Tracking the positive sentiments on the key regional markets, the FBM KLCI rose 0.7% due to strong buying support in selective telco and O&G heavyweights. Both the lower liners and the broader market stocks also closed higher.

Market breadth turned positive as gainers outstripped decliners on a ratio of 551-to- 262 stocks. Traded volumes rose significantly by 51.4% to 1.94 bln shares, on the back of positive market sentiment.

Anchoring the gainers on the FBM KLCI were BAT (+32.0 sen), Petronas Gas (+32.0 sen), UMW Holdings (+23.0 sen), KLCC (+18.0 sen) and Digi (+14.0 sen). Elsewhere, notable gainers include consumer products stocks like F&N (+50.0 sen) and Dutch Lady (+44.0 sen). Meanwhile, Lafarge Malaysia (+19.0 sen), DRB-Hicom (+17.0 sen) and United Plantations (+16.0 sen) were among the other main advancers.

Among the biggest losers among the lower liners include Atlan Holdings (-15.0 sen), KESM (-10.0 sen), UMS Holdings (- 9.0 sen) and Kluang Rubber (-8.0 sen). Meanwhile, Scientex (-8.0 sen) close lower for the fifth-straight day. There were only three key index losers which were Genting (-7.0 sen), Maybank (-3.0 sen) and Telekom Malaysia (-1.0 sen)

The Nikkei (+0.6%) edged higher, as commodities prices extended their gains on the back of the weakening U.S. Dollar. The Hang Seng Index jumped 1.4%, while, the Shanghai Composite increase slightly by 0.7%. ASEAN benchmark indices, meanwhile, ended mostly higher.

Stocks on Wall Street closed mostly higher as the Dow eked-out a 0.1% gain after hitting the 18,000 psychologicallevel for the first time since April. The S&P500 advanced 0.1%, buoyed by gains in the energy-sector, albeit offset by the drag in the healthcare and financial stocks. The Nasdaq, however, bucked the generally positive market conditions to close 0.1%lower.

European stockmarkets extended their gains for the second-straight day, backed by solid gains in crude oil prices, which hit $50.0 per barrel and better-than-expected European GDP growth. Despite paring off some its earlier gains, the FTSE closed 0.2% higher, while, the DAX and the CAC jumped 1.7% and 1.2% respectively. THE DAY AHEAD

As it is, global stockmarket sentiments are improving on the view that the Federal Reserve will further delay its interest rate hike due to the still mixed economic performance. The will continue to fuel the global stockmarkets’ recovery as the still loose monetary environment will entice more players back into equities for their potentially higher returns compared to fixed income products. At the same time, the recovering commodity prices will also encourage participation into related stocks.

Similar conditions are likely to prevail on Bursa Malaysia over the near term, but we think the upsides will be more difficult to come by as the FBM KLCI is approaching technical overbought after the recent strong gains that has also resulted in the key index reaching the 1,660 resistance level. Still, with the market undertone remaining positive, there are further upsides, but profit taking activities could start to emerge that will keep a lid on further upsides.

The generally positive undertone could also see the broader market and lower liner shares remaining active over the near term.

COMPANY BRIEFS

Kim Teck Cheong Consolidated Bhd (KTC) is strengthening its product offering by inking a distributorship agreement with Anakku Sdn Bhd for products under the trademarks such as Anakku, Disney, Doraemon, Minicare, and Family Essential. Including the distributorship agreement with Anakku, KTC now provides market access and coverage for about 44 third party brands across Sabah and Sarawak. (The Star Online)

AMMB Holdings Bhd’s Chairman, Tan Sri Azman Hashim has ceased to be a substantial shareholder of ECM Libra Financial Group Bhd through the disposal of about 25.8% indirect interest, or 74.2 mln shares to Truesource Sdn Bhd on 31st May 2016.

