Downward pressure to continue
BURSA Malaysia is expected to face continued downward pressure amid weak sentiment domestically coupled with external factors, said M & A Securities Sdn Bhd Chief dealing officer R. Sundararajah.
“At the moment, we see support level for the FBM KLCI to remain at 1,700-level. However, it may go down to 1,680. Unless there are more negative news, then it will pressure the local bourse further,” he told Bernama.
He opined that the market did not react positively to the 2019 Budget tabled the previous week as investors deemed it as lacking catalysts to boost the market.
“The fact that Moody’s downgrade Petronas’ ratings further dampened the sentiment and foreign buyers were taken aback by this announcement. Having said that, we also have to look into selective counters if they want to participate in the cash market,” he told Bernama.
On a Friday-to-Friday basis, the benchmark FBM KLCI settled 5.78 points lower at 1,708.09.
The FBM Emas Index dropped 11.39 points to 11,846.26, the FBMT100 Index decreased 8.48 points to 11,688.13, but the FBM Emas Shariah Index improved 121.47 points to 12,11.69.
The FBM 70 added 110.29 points to 13,845.99, while the FBM Ace was 87.95 points easier at 4,932.60.
On a sectoral basis, the Finance Index declined 74.90 points to 17,199.10, the The three-month Kuala Lumpur Interbank Offered Rate (Klibor) futures contract on Bursa Malaysia Derivatives is likely to remain quiet this week on lack of demand.
Contracts were untraded throughout the holiday-shortened week, with volume and open interest remaining nil. WEEKLY FBM KLCI Plantation Index was 26.09 points easier at 7,362.73, while the Industrial Products and Services Index edged up 0.18 of-a-point to 173.30.
Comparing Friday-to-Friday, weekly turnover narrowed to 6.26 billion units worth RM6.59bil from 9.63 billion units valued at RM8.15bil.
Main Market volume slipped to 4.09 billion shares worth RM6.12bil compared with 6.34 billion shares, worth RM7.47bil registered the previous Friday.
Warrants turnover eased to 1.07 billion units valued at RM263.87mil from 1.72 billion units valued at RM414.93mil.
The Ace Market volume shed to 917.68 million worth RM205.37mil from 1.55 billion shares worth RM259.77mil. – Bernama The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contract is expected to trade on the downtrend, in line with the weak cash market.
A dealer said lack of catalysts in the local market and poor sentiment globally would further dampen investors’ risk appetite.
On a Friday-to-Friday basis, November 2018 and June 2019 declined nine points to COMMODITIES ROUNDUP KUALA LUMPUR
The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is likely to trade lower at between RM1,930 and RM2,050 a tonne this week, said a dealer.
Interband Group of Companies senior trader Jim Teh said Malaysia CPO futures hit its three-year low last week, pressured by speculative play and persistent concern over increasing stocks in Malaysia and Indonesia.
“The lingering uncertainties surrounding the market, particularly on the US-China trade war, would also continue to weigh down the prices,” he told Bernama.
Traders also await the Malaysian Palm Oil Board’s report due today for export figure in first 10 days of November for market direction.
“Increased stocks figure will put further pressure CPO prices,’’ he added.
Meanwhile, RHB Research Institute said KUALA LUMPUR
The Kuala Lumpur Tin Market (KLTM) is likely to trade sideways this week with the price to range between US$19,200 and US$19,300 per tonne on subdued demand for the metal, a dealer said.
He said the tin price would likely be influenced by the metal performance on the benchmark London Metal Exchange (LME) and take the cue from other metal-based commodities like zinc, nickel and copper.
“Tin prices in both KLTM and LME increased substantially. I think they might 1,709 and 1,699, respectively, December 2018 down 9.5 points to 1,707 and March 2019 erased 10 points to 1,702.
Turnover for the week narrowed to 27,657 lots from 79,323 lots the previous week, while open interest declined to 29,084 contracts from 35,065 contracts previously.
The benchmark FBM KLCI settled 5.78 points lower at 1,708.09 compared with 1,713.87 in the previous week. – Bernama
from a technical viewpoint, the bearish trend would likely continue, after the commodity erased the previous gains and hit its three-year low.
