The FBM KLCI fell 0.3% on Tuesday after the key index gapped down at the opening bell, dragged down by telco and bankingrelated blue chip stocks. The FBM Small Cap and FBM ACE fell 0.1% and 0.03% respectively, while the FBM Fledgling gained 0.2%. The broader market finished mostly positive, as the Industrial Products (+0.8%) sector led the gainers.

Market breadth, however, was negative as losers marginally tipped the scale on a ratio of 305-to-299 stocks. Traded volumes also fell by 36.8% to 635.9 mln shares, following stock market closure in the afternoon session for the Hari Raya holiday.

Key index losers were dominated by telco and banking counters such as Maxis (- 22.0 sen), Hong Leong Financial Group (- 20.0 sen), Ambank (-6.0 sen), Axiata (-6.0 sen) and CIMB Bank (-5.0 sen). Meanwhile, on the broader market, Nestle (-28.0 sen), Sarawak Oil Palms (-25.0 sen), Lay Hong (-20.0 sen), Time DotCom (-19.0 sen) and P.I.E Industrial (-9.0 sen) were the main decliners.

On the contrary, Heineken Malaysia extended its three consecutive days of gains to close 48.0 sen higher, while other winners include Fraser & Neave (+42.0 sen), Calsberg (+14.0 sen), JHM (+13.0 sen) and BLD Plantation (+10.0 sen). BAT (+18.0 sen), KLCC (+10.0 sen) and PPB (+4.0 sen) advanced on Bursa’s Main Board. Meanwhile, Petronas-linked companies such as Petronas Gas and Petronas Dagangan also increased 68.0 sen and 8.0 sen respectively.

The key regional benchmark indices closed mostly in the red on Thursday as the Nikkei retreated 0.7%, on the back of the stronger Japanese Yen against the Greenback. Supermarket operator, Aeon Co. contracted 8.2% after reporting a 1QFY16 net loss. The Shanghai Composite also fell slightly by less than 0.1%, while, the Hang Seng Index bucked the general negative trend to close 1.0% higher. ASEAN benchmark indices, meanwhile, ended mostly mixed.

Wall Street slipped overnight after a selldown in crude oil prices dragged energy shares lower. The Dow declined marginally by 0.1%, after paring back earlier losses, led by gains in the banks. The S&P (-0.1%) closed little changed, despite a choppy intra-day session as investors await key U.S. employment data. On the other hand, the Nasdaq clawed back 0.4% to close at 4,876.8 points.

European stockmarkets rebounded, buoyed by consumer discretionary and financial-related stocks. The FTSE gained 1.1% as Associated British Foods (AB Foods) surged 8.9% after increasing its annual earnings forecast. Meanwhile, the CAC snapped a streak of three straight losing sessions to finish 0.8% higher and the DAX added 0.5% to close at 9,418.8 points.

THE DAY AHEAD

We continue to think that Bursa Malaysia will remain on the quiet side as many market players are still away on the Hari Raya break. This is likely to leave the key index to continue drifting within the 1,640-1,660 range over the near term amid the lack of fresh buying catalysts and few compelling buys.

The lower liners and broader market shares are also expected to maintain their rangebound trend as retail investors are likely to stay mostly on the sideline. Under the prevailing environment, we think any the upsides could be capped by quick profit taking activities with investors quick to close out their winning positions.

COMPANY BRIEFS

Plastics manufacturer, Luster Industries Bhd has entered into a Memorandum of Understanding (MoU) with Citi-Champ International Ltd in relation to the proposed disposal by Citi-Champ and acquisition by Luster of a certain percentage of Citi-Champ’s shares in New Harvest Asia Investment Ltd for a certain purchase consideration to be determined later.

New Harvest is in the process of acquiring SS Ventures Ltd, a start-up focused on providing taxi hailing technology services. The parties endeavour to finalise and mutually agree on the details of the proposed acquisition within six months from the date of the MoU. (The Star Online)

Bertam Alliance Bhd expects to record a one-off net gain of RM79.8 mln from the sale of two parcels of freehold land in Cheras to a unit of Guocoland (M) Bhd for RM128.0 mln. A sale and purchase agreement had been signed with Guocoland to dispose of two parcels of land at Batu 9, Cheras, measuring a total of 4.8-ha. Its original investment cost to purchase the parcels of land was RM33.8 mln. (The Star Online)

TH Heavy Engineering Bhd (THHE) was slapped with two winding-up petitions from its creditors for a collective sum of US$8.9 mln (RM35.6 mln) in relation to the supply of equipment and work done at the floating production, storage and offloading (FPSO) Layang project.

The first petition was by MIB Orwell Offshore Ltd for US$7.6 mln on the supply of equipment and machinery for the FPSO Layang project. The case management for the above petition has been fixed on 20th July 2016.

The second petition is by MIB Italiana SPA with a claim of US$1.3 mln for the supply and installation of quick release hook and mooring hawser for the same project. Case management for this petition has been set on 15th July 2016. (The Edge Daily)

Melewar Industrial Group Bhd has decided to drop its appeal against the Malaysian Competition Commission (MyCC)'s finding that Megasteel Sdn Bhd did not abuse its dominant position or practise anti-competition margin squeeze in the cold rolled coil market. Melewar had, on 21st June 2016, withdrawn the appeal with no objection from MyCC, according to a bourse filing by Melewar's parent company, Lion Corp Bhd. (The Edge Daily)

Halex Holdings Bhd's Executive Director and Chief Executing Officer (CEO), Chan Yee Keen has decided not to renew his employment contract upon expiry of the contract on 30th September 2016. Chan was appointed as his current position on 1st October 2015. (The Edge Daily)

ML Global Bhd has re-designated its Non-Independent Director, Tan Sri Lim Hock San as its Managing Director (MD), replacing Beh Hang Kong who was re-designated as Executive Director, effective 8th July 2016.

The boardroom changes came after LBS Bina Group Bhd, an entity controlled by Lim, gained control of ML Global with an equity stake of 50.9%. Beh has been MD at ML Global since 16th January 2008. ML Global also re-designated its Non-Independent Director, Datuk Wira Lim Hock Guan as its Executive Director. (The Edge Daily)

Source: M+ Online Research - 8 Jul 2016