Latest news with #RakutenTradeSdnBhd
Malaysian Reserve
7 hours ago
- Business
- Malaysian Reserve
Bursa Malaysia closes mixed, CI ekes out small gain on bargain hunting
KUALA LUMPUR — Bursa Malaysia ended the week mixed with the benchmark index climbing 0.08 per cent, as bargain hunting emerged following the recent sell-off, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 1.30 points to 1,502.74 from Thursday's close of 1,501.44. The benchmark index opened 0.50 of-a-point lower at 1,500.94 and moved between 1,500.04 and 1,507.97 throughout the trading session. However, the broader market was negative, with 517 decliners outpacing 319 gainers, while 505 counters were unchanged, 1,083 untraded and 25 suspended. Turnover dropped to 2.60 billion units worth RM3.37 billion compared with Thursday's 2.81 billion units valued at RM1.69 billion. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said major regional indices namely Hong Kong's Hang Seng Index and Singapore's Straits Times Index were also in positive territory after China kept benchmark interest rates unchanged. 'Technology-driven Asian indices were the standout performers, buoyed by a rebound in investor confidence and a recovery in the sector,' he told Bernama. Thong also said United States (US) President Donald Trump has delayed his decision on potential US involvement in the Middle East conflict by two weeks, providing markets with short-term relief. 'As for the local bourse, we see that the benchmark index is well supported above the 1,500 points; however, it is not yet out of the danger zone unless it can climb above 1,515 points,' Thong said. Meanwhile, UOB Kay Hian Wealth Advisors Sdn Bhd's head of investment research Mohd Sedek Jantan said the FBM KLCI remained broadly stable throughout the trading day, marking a weekly decline of 16 points from last Friday's close of 1,518.11 points. He said the negative return reflects a volatile week shaped by rising geopolitical risks and cautious investor sentiment. 'Despite today's intraday rebound, the broader week-on-week performance underscores prevailing uncertainty in the market,' he said. On the macroeconomic front, Mohd Sedek noted that the data from the Department of Statistics showed a a month-on-month decline in both Malaysia's imports and exports in May, potentially indicating weakening global demand or ongoing supply chain disruptions. 'Notably, exports to the US fell by 2.8 per cent from RM19.2 billion to RM18.7 billion. However, this contraction was not uniform; only four of Malaysia's top ten export destinations—namely China, the European Union, Taiwan, and Vietnam—registered positive growth,' said Mohd Sedek. Among the heavyweights, Maybank rose 6.0 sen to RM9.66, Tenaga and IHH Healthcare remained unchanged at RM14.22 and RM6.85 respectively, Public Bank gained 2.0 sen to RM4.21, and CIMB advanced 7.0 sen to RM6.65. For the most active stocks, PUC and MYEG were flat each at 2.0 sen and 90.5 sen respectively, Tanco declined 1.5 sen to 94.0 sen, MR DIY slid 1.0 sen to RM1.63, and YTL Corporation dropped 4.0 sen to RM2.12. On the index board, the FBM Emas Index perked up 5.25 points to 11,228.99, the FBMT 100 Index increased 11.44 points to 11,015.45, while the FBM Emas Shariah Index declined 31.55 points to 11,201.34. The FBM 70 Index added 24.30 points to 16,117.75 and the FBM ACE Index dropped 14.20 points to 4,400.85. By sector, the Financial Services Index soared 138.24 points to 17,468.38 and the Industrial Products and Services Index slid 0.97 of-a-point to 147.27. The Plantation Index improved 1.91 points to 7,220.52 while the Energy Index eased by 3.94 points to 735.71. The Main Market volume swelled to 1.64 billion units valued at RM3.22 billion from 1.13 billion units worth RM1.45 billion registered at Thursday's close. Warrants turnover tumbled to 634.80 million units worth RM82.94 million versus 1.38 billion units worth RM164.26 million previously. The ACE Market volume expanded to 331.19 million units valued at RM73.43 million against 294.93 million units worth RM81.53 million yesterday. Consumer products and services counters accounted for 280.39 million shares traded on the Main Market, industrial products and services (230.16 million), construction (79.20 million), technology (191.47 million), SPAC (nil), financial services (131.23 million), property (166.28 million), plantation (35.12 million), REITs (78.05 million), closed end fund (7,300), energy (150.50 million), healthcare (103.21 million), telecommunications and media (79.02 million), transportation and logistics (21.27 million), utilities (95.82 million), and business trusts (66,200). — BERNAMA
The Sun
11 hours ago
- Business
- The Sun
Rakuten lowers FBM KLCI target to 1,630 amid earnings cut
