Following the firmer Ringgit and recovery in crude oil prices, the FBM KLCI (+0.2%) extended its gains for the third straight session after enduring a choppy trading session. The lower liners – the FBM Small Cap (-0.03%) and FBM Fledgling (-0.2%), however, fell whereas the Plantations (- 0.6%) sub-index was the sole underperformer in the positive broader market.

Market breadth was relatively even with 371 gainers vs. 370 loser stocks. Traded volumes, however, added 8.3% to 1.35 bln shares.

Leading the gainers on the FBM KLCI was Petronas Dagangan (+12.0 sen), followed by PBB Group (+12.0 sen), Public Bank (+8.0 sen), Astro (+7.0 sen) and Genting (+6.0 sen). Significant winners on the broader market were Lafarge (+36.0 sen), Time dotCom (+25.0 sen), Malaysia Airport Holdings (+24.0 sen) and UMW (+20.0 sen). SCGM (+19.0 sen) extended its gains for the fourth straight session to close at a fresh 10-year high.

In contrast, United Plantations (-48.0 sen) was the biggest loser on the broader market, followed by Fraser & Neave (-20.0 sen), Kluang Rubber (-12.0 sen) and Lii Hen (-12.0 sen). Comintel Corporation tanked 27.0 sen, as the selling pressure escalated in the eleventh trading hour. Amongst the biggest losers on the key index include BAT (-36.0 sen), Axiata (- 10.0 sen), Hong Leong Financial Group (- 8.0 sen), MISC (-7.0 sen) and KLK (-2.0 sen).

Japanese stockmarkets snapped a streak of three consecutive days of gains as the Nikkei fell 0.6% with investors locking-in recent gains ahead of the Brexit referendum. The Hang Seng Index (+0.6%) recorded its fourth straight day of gains, while the Shanghai Composite index recouped all its previous session’s losses to close 0.9% higher, led by banking stocks. ASEAN stockmarkets, meanwhile, ended mostly positive.

Despite opening higher at the start of the trading bell, quick profit taking sent the Dow to reverse all its intraday gains before closing 0.3% lower as the CBOE Volatility Index jumped 14.6% to 21.2 overnight. On the broader market, the S&P 500 fell 0.2% as crude oil prices slipped on less-than-expected decline in U.S. crude supplies.

Earlier European benchmark indices – the FTSE (+0.6%), CAC (+0.3%) and DAX (+0.6%), however, all closed higher for the fourth straight day. Investors remain confident after the latest poll reported a narrow win that UK will remain in the European Union.

THE DAY AHEAD

We think the market could trend sideways ahead of the Brexit vote that starts later today as investors await for the outcome of the vote. This would also mean that the market would likely linger within the 1,630-1,650 levels over the near term.

Apart from the Brexit vote, there are few other noteworthy leads for investors to follow for the time being. Therefore, we think the market breadth to remain relative thin as investors await for new catalysts to re-enter the market.

Meanwhile, we continue to think that there could be a strong knee-jerk reaction to global markets if the Great Britain remains in the European Union. However, we expect the selling could escalate if the vote favours the Leave camp. For now, it remains difficult to predict the outcome of the vote as polls are suggesting a toss-up between the Stay and Leave camps.

COMPANY BRIEFS

RHB Capital Bhd has appointed RHB Investment Bank Bhd’s (RHB IB) Chief Executive Officer (CEO) and Managing Director (MD), Mike Chan as the CEO of RHB Bank Singapore. His position will be replaced by Robert Huray, who is currently the CEO of RHB Securities Singapore Pte Ltd. Huray will also be RHB Cap's new head of Group Investment Banking.

Meanwhile, the current country head of RHB Bank Singapore, Jason Wong, has decided to pursue other opportunities.

Huray will spearhead the continued growth of the group's investment banking business and operations in Malaysia and regionally, whil, Kenneth Yeoh Wei Ming, who is currently the head of Asia debt capital markets for RHB Securities Singapore, will be succeeding Huray. (The Edge Daily)

AirAsia Bhd is planning to acquire a Bombardier aircraft from Caterhamjet Global Ltd (CJG) for US$10.0 mln (RM40.3 mln) for the use of its top executives, Datuk Kamarudin Meranun and Tan Sri Tony Fernandes for official business matters.

AirAsia said the deal is deemed a related party transaction as both Kamarudin and Fernandes have interests in Tune Group Sdn Bhd, which is the sole shareholder of CJG. AirAsia will pay for the purchase in cash, from internally-generated funds. (The Star Online)

Felda Global Ventures Holdings Bhd (FGV) is being sued in court over land-related claims. FGV has been served with a writ of summons and statement of claim dated by Euggne Kousai, who is seeking declarations that the subleasing of a 225.96-ha. land held under a native title in Tongod, Sabah, to FGV and transfer of the land from the plaintiff to Lahida Ibrahim is null and void. It also wants a declaration that the agreements executed by Kousai dated 19th May 2005 to sublease the land to FGV, to be null and void.

Further, FGV unit has also been served with another writ of summons by Abdul Malik Said Omar and Fathiyah S. Abdul Salam who are seeking a declaration that the execution of the issue title deeds of the 499 ac. land in Labuk/Sugut, Sabah, by FGV dated 13th February 1988 is null and void. They also want a declaration that the group holds the land as constructive trustee for the plaintiffs and the original registered proprietor of the land as stated in the land title. (The Edge Daily)

Sona Petroleum Bhd will be undergoing the liquidation process once the deadline to complete its qualifying acquisition (QA) expires on 31st July 2016.

The group is currently in the midst of appointing a liquidator who will be responsible for the liquidation process and distribution of cash back to Sona’s shareholders.

As at 31st December 2015, Sona had RM527.2 mln in its trust account and entitled shareholders would receive 48.0 sen a share, after deducting taxes. (The Star Online)

Oriental Holdings Bhd, its wholly-owned subsidiary Oriental Rubber & Palm Oil Sdn Bhd (ORPO) and two minority shareholders, will collectively sell off their 100.0% equity stake in Oriental Assemblers Sdn Bhd for RM32.5 mln to Berjaya Assets Bhd.

Oriental Holdings and ORPO will receive RM31.8 mlm for its 98.0% shareholding, while, its minority shareholders Datuk Syed Mohamad Syed Murtaza and Datuk Seri Mohd Isahak Mohd Yusuf's 1.97% and 0.05% stakes respectively were valued at a cumulative amount of RM656,500.

The disposal is in-line with its strategy of streamlining businesses and exiting the automotive assembly operations, which would allow the automotive division within the group to focus more on the retail business.

The disposal is expected to be completed by end-2016, following which Oriental Assemblers would cease to be the group's subsidiary. (The Edge Daily)

Source: M+ Online Research - 23 June 2016