Weekly Sharing #July. 22

Key Highlights:

- Market Records: The S&P 500 and Nasdaq 100 indices continued their positive streaks. The Nasdaq 100 marked its 16th consecutive positive July, and the S&P 500 performed well, contributing to its best two-week trading period of the year

- Economic Data: Lower-than-expected CPI figures for June helped reduce Treasury yields and spurred a rally in equities. This data eased inflation concerns and positively influenced market sentiment

- Earnings Reports: Significant earnings reports from companies like Tesla and Netflix exceeded expectations, contributing to the overall positive market momentum

- Oil Prices: Crude oil prices also saw movement during this period. Brent crude oil prices were around $86.42 per barrel, while West Texas Intermediate (WTI) crude oil was priced at approximately $82.85 per barrel

Lagging Sectors:

- Communication Services: This sector saw a decline of 2.97%, impacted by profit-taking and sector rotation out of high-growth stocks.

- Energy: The energy sector had a slight gain of 0.54%, with oil prices experiencing some pressure due to higher-than-expected output and concerns over demand in China

Events to Watch: 24 Jul - US Crude Inventories, 25 Jul - US GDP QoQ

Sector Performance:

- Technology and Health Care: These sectors saw significant activity, with health care stocks showing some positive movement, while technology stocks experienced some declines during the week

Major Developments: The Malaysian government announced a reduction in the stamp duty rate for shares traded on Bursa Malaysia from 0.15% to 0.1% effective from July 2024. This move is expected to boost market vibrancy and attract more investors, supporting financing for SMEs and the new economyEvent To Watch: 24 Jul - MY CPI (YoY, MoM)

Price Trend: Bursa Malaysia Bhd has been showing a steady upward momentum, driven by increased trading activity and market confidence. The stock has seen a consistent rise over the past months, reflecting positive sentiment from both local and international investors.

Company Profile: Bursa Malaysia Bhd is the exchange holding company that operates the securities, derivatives, and offshore exchanges in Malaysia. The company offers a wide range of services, including listing, trading, clearing, settlement, and depository services. It is a key player in the Malaysian financial market, providing a platform for the trading of equities, bonds, derivatives, and other financial instruments.

Latest Earnings: Bursa Malaysia recently reported strong quarterly earnings, with significant growth in both revenue and net profit. The increased trading volume in both the equity and derivatives markets has contributed to this performance. The company continues to benefit from a diverse revenue stream, including transaction fees, listing fees, and depository services.

Recent Developments: Bursa Malaysia has been actively enhancing its market infrastructure and regulatory framework to attract more listings and increase trading activity. The company has also been focusing on sustainability initiatives and promoting ESG (Environmental, Social, and Governance) practices among listed companies. These efforts have been well-received by investors, further boosting the company's market position.

- Increased Trading Activity: Continued growth in trading volumes can boost revenue.

- New Listings: Attracting more IPOs and listings can enhance market liquidity and trading activity.

- Market Volatility: High volatility in the financial markets could impact trading volumes and revenue.

- Regulatory Changes: Potential changes in financial regulations could affect the company’s operations.

Conclusion: Bursa Malaysia Bhd (KLSE: BURSA) demonstrates promising growth potential supported by strong financials, innovative market enhancements, and strategic initiatives. The technical analysis indicates a bullish trend with opportunities for further gains. Investors should watch for further developments and market conditions that could impact its performance.