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Showing posts with label Stock. Show all posts
Showing posts with label Stock. Show all posts

April 16, 2021

DJI Records 34,000, S&P Records Highest Level

 The Dow Industrial Index (.DJI) closed above 34,000 for the first time yesterday after the blue -chip benchmark and the S&P 500 (.SPX) posted the highest gains on a surge in tech stocks driven by declining U.S. bond yields and retail sales. in the last month.

The S&P 500 recorded its second highest close this week and the Dow surpassed its previous high on April 9th.

The Nasdaq Composite Index (.IXIC) closed above 14,000 for the first time since Feb. 16 and now closes less than 1% from its Feb. 12 high.

The S&P information technology sector (.SPLRCT) also reached an all -time high. The benchmark index and communications services index (.SPLRCL) were also driven by technology giants including Apple Inc (AAPL.O), Microsoft Corp (MSFT.O) and Facebook Inc (FB.O) which recorded jumps of between 1.5% and 1.9%.

The Dow Jones Industrial Average (.DJI) rose 305.1 points or 0.9% to 34,035.99; The S&P 500 (.SPX) jumped 45.76 points or 1.11%, to 4,170.42; and the Nasdaq Composite (.IXIC) added 180.92 points or 1.31%, to 14,038.76.

Rising U.S. market sentiment was due to a surge in retail sales in March after the country’s citizens received additional pandemic assistance from the government.

Unemployment claims also dropped higher than expected to 576,000 last week.

The cryptocurrency exchange index, Coinbase Global Inc (COIN.O) jumped before closing 1.7% lower, a day after making its first appearance on the Nasdaq.

Mobile app firm AppLovin Corp (APP.0) was down 18.5% on the first day of trading after being valued by its initial issuance stock at US $ 28.6 billion.

US trading volume was 9.95 billion shares.

This is the Market Situation at the Weekend

 Trading on Bursa Malaysia opened lower this morning with the key index declining despite overall positive market sentiment following the emergence of profit -taking activity ahead of the weekend.

At 9.04am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) index fell 3.89 points to 1,604.36 from 1,608.25 at the close of trading yesterday afternoon.

Bernama reported that the key index opened 0.81 points weaker at 1,607.44.

Rubber glove counters mostly declined this morning as investors took advantage of profits following yesterday's strong gains, with Top Glove down six sen to RM5.38,

Hartalega fell 11 sen to RM9.89 and Supermax declined 10 sen to RM5.00.

On the broader market, however, gainers outpaced losers by 231 to 158, while 1,470 counters were unchanged, 320 untraded and 27 others suspended.

Turnover was 827.88 million shares worth RM423.2 million.

According to Malacca Securities Sdn Bhd, although the key index may rise higher in line with Wall Street's overnight gains, concerns about a possible fourth wave hitting the country will continue to weigh on investor sentiment with daily confirmed cases hitting 2,000 yesterday.

The FBM KLCI, however, ended higher yesterday, driven by buying interest at the glove counter as the global Covid-19 case continued to soar.

“We expect follow-up buying interest at glove counters given the increase in Covid-19 cases confirmed every day in the country and around the world.

"In addition, positive sentiment on the Nasdaq which is above the 14,000 level may spill over into local market technology stocks," he said.

Wall Street closed stronger in trading yesterday with the S&P 500 hitting all -time highs and the Dow Jones Industrial Average beating the 34,000 level for the first time, boosted by strong financial results and economic data.

On the local market, heavyweights, Maybank declined one sen to RM8.29, Public Bank declined two sen to RM4.21, Petronas Chemicals fell five sen to RM7.86 while Tenaga and Petronas Chemicals were flat at RM10 each. 12 and RM5. 35.

As for active counters, Lambo was flat at two sen, Jadi and G3 fell one sen each to 11 sen and 20.5 sen respectively and WZ Satu rose four sen to 20 sen.

On the index board, the FBM Emas Index fell 10.57 points to 11,841.26, the FBM Emas Syariah declined 6.2 points to 13,245.25, the FBMT 100 declined 14.1 points to 11,494.75 and the FBM ACE fell 30.14 points to 8,833.16.

However, FBM 70 gained 33.81 points to 15,734.2.

By sector, the Plantation Index fell 5.39 points to 6,924.98, the Financial Services Index declined 18.77 points to 15,091.31 while the Industrial Products and Services Index added 0.01 points to 196.42.

RM243 Million Contract Signed, WZ Satu Shares Jump 25%!

 Shares of WZ Satu Bhd jumped 25% in this morning's trading session after signing a contract worth RM243.44 million for the provision of engineering, procurement, construction and operation of effluent management projects at the source level.

At 10.16am, WZ Satu rose four sen to 20 sen with 5.41 million shares traded. The shares were up 21.5 sen earlier.

In a statement to Bursa Malaysia yesterday, WZ Satu Bhd's wholly -owned subsidiary, WZS Setia Sdn Bhd received a Letter of Appointment (LOA) from Malaysian Refining Company Sdn Bhd (MRCSB) on Tuesday.

“The contract period is for 27 months and is targeted to be completed on or before June 30, 2023.

