M+ Online Research Articles

Author: MalaccaSecurities   |   Latest post: Thu, 19 Sep 2019, 9:42 AM


Mplus Market Pulse - 10 Jul 2019

Author:   |    Publish date:

Indecisive Direction Ahead

  • The key index rebounded into the positive region after four consecutive session of decline, closing 0.3% higher than yesterday. The FBM Small Cap (+0.6%) and FBM ACE (+1.0%) traced the positive sentiment, but the FBM Fledging fell 0.1% as all broader market stock also finished in the green.
  • Market breadth was even with 402 negative stocks traded marginally over 401 winner stocks. Traded volumes increased 13.4% to 2.41 bln shares as investors took advantage of lower prices to commence bargain hunting activities.
  • All but three blue chip components were positive, spearheaded by IHH Healthcare (+5.0 sen), followed by Sime Darby Plantations (+5.0 sen), Hong Leong Bank (+4.0 sen), Kuala Lumpur Kepong (+4.0 sen) and AmBank (+2.0 sen). Among the biggest winners on the broader market include KESM Industries (+48.0 sen), British American Tobacco (+38.0 sen), Panasonic Manufacturing (+32.0 sen), Carlsberg (+20.0 sen) and Yinson (+20.0 sen).
  • Biggest losers in the broader market included United Plantations (-22.0 sen), Ajinomoto (-14.5 sen), Malaysian Pacific Industries (-12.0 sen), Can-One (-10.0 sen) and MB World Group (-9.0 sen). On the Main Index, there were only three stocks in the red which were CIMB Bank (-3.0 sen), Genting Group (-2.0 sen) and RHB Bank (-2.0 sen).
  • Asia’s benchmark indices remained mostly in the red as the Hang Seng Index further slid 0.8% following another round of protest over the weekend, while the Shanghai Composite dropped 0.2%. However, the Nikkei recovered its losses and gained 0.1% despite the restrictions of high tech exports from the country to South Korea. ASEAN stockmarkets, meanwhile, closed mostly lower yesterday.
  • U.S stockmarkets was mixed on Tuesday as the Dow slid another 0.1%, while on the broader market, both the S&P 500 (+0.1%) and the Nasdaq (+0.5%) ended higher as gains in tech-related shares offset worries about a weakening in the earnings outlook.
  • Key European benchmark indices continued their downtrend as the FTSE (- 0.2%), CAC (-0.3%) and DAX (-0.9%) slid further amid effects of the U.S-China trade war as European blue chips anticipate cuts in their earnings forecasts.


  • Stocks surprised on the upside yesterday on institutional support on the key index helped to nullify some technical weakness. However, the underlying market tone is still one of cautiousness in view of the lack of direction and still toppish valuations.
  • As a consequence, we continue to think that further upsides will be more difficult to come by unless there are improvements in the corporate Malaysia’s fundamental outlook. In the interim, there appears to be continuing support on the index-linked stocks and this is likely to see the key index remaining rangebound and toppish for longer as there is also little selling pressure. The supports are at 1,680 and 1,670 respectively, while the resistances are at the 1,687 and 1,690 levels.
  • The lower liners have also made a quick rebound, but also keeping the FBM Small Cap and FBM ACE indices in the overbought zone. Again, we see the overbought conditions leaving little room for further near term upsides and that a consolidation is again due.


  • Aeon Credit Service (M) Bhd will be sued by the government to recover unpaid taxes due for the seven years of assessment from 2010 to 2016.
  • The amount of unpaid taxes was not revealed but in December 2017, the company was slapped with a demand for RM96.8 mln in additional assessment with penalties by the Inland Revenue Board for the same period of assessment. (The Edge Daily)
  • IJM Corp Bhd is planning to seek "appropriate legal redress" after it was terminated as the contractor for the underground package of the Light Rail Transit Line 3 (LRT3) project.
  • The group received the notice of termination from the LRT3 turnkey contractor MRCB George Kent Sdn Bhd (MRCBGK) that noted that the termination was due to the project being remodelled from a project delivery partnership model to a fixed price contract model, pursuant to the direction of the government.
  • To recap, the group secured the project worth RM1.12 bln on 13th March last year and preliminary works had commenced before the project was suspended in June 2018. (The Edge Daily)
  • YTL Power International Bhd‘s 60.0%- owned unit, YTL Communications Sdn Bhd has come out to refute allegations raised by the Ministry of Education (MoE) to reject its service in relation to the 1BestariNet project.
  • The group said that the MoE had failed to follow the contract phase award process, as laid out in the project documents, including the joint-review of the project performance, changes in technology, basic educational needs and price prior to the expiry of each phase and before parties reach agreement on the next phase. (The Edge Daily)

Debt-laden PN17 firm Barakah Offshore Petroleum Bhd has been notified by national oil firm Petroliam Nasional Bhd (Petronas) that its unit's licence has been suspended. The was due to the nonperformance of Barakah’s unit in-relation to the contract for the provision of underwater services.