Earlier, ECM Libra Managing Director and co-founder Lim Kian Onn is undertaking an unconditional take-over offer for all of the remaining ECM Libra shares not already held by him and persons acting in concert with him (PAC) for 37.0 sen cash per share. Lim and PAC had a 50.3% stake in the company as at 20th May 2016, the date of the unconditional takeover notice to the Board. (The Star Online)

Luster Industries Bhd saw changes in its boardroom with Hong Kong-based businessman, Gary How Soong Khong emerging as its Managing Director. He is replacing Lim See Chea, who was re-designated as Executive Director effective 7th June 2016. Aside from that, Gary’s wife, Yap Yoke Chuan and brother in-law Yap Kean Kok were also appointed as the company's Executive Directors with immediate effect.

Separately, several members on the current board of Luster Industries, including two of its Executive Directors, Lim See Meng and Lim See Hwa, have resigned from their posts to focus on subsidiaries' business and operation. Ng Chin Nam, who was the Independent and Non-Executive Director, also resigned from his post. (The Edge Daily)

Mercury Industries Bhd's 70.0%-owned unit, Paramount Bounty Sdn Bhd has bagged a construction contract from Aturan Prisma Sdn Bhd worth RM9.8 mln. The contract is for site clearance, earthworks, retaining wall and soil improvement — all to be carried out on Lot 15296 at Bandar Ulu Kelang, Daerah Gombak, Selangor. (The Edge Daily)

MMC Corp Bhd's indirect subsidiary, Kontena Nasional Bhd was served a winding-up petition by Mewah Indah Resources (M) Sdn Bhd in respect of a judgment in default for RM5.4 mln. The winding-up proceedings arose from the non-payment by Kontena Nasional of the judgment sum. Kontena Nasional disputes the debt and has taken steps to set aside the judgment in default. (The Edge Daily)

Nova MSC Bhd has fixed the issue price for the first tranche of its private placement at 10.0 sen per share. The private placement involves the issuance of up to 155.0 mln new shares, representing 20.0% of the enlarged issued and paid-up capital of the company after its proposed acquisition of a 31.0% stake in CNA Development Pte Ltd from Stone Villa Ltd for RM10.0 mln. The said acquisition will be satisfied via the issuance of 45.5 mln new shares and cash payment of RM5.0 mln.

The acquisition will also result in CNA becoming a 51.0%-owned subsidiary of Nova MSC. CNA is principally involved in the provision, design and implementation of integrated control and automation systems and information technology solutions for buildings and facilities. (The Edge Daily)

Berjaya Land Bhd (B-Land) have sold 9.0 mln shares, representing a 0.7% stake, in Berjaya Sports Toto Bhd (BToto) for RM25.8 mln. The shares were disposed of on 24th May 2016 and 6th June 2016 at an average price of RM2.86 per share.

The disposals resulted in a net loss of RM5.6 mln as the shares, which were purchased since 1992, have a total carrying value of RM31.3 mln, or an average of RM3.48 per share. Following the disposals, B-Land and its unlisted subsidiaries now hold a total of 539.9 mln shares, representing 40.1% equity interest, in BToto. (The Edge Daily)

Ire-tex Corp Bhd’s (Ire-Tex) unit, Ire-Tex Packaging Sdn Bhd has been granted the Feed-in Tariff (FiT) approval by the Sustainable Energy Development Authority (SEDA) and that it will be venturing into the solar energy segment. Ire-Tex will be able to develop and operate solar photovoltaics (solar PV) with 1MW power capacity to produce electricity to supply to distribution licensee in Malaysia under the new venture. The 1MW power grid of photovoltaic system will be installed at the rooftop of the company's factory at Kulim, Kedah.

Upon the completion of the installation of the solar PV grid, Ire-Tex would enter into agreement with Distribution Licensee in Malaysia, in particular Tenaga Nasional Bhd, for the supply of electricity generated from solar PV for a FiT concession period of 21 years. (The Edge Daily)

Source: M+ Online Research - 8 June 2016