“The contract is expected to contribute positively to the future earnings and net assets per share of the company for the financial year ended 31 December 2021; 31 December 2022 and 31 December 2023, ”said WZ Satu as reported by Bernama.

Overview of US stock market on April 15, 2021

 Tesla shares hit fresh swing highs and rose to $779 apiece yesterday. A new bullish cycle of one of the most controversial companies in the world could rest on the fundamental background. Besides, the rally could be propelled by new investors buying the shares. They firmly believe that Tesla will become something like Apple Inc. or even surpass it sometime in the future. Speaking about market capitalization, Tesla is likely to catch up Apple Inc. in the near time in terms of its market value. The thing is that Apple manufactures mainly smartphones, gadgets, and hardware. Lately, the company is actively promoting various services as well as invests in innovative projects. There are rumors that Apple Inc. is about to enter the market of electric vehicles. Nevertheless, most consumers consider the company to be the manufacturer of iPhones and tablets. Unlike Apple, Tesla is the company at a global scale with Elon Musk at the helm. This hi-tech mogul sets much broader aims than manufacturing smartphones. His other company, Space X, launches spacecraft. So, it would be right to say that Tesla owes its success to a variety of factors such as growing popularity of electric cars, the genius of Elon Musk, and progress of Space X. These factors lie behind a 10-fold climb of Tesla shares in 2020. Meanwhile, Tesla produces and sells fewer cars than any of the top 10 auto manufacturers.

Here comes a paradox. Tesla is much more valuable than any auto manufacturer, but at the same time, Tesla produces much fewer cars than any auto manufacturer. In other words, Tesla Inc. earns much less profit than any other auto manufacturer. Nevertheless, its market capitalization has been swelling like hell. Here is how the stock market operates. That company whose shares are in demand with investors is increasing its market capitalization. There is no secret. According to the latest corporate report, Tesla closed Q1 2021 with financial results slightly better than expected. This drove another rally of its shares. Analysts reckon that Tesla will scale up deliveries of its electric cars. So, they expect Tesla to sell 1 million cars per year in the near future.

Apart from the main direction, analysts predict success in undervalued kinds of business like solar energy technologies and production of car batteries. According to expert estimates, Tesla shares could surge in value to $1,100 apiece in 2021. Besides, Tesla is expected to gain $8 billion earnings only in the energy sector. Importantly, at present, Tesla deals not only with electric cars manufacturing. The lion's share of the company's revenue is not generated by car sales. Moreover, the most expensive Tesla models do not enjoy demand anywhere in the world. The company sells mainly the cheapest models like Model 3 and Model Y.

In terms of technical analysis, the shares have surpassed the important level of $708. Currently, the US benchmark stock indices are rallying day by day. In this context, only large high-tech companies are going to attract new investors. All in all, Tesla shares are expected to extend a climb towards one-year highs at about $900.

April 15, 2021

US stock market review for April 14, 2021.

 On Tuesday, US stock indexes showed strong growth. The Dow Jones fell slightly to 33,681. The S&P500 index rose to 41,41, while the NASDAQ-100 advanced to 13,983. Two of the three indexes again reached their all-time highs. In general, the stock market continues the upward trend that was observed in the coronavirus crisis last year. Yet, the bubble is getting bigger. The shares of many companies are adding gains not because the companies themselves are growing but because investors need to invest trillions of dollars injected into the economy. Speculators have lost interest in the US debt market as the US Treasury yields are much lower than the inflation indicator. Therefore, the sell-off of US government bonds is in full swing. Although the yield continues to grow, it still remains much lower than the short and long-term inflation. Yesterday's US inflation report delivered a hard blow to the bond market. The consumer price index in March 2021 rose to 2.6% on an annual basis. Many experts believe that inflation is likely to appreciate even more. Naturally, with an inflation rate of 2.6%, investors are unlikely to pay attention to US Treasuries even with a yield of 1.6%. In recent days, the yield of 10-year Treasuries has slightly decreased. Currently, it comes in at 1.632%. There is no doubt that this indicator will continue to climb. Otherwise, investors will flee from the bond market.

On Tuesday, shares of those companies that may suffer from a slowdown in the pace of vaccination incurred hefty losses. The US Food and Drug Administration has recommended stopping the use of the Johnson & Johnson vaccine due to several cases of the rare blood-clotting disorder. Notably, earlier, AstraZeneca faced the same problems. The vaccine has been restricted or banned in many countries around the world. Although the percentage of blood clots after using the Johnson & Johnson vaccine is extremely low in comparison with AstraZeneca, the use of the drug has temporarily stopped. However, it is unlikely to adversely affect the rate of vaccination in the United States. Only 6.8 million people have received doses of the Johnson & Johnson vaccine. The US mainly uses Moderna and Pfizer vaccines.

Tesla shares soared again. Over the past two days, their price rose by $872 despite the fact that there was no groundbreaking news from Elon Musk or from the company. Therefore, such growth can be called speculative. The company's shares are being bought like hotcakes, which absolutely does not correspond to the pace of development of the company.

