Highlights

M+ Online Research Articles

Author: MalaccaSecurities   |   Latest post: Thu, 1 Oct 2020, 2:26 PM

 

Mplus Market Pulse - 23 Jan 2019

Author:   |    Publish date:


Profit Taking Could Set In

  • The FBM KLCI shrugged off the weak performance in its regional peers and closed higher, owing to a last minute buying-support in selected heavyweights. The lower liners, however, turned negative with the FBM Small Cap (-1.0%), the FBM Fledgling (-0.3%) and the FBM ACE (-0.6%) in the red. The broader market, meanwhile, closed mixed on Tuesday.
  • Market breadth turned southbound as decliners beat the advancers a ratio of 556-to-332 stocks. Traded volumes, however, rose by 8.9% to 3.32 bln, amid profit-taking activities in the lower liners.
  • On the winners’ list, Petronas Dagangan (+RM1.00) erased previous losses and closed higher on Tuesday, followed by Nestle (+50.0 sen), Public Bank (+38.0 sen), Kuala Lumpur Kepong (+30.0 sen) and PPB Group (+22.0 sen). Broader market outperformers were Fraser & Neave (+52.0 sen), Mesiniaga (+34.0 sen), Panasonic Manufacturing (+30.0 sen), Ajinomoto (+20.0 sen) and Heineken Malaysia (+20.0 sen).
  • In contrast, BAT (-44.0 sen), KESM Industries (-19.0 sen), Carlsberg (-18.0 sen), PMB Technology (-10.0 sen) and Pos Malaysia (-10.0 sen) retreated. Meanwhile, Petronas-linked counters like Petronas Gas (-16.0 sen) and Petronas Chemicals (-8.0 sen) also underperformed, followed by other keyindex stocks like Dialog (-5.0 sen), Maybank (-4.0 sen) and Genting Malaysia (-2.0 sen).
  • Asian equities struggled to stay afloat due to renewed worries over the slowing global growth and increasingly bearish business sentiments among world business leaders. The Shanghai Composite index (-1.2%) led the decline with all of its sectors in the red, alongside the Hang Seng Index (-0.7%), although the Hong Kong bourse recovered slightly in the eleventh hour. The Nikkei (-0.5%) was also painted red, while ASEAN stockmarkets closed mostly negative.
  • Wall Street snapped a four-day rally and ended sharply lower on rising concerns of the U.S. government shutdown and potential cancellation of the U.S.-China preparatory trade talks. The Dow (-1.2%), the S&P500 (-1.4%) and the Nasdaq (- 1.9%) all retreated despite recovering slightly in the later session.
  • Earlier, European stockmarkets were splashed in red as lower-than-expected earnings from Switzerland’s banking giant UBS weighed on the banking sector. The FTSE (-1.0%) remained downward pressured, dragged down by a stronger Pound, in-tandem with upbeat employment data and extended losses in commodity-linked companies. Similarly, both the DAX and the CAC also closed 0.4% lower on Tuesday.

The Day Ahead

  • Once again, the FBM KLCI managed to decouple from the regional trend to head higher yesterday where most regional indices closed in the red on renewed concerns over the state of the global economy. However, we remained unconvinced of the FBM KLCI’s uptrend as the buying was selective and at the end of the trading day to haul the key index past the psychological 1,700 points level.
  • Consequently, we think the FBM KLCI is set for an increasingly volatile session over the near term with a strong pullback potential after most global indices tumbled overnight as optimism over the ongoing trade negotiations between the U.S. and China is still largely unconvincing. At the same time, there are also few positive leads on the local stockmarket to entice sustained buying. Therefore, we think the 1,700 points level may not hold with the 1,692-1,695 supports coming into play, followed by the 1,690 level. The resistances are at 1,705 and 1,712 respectively.
  • Meanwhile, profit taking activities among the lower liners and broader market shares are likely to prolong after the recent recovery that saw the FBM Small Cap gaining some 12% has already reached its end. In addition, the lower liners indices are also overbought, giving rise to increased odds of a consolidation spell over the near term.