The next support is anticipated at the RM1,863, which was the previous low on Aug 25, 2015, while the next resistance will likely be at RM2,265, it said adding that traders were advised to maintain short positions.
On a Friday-to-Friday basis, November 2018 lost RM105 to RM1,880 a tonne, December 2018 went down RM119 to RM1,968 a tonne, January 2019 fell RM113 to RM2,040 a tonne and February 2019 slipped RM109 to RM2,109 a tonne.
Weekly turnover reduced to 161,326 lots from 184,166 lots the previous Friday, while open interest rose to 300,705 contracts from 291,324 contracts previously.
On the physical market, November South eased RM60 to RM2,020 a tonne. – Bernama take a breather next (this) week. “In addition, the stronger US dollar will influence the movement of copper, which will later give an impact on tin prices. Copper will be the culprit of the movement,” he told Bernama.
On a Friday-to-Friday basis, the KLTM price rose US$70 to US$19,270 per tonne, while turnover was unchanged at 34 tonnes.
The price differential between the KLTM and LME for the week just ended stood at a discount of US$80 per tonne against a premium of US$75 per tonne the previous week. – Bernama KUALA LUMPUR
The Malaysian rubber market is expected to hover at the current level this week, amid mixed sentiment surrounding the market.
The rubber market will likely take its cue from the movement of prices on the regional rubber markets, crude oil, as well as the ringgit performance against the US dollar.
He said the regional rubber market, which remained weak coupled with the continuous slide in crude oil prices amid increasing supply concerns, has contributed to bearish sentiment in the market.
“The benchmark Tokyo rubber futures on Friday extended its losses for a fifth straight day after touching a 26-month low earlier in the week, amid persistent concerns over slackened demand.
“Oil markets remained weak today as rising supply and concerns of an economic slowdown pressured prices, with US crude declining 20 per cent from its peak in early October,’’ he said. KUALA LUMPUR
Gold futures contracts on Bursa Malaysia Derivatives are expected to trade range-bound this week on lack of catalysts, a dealer said.
Phillip Futures Sdn Bhd dealer Tee Guy Eon told Bernama that gold prices were expected to trade in the range of between RM163.00 and RM166.00 as the market searched for new catalysts to move the prices.
Meanwhile, OANDA head of trading Asia-Pacific Stephen Innes said gold prices hit a rough patch as the dollar was on the rise again.
He said traders would be looking at lower gold prices if the euro headed for the 1.1300 floors against the US dollar and/or the Japanese yen test 114.50 against the greenback.
“Both of those currency scenarios are not out of the question early next (this) week if not sooner rather than
OIL PALM OUTPUT (in metric tonnes)
TIN
RUBBER
The market is also expected to remain cautious on persistent worries of the US-China trade war, causing uncertainty across markets and is negative for rubber prices, he added.
However, the weaker ringgit against the US dollar would support the demand and capped further prices decline, he told Bernama.
“At the current prices, the rubber market remained featureless as major buyers sought for lower prices while sellers were reluctant to deal at such levels which would result in prices to hover at the current level,’’ he added.
For the week just ended, rubber prices were traded in mixed trend in range-bound.
On a Friday-to-Friday basis, the Malaysian Rubber Board’s noon price for tyre-grade SMR 20 slipped 3.5 sen to 514.5 sen a kg, while latex-in-bulk shed 2.5 sen to 390.0 sen a kg.
The 5pm unofficial closing price for SMR 20 declined 2.5 sen to 516 sen a kg, while latex-in-bulk was 1.5 sen easier at 393.0 sen a kg. – Bernama
GOLD FUTURES
later,” he added.
For the week just ended gold futures prices on Bursa Malaysia were mostly lower during the holiday-shortened week, weighed down by the weaker gold price on the US Commodity Exchange and stronger ringgit.
The market was closed last Tuesday for the Deepavali festival.
On a Friday-to-Friday basis, November 2018 eased 30 ticks to RM163.80 a gramme, December 2018 fell 40 ticks to RM163.80 a gramme, January 2019 lost 36 ticks to RM163.90, and February 2019 declined 34 ticks to RM164.00 a gramme.
Weekly turnover fell to seven lots worth RM115,300 from 20 lots worth RM311,915 in the previous week, while open interest went down to 30 contracts from 32 contracts previously. – Bernama