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MY Midday Insights | LACK OF FRESH LEADS, KLCI DROP 2.77 POINTS

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Jungle lee wrote a column · Aug 13, 2023 23:52
The market lacked a catalyst, and the Composite Index closed down 2.56 points
Although the dust settled in the six state elections, some large stocks were sold off unhindered, and the performance of the Malaysia Composite Index was sluggish, consistent with the weak performance of regional exchanges.
As of the closing time of the market at 12:30 noon, the Composite Index closed at 1454.60 points, down 2.56 points, or 0.18%.
The half-day turnover was 2.03 billion shares, with a turnover value of RM906 million.
There were 455 rising stocks, 372 falling stocks, 369 with no ups and downs, and 1,133 without trading.
As of 12:30 noon, the exchange rate of the ringgit was 4.6140 to the US dollar.
Source: Nanyang Siang Pau, Klse Pulse
MY Midday Insights | LACK OF FRESH LEADS, KLCI DROP 2.77 POINTS
Market focus
Are the state election results a blessing or a curse? Criminal stocks started first and then fell
Will maintaining the current situation 3-3 stabilize the market, or is the “green wave” expansion causing more unease among investors? Investors fell into a tug this morning on the criminal stocks most affected by the “green tide,” and both betting stocks and beer stocks fluctuated sharply.
On the first trading day after the six state elections ended, investors first poured into the criminal stock sector with an optimistic attitude. Both Genting Shuangxiong and the two Wanji Stock Exchange continued their “rush” attitude before last week's election, opening 1.14 to 2.56% higher at the opening of the market.
However, the significant expansion of the power of the Islamic Party has also caused unease in the market. Coupled with high arbitrage among investors, criminal stocks were unable to continue their rally this morning. As of 11:10, Genting Shuangxiong and the two beer stocks had already recovered most of their gains.
However, the two 10,000 character ticket stocks have already declined slightly, but not by much.
Compared to other stocks, 10,000 character ticket stocks are more sensitive to the arrival of the “green wave”; after the League of Nations took control of Kedah and Glass, the 10,000 character betting stations in these two states have already been shut down.
Foreign investors bought horse stocks on a net basis for 5 consecutive weeks
Foreign investors made net purchases of horse stocks for 5 consecutive weeks, and made net purchases on a daily trading day, with a net purchase amount of RM465.5 million.
The MIDF study pointed out through the capital flow report released on Monday that there was a situation where foreign investors made net purchases every day during the week of February 24.
Foreign investors made net purchases of RM800,000 on Monday, RM84.5 million on Tuesday, RM2097 million on Wednesday, RM66.3 million on Thursday, and RM104.2 million on Friday.
The top three areas of net purchases by foreign investors are financial services stocks (RM274.3 million), technology stocks (RM66 million), and planting stocks (RM65 million).
As for the top three areas of net foreign investment sales, they are healthcare stocks (RM72.2 million), industrial investment trusts (RM22 million), and energy stocks (RM700,000).
Since the beginning of the year, net sales of foreign capital have been RM2.46 billion.
Also, following last week's net sales of RM321.9 million, local institutional investors have been net selling horse stocks for 5 consecutive weeks. They only made a net purchase of RM23 million on Monday, with net sales for the rest of the trading day.
Since the beginning of the year, local institutional investors have made net purchases of RM2.68 billion.
Local retail investors, like local institutions, sold horse stocks for 5 consecutive weeks, with net sales reaching RM143.7 million, far higher than the previous week's RM8.5 million.
Since the beginning of the year, local retail investors have made net sales of RM200 million 2010 million.
The explosion at Country Garden raised concerns that the Chinese and Hong Kong stock markets fell across the board
Weak credit data recently released by China, compounded by the rapid expansion of the liquidity crisis at Country Garden, a leading private housing enterprise, last week cast a shadow over the prospects of the dry port stock market. The Hang Seng Index, the benchmark for Hong Kong stocks, has released all the gains since the Politburo meeting of the CPC Central Committee in July.
The Hang Seng Index fell below the 19,000 point intraday mark on Monday. Previously, under the Politburo's policy support signal, the index briefly surged to 20,000 points at the end of July, an increase of 7.6%. The Hang Seng Technology Index also fell more than 3% on Monday, reaching an intraday low for the past three weeks, following the decline in Chinese securities.
All major A-share indices weakened, with the biggest drop of 1.4% in the Shanghai and Shenzhen 300 indices, almost erasing all gains since the Politburo meeting.
Driven by signals of support for the real estate industry at the Politburo meeting and statements about active capital markets, sentiment in the dry port and stock markets picked up for a while, and market trading was active.
However, this month's Country Garden debt crisis made headlines in the financial markets, once again heightening investors' concerns about the future of real estate and the economy. The new RMB loans announced by China in July last Friday hit the lowest level since 2009. The recent implementation of restrictions on US investment in China has also made the market sentiment cautious.
Chinese real estate stocks continued their decline on Monday. The Bloomberg Industry Research Chinese Real Estate Index fell the biggest drop of 4.1%, leading to three consecutive declines. At one point, Country Garden fell more than 15%, and the cumulative decline over eight days was more than 40%. Trading of at least 10 RMB bonds owned by Country Garden was suspended on Monday. The company said it plans to hold a holders' meeting on payment arrangements.
In addition to real estate concerns, Nandu Property and Jinbo Co., Ltd. announced that payments for Zhongrong Trust's wealth management products were overdue, which also further changed the financial industry. Jinbo Co., Ltd. once fell 8.2% in Shanghai, the biggest intraday decline since March.
Focus on individual stocks
$HARNLEN(7501.MY)$A memorandum of understanding was signed with Jutawan yesterday to cooperate in growing pineapples.
According to the statement, Jutawan mainly undertakes third-party contract business, and also engages in agricultural operations, such as agricultural tools, fertilization, insect removal, supply boxes and wooden fences.
According to the Memorandum of Understanding, the two parties will exchange advice on farming business, including but not limited to their responsibilities, cost budget, location, professionalism, etc. The Memorandum will take effect within 6 months after signing.
According to the statement, Jutawan is the largest exporter of pineapple products in the region. After the two sides reach cooperation, the Hanlian agency can fully develop and manage pineapple cultivation without worrying about follow-up sales.
The Hanlian agency just acquired land in Pahang Yunbing on June 1 to expand the pineapple business. The memorandum is consistent with the agency's business strategy.
Meanwhile, the Hanlian agency requested that trading be suspended between 9:00 and 10:00 on the 14th in order to publish the above information.
#volatility
#stock market
#KLSE

#state election
Source: Nanyang Siang Pau, Klse Pulse
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Jungle lee
Currently working at Nanyang Siang Pau. Outside of work, enjoys stay active and exploring new investment opportunities.
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