• 
• Despite trading in the positive territory for most of the trading session, the FBM KLCI gave up all of its intraday gains on the final hour to close 0.1% lower to mark its fifth straight losing day. Profit taking amongst selective banking heavyweights persisted as the Ringgit continued to lose ground against the U.S. Dollar. Amidst the mixed broader market, the lower liners – the FBM Small Cap (+0.4%), FBM Fledging (+0.6%) and FBM Ace (+0.1%) all ended higher on the continuing rotational play.
• This also allowed market breadth to turn positive as gainers outpaced losers on a ratio of 451-to-396 stocks. Traded volumes, however, fell 2.0% to 2.12 bln shares.
• Key losers on the big board were BAT (- 42.0 sen), PBB (-26.0 sen), KLK (-20.0 sen), Sime Darby (-12.0 sen) and Hong
• Leong Financial Group (-12.0 sen). Notable losers on the broader market were Rapid (-31.0 sen), DKSH (-25.0 sen), Sarawak Oil Palm (-14.0 sen), Caring (-12.0 sen) and Sarawak Plantations (-11.0 sen).
• Amongst the biggest advancers of the day include consumer products stocks like Lay Hong (+39.0 sen), Dutch Lady (+36.0 sen), Nestle (+32.0 sen) and GAB (+24.0 sen), while Asia File rose 39.0 sen. Topping gainers list on the FBM KLCI was Hong Leong Bank (+26.0 sen), followed by UMW (+14.0 sen), Petronas Chemicals (+8.0 sen), Genting (+7.0 sen) and IHH (+6.0 sen).
• The Nikkei rose 0.8% on Friday to log its biggest monthly gain in two-and-a half years as the Japanese government is considering a budget of over 3.0 trln Japanese Yen. The Shanghai
• Composite, however, declined 0.1% while the Hang Seng Index fell 0.8, dragged lower by technology and energy stocks. ASEAN indices, meanwhile, ended mixed.
• U.S. stockmarkets endured a volatile trading session as the Dow extended its losses by 0.5%, but logged its biggest monthly gain since 2011. On the broader market, the S&P 500 fell 0.5%, dragged down by the consumer staples index (-1.1%) after the Michigan Consumer Sentiment for October came in at 90.0 – below economists’ expectations of 92.5, but the index marked its fifth straight weekly gain.
• Elsewhere, European benchmark indices ended mostly higher as the CAC and DAX rose 0.2% and 0.5% respectively after the Eurozone’s inflation rate in October was flat, coming off the 0.1% deflation in the previous month. The FTSE (-0.5%), however, extended its losses for the fourth straight session, dragged lower by the energy and mining stocks.

THE DAY AHEAD

• The FBM KLCI’s immediate outlook remains dour along with other Emerging Market stockmarkets as the U.S. Federal Reserve is poised to raise interest rates in December that could see a shift in market interest back to equities in developed economies.
• As it is, the movement has begun and we expect the trend to escalate over the next few weeks with portfolio managers continuing with their adjustments. At the same time, we also expect the U.S. Dollar to strengthen further and the corresponding weaker Ringgit will see Malaysian equities turned weaker as well.
• On the downside, the 1,650-1,660 levels remains as the immediate supports for now. We also reiterate our view that the 1,580-1,600 points level should be the major support for the remainder of the year with Valuecap likely to provide ample supports.

