

The FBM KLCI fell 0.47% at the mid-day break today as the regional markets slumped. At mid-day, the FBM KLCI fell 7.78 points to 1,647.88. Losers led gainers by 436 by 245, while 282 counters traded unchanged. Volume was 1.21 billion shares valued at RM768.91 million.

Stocks in Asia were broadly lower on Thursday afternoon after the U.S. Federal Reserve raised interest rates for the fourth time in 2018.

Overnight on Wall Street, the major indexes hit new closing lows for 2018. The Dow Jones Industrial Average dropped 351.98 points to close at 23,323.66 while the S&P 500 shed 1.5% to end the trading day at 2,506.96. The Nasdaq Composite fell 2.1% to close at 6,636.83.

That came on the back of the Fed raising its benchmark interest rate by a quarter point to a target range between 2.25 to 2.5 percent, in a widely anticipated move. The move marked the fourth increase this year by the U.S. central bank and the ninth since it began normalizing rates in December 2015. It came despite President Donald Trump’s tweets against rate hikes. Officials, however, now project two hikes next year, which is a reduction but still ahead of current market pricing of no additional moves next year.

 

STOCKS IN THE LIMELIGHT:

 

MALAYSIAN RESOURCES CORPORATION BHD (RM0.605, +3.42%)

Local media reported that Malaysian Resources Corporation Bhd (MRCB) rose to the high of RM0.63 this morning after it received RM1.07 billion from the Employees Provident Fund (EPF) for its 80% subscription in Bukit Jalil Sentral Property Sdn Bhd (BJSP), the special purpose joint venture company undertaking the development of Bukit Jalil Sentral.

Bukit Jalil Sentral, which measures 76.14 acres, is a mixed development project with a GDV of RM21 billion. The 80% equity interest in BJSP will reside with the EPF’s unit Tanjung Wibawa Sdn Bhd, and MRCB’s subsidiary Rukun Juang Sdn Bhd will retain a 20% equity interest.

MRCB closed at RM0.605 mid-day on a high volume of 14.5 million shares traded.

 

SAPURA ENERGY BHD (RM0.285, -3.39%)

Shares of Sapura Energy Bhd dipped 1.7% in active trade at mid-morning today, in tandem with the weaker crude oil prices. Oil prices fell on Thursday to erase most of their gains from the day before, resuming declines seen earlier in the week amid worries about oversupply and the outlook for the global economy, according to Reuters.

 

The front-month US crude contract had fallen 78 US cents (RM3.26), or 1.6%, to US$47.39 per barrel by 0129 GMT, nearly offsetting gains of 96 US cents chalked up on Wednesday, it said.
The stock closed mid-day at RM0.285, down 3.39%, with a high volume of 45.2 million shares traded.

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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.

 

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