The S&P500 index is showing stable growth. The S&P 500 stock market index comprises 505 common stocks issued by 500 large-cap companies. For this reason, it accurately reflects the situation in the equity market. Unlike the Dow Jones Industrial Average, it covers not only the largest but also smaller companies. Technically, both linear regression channels signal an upward trend. The Ichimoku Indicator clearly demonstrates an upward trend as well. Currently, there are no signs of the beginning of even a downward correction. Hence, the US stock market is likely to maintain its rally in the long term. The nearest target for the S&P500 index is the level of 4,170.

Some Sectors Are The Focus Of Investors Today

 Bursa Malaysia opened higher this morning, in line with regional market performance, driven by better market sentiment as concerns over high US inflation eased, according to dealers.

At 9.05am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) added 1.91 points to 1,600.19 from 1,597.71 at the close yesterday.

According to Bernama, the index opened 1.53 points higher at 1,599.81.

The rise in the composite index was largely supported by gains in glove stocks and other selected heavyweights.

Supermax and Top Glove rose 6 sen each to RM4.66 and RM5.19 respectively while Hartalega jumped 3 sen to RM9.50.

Market breadth was positive with gainers outpacing losers by 212 to 180, while 309 counters were unchanged, 1,476 untraded and 25 others suspended.

Turnover stood at 265.65 million shares worth RM158.26 million.

According to Malacca Securities in its note, the contagion of Covid-19 in the country showing an upward trend, overall market sentiment may remain volatile.

However, the surge in crude oil prices amid optimism demand will return after travel restrictions, providing some relief especially to oil and gas players.

"We believe oil and gas counters will be under the radar of traders due to the increase in oil prices.

"Daily demand for food and packaging when the Movement Control Order (PKP) is extended, may attract buying interest in the consumer and packaging sectors," he said, adding that the healthcare sector was also a focus as Malaysia was on the verge of the fourth wave of Covid-19 following an increase in new cases. and active.

New Covid-19 cases in the country rose to 1,889 yesterday from 1,767 on Tuesday, bringing the cumulative number of Covid-19 cases in the country to 365,829 cases.

Among heavyweights, Maybank rose two sen to RM8.33, Petronas Chemicals and Tenaga rose four sen each to RM7.92 and RM10.20, respectively, while Public Bank and IHH Healthcare were flat at RM4.20 and RM5.40.

Among active stocks, AT Sytematization and Asia Poly rose half-a-sen each to 10 sen and 41 sen, respectively, Widad rose one sen to 54.5 sen, while Ucrest was flat at 30.5 sen.

On the index board, the FBM Emas Index was 15.76 points high to 11,850.6, the FBM Emas Shariah Index was up 22.76 points to 13,225.47, the FBMT 100 was up 11.99 points to 11,494.63, the FBM 70 was up 9.87 points to 15,848.38 and the FBM ACE was up 85.79 points to 9,419.29.

By sector, the Industrial Products and Industrial Services Index added 0.57 points to 195.49, the Plantation Index rose 1.2 points to 6,970.02 and the Financial Services Index added 2.96 points to 15,124.19.

What is an Exchange Traded Fund (ETF)?

 Exchange Traded Funds (ETFs) are securities that track an index, commodity, sector or group of assets such as open -ended investments but are traded on exchanges such as stocks.

Since ETFs are traded in a market like stocks, ETFs are priced and traded throughout the day. Thus, ETFs combine the features of open-ended funds and stocks.

ETFs have several advantages such as having low management fees and no upfront fees. In addition, investors can easily redeem units and get cash by the third day of the market after the trading date.

Investors also know what to buy because the underlying securities are exposed and prices are available in real time throughout the trading day.

You can also invest in the securities you want with only a small capital. Unlike Unit Trust Funds, ETFs do not have a minimum investment amount while most unit trust funds require a minimum initial investment of RM1,000.

Like stock trading, you need to have a Central Deposit System (CDS) account and a trading account managed by a broker. You can sell or buy ETFs through brokers, remisiers and through online trading during trading sessions.

How is the market price of an ETF determined? There are two types of prices for an ETF. The trading price is the bid and query price displayed on the trading screen. ETF trading prices are determined by demand and supply in the market.

Another type of ETF market price is Net Asset Value (NAV). The NAV of an ETF is its total assets after deducting liabilities. Typically, ETF NAV is calculated by the ETF fund manager.

Most ETFs have Designated Market Determinants to provide bid prices to ensure investors can enter and exit the market throughout the day.

There are two types of returns in ETFs. The first is capital income. Investors can trade ETFs like stocks by buying them at a low price and selling them at a higher price to make a profit.

The second is dividends. Most ETFs pay dividends to their fund holders either semi -annually or annually. Fund managers typically receive dividends from securities that belong to the ETF group.

Dividends are usually distributed to ETF unitholders after deducting management fees.

ETFs also have risks, similar to stock investments, of being subject to market fluctuations. The performance of an ETF may also be directly affected by the performance of its component stocks or bonds.

Since ETFs have become increasingly popular among investors, many new funds have been created, causing the trading volume of an ETF to be low. As a result, investors may not be able to buy and sell low -value ETF shares easily.

Some ETFs rely on untested portfolio models in different market conditions and can result in unusual inflows as well as outflows from funds, which negatively impact market stability.

