KLCI Weekly Report - 24 Aug, 2015

Weekly KLCI Report

• This week the FBM KLCI index given a range bound movement and traded FBM KLCI Week's Performance between the resistance level of 1595 and support level of 1550, on weekly basis the index have made a high of 1594.68 and low of 1557.1 and ended with a weekly loss of -1.38%.

• On Friday the KLCI ended flat with 2.74 points lower and closed at 1574.67 points amid overnight losses in US market. The performance of our local bourse was in line with our regional peers on concern that global growth is slowing. On sectoral basis.

• The Finance Index fell 0.77% to 14132.32 points, Properties Index dropped 0.51% to 1103.5 points and Plantation Index rose 0.28% to 6869.39 points in the last trading day of the week. The market traded within a range of 26.37 points between an intra-day high of 1583.38 and a low of 1557.01 during the session on Friday.

FBM KLCI Week's Performance

Open	1563.65
High	1583.38
Low	1557.01
Close	1574.67
Change (in points)	-22.15
Change ( in %)	-1.38%

Market Forecast

The KLCI index is expected to take sideways trend next week as the investors sentiments are still defensive about the market condition which can bound the index to give some good movement, however if it breaks the support of 1550 then it can drop further and can reach to the level of 1500 and extend the last three weeks heavy sell down.

Market Highlights

• Malaysian share prices opened lower,the FTSE Bursa Malaysia Kuala Lumpur Composite stood at 1,544.24, down 30.23 points. 

• The decline of the Malaysian ringgit is only temporary,the ringgit depreciation could be a silver lining as it is expected to work in favour for Malaysia in bringing in investments especially in the technology sector.

• Malaysia’s capital market may be volatile now, but the sell-offs in the past few weeks offer an opportunity for investors to capitalise on undervalued stocks. 

• MISC Bhd is disposing of its entire 50% stake in VTTI BV, which it bought in 2010, back to Vitol Group for US$830 million (RM3.41 billion).

• Malakoff Corp Bhd reported a 26.92% drop in net profit to RM86.29 million for the second quarter ended June 30, 2015 from RM118.08 million, mainly due to recognition of fair valuation gains from the acquisition of the remaining 75% equity in Port Dickson Power Bhd in previous corresponding period as well as share of losses recorded by an associate company.

• Mining and civil engineering company Minetech Resources Bhd hopes to deliver double-digit growth in revenue for its financial year ending March 31, 2016, driven mainly by upcoming government and public sector infrastructure projects.

• US oil prices traded below US$40 a barrel for the first time since the 2009 financial crisis, ending 2 percent lower on Friday on signs of US oversupply and weak Chinese manufacturing and notching the longest weekly losing streak in almost three decades.

• Malaysia’s capital market may be volatile now, but the sell-offs in the past few weeks offer an opportunity for investors to capitalise on undervalued stocks.

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