COMPANY BRIEF

  • Muhibbah Engineering (M) Bhd is demanding an explanation from the Bintulu Port Authority to explain why it had cancelled the award of a RM584.8 mln contract. Muhibbah, who owns a 51% stake in the JV to undertake the project, is ascertaining the financial and operational impact and compiling the relevant claims as a result of this termination for discussion with Bintulu Port Authority.
  • The JV is of the view that Bintulu Port Authority will grant fair compensation to the JV and should not result in adverse impact to the JV and the company. The JV won the contract on 28th April 2017 and was supposed to be completed by the end-2019. (The Star Online)
  • HeiTech Padu Bhd has secured a threeyear contract to supply critical care information system (CCIS) in intensive care unit for 11 government hospitals. The contract, valued at RM33.2 mln, is for a period of 36 months commencing from 1st February 2019 to 31st January 2022. (The Star Online)  Bina Puri Holdings Bhd has accepted a RM251.5 mln contract on the electrified double track from Gemas to Johor Bahru. The contract was awarded by Syarikat Pembenaan Yeoh Tiong Lay Sdn Bhd. The sub-contract works are expected to be completed by 30th April 2020. (The Star Online)
  • K-One Technology Bhd has entered into a manufacturing agreement with a new customer to manufacture dental water flosser for consumer use. The manufacturing of the products is expected to start at the end of 2Q2019 and will be able to generate sales averaging approximately RM10.0 mln per annum, for an initial period of three years. (The Star Online)
  • Sapura Energy Bhd managed to raise about RM4.00 bln from its rights issue exercise that closed on 16th January 2019, although the rights issue of ordinary shares under the exercise was undersubscribed. The unsubscribed rights shares will be fully taken up by the joint underwriters — Maybank Investment, CIMB Investment Bank and RHB Investment Bank. Meanwhile, the rights issue of Islamic Redeemable Convertible Preference Shares saw 100% valid acceptances. (The Edge Daily)
  • Sasbadi Holdings Bhd’s 1QFY19 net profit jumped 84.0% Y.o.Y to RM4.4 mln, thanks to higher revenue from its print division and lower expenses. Revenue for the quarter rose 10.9% Y.o.Y to RM30.5 mln from RM27.51 mln a year ago. (The Edge Daily)
  • Country View Bhd’s 4QFY18 net profit surged 445.4% Y.o.Y to RM52.0 mln from RM9.54 mln, mainly due to the completion of the disposal of lands in Kedah in the quarter under review. Revenue for the quarter soared 288.7% Y.o.Y to RM141.8 mln.
  • For FY18, cumulative net profit jumped 147.7% Y.o.Y to RM70.5 mln. Revenue for the year grew 93.6% Y.o.Y to RM236.1 mln. (The Edge Daily)
  • Malayan Flour Mills Bhd’s (MFM) two rights issues to raise RM275.1 mln have been oversubscribed. The first issue, involving the issuance 5.0% Redeemable Convertible Unsecured Loan Stocks (RCULS), saw an oversubscription of 7.0%. The second rights issue, meanwhile, has an oversubscription rate of 0.9%.
  • The cash call is intended for the expansion of the group’s poultry processing plant, construction of a new aqua feed milling plant, the extension of an existing jetty as well as to pare down its revolving credit facilities. (The Edge Daily)  

Source: Mplus Research - 23 Jan 2019

Share this

Related Stocks

Chart Stock Name Last Change Volume 
MUHIBAH 0.77 0.00 (0.00%) 308,200 
HTPADU 1.04 0.00 (0.00%) 218,300 
K1 0.355 0.00 (0.00%) 3,646,100 
SAPNRG 0.105 +0.005 (5.00%) 39,787,700 
SASBADI 0.12 0.00 (0.00%) 2,905,600 
CVIEW 1.00 0.00 (0.00%)

  Be the first to like this.
 


APPS
I3 Messenger
Individual or Group chat with anyone on I3investor
MQ Trader
View candlestick stock charts with Technical indicators
MQ Affiliate
Be rewarded by being an MQ Affiliate
 
 

345  387  611  1050 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 XOX 0.115-0.015 
 KANGER 0.14-0.04 
 IRIS 0.315+0.035 
 INIX 0.265-0.02 
 DOLPHIN-WB 0.03+0.025 
 MTRONIC 0.08-0.005 
 MTOUCHE 0.055+0.005 
 CONNECT 0.16+0.02 
 BINTAI 0.575+0.04 
 VS 2.33+0.06 

FEATURED POSTS

1. The Equity Market Index Benchmark in Malaysia CMS
2. Trading Scenarios of Derivatives Bursa Derivatives Education Series
3. Derivatives 101 Bursa Derivatives Education Series
4. Why Trade FKLI? Bursa Derivatives Education Series
5. MQ Trader - Introduction to MQ Trader Affiliate Program MQ Trader Announcement!

TOP ARTICLES

1. Stock Pick Year 2020 - 30 Sep Result Stock Pick Contest Year 2020
2. BE SMART AND DOMINAN !!!! INVEST DOMINAN ON UNDERVALUED POSITION Target Invest - We Target, We Invest
3. NAIM (5073) At 74.5 sen is Giving a 18 Sen Dividend soon. That means Rm180 per share or 24.1% Yield (equals to 13 months int rate of 1.75% in Malaysia THE INVESTMENT APPROACH OF CALVIN TAN
4. [Humbled Investor]SCGM: Why share price fell today despite results meeting expectation? HumbledInvestor
5. LOTTE CHEMICAL TITAN HOLDINGS BHD (5284) - TURNAROUND STORY? JAW Place Research
6. 明年恐产量过剩‧艾毕斯:手套股超越基本面 星洲日報/投資致富‧企業故事
7. TOPGLOV 30/9/2020 IF TURN UP WILL BE SUPERBULL AGAIN ! pakatanharapan
8. How to make money when glove stock price fluctuates? Koon Yew Yin Koon Yew Yin's Blog
PARTNERS & BROKERS