Analysts Remain Buy Recommendations For Mr DIY

 AmInvestment Bank Research maintained a ‘buy’ rating on Mr DIY Group (M) Bhd and changed its target price to RM4.48 from RM3.80 after predicting the company would profit from a possible listing on Bursa Malaysia.

The research firm through its note said the fair value of Mr DIY’s shares is based on price to earnings (PE) of 38 times the earnings per share (EPS) of financial year 2023 (FY23).

AmInvestment is also optimistic about Mr DIY's future earnings prospects, given a gross profit margin of 43%, expansion into rural areas, a quick return on capital period of less than two years and the expected success of the 'multi-store' format.

"The relaxation of travel restrictions will also increase the number of customers and the transaction value of stationery and sports equipment," the firm said.

AmInvestment also maintained its sales growth forecast of 52% for financial year 2021 (FY21).

“The situation is expected to be supported by the opening of 100 Mr DIY branches, 25 Mr Toy branches and 50 Mr Dollar branches in FY21. So far, Mr Toy has shown an increase in sales, increasing by 33% year -on -year to RM40 by the end of 2020, ”he said.

AmInvestment is also positive about the company's intention to open a large number of branches in remote areas as it contributes 15-20% higher revenue than branches in urban areas.

Meanwhile, the firm believes the first quarter of financial year 2021 (1QFY21) will not be severely affected by the Movement Control Order (PKP) as more than 95% of branches remain open.

AmInvestment believes in stronger revenue from the stationery and sports equipment segment following the gradual easing of PKP restrictions and the reopening of school sessions.

“This segment produces the second highest gross profit margin of about 46%. We expect the segment to return to pre-pandemic levels of revenue of 10% after falling about 7% in financial year 2020 (FY20), ”the firm explained.

At 12.29, Mr DIY's shares fell two sen to RM4.19.

April 14, 2021

BIMB Issued 222.22 Million New Shares

 BIMB Holdings Bhd will issue 222.22 million new shares, representing 12% of the issued share capital to raise RM795.6 million.

According to the firm, as reported by Bernama, the pricing related to the placement of its shares was completed yesterday and received excess subscriptions from existing shareholders and new investors.

BIMB's Board of Directors has set the issue price at RM3.58 per placement share, representing a discount of approximately 9.4% on the daily average price of BHB's shares for the five trading days up to April 12, which is RM3.9521 per share.

Meanwhile, the bank informed Bursa Malaysia that BIMB securities resumed trading at 9am this morning.

BIMB's trading was suspended until 5pm yesterday pending an important announcement on its fundraising measures.

BIMB is undertaking restructuring measures which are expected to be completed in August. Its wholly -owned subsidiary, Bank Islam Malaysia Bhd will take over BIMB's listing status in key markets.

The stock exchange operator approved the application yesterday.

At 9.57am, BIMB shares were trading at RM3.89.

Stock Investors Breathe in Relief

 Bursa Malaysia rebounded from a two-day decline this morning, following lower share buying activity in the local market.

At 9.10am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) rose 0.57 points to 1,598.28 from 1,597.71 at the close yesterday.

According to Bernama, the index opened 2.48 points at 1,600.19.

According to a dealer, the recent sell-off, which pushed the key index to move below the psychological 1,600 level yesterday, has attracted investors to gather holdings.

The dealer added that the latest external developments, namely stronger-than-expected US inflation data and the discontinued implementation of the Covid-19 vaccine by Johnson & Johnson, which sparked concerns about the delay in economic recovery, also weighed on sentiment around the world.

Yesterday, the U.S. Department of Labor announced the Consumer Price Index rose 0.6% in March, after rising 0.4% in the previous month.

This happened unexpectedly as the consensus projected to increase by 0.5%.

Domestically, the overall market sentiment was positive with gainers outpacing losers by 270 to 207, while 1,271 counters were unchanged, 431 untraded and 10 others suspended.

Turnover stood at 805.99 million shares worth RM290.21 million.

Of the heavyweights, Maybank and Top Glove, rose three sen each to RM8.35 and RM5.11, respectively, Petronas Chemicals rose six sen to RM7.94 and CIMB added two sen to RM4.25.

Public Bank and Tenaga, declined two sen each to RM4.21 and RM10.18 respectively while IHH Healthcare declined one sen to RM5.38.

Among active counters, Minda rose 1.5 sen to 19 sen, REX and Ucrest added one sen each to 24.5 sen and 28 sen, respectively, while TDM was flat at 27.5 sen.

On the index board, the FBM Emas Index rose 14.28 points to 11,830.05, FBM Emas Shariah rose 24.37 points to 13,192.39, FBMT 100 added 9.71 points to 11,477.59, FBM 70 added 35.16 points to 15,812.33 and FBM ACE rose 62.3 points to 9,511.17.

By sector, the Industrial Products and Services Index added 0.78 points to 194.54, the Plantation Index rose 22.26 points to 6,966.28, however the Financial Services Index declined 3.34 points to 15,154.24.

Analysts Recommend This Stock Review

 Minda Global Bhd shares traded most actively during this morning's trading session and jumped more than 8% after Top Glove Corp Bhd executive chairman Tan Sri Dr. Lim Wee Chai invested in the Mind education group.