KUALA LUMPUR: Rakuten Trade Sdn Bhd has revised its year-end target for the FTSE Bursa Malaysia KLCI (FBM KLCI) to 1,630 from its earlier projection of 1,730, in line with the recent downgrades in corporate earnings, said its head of research Kenny Yee Shen Pin. He noted that foreign investors have yet to return to Malaysian equities, despite attractive valuations across Southeast Asian markets, further weighing on the overall market sentiment. 'In view of the short-term stance among foreign funds, coupled with recent earnings downgrades, we have lowered our 2025 target for the FBM KLCI to the 1,630 level, based on a 16.0 times price-to-earnings ratio (PER) for the calendar year 2025 ' he said during a webinar today. He noted that at present, the FBM KLCI is trading at a PER of between 12 and 13 times, which remains below both its historical average and valuations of regional peers. He described foreign fund flows as 'disappointing' after recording net outflows of RM4 billion in 2024, with the situation deteriorating further this year with net foreign outflows reaching RM11.2 billion so far. 'This level (of foreign outflows) is quite perplexing, especially since Malaysia is quite steady both fundamentally and politically, yet we are seeing a diminishing foreign interest in the local market,' he said. He added that non-US-based funds are expected to gradually reduce their exposure to the US markets and shift their focus back to Asia, which could support a rebound in foreign fund inflows in the near term. Notwithstanding the massive foreign outflows, Yee highlighted that foreign shareholding in the local bourse surprising remains decent at 19.44 per cent as of June 2025. 'We can only deduce that long-term foreign investors may be returning, while the majority of those who exited were short-term participants. For now, the Hong Kong market will still be their primary destination,' he said. Meanwhile, Yee projected that the US dollar will continue to weaken against the basket of major currencies, with the ringgit likely to strengthen to the 4.10-4.20 range by year-end, supported by the US recessionary concerns that could trigger interest rate cuts. 'As many of you know, the US Dollar Index (DXY) has already dropped by 10 per cent year-to-date against major currencies. Hence, moving forward, many expect the dollar index to continue to weaken further --along the way, we may see the ringgit performing better against the US dollar,' he added. On domestic policy, Yee proposed that the government take a measured approach to the rationalisation of RON95 fuel subsidies, especially in light of ongoing geopolitical tensions in the Middle East. 'We may see only a partial rationalisation of RON95, depending on how high or how much crude oil prices go,' he suggested. As of this morning, the ringgit traded higher at 4.2490/2700 against the US dollar, while the FBM KLCI climbed 0.22 per cent to 1,504.79 at lunch break.
The Sun
11 hours ago
- Business
- The Sun
Rakuten Trade lowers FBM KLCI 2025 target to 1,630 amid earnings downgrade
KUALA LUMPUR: Rakuten Trade Sdn Bhd has revised its year-end target for the FTSE Bursa Malaysia KLCI (FBM KLCI) to 1,630 from its earlier projection of 1,730, in line with the recent downgrades in corporate earnings, said its head of research Kenny Yee Shen Pin. He noted that foreign investors have yet to return to Malaysian equities, despite attractive valuations across Southeast Asian markets, further weighing on the overall market sentiment. 'In view of the short-term stance among foreign funds, coupled with recent earnings downgrades, we have lowered our 2025 target for the FBM KLCI to the 1,630 level, based on a 16.0 times price-to-earnings ratio (PER) for the calendar year 2025 ' he said during a webinar today. He noted that at present, the FBM KLCI is trading at a PER of between 12 and 13 times, which remains below both its historical average and valuations of regional peers. He described foreign fund flows as 'disappointing' after recording net outflows of RM4 billion in 2024, with the situation deteriorating further this year with net foreign outflows reaching RM11.2 billion so far. 'This level (of foreign outflows) is quite perplexing, especially since Malaysia is quite steady both fundamentally and politically, yet we are seeing a diminishing foreign interest in the local market,' he said. He added that non-US-based funds are expected to gradually reduce their exposure to the US markets and shift their focus back to Asia, which could support a rebound in foreign fund inflows in the near term. Notwithstanding the massive foreign outflows, Yee highlighted that foreign shareholding in the local bourse surprising remains decent at 19.44 per cent as of June 2025. 'We can only deduce that long-term foreign investors may be returning, while the majority of those who exited were short-term participants. For now, the Hong Kong market will still be their primary destination,' he said. Meanwhile, Yee projected that the US dollar will continue to weaken against the basket of major currencies, with the ringgit likely to strengthen to the 4.10-4.20 range by year-end, supported by the US recessionary concerns that could trigger interest rate cuts. 'As many of you know, the US Dollar Index (DXY) has already dropped by 10 per cent year-to-date against major currencies. Hence, moving forward, many expect the dollar index to continue to weaken further --along the way, we may see the ringgit performing better against the US dollar,' he added. On domestic policy, Yee proposed that the government take a measured approach to the rationalisation of RON95 fuel subsidies, especially in light of ongoing geopolitical tensions in the Middle East. 'We may see only a partial rationalisation of RON95, depending on how high or how much crude oil prices go,' he suggested. As of this morning, the ringgit traded higher at 4.2490/2700 against the US dollar, while the FBM KLCI climbed 0.22 per cent to 1,504.79 at lunch break.
