Malaysia market commentary (17 Dec 2024)

Tech-heavy Nasdaq (+1.2%) notched another all-time high while DJ slid for 8 consecutive trading days. Broadcom (+11%) reported a significant increase in revenue, highlighting prominent outlook for AI.

Even though bond futures fully price in 0.25% rate cut this FOMC meeting, investors expect the rate cut cycle to be slower than expected. Hence, US Treasury 10 years rebounded firmly from 4.14% on 6 December to settle at 4.40% yesterday, weighing on sectors which are sensitive to interest rates, including manufacturing and banking.

USD found its ground and stood firm whereby USDMYR edged higher to 4.4525 (+0.055). 10-year govvy closed slightly higher at 3.85% (+0.03%).

KLCI still flirting around 1,600 and gave back small gain to settle at 1,606 (-1.90) with traded volume of MYR 2.45 billion. Offshore non-stop sold domestic equities since Japanese spill over, daily flow was around MYR -176 million; hence YTD was exacerbated to MYR -3.18 billion.

Daily trading participant for local retail was not high, approximately 20% while local institution and foreign contributed about 43% and 37% respectively.

SUPERMX continued its rally at 1.10 (+0.91%) amid the US efforts of boosting nitrile-glove production. The advance was propelled by investors’ confidence in SUPERMX effort to reduce reliance on imports and support directly to the US market.