At 9.05am, Minda's share price rose 1.5 sen or 8.57% to 19 sen with about 112 million shares traded.

At 19 sen, Minda has a market value of about RM235.6 million based on the company's 1.24 billion shares issued.

According to analysts, Mind shares need to be given attention today.

Yesterday, Bloomberg reported Wee Chai has become a minority shareholder in Mind.

“This is a personal investment, separate from Top Glove Group. I am often interested in education because it is instrumental to enable people, organizations and countries to progress, ”he said.

What is Blue Chip Stock?

 As an investor, you have certainly heard of blue chip stocks. However, what are blue chip stocks in Malaysia?

In this article, the INTRADAY team will discuss the advantages and disadvantages of blue chip stocks as well as the list of companies in the country that are classified as blue chip stocks.

Blue chip stocks are large and well -known company stocks as well as having strong financial performance for the long term.

These stocks have the ability to overcome difficult market situations and give high returns during good market conditions.

Overall, blue chip stocks are the strongest and largest stocks on Bursa Malaysia or in other countries' markets.

There are many stocks you can invest in the market. If you are interested in investing in well -performing stocks, you need to identify what makes the company’s stock a blue chip.

Several specifications can be considered to identify this blue chip company. That includes sustainable companies with consistent annual earnings over a long period of time, a stable debt -to -equity ratio, return on equity (RoE), market capitalization and price -to -earnings (PE) ratio.

There are several companies that are classified as blue chip. Among them are Maybank, Hartalega Holdings Berhad, TopGlove Corporation Berhad, Public Bank Berhad, Tenaga Nasional Berhad, Petronas Chemical Group Berhad, IHH Healthcare Berhad, Maxis, Sime Darby Plantation Berhad and MISC Bhd.

Blue chip stocks offer stable earnings over a consistent period of time when gaining investor trust and credibility. Therefore, the stable income of this stock is ideal for investors looking for investments that provide consistent returns.

Blue chip stocks are unlikely to show a steady rise in stock prices but have the advantage of uninterrupted dividend payments over time. In the long run, investors can profit from asset appreciation as well as dividend payments.

The stock also has a strong financial database with a strong balance sheet and cash flow. Having a solid underlying database this will provide minimal risk to investors, thus helping to reduce your investment risk.

The return for a blue chip stock is equal to its risk. For example, low risk, low return. Blue chip stocks provide high investment security from their stable business operations with low risk investments. Therefore, blue chip stocks are not suitable for aggressive investors who want high returns.

Blue chip stocks are unlikely to achieve impressive gains over time but such growth is small and stable. Blue chip stocks may be an ideal investment for investors who want to accumulate investment value in the long run due to their slow growth.

Blue chip stocks are more focused on rewarding shareholders than reinvesting in the business. Therefore, investors who do not need these dividends to generate surplus income can turn to more aggressive stocks to generate greater profits.

As an investor, before you decide to invest in blue chip stocks in the country, you first need to know your investment objectives and goals. Blue chip stocks are known to provide an advantage for the long term as they provide high value to investors looking for consistent returns, stable growth and easy to anticipate.

If you want high returns in a short period of time, then blue chip stocks are not for you. However, every investment has its risks. You need to understand what a blue chip stock is and does it fit into your investment strategy.

April 13, 2021

Shares Nuance Jump 16%!

 Shares of technology firm that helped develop Apple's Siri software, Nuance Communications, rose more than 16% after Microsoft Corp. reportedly wanted to buy the company through a $ 19.7 billion deal.

The Nuance purchase is the second largest deal in Microsoft’s history after its acquisition of the LinkedIn site in 2016.

According to Microsoft in a statement issued, the firm will enhance Nuance's artificial intelligence software and expertise for healthcare companies.

Online medical services have been on the rise since the Covid-19 pandemic struck. The trend is expected to continue to increase after the pandemic.

The deal, which covers Nuance’s debt, is expected to be signed this year.

Massachusetts -based Nuance, was founded in 1992. The company has more than 1,600 employees worldwide and operates in 28 states.

The company recently focused on supplying software to the healthcare industry such as software that helps provide radiology reports automatically.

Nearly 80% of hospitals in the United States (US) have become Nuance customers. The firm’s acquisition will potentially expand Microsoft’s market in the healthcare industry.

Microsoft is expected to pay US $ 56 per share to bring Nuance under 'one roof'. The price is 23% higher than Nuance shares traded last Friday.

Following the Continuation of PKPB & PKPP, This is the Expectation of Investors' Preferred Shares

 Trading on Bursa Malaysia opened lower on the morning of trading today with the key index remaining in a weak zone due to the lackluster risk appetite in the market.

At 9.06am, the key benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) index declined 1.72 points to 1,606.7 from yesterday's close of 1,608.42.

Bernama reported that the key index opened 0.29 points higher at 1,608.71.

On the broader market, losers were relatively higher than gainers with 204 to 195 while 1,266 counters were unchanged, 493 untraded and 11 others suspended.

Turnover was 789.59 million shares worth RM292.27 million.

