Weekly Sharing #Apr. 22 2024

US Stock Market Review 15 - 19 Apr 2024
DJI -0.08%, SP500 -3.05%, NASDAQ -5.52%. Market experienced selloff from mainly tech stocks, with NVDA fell more than 10% on last Friday, expect to see more volatility ahead on big tech earnings

Four of the Magnificent Seven group of tech giants will report this week: TSLA, META, MSFT GOOGL

Event to watch: 23 Apr S&P PMI & New Home Sales, 24 Apr Durable Goods Orders, 25 Apr GDP QoQ & initial jobless Claims, 26 Apr Core PCE Price Index

MY Stock Market Review 15 - 19 Apr 2024
KLCI -0.22%, remain flat as market digested middle east tension impact to the stock market and pressured by weaker market sentiment despite better-than-expected GDP data last week

Most sectors closed in red, with Bursa Properties Index fell more than 5% last week on overbought correction

Event to watch: 25 Apr Inflation Rate, 26 Apr PPI

Introduction
A sub-sector under Bursa Consumer Products & Services sector
Less impact to KLCI as SIME is the only automotive component stock
Not commonly in top traded list but had been in uptrend since Jun 2023
Malaysian automotive industry is the 3rd largest in Southeast Asia, and the 23rd largest in the world
Malaysian automotive industry contributes around 4% to Malaysia's GDP
Own home-grown brands like Proton & Perodua

Source: moomoo

$Vehicles & Parts (BK9016.MY)$ started a strong uptrend since Jun 2023, helped by the catalyst of Sime Darby's UMW takeover and growing vehicle sales. However, the trend showed a retracement last week

Recent Development
The Economy Minister has reportedly insisted that Malaysia will continue to reduce petrol subsidies this year to reduce its fiscal deficit.

New road tax structure for electric vehicles (EVs) after the current road tax exemption period for EVs ends by 2025 soon to be announced, revealed by Transport Minister

More new players to join the competition like Bermaz Auto secures Xpeng distributorship, to bring Chinese brand's EVs to Malaysia

The government-linked conglomerate Sime Darby is adding the Toyota and Perodua brands to its portfolio

Challenges
Intense competition as more global players joined the market
Development of EV infrastructure
Sustainability of petrol car market
Technology and labor cost
Limited domestic demand
Growing secondhand car market
Potentially higher petrol price

Malaysia Automotive Stocks Top 5 by market cap: $SIME (4197.MY)$ , $ORIENT (4006.MY)$ , $HLIND (3301.MY)$ , $BAUTO (5248.MY)$ , $DRBHCOM (1619.MY)$

Disclaimer
This content is for reference only and does not constitute any investment advice, and past performance is not indicative of future performance. Returns will vary, and all investments carry risks, including loss of principal. Please make your own investment decisions.

Video Disclaimer
This video is provided for informational purposes only. No content in the video shall be considered a recommendation or solicitation for the purchase or sale of financial products. Moomoo MY does not provide financial advice. Please assess your risks and consult your financial adviser.

In the end, I will share more market trends and investment knowledge in the official Learning group organized by the moomoo Education Team @Invest With Cici . Everyone is welcome to join.