  • Consequently, Petronas has decided to suspend Barakah's licence for a period of three years with effect from the date of the letter. (The Edge Daily)
  • Asdion Bhd has proposed to undertake a capital reduction to cancel RM30.8 mln of its issued share capital, to eliminate the company's accumulated losses as the group has been in the red since 2009.
  • Meanwhile, accumulated losses as at 31st March 2019 stood at RM31.6 mln and will be reduced to RM964,184 after the proposed exercise. (The Edge Daily)
  • Pensonic Holdings Bhd is disposing its commercial property in Petaling Jaya, for RM19.5 mln cash. The cash proceeds will be used to pare borrowings (RM10.0 mln) and reduce them to 0.6x, from 0.7x as at end-May 2018. Another RM9.2 mln will be used for working capital.
  • The disposal is part of its asset rationalisation exercise to unlock and realise the increase in value of its landed assets, including the property, to improve the overall financial position of the entire group. (The Edge Daily)
  • TFP Solutions Bhd has signed a product co-branding agreement with mobile virtual network operator, Tune Talk Sdn Bhd. The agreement with Tune Talk will facilitate the promotion and marketing activities of the Tune Talk's product and services through TFP's co-branded mobile fintech product - OneCALL.
  • OneCall, which targets the "un-banked" population (people without bank accounts) in Malaysia, contains unique features such as remittance, virtual ATM, game PINS, Lifestyle tools, Bill Payments, as well as a B40 entrepreneur programme. (The Edge Daily)
  • PUC Bhd is looking to explore opportunities to participate in the digital or virtual banking business, ahead of Bank Negara Malaysia's announcement on the digital banking framework. The group is also open to discussing with more parties so as to offer its microfinancing service which is due for launch this year. (The Edge Daily)

Source: Mplus Research - 10 Jul 2019

Share this

Related Stocks

Chart Stock Name Last Change Volume 
AEON 1.49 +0.01 (0.68%) 16,200 
IJM 2.25 0.00 (0.00%)
YTLPOWR 0.735 +0.005 (0.68%) 238,300 
BARAKAH 0.035 0.00 (0.00%) 147,000 
ASDION 0.14 0.00 (0.00%)
PENSONI 0.395 0.00 (0.00%)
TFP 0.09 0.00 (0.00%)
PUC 0.065 0.00 (0.00%) 1,913,100 

  Be the first to like this.


139  148  460  1578 

Top 10 Active Counters
 MNC-PA 0.040.00 
 ARMADA 0.32+0.005 
 KNM 0.41+0.015 
 GPACKET-WB 0.2650.00 
 MNC 0.115+0.005 
 KNM-WB 0.20+0.005 
 VSOLAR 0.0950.00 
 HSI-C7F 0.415-0.04 
 GPACKET 0.715+0.01 
 HSI-H6S 0.18+0.025 


2. Dayang: Investors' Dilemma - Koon Yew Yin Koon Yew Yin's Blog
3. 《《 这只股走了一大轮,是什么原因导致这一路的上涨呢? 》》 StockBuddy
4. What is the thing happen with Boustead and how do we capture the oppurtunity Stevent Hee
5. KNM Break Up : Time for the Long Awaited Rally 128Huat Potential StockPick
6. LONDON BISCUITS BERHAD - Slapped with Several Writ of Summons and Statement of Claim PublicInvest Research
7. KNM: A relook into KNM from Profitability, Volume Spread Analysis and what’s Insiders Report are telling they are doing now ? TradeVSA - Case Study
8. 中东局势混乱国际油价是否会继续往上移?? 大马股市在油气(Oil & Gas)板块有没有较低风险的隐形黑马吗?(Part 2) Ten Ninety
Partners & Brokers