According to Malacca Securities Sdn Bhd, in a situation of lack of new catalysts, the local bourse may experience further decline but the weakness can be offset by technical recovery.

The firm added that the unstable number of Covid-19 cases on a daily basis resulting in the Conditional Movement Control Order (PKPB) and Rehabilitation Movement Control Order (PKPP) being extended in some states could also affect the smooth running of the economic recovery.

“We believe selected sectors related to recovery themes such as construction, real estate and consumers are still moving up despite the unstable number of Covid-19 cases on a daily basis.

"In addition, packaging -related stocks may be an option due to the extension of PKPB and PKPP," the research firm added in a note.

Among heavyweights, Public Bank and IHH Healthcare lost one sen each to RM4.20 and RM5.37 respectively, Petronas Chemicals declined 12 sen to RM7.86 and Tenaga was four sen lower at RM10.20.

Top Glove added one sen to RM5.26 while Maybank was flat at RM8.32.

As for active counters, Luster Industries declined 24 sen to half -a -sen, CNI rose 20.5 sen to one sen, Seacera was flat at 23.5 sen while Permaju declined 18 sen to one sen.

On the index board, the FBM Emas Index fell 11.37 points to 11,876.97, the FBM Emas Syariah fell 14.35 points to 13,246.91, the FBMT 100 contracted 9.61 points to 11,527.48, the FBM 70 declined 2.68 points to 15,840.35 while the FBM ACE was 25.24 points lower at 9,728.75.

By sector, the Industrial Products and Services Index declined 0.84 points to 194.74, the Plantation Index fell 0.11 points to 6,959.91 and the Financial Services Index was lower 5.01 points to 15,197.63.

Review of the US stock market for April 12, 2021

 US stock indices showed steady growth on Friday. The Dow Jones stock index rose to 33,776 points, the S&P 500 index to 4,127 points, the NASDAQ-100 to 13,837 points. This suggests that investor capital continues to flow to the stock market. In principle, this is not surprising, since the American economy is recovering at a rapid pace, and accordingly, the shares of American companies are in demand on the stock markets. Also on Friday, the yield of the US 10-year Treasury bonds grew. The indicator increased from 1.629% to 1.662%. Recall that an increase in bond yields means a drop in demand for them and the sale of these securities by their owners. Thus, it turns out that the process of capital flow from the debt market to the stock market continues. For the stock market, the fundamental background has always been important, and it is the American one. Therefore, any speeches by Jerome Powell, Joe Biden, Janet Yellen, and other top US officials play an extremely important role here.

Fed chair Powell's rhetoric has been quite optimistic lately, although he has not yet given any signals about a reduction in the quantitative stimulus program or an increase in rates. Powell continues to insist that the economy is still on its way to full recovery, which is still at least a year away from completion. However, the IMF report shows that it is the American economy that will be the fastest in the world to enter the pre-crisis trajectory of economic growth. Thus, even though trillions of dollars are being poured into the US economy to stimulate it, which is negative for the dollar, for the stock market, on the contrary, this is great news. Americans start investing their surplus money because they are afraid of losing money due to inflation or the depreciation of the dollar. And since the most popular is the stock market, and not the cryptocurrency or bond market, then it is there that the flow of capital is mainly taking place. After the US authorities approved another $1.9 trillion stimulus package, which involved the distribution of "helicopter money" to Americans for $0.5 trillion, where do you think some of this money has definitely gone?

Unfortunately, many experts believe that the US stock market is now very bloated. And first of all, this applies to high-tech giants like Tesla, whose shares have risen 8 times over the past year. That is, we are not talking about systematic long-term growth, as, for example, in Microsoft shares, which reflects the expansion of the company itself, an increase in its revenues and profits, investments in new industries, and expansion of activities. We are talking about the banal demand for Tesla shares, which is the reason for the growth. A vicious circle, bitcoin-like growth. Thus, we would recommend investing your funds in the most stable companies of the leading American stock indices. But not in an upstart company. Perhaps they provide an opportunity to earn super profits, like bitcoin, but investing should not be overly risky.

The Dow Jones Industrial Average is showing steady growth. Recall that the Dow index includes the 30 largest American companies, thus, this index reflects the situation in all industries and services. Considering that DJI has been growing almost continuously for more than a year (the entire crisis period for the economy), while the economy was contracting during the same period and experienced serious problems, traders can clearly understand what a financial bubble is. So far, there are no prerequisites for the bubble to burst. The index is above the Kijun-sen line within two upward linear regression channels. The first is annual, the second is three months. There are no signs of a downward reversal at present.

April 12, 2021

This Is Local Stock News At The Beginning Of The Week

 Bursa Malaysia opened lower in morning trading today on cautious market sentiment, with selling activity mostly involving heavyweights, led by Axiata and Digi.

At 9.10am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) index declined 4.01 points to 1,608.24 from 1,612.25 at the close of Friday afternoon last week.

Bernama reported that the key index opened weaker by 1.71 points to 1,613.96.

On the broader market, gainers outpaced losers 261 to 233 while 1,051 counters were unchanged, 612 untraded and nine others suspended.

Turnover was 953.78 million shares worth RM458.18 million.

