The FBMKLCI clawed back marginal gains to close 0.1% higher last Friday, after a choppy intraday session –mainly due to buying support on selected heavyweights. Meanwhile, the key index also rose 0.1% W.o.W to finish in the positive territory. The lower liners, however, were splashed in red, with the exception of the FBM Fledging, which bucked the market to close up by 0.4%, alongside a mostly positive broader market.

Market breath was favourable as winners outrun losers on a ratio of 415-to-364 stocks. Traded volume, however, fell 10.7% to 1.89 bln shares amid a more cautious environment with the lack of fresh catalysts.

Significant advancers on the key index include Kuala Lumpur Kepong (+20.0 sen) Public Bank (+16. 0sen) and Axiata (+10.0 sen), as well as Petronas-linked stocks like Petronas Dagangan and Petronas Gas, which notched up 12.0 sen each. Meanwhile, Panasonic Manufacturing (+50.0 sen), United Plantations (+30.0 sen), Ajinomoto (+24.0 sen), SP Setia (+16.0 sen) and Ann Joo Resources (+15.0 sen) led the broader market gainers.

Key lower liners losers were AEON Credit Service (-20.0 sen), Nestle (-16.0 sen), Malaysian Pacific Industries (-14.0 sen), DKSH Holdings (-12.0 sen) and Lysaght Galvanized Steel (-11.0 sen). Blue chips decliners, meanwhile were led by BAT (- 50.0 sen), Hong Leong Bank (-20.0 sen), AmBank (-9.0 sen), KLCC Property & REITs (-6.0 sen) and Astro (-4.0 sen).

Key regional benchmark indices closed mostly on a depressed tone as the Nikkei lost 0.3% on the back of profit-taking activities in the financial sector and the stronger Yen vs. the Greenback. Similarly, both the Hang Seng Index and the Shanghai Composite Index finished lower after losing 0.3% each. ASEAN stockmarkets, meanwhile, were also mostly splashed in red.

U.S. equities retraced on Friday, dragged down by the decline in energy stocks as well as technology giant, Apple Inc (-1.7%). This resulted in the Dow snapping a streak of three consecutive days of gains to close 0.7% lower, while the Nasdaq lost 0.6% after lingering in the red for the entire day. Meanwhile, the S&P500 was also down 0.6%, albeit notching its best weekly performance in more than two months.

Taking cue from the negative regional sentiments and weaker-than-expected economic data, European benchmark indices finished lower as the FTSE (-0.03%) flatlined, while the CAC fell 0.5% to close at 4,488.7 points. The DAX also slipped into the red, led by losses in the technology and utilities sectors.

THE DAY AHEAD

Although the FBM KLCI closed in the positive last Friday and at the 1,670 level, the market may be at the near term crossroad after it failed to clear the above hurdle convincingly. With most overseas stock indices closing in the red last Friday and fresh catalysts still lacking, the FBM KLCI may be in for a near term consolidation in tandem with the performance of overseas stockmarkets.

Nevertheless, we think the consolidation is likely to be mild as there is selling little pressure as yet and the key index should remain relatively steadfast near the 1,670 as it attempts to build up a base. We also think the mild consolidation will extend to the lower liners and broader market.

COMPANY BRIEFS

Suria Capital Holdings Bhd’s plan to develop an international cruise terminal in Kota Kinabalu is moving closer to realisation with the purchase of 11.7 ha. land within the Kota Kinabalu port from the state government. Suria Capital, which is 49.0% owned by the Sabah government, is currently awaiting the letter of offer from the state in relation to the proposed purchase.

The company intends to fund the proposed acquisition via a proposed fundraising exercise, details of which will be determined by the board and announced at a later date. Suria’s proposed development is in line with the initiative to develop Kota Kinabalu port as a dedicated international cruise terminal in an Entry Point Project (EPP) earmarked under the Economic Transformation Programme. (The Star Online)

Kian Joo Can Factory Bhd has signed a Memorandum of Understanding (MoU) with Togo (HK) Industries Ltd (THKIL) to manufacture and distribute aluminum cans and bottles.

THKIL would provide the technology by investing 30.0% in the equity of KJ TOGO, which would be the joint-venture company used by the parties to manufacture and distribute different types of aluminum bottles. (Bernama)

A consortium involving Pestech International Bhd has won a contract to install three substations for Severelectro JSC under an electricity supply accountability and reliability improvement project (ESARIP) for US$8.5 mln (RM34.8 mln).

Severelectro is the largest Kyrgyz Republic state-owned power distribution company based in Bishkek, the capital of Kyrgyzstan. (The Edge Daily)

NTPM Holdings Bhd's 1QFY17 net profit fell 27.4% Y.o.Y to RM9.4 mln, dragged down by higher energy and labour cost from its tissue operation in Vietnam. Revenue for the quarter, however, gained 5.6% Y.o.Y to RM151.4 mln. (The Edge Daily)

WZ Satu Bhd has aborted its proposed RM368.0 mln acquisition of Sistem Lingkaran-Lebuhraya Kajang Sdn Bhd (Silk), the operator of the Kajang Silk Highway, from SILK Holdings Bhd. The termination of the deal was due to a failure to reach an agreement on the terms of the definitive agreement with SILK Holdings. (The Edge Daily)

Yee Lee Corporation Bhd has secured the distribution rights for Japanese soft drink brand, Suntory beverage for three years in Peninsular Malaysia.

Under the agreement, Yee Lee has been appointed as their authorised distributor to distribute Ribena and Lucozade range of products in Peninsular Malaysia, excluding Pulau Langkawi. (The Edge Daily)

Selangor Properties Bhd's 3QFY16 net profit slipped 3.7% Y.o.Y to RM43.0 due to higher pretax loss in its property development division and lower pretax profit in its investment holding segment. Revenue for the quarter, however, grew 5.4% Y.o.Y to RM26.2 mln.

For 9MFY16, cumulative net profit plunged 90.9% Y.o.Y to RM10.0 mln. Revenue for the period, however, rose 20.1% Y.o.Y to RM86.5 mln. (The Edge Daily)

Affin Holdings Bhd has applied to Bank Negara Malaysia for an extension of time for negotiations to purchase a 16.0% stake in AXA Affin General Insurance Bhd from Felda Global Ventures Holdings Bhd (FGV). Affin's subsidiary, Affin Hwang Investment Bank Bhd had sought to extend the period by another three months to the end of December 2016.

The central bank had earlier given it up to 24th September 2016 to wrap up the negotiation. The filing was in response to earlier sources that FGV had already agreed to sell its shares in AXA Affin. The deal was valued at over RM70.0 mln. (The Edge Daily)

Seacera Group Bhd is planning to sell its remaining 51.0% stake in Seacera Land Sdn Bhd to OCR Land Holdings Sdn Bhd for RM25.0 mln. It had sold the other 49.0% interest to OCR for RM20.0 mln in March 2014.

About RM15.0 mln from the proceeds of the disposal will be used for working capital purposes and the balance for future investments. (The Edge Daily)

Source: M+ Online Research - 26 Sep 2016