New Straits Times
13 hours ago
- Business
- New Straits Times
Rakuten cuts FBM KLCI year-end target to 1,630 on weaker earnings outlook
KUALA LUMPUR: Rakuten Trade Sdn Bhd has cut its year-end target for the FTSE Bursa Malaysia KLCI (FBM KLCI) index to 1,630, down from its earlier forecast of 1,730, citing slower-than-expected corporate earnings growth. Research head Kenny Yee Shen Pin said the revised projection is based on a price-to-earnings ratio of 16 times, and reflects a more cautious outlook amid persistent operating cost pressures, weak global sentiment, and a lack of domestic catalysts. Although the current market valuation remains reasonable, Yee said it is not strong enough to attract investor interest amid prolonged uncertainty. "The revision was made based on the current assessment of the performance of listed companies, which are facing operating cost pressures, weak global market sentiment, and the absence of new domestic growth catalysts. "At present, the local market is in a sideways phase. There are no clear new catalysts. Investors also view our market as rather 'boring'," he said during Rakuten Trade's third-quarter market outlook media briefing today. Yee also noted that the FBM KLCI is back to the 1,005 level, which is widely regarded as a psychological support point. "If the index dips below that threshold of 1,480 or 1,470, I think that would be a screaming buy for the local market," he said, suggesting that any significant pullback could present strong buying opportunities for investors. Meanwhile, Rakuten Trade equity research vice president Thong Pak Leng highlighted the potential rationalisation of RON95 fuel subsidies as another headwind that could weigh on sentiment. "But judging from what's happening in the Middle East, the government might not proceed too aggressively. Perhaps we will see a partial rationalisation of RON95. It really depends on how high crude oil prices climb. "In the current state, there's no fresh catalyst pushing up the market. While valuations are reasonable, everything feels quite dull. That is why we are also seeing a lack of participation from retail investors," Thong said. On the ringgit, Yee said Rakuten Trade believes the local currency is currently undergoing some recalibration and is expected to trend between 4.10 and 4.20 against the US dollar by the end of the year. "I think maybe the ringgit will strengthen against the dollar as well. As you all know, the Dollar Index has already deteriorated by 10 per cent year-to-date against major currencies. "So moving forward, many expect the dollar index to continue to weaken further. Along the way, we may see the ringgit perform better against the dollar," he added.
New Straits Times
16 hours ago
- Business
- New Straits Times
Bursa Malaysia opens marginally lower in absence of catalyst
KUALA LUMPUR: Bursa Malaysia opened marginally lower in the absence of new catalyst, coupled with the closure of Wall Street on June 19, an analyst said. At 9.06am, the FTSE Bursa Malaysia KLCI (FBM KLCI) declined 0.79 of-a-point to 1,500.65 from Thursday's close of 1,501.44. The benchmark index opened 0.50 of-a-point lower at 1,500.94. The broader market was negative, with 118 decliners outnumbering 68 gainers, 192 counters unchanged, while 2,046 were untraded and 25 suspended. Turnover stood at 56.66 million shares worth RM24.34 million. Rakuten Trade Sdn Bhd's equity research vice-president Thong Pak Leng said Wall Street was closed for a holiday yesterday as traders were pondering over the involvement of the United States (US) in the Middle East conflict. The US 10-year Treasury yield eased to 4.39 per cent. In Hong Kong, the Hang Seng Index (HSI) declined sharply on inflationary concerns induced by prevailing higher tariffs coupled with the conflict in the Middle East. This also disrupts global crude oil supply and could be inflationary as well. Back home, the FBM KLCI on Thursday closed just above the 1,500 level, likely due to continued foreign selling. "Nonetheless, we would advocate investors to accumulate blue chips if and when the index dips below the 1,500 mark at around the 1,480 threshold," Thong told Bernama. Among heavyweights, Maybank gained 2.0 sen to RM9.62, Tenaga Nasional fell 4.0 sen to RM14.18, CIMB was 1.0 sen higher at RM6.59, while Public Bank, IHH Healthsare and CelcomDigi remained unchanged at RM4.19, RM6.85 and RM3.82 respectively. Among the most active stocks, Velesto Energy was flat at 18.5 sen, Magma eased half-a-sen to 46 sen, Pavilion REIT was down 6.0 sen to RM1.48, Aizo dipped half-a-sen to 8.0 sen and Dataprep added half-a-sen to 12 sen. On the index board, the FBM Emas Index lost 7.90 points to 11,215.84, the FBMT 100 Index shed 7.68 points to 10,996.32, and the FBM Emas Shariah Index declined 15.09 points to 11,217.80. The FBM 70 Index lost 18.82 points to 16,074.63 and the FBM ACE Index dropped 24.59 points to 4,390.46. By sector, the Plantation Index narrowed 4.34 points to 7,214.27, while the Energy Index declined by 0.71 of-a-point to 738.94. The Financial Services Index rose 19.36 points to 17,349.51, but the Industrial Products and Services Index slid 0.20 of-a-point to 148.04.
