Market Review for KLCI:
The FBM KLCI index lost 39.14 points or 2.31% on Monday. The Finance Index fell 1.82% to 13902.09 points, the Properties Index dropped 1.69% to 1167.5 points and the Plantation Index down 1.53% to 7503.42 points. The market traded within a range of 34.52 points between an intra-day high of 1687.89 and a low of 1653.37 during the session. 3 Days Free Trial Signals
The KLCI extended its midday losses by ending lower 1653.37 points amid overnight losses in Wall Street. The performance of our local bourse was in tandem with most of our regional peers.
Market forecast for KLCI:
The KLCI market is expected to trade sideways in coming session, however if it breaks the level of 1650 with strong bearish sentiments followed by the dropping market volume then it may test the level of 1630 in near term.
KLCI COUNTER SPECIFIC NEWS :
- SKB Shutters Corp Bhd is projecting growth for the 2017 fiscal year, driven by its new insulated fire shutter and insulated fire rated steel door products.
- Penang’s construction industry is expected to stay flat this year with a value of about RM6.8bil, which is almost the same as in 2014.
- Ekovest gained six sen to RM1.13. It is linked to Tan Sri Lim Kang Hoo since his brainchild Iskandar Waterfront Holdings (IWH) makes up part of the consortium that won the Bandar Malaysia bid from 1Malaysia Development Bhd (1MDB).
- Petronas Dagangan fell 20 sen to RM24.66 with 400 shares done while Petronas Chemicals was down 11 sen to RM7.16 with 200 shares traded.
- CIMB Equities Research said integrated environmental engineering and technology provider Cypark Resources core net profit for the financial year ended Oct 31, 2015 made up 96% of its full-year forecast.
GLOBAL FACTORS AND WORLD INDICES:
- Asian stock markets tumbled while safe haven assets and oil prices jumped Monday in the first full day’s trade of 2016 as a flare-up in tensions between Iran and Saudi Arabia raised concerns about the volatile Middle East.
- China’s benchmark CSI300 share index tumbled 7 per cent on the first session of 2016 on Monday, prompting the stock exchange to halt trading for the rest of the day.The “circuit breaker” suspension mechanism first came into effect on Monday.Stocks slumped after weak factory activity surveys soured hopes that the world’s second-largest economy will enter the new year on better footing, and selling intensified throughout the day.
- Hong Kong stocks posted their biggest fall in three months on Monday, marking a gloomy start for 2016, pulled lower by slumping mainland shares and weak global markets.The Hang Seng index fell 2.7 per cent, to 21,327.12, registering its biggest one-day per centage fall since Sept. 29.
- Australian shares fell on the first trading day of 2016 as a sell off in Chinese equities dampened risk sentiment, though gains in energy and healthcare shares capped losses.The S&P/ASX 200 index dipped 0.3 per cent or 16.85 points to 5,279.0 , on disappointing factory activity surveys in China.
- The Singapore economy grew at a better-than-expected 2.0 per cent on a year-on-year basis in the last quarter of 2015, advanced estimates show, and is expected to register a full-year growth of 2.1 per cent in 2015.The growth was a clip faster than the third quarter’s 1.8 per cent, and on a quarter-on-quarter seasonally adjusted annualised basis, the economy expanded at a faster pace of 5.7 per cent compared to the 1.7 per cent growth in the preceding quarter.
- China’s factory activity contracted for the 10th straight month in December, and at a sharper pace than in November, a private survey showed, dampening hopes that the world’s second-largest economy will enter 2016 on steadier footing.The Caixin/Markit China Manufacturing Purchasing Managers’ Index (PMI) slipped to 48.2 in December, below market expectations for a slight pick-up to 49.0 and down from November’s 48.6.
- China’s yuan weakened against the dollar at its open on Monday after the central bank set the guidance rate at a more than 4-1/2-year low.Prior to market open, the People’s Bank of China set the yuan midpoint rate at 6.5032 per dollar – its lowest level since May 2011, 0.15 per cent weaker than the previous fix of 6.4936.
- Oil prices jumped over 2 per cent in the first trading hours of 2016 as relations between Middle Eastern rivals Saudi Arabia and Iran deteriorated following Riyadh’s execution of a prominent Shi’ite Muslim cleric.Global oil benchmark Brent climbed over 2.5 per cent and more than a dollar.
- Gold and silver climbed on the first trading day of 2016 as rising tension between Saudi Arabia and Iran spurred a return to haven assets.Bullion for immediate delivery rose as much as 0.9 per cent, for its biggest gain since Dec 21. The metal lost 10 per cent in 2015 for a third annual drop, the longest slump since 2000.