Malaysia market commentary (11 Dec 2024)

After weekly opening in negative territory, all 3 indices, DJ (-0.35%), S&P500 (-0.30%), Nasdaq (-0.24%) continued slide even though Alphabet (+5%) outperformed after launching its Willow quantum chip. The risk sentiment was dampened by Oracle (-6.7%) as it missed the expectation of Q2 earnings.

Market is waiting for CPI number, which could be the last economic data input for Fed to decide its rates decision. US Treasury 10 years yield edged slightly higher to 4.23% from 4.20%. Bond futures market holds expectation of 86% probability for 1 rate cut of 25 bps this December FOMC meeting.

USDMYR fluctuation was small, and the pair settled at 4.4280 (+35 pips) while 10 years MGS yield closed almost unchanged at 3.84%.

KLCI retreated gain and edged lower to 1,608 (-2.46) with traded volume of MYR 2.64 billion. Same old story for foreign equity flow whereby foreigners kept on selling local stocks. Yesterday daily flow was MYR -120 million, pushing YTD even more negative, about MYR -2.32 billion.

This week trading participation started in kind balanced whereby foreign traded about 1/3 while local institution and retail contributed approximately 40% and 20% respectively.

Healthcare (+1.77%) sector was the champion, propelled by rally of gloves. It was followed by other gainers, such as construction (+0.97%) and property (+0.88%). Utilities (-0.74%) sector and telecommunication (-0.50%) continued selling pressure this week.

Gloves momentum was strong whereby TOPGLOV and SUPERMX attracted trading interest, closed at 1.37 (+0.04) and 1.08 (+0.05) respectively. This aligns with the expectation of strong USD and Trump protectionism policy.