According to a ‘trader’, Axiata and Digi are in selling mode today as confidence in the merger between the two telcos has begun to wane.

Digi dropped 18 sen to RM4.28 while Axiata declined 13 sen to RM3.98, dragging the composite index down by a combined 4.95 points.

Meanwhile, Malacca Securities Sdn Bhd said market sentiment would remain volatile amid rising Covid-19 cases despite the ongoing vaccine program, coupled with the development of a new wave of Covid-19 cases in several countries, including Europe and Asia.

"With the new wave of Covid-19 cases in certain countries, we think investors may return to focus on healthcare stocks," he said in a note today.

According to him, the FBM KLCI may rise higher for this week with the resistance level set between 1,615 and 1,635 while the support level is between 1,565 and 1,575.

Among heavyweights, Maybank rose two sen to RM8.31, Public Bank rose one sen to RM4.21 while Petronas Chemicals was flat at RM7.83.

Tenaga and IHH Healthcare dropped two sen each to RM10.22 and RM5.28, respectively.

For active counters, Lion Industries remained at 88 sen, Daya Material and Luster Industries gained one sen each to 25 sen and 26.5 sen, respectively, while Ucrest added 1.5 sen to 27 sen.

On the index board, the FBM Emas Index declined 19.36 points to 11,879.56, the FBMT 100 declined 18.31 points to 11,528.25, the FBM Emas Syariah declined 24.8 points to 13,256.36 and the FBM ACE fell 38.48 points to 9,957.06.

However, FBM 70 rose 14.86 points to 15,801.83.

By sector, the Industrial Products and Services Index rose 0.39 points to 193.95, the Plantation Index rose 5.51 points to

6,989.14 while the Financial Services Index fell 15.97 points to 15,197.86.

GDEX Shares Continue To Rise After Announcing This Partnership!

 GDEX Bhd shares rose after it reportedly entered into a partnership with electronic prescription (e-prescription) provider company, DOC2US and community-based pharmacy, Alpro Pharmacy for safe and real-time traceable drug delivery arrangements.

In a joint statement today, the two firms said that patients who want their medicines delivered home, can track the delivery through a barcode provided by GDEX to make it easier for them to receive the medicines.

GDEX's Chief Operating Officer, Caren Chong, said its staff had undergone in-house training to handle the delivery and manage the storage of medicines.

“Coupled with our barcode tracking system, we are able to ensure that the right medications can be delivered to the right patients and most importantly, in good condition,” Chong said.

Meanwhile, DOC2US Chief Executive Officer (CE0), Dr. Raymond Choy said the strategic collaboration involving Alpro Pharmacy and GDEX would not only improve their processes and productivity but more importantly, provide a good experience in terms of delivering medicines to patients.

"This will also allow us to provide one -stop solutions for patients in terms of digital healthcare, pharmacy supplies to logistics," according to Choy.

Meanwhile, Alpro Pharmacy Group Marketing Director Lee Yin Chen said, unlike other products, medicines need to be handled properly and follow strict guidelines.

"Distributing medicines through delivery while maintaining a high commitment to the safety of medicines can be a challenge," explained Yin Chen.

Add Choy, against more than 300 pharmacies that use electronic delivery/distribution services.

He said that his party aims to work with 1,000 pharmacies this year so that the delivery time of medicines nationwide can be speeded up.

"We will also offer the delivery service of these medicines to all our official pharmacies this year gradually," he said.

At 2.31pm, GDEX shares rose 1.33% or 0.5 sen to 38 sen, bringing its market capitalization to RM2.14 billion.

April 9, 2021

Check out the Investor Purchasing Attraction Counters

 Trading on Bursa Malaysia continued to maintain an uptrend to open higher in this morning's trading, taking cues from the strong overnight performance on Wall Street after investors were confident that the US economy is now on track to recover.

This optimism was boosted by a positive statement from Federal Reserve (Fed) chairman Jerome Powell who assured central bank support could help the economy without involving onerous inflation.

At 9.05am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) index rose 12.34 points to 1,614.74 from the close of trading yesterday afternoon.

Bernama reported that the key index opened 12.55 points higher at 1,614.95.

On the broader market, gainers outpaced losers by 275 to 211 while 300 counters were unchanged, 1,371 untraded and nine others suspended.

Turnover was 403.91 million shares worth RM276.73 million.

According to a research note from Malacca Securities Sdn Bhd, the local bourse is tracking overnight gains on Wall Street, particularly the Nasdaq, as positive sentiment is expected to tend to technology stocks in the local market.

The firm added that for commodities, crude palm oil prices saw a modest decline while Brent crude oil prices rose higher.

"For the focus sectors, we expect buying interest to emerge in the technology sector.

"In addition, we think market participants will also survey consumer, aviation, real estate and construction stocks to expose the recovery theme," the firm said.

Meanwhile, the research firm also added that with the FBM KLCI remaining strong above the psychological level of 1,600 followed by double trading volume, the barrier level for trading was between 1,615 to 1,635 while the support level was set at 1,565 to 1,575.

Among heavyweights, Maybank, Public Bank and Petronas Chemicals added one sen each to RM8.28, RM4.22 and RM7.81 respectively, Tenaga rose six sen to RM10.20 and IHH Healthcare declined three sen to RM5.27 .