COMPANY BRIEF

• Petronas Gas Bhd’s 3Q2015 net profit dipped 27.1% Y.o.Y to RMRM305.0 mln, owing to the foreign exchanges losses as a result from the depreciating Ringgit. Revenue for the quarter, however, rose marginally by 1.0% Y.o.Y to RM1.13 bln.
• For 9M2015, however, cumulative net profit climbed 23.6% Y.o.Y to RM1.57 bln. Revenue for the period improved 1.2% Y.o.Y to RM3.32 bln. A dividend of 15 sen a share was declared. (The Star Online)
• Perbadanan Nasional Bhd (PNS) has bought into Caring Pharmacy Bhd by acquiring a 12.8% stake, comprising of 27.8 mln shares on 28th October 2015. The shares were disposed of by Jitumaju Sdn Bhd, which is controlled by the Berjaya Group, at an average price of RM1.80. (The Star Online)
• O&C Resources Bhd (OCR) plans to develop a service apartment block with an estimated gross development value of RM204.9 mln within the vicinity of the Petronas Twin Towers.
• OCR had bought a 51.0% stake in Masbe Coffee Sdn Bhd (MCSB), which has the rights to develop a 1,492 sq.m. freehold land at Jalan Yap Kwan Seng, for RM5.0 mln.
• Based on the principal development order (DO) for the land, the approved type of development is a 145-unit service apartment. However, MCSB may apply for a revision of the DO on finalisation of a new joint-venture (JV) agreement
• between MCSB and the land’s legal owner, Makok Intl Sdn Bhd (MISB). The proposed development was expected to start within a year from the execution date of the new JV agreement and the development period would be over three years. (The Star Online)
• Felda Global Ventures Holdings Bhd's (FGV) wholly-owned subsidiary, Felda Global Ventures Kalimantan Sdn Bhd (FGV Kalimantan), is expected to complete the equity acquisition of four Indonesian companies by 30th November 2015.
• Earlier on 12th June 2015, FGV Kalimantan has entered into a heads of agreement with PT Rajawali Capital International (Rajawali Capital) and PT Rajawali Corpora (Rajawali Corpora) to purchase equities in four companies owned by the two entities. The entities involved in the deal are still in the midst of negotiating the terms of the definitive documents. (The Edge Daily)
• Titijaya Land Bhd’s wholly-owned subsidiary, Titijaya Resources Sdn Bhd (TRSB), has entered into a shareholders' agreement (SA) with Amona Development Sdn Bhd (ADSB) and Metrogale Development Sdn Bhd (MDSB), to form a strategic collaboration for the construction of school facilities.
• ADSB will hold 60.0% in MDSB, the joint venture (JV) company, while TRSB holds the balance 40.0% stake to undertake potential property development opportunities within Kuala Lumpur. ADSB had made a proposal to the government to construct school facilities in exchange for a government land situated at Bukit Bintang, Kuala Lumpur, measuring approximately 2.7-ac. (The Edge Daily)
• Sunway Construction Group Bhd’s (SunCon) Senior Managing Director
• (MD) Kwan Foh Kwai will retire at the end of 2015 and will not be extending his contract past 31st December 2015. Its current Deputy MD, Chung Soo Kiong will succeed Kwan in his post effective 1st November 2015. Kwan will, however, remain on the board as a Non-Independent Non-Executive Director from 1st January 2016. (The Edge Daily)
• EcoFirst Consolidated Bhd’s 1QFY16 net profit jumped 226.8% Y.o.Y to RM2.3 mln, on higher contribution from its mall income and the 'Upper East @ Tiger Lane' condominium development in Ipoh, Perak. Revenue for the quarter surged 354.8% Y.o.Y to RM23.3 mln. (The Edge Daily)
• Chemical distributor Luxchem Corp Bhd’s 3Q2015 net profit jumped 117.8% Y.o.Y to RM13.0 mln, attributed to increased sales from the trading and manufacturing segments as well as realised foreign exchange (forex) gain. Revenue for the quarter gained 6.1% Y.o.Y to RM169.2 mln.
• For 9M2015, cumulative net profit increased 55.5% Y.o.Y to RM24.4 mln. Revenue for the period added 10.2% Y.o.Y to RM502.7 mln. (The Edge Daily)
• TRIplc Bhd has appointed Yusof Badawi as its new Managing Director (MD), replacing Zainal Abidin Ismail who has retired with effect on 1st November 2015.
• Prior to his appointment, Yusof was the Chief Executive Officer/Executive Director of Merge Energy Bhd year 2003 to year 2011. He was also the executive director of Syarikat Bekalan Air Selangor Sdn Bhd from 2011 to 2015. (The Edge Daily)

Source: M+ Online Research - 2 Nov 2015