Major Stocks to Trade:
KLCI was down 9.92 points or 0.58% to 1,699.83. Turnover was 743.72 million shares valued RM576.26mil. There were 206 gainers, 463 losers, 291 counters unchanged. The decline on Bursa Malaysia contrasted with the key Asian markets.
Asian shares crept ahead on Thursday as a lull in the Sino-US trade tussle and talk of more Chinese stimulus helped calm nerves, while tensions in the oil market grew ahead of an OPEC meeting that could expand the supply of crude, Reuters reported. MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.4%, while Japan’s Nikkei added 0.7%. BAT fell the most, down 60 sen to RM36.06, Petronas Dagangan 50 sen to RM24.36, Nestke 40 sen lower at RM145.80. Telekom Malaysia fell to the lowest since late 2011, down 40 sen to RM3.23 after the new federal government announced plans to cut broadband prices by 25% by year-end. Axiata lost 17 sen to RM4.20. MyEG rose two sen to RM1.02 in active trade. CIMB Equities Research is keeping its forecasts and target price of RM1.22 for MyEG, still based on a technology sector 2019F target price-to-earnings (P/E) of 15 times.
The FTSE Bursa Malaysia KLCI Index fell as much as 1 percent on Thursday, taking its decline to 11 percent since a peak two months ago. Down for a ninth straight day, the measure is heading for its lowest level since February 2017. Malaysian stocks have become some of the world’s worst performers since a record in April, down more than 10%. Foreign investors trying to adjust to a new prime minister seeking to shore up the nation’s debt have fled the market, pulling money from equity funds everysingle day since the start of May.
CIMB Equities Research is keeping its forecasts and target price of RM1.22 for MyEG Services, still based on a technology sector 2019F target price-to-earnings (P/E) of 15 times. It said on Thursday a potential re-rating catalyst is MyEG winning a contract to monitor Malaysia’s upcoming Sales and Services Tax (SST). “A downside risk is liberalisation of the domestic car roadtax and foreign worker working permit renewal services, which may open MyEG’s niche segment to other players,” it said. On Wednesday evening, MyEG announced that its associate I-Pay MyEG Philippines Inc (IPMPI) had inked an MoU with Cagayan Economic Zone Authority (CEZA).
BUY DATAPRP ABOVE 0.230 TARGET 0.250 0.280 SL 0.210
SUPPORT– 0.230 RESISTANCE– 0.250 MARKET STRATEGY– LONG RELATIVE STRENGTH INDEX(RSI) – 63.659
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