As for active counters, SYF Resources rose one sen to 45 sen, KTG and AT Systematization rose half-a-sen to 28 sen and 11.5 sen respectively, LKL fell one sen to 44 sen while VSolar was flat at three sen.

On the index board, the FBM Emas Index rose 66.92 points to 11,929.62, FBMT 100 rose 65.29 points to 11,573.09, FBM Emas Syariah added 91.17 points to 13,314.28, FBM ACE expanded 84.90 points to 10,013.99 and FBM 70 rose 0.59 points to 15,856.73.

By sector, the Industrial Products and Services Index declined 0.01 points to 193.7, the Plantation Index fell 10.45 points to 6,976.15 while the Financial Services Index rose 75.45 points to 15,288.90.

Impact of Merger, Digi & Celcom Shares 'Rise Strong'

 Shares of Axiata Group Bhd and Digi.Com Bhd were among the highest gains during the morning trading session on Bursa Malaysia today after investors received a good report on the proposed merger of the operations of Celcom Axiata Bhd's mobile telecommunications network and Digi.Com.

Digi shares jumped to an eight -month high of 65 sen or 17.33% to RM4.40 while Axiata gained 37 sen or 9.74% to RM4.17.

At 10.21am, Digi reached RM4.26 but still showed an increase of 51 sen or 13.6% with 27.73 million shares changing hands.

Meanwhile, Axiata reached RM4.10, up 30 sen or 7.89% with 14.76 million shares changing hands.

Analysts are positive about the merger as it will increase competitiveness for Celcom and Digi. Analysts also see that the deal will be able to be signed and Digi will get more profit from the deal.

According to Affin Hwang Capital analyst Isaac Chow, in a post today, he was positive about the proposed merger and agreed with Axiata and Digi management that the merger should generate business synergies through enlarged scale, capital expenditure savings (capex) or turnover and cost optimization.

"We see a high probability that the merger will become a reality and therefore, we have raised our target price for Digi to RM4.60 and Axiata to RM4," he said.

Chow also increased the recommendation for Digi to ‘buy’ from the previous ‘hold’ but maintained the ‘hold’ recommendation for Axiata.

Meanwhile, Ta Securities analyst Wilson Loo said he viewed the proposed merger as positive news for the telecommunications industry as the merger would reduce competitive pressures in the mature Malaysian mobile market.

He also believes with the improvement in terms of service quality from Digi and Celcom, both parties will at least be able to maintain their market share.

Loo maintained a ‘buy’ recommendation on Axiata and Digi with target prices of RM4.63 and RM4.10.

April 8, 2021

Apple shares are surging again. Experts predict the company's revenue growth in 2021

 The shares of large technology companies show almost constant growth in the long term. It is true there are periods of stagnation, but in general, the value is growing, as is the US stock market and its key indices. One of these ever-growing companies is Apple. Its market capitalization is already more than $2 trillion, making it the largest company in the world. Naturally, this status and the annual increase in revenue attracts more and more new investors, despite the fact that the nominal return on shares is very low. However, as mentioned earlier, many investors buy shares of large companies not for the purpose of earning money, but for the purpose of saving money. For quick earnings, you need to be a speculator and choose the most speculative instruments, for example, cryptocurrencies. Stocks are more about long-term investing. Therefore, if we remove all the concerns about the "bubble" in the stock market, it can be said that Apple shares will continue to grow in the long term. If a dozen years ago the company made money exclusively on the iPhone, now the segments of wearable gadgets and various services also bring substantial revenue.

Thus, if the number of iPhones sold annually in the world may sooner or later stop, since the upper limit of demand still exists (people do not need two or three smartphones), then the market for various services has huge potential and is still considered quite raw (many people have iPhones, but few use various paid services from Apple and purchase other wearable gadgets). So in the future, it is the non-iPhone segments that can bring Apple the lion's share of revenue. Moreover, the company has already hinted at a possible entry into the electric car market. Accordingly, if 5 or 10 years ago, the decline in iPhone sales could cause a negative reaction from investors, now no one will even be particularly upset if the company sells fewer smartphones in a single year than a year earlier. Most analysts expect the company's revenue to grow again in 2021, and the figures are from 13% to 22%. With such forecasts and against the background of the recovery of the American and global economies, only a further increase is expected in the value of the shares of the "Apple" company.

Apple's stocks have been rising in price for the past five trading days. The price increased from $120 to $127.86 per share. This movement allowed the quotes to gain a foothold above the Ichimoku cloud on the 4-hour timeframe, which significantly increases the likelihood of further growth. Unlike Tesla, which has risen in price 10 times over the crisis year of 2020, Apple is growing evenly. Its profits are growing, sales are growing, and revenue from other non-iPhone business segments is growing. The clear path of the company is visible and the growth of its shares does not cause any surprise. Tesla, on the other hand, is not even in the Top 10 among automakers in terms of car sales, but its capitalization is higher than that of all these automakers combined. Naturally, if we talk about the overbought and unfounded current price, it is about the shares of Tesla, not Apple. The nearest target for Apple shares is the $130.41 resistance level.