• 
• The FBM KLCI (+0.2%) shrugged off the weakness in crude oil prices to close marginally higher yesterday as the key index traded in the positive territory for most of the trading session. Meanwhile, the lower liners also ended mostly higher with the exception of the FBM Fledging (-0.1%), while the broader market closed mixed.
• Market breadth, however, remained negative as losers outpaced gainers on a ratio of 470-to-383 stocks. Traded volumes fell by 5.7% to 1.80 bln shares as market sentiments remains cautious.
• Topping the heavyweight gainers was BAT (+RM1.00), followed by Petronas Gas (+42.0 sen), PPB (+26.0 sen), Petronas Chemicals (+15.0 sen) and Hong Leong Bank (+8.0 sen). Plastics manufacturers like Scientex and Daibochi added 49.0 sen and 23.0 sen respectively on weaker crude oil prices while other notable gainers of the day include Shell (+93.0 sen), Lay Hong (+51.0 sen) and MPI (+41.0 sen).
• In contrast, significant decliners on the broader market include United Plantations (-40.0 sen), P.I.E. Industrial (- 39.0 sen), Bintulu Port (-32.0 sen), BLD Plantations (-20.0 sen) and Karex (-19.0 sen). Sime Darby (-7.0 sen), Astro (-5.0 sen), UMW (-4.0 sen), SapuraKencana Petroleum (-3.0 sen) and CIMB (-3.0 sen) were amongst the big board losers.
• The Nikkei hits its three-month low after slipping 2.7% on a stronger Japanese Yen, coupled with the concerns over falling crude oil prices. Despite opening higher at the start of the trading bell, quick profit taking sent the Hang Seng Index to close 0.9% lower, but Shanghai Composite rose 0.2% after the People’s
• Bank of China stepped up its intervention to stabilise the Yuan. ASEAN indices, meanwhile, ended mixed.
• U.S. stockmarkets advanced for the second straight session as the Dow added another 0.7% after enduring a volatile trading session. The S&P 500 rose 0.8%, lifted by gains in the technology sector (+0.9%), offsetting the weakness in crude oil prices, while the Nasdaq closed 1.0% higher, snapping a losing streak of eight consecutive days.
• Despite the Industrial Production index for November 2015 only rising 0.9% Y.o.Y and the Manufacturing Production index falling 1.2% Y.o.Y, the FTSE snapped a streak of four consecutive losing days to close 1.0% higher. The CAC gained 1.5%, while the DAX climbed 1.6%, taking cue from the stabilising Chinese equities.

THE DAY AHEAD

• With global market conditions looking calmer after the rough start to the year, we expect the Malaysia stockmarket to continue building-on its recovery trend over near term.
• This could see that key index making another pass at the psychological 1,650 points level, albeit we continue to think that the potential upsides could still be limited by ongoing cautious spell brought about by China’s stockmarket malaise and the sliding crude oil prices, which has fallen below the US$30 a barrel mark.
• In the meantime, the lower liners and broader market stocks could continue to see mild bargain hunting activities, but we also maintain our view that the potential upsides will be capped by the quick profit taking activities as retail investors adopt shorter trading duration.

COMPANY BRIEFS

• Seacera Group Bhd will be diversifying into the medical devices business after signing a subscription-cum-shareholders agreement (SSA) with Proligen Sdn Bhd to set up the country's first polysulfone dialyser manufacturing plant in Melaka.
• The group will subscribe 520,000 shares of RM1.00 each, with the share premium of RM4.70 each in Proligen at a subscription price of RM3.0 mln. Seacera will effectively hold 51.0% equity interest in Proligen after the SSA.
• The plant in Melaka will produce two million pieces of dialyser per annum and is estimated to generate a pretax profit of up to RM75.0 mln within three years. (The Edge Daily)
• Scanwolf Bhd has restored Datuk Tan Sin Keat and Ng Chee Wai as Executive Director and Financial Controller respectively after their suspension in June 2015. This follows the conclusion of an investigative review conducted by audit firm PKF Covenant Sdn Bhd.
• PKF submitted their report on 23th December, 2015, which stated that there were no financial losses incurred by the group, neither were there evidence to show any wrongdoings either criminal or civil culpability by any individual. (The Star Online)
• Total passengers at Malaysia Airports Holdings Bhd's (MAHB) local airports showed a 2.7% Y.o.Y drop in December 2015 to 8.1 mln passengers. For its full year, MAHB’s traffic growth expanded 0.5% Y.o.Y to 83.7 mln passengers, compared to the previous year’s 83.4 mln passengers.
• The group expects an increase by 2.5% Y.o.Y to traffic growth to 86.0 mln passengers in 2016, while total aircraft traffic would also grow by 2.4%. (The Edge Daily)
• Media Chinese International Ltd, which is the publisher of Sin Chew Daily and China Press, is in preliminary discussions to sell its entire 73.0% equity stake in One Media Group, which publishes several magazines in Hong Kong and China including Ming Pao Weekly. (The Star Online)
• Esthetics International Group Bhd’s (EIG) has secured the exclusive rights to distribute Bio-Therapeutic (BT) professional skin care equipment in Hong Kong and Macau.
• The distribution rights will be for a period of 10 years commencing 1st July, 2014 to 30th June, 2024 with the option to renew for a further period of 10 years. (The Edge Daily)
• A total of 12.0 mln Nylex (Malaysia) Bhd's shares, or a 6.2% stake, exchanged hands off-market at 55.0 sen per share on 12th January, 2016. However, the identity of the buyer and seller remains unknown. (The Edge Daily)
• Xin Hwa Holdings Bhd announced that its contract related to works for internal port operations at the Port of Tanjung Pelepas Sdn Bhd (PTP) was renewed on 12th January, 2016.
• Their undertaking includes the supply of prime mover and drivers for housekeeping and other ancillary yard movement services at the Tanjung Pelepas Port and the value of the contract will depend on the volume of services required by PTP, based on the agreed flat rate of RM9.20 per move.
• The renewed contract will be for a period of 12 months from 1st January, 2016 to 31st December, 2016 with an option for another year's renewal at PTP's sole discretion. (The Edge Daily)
• Tropicana Corp Bhd is disposing of its freehold land located in Bukit Bintang, Kuala Lumpur, to real estate company Pinnacle Supreme Sdn Bhd for RM55.0 mln cash. The land along Jalan Pudu includes a 4½-year-old 10-storey hotel known as Sky Express Hotel.
• The estimated gain of RM2.5 mln from the sale will be used repay the group’s bank borrowings and fund its working capital. The group expects the disposal to be completed by 2Q2016. (The Star Online)
• Asdion Bhd has announced that the three-month moratorium starting from 15th January, 2016 on bauxite mining activities in Pahang will not negatively impact its business operations.
• Based on the sourcing and off-take agreement dated 2th June, 2015 signed between Asdion and Hong Kong International Mining Exchange Ltd (HKIM), Asdion is contractually required to supply the commodity to the latter over a period of two years on a per written order basis with no form of monetary penalty if the supply fails to materialise.
• The group had obtained shareholders' approval to commence its sourcing and supply of commodities business on 2th November, 2015. However, the approval date overlapped with the commencement of the monsoon season as commonly occurs throughout Malaysia, particularly in the East Coast of Malaysia, which in turn affected the quality of bauxite commodity required by HKIM.
• As a result, Asdion has not commenced the supply of bauxite commodity to HKIM as to date. (The Edge Daily)

Source: M+ Online Research - 13 Jan 2016