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What Happened This Week

Merry Christmas. Market sell down continued into the holidays season. There were pockets in the market that ended the week higher during the week. Steel related stocks closed the week higher.

Lion Industries (4235) were up 60%. Malaysia Steel Works (5098) were up 27%. Ann Joo Resources (6556) were up 25%. Steel prices are ending the year higher. A number of commodities are seeing the same, with USD weakening across global currencies along with traders trading on a speedy recovery.

A few Oil and Gas related companies also saw higher share prices. Marine and General (5078) were 187% higher. CN Asia (7986) were 27% higher. Eversendai (5205) were 25% higher.

Bursa Malaysia indices ended the week lower by 0.7%.

What We Are Watching For Next Week

A similar shorter trading week, next week. We expect markets to remain muted as the year closes. Our year-end predictions are most likely to be wrong, unless a massive window dressing action is seen.

We will be releasing an e-book/document next week, outlining our outlook and strategy for 2021. If you would like to get it in your email inbox once it’s released, please do sign up with your email. We have presented our views on 2021 to our members last week. If you are interested to join our membership, keep an eye out in January 2021, as we are opening up membership slots.

This Week Top 25 Most Active Stocks

By Volume

By Value

Year-to-date (YTD) Top 25 Gainers

Year-to-date (YTD) Top 25 Losers

This Week Earnings Results Released

18 companies announced their latest quarter results.

SCGM (7247) announced its Q2FY2021 results. Comparing against Q2FY2020, revenue was up 14%, profit was up 138%. Cumulative Free Cash Flow was up 106%. Comparing against the immediate preceding quarter, revenue was up 7%, profit was up 24%. F&B packaging continue to grow in the local market. Management expects demand to remain resilient.

Poh Huat (7088) announced its Q4FY2020 results. Comparing against Q4FY2021, revenue was up 13%, profit was up 49%. Cumulative Free Cash Flow was down 15%. Comparing against the immediate preceding quarter, revenue was up 63%, profit was up 105%. The better results were due to strong recovery in demand and planned inventory building by US importers for the year-end festive season.

Management sees the US furniture trade to have recovered with the latest survey of residential furniture manufacturers and distributors continued to report positive market activities. New orders in September 2020 were up 43% over September 2019 orders, 51% year-on-year increase in August, 39% increase in July and 30% increase in June. Despite higher orders, shipment legged with backlogs were up 123% over last September. Existing home sales in US continued to rise in October 2020 for the fifth straight month. It is also predicted that the 2021 home sales would rise 10% which should bode well for furniture sales.

The company have benefited with more orders being received from customers for shipments all the way until Jun / July 2021. Management is confident that demand for products will remain strong in the coming year. Shipments have been particularly strong over the last few months and are now up to speed with production schedule vis-à-vis new supply and logistic arrangement. The company continues to develop products to cater for the stay at home and work from home requirement.

Upcoming Earnings Results Releases Expected Next Week

A few earnings results are expected to be released on the final week of December 2020. But nothing major we are watching out for.

This Week Key Economic Data Releases

Malaysia October 2020 Economic Leading Index grew 6.3% year-on-year, driven mainly by the healthcare segment on Bursa Malaysia. Growth were slower as compared to the 8.6% in September.

Malaysia November 2020 Consumer Price Index were lower with 1.7% deflation year-on-year. CPI without fuel were also lower by 0.1%.

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