The FBM KLCI (+0.3%) extended its gains for the second straight day – boosted by the positive sentiments in Asian stockmarkets, stronger Ringgit and higher crude oil prices. The lower liners also finished higher amid a mostly positive broader market.

Market breath turned positive as winners overturned losers on a ratio of 448-to- 342 stocks. Traded volume jumped 16.2% to 1.84 bln shares on the back of buying interests among the lower liners.

Anchoring the advancers on the key index was BAT (+RM1.50), followed by KLCC Property & REITs (+12.0 sen), Sime Darby (+12.0 sen), Maybank (+10.0 sen) and Petronas Chemicals Group (+9.0 sen). Notable gainers on the broader market include Lay Hong (+34.0 sen), Apex Healthcare (+28.0 sen), Lafarge Malaysia (+25.0 sen), Huat Lai Resources (+25.0 sen) and Shangri-La Hotels (+15.0 sen).

Meanwhile, among the biggest decliners of the day include plantations-related counters like United Plantations (-48.0 sen) and Genting Plantations (-22.0 sen), followed by food and beverage (F&B) giant - Nestle (-22.0 sen) and Fraser & Neave (-12.0 sen). Meanwhile, Panasonic Manufacturing fell 30.0 sen to RM36.00. There were only eight decliners on the FBM KLCI – Genting Malaysia (-11.0 sen), Hong Leong Financial Group (-6.0 sen), Public Bank (-6.0 sen), Tenaga Nasional (-6.0 sen) and AmBank (-5.0 sen) were the main losers.

Key regional indices ended mostly positive as investors look forward to a potential cut in crude oil supply by the Organisation of Exporting Petroleum (OPEC). The Nikkei recovered earlier losses to close 1.4% up, alongside a weaker Yen which boosted exporters. Meanwhile, the Hang Seng Index gained 0.5%, aided by gains in all its sectors, with the exception of the property sector. The Shanghai Composite Index advanced 0.4% amid thin trading volumes ahead of a week-long National holiday. The majority of the ASEAN stockmarkets rallied on Thursday’s close, buoyed by the higher oil prices.

Wall Street traded lower after a turbulent intra-day trading, dragged by Apple Inc (-1.2%) and healthcare stocks. The Dow retraced 1.1%, with more than half of its constituents in the red, while the S&P 500 and the Nasdaq fell 0.9% each.

Key European benchmark indices closed mostly higher on Thursday. The FTSE jumped 1.0%, spurred by the rally in energy and commodities-related stocks, while the CAC gained 0.3%. The DAX however, sunk into the negative territory, on the back of retrenchment plans by banking giants, Deutsche Bank (-6.3%) and the Commerzbank (-6.3%).

THE DAY AHEAD

Despite the jump in oil prices, the reaction of stocks on Bursa Malaysia was relatively muted as there is still a measure of cautiousness that has also left the key index at the crossroads just below the 1,670 level.

With Wall Street retreating and doubts cast over the potential crude oil production cut, coupled with the inability of the FBM KLCI to convincingly clear the 1,670 resistance level yesterday, we think the market may revert back to a consolidation phase to end the week as investors may be quick to lock-in their short term profits.

We also think the key index could trend within a tight range between the 1,665 and 1672 levels amid some mild window dressing activities.

COMPANY BRIEFS

Lion Corp Bhd faces a possible delisting as Bursa Malaysia Securities Bhd has rejected its request for a time extension to 30th November 2016 to submit a regularisation plan. The trading in the securities of Lion Corp will be suspended with effect from 10th October 2016 and its securities will be delisted on 12th October 2016, unless the company makes an appeal against the delisting on or before 7th October 2016.

Lion Corp, whose main business is the manufacture of flat steel products undertaken by 79.0%-owned subsidiary Megasteel Sdn Bhd, was classified as a Practice Note 17 issuer in October 2013. Earlier this month, Megasteel had ceased operations at its 17-year old flat steel products plant in Banting, Selangor. (The Star Online)

PRG Holdings Bhd is seeking to list its manufacturing business on the Growth Enterprise Market (GEM) of The Stock Exchange of Hong Kong Ltd (HKEX). The proposed listing on HKEX would allow it and its manufacturing business to have separate fund-raising platforms in the debt and equity markets.

The proposed listing would also facilitate a more efficient group structure by way of promoting a better segregation of business responsibilities and operations of PRG’s existing manufacturing, property and construction businesses. PRG’s manufactured products are used in various products such as furniture webbing, recliner, seat belt webbing and industrial webbing. (Bernama)

Hiap Teck Venture Bhd’s 4QFY16 net profit stood at RM7.9 mln vs. a net loss of RM68.7 mln in the previous corresponding quarter as it reported improved margins and the absence of impairment provisions. Revenue for the quarter, however, fell 17.0% Y.o.Y to RM260.5 mln.

For FY16, cumulative net loss narrowed by 46.0% Y.o.Y to RM41.6 mln. Revenue for the year, however, declined 9.5% Y.o.Y to RM1.14 bln. A final dividend of 0.3 sen per share was proposed. (The Edge Daily)

Berjaya Media Bhd’s 1QFY17 net loss widen to RM2.1 mln, vs. a net loss of RM1.0 mln in the previous corresponding quarter, mainly due to lower revenue, coupled with impairment loss incurred on certain quoted investments. Revenue for the quarter declined 9.8% Y.o.Y to RM10.9 mln. (The Edge Daily)

Chang Choon Ming, the largest shareholder of AE Multi Holdings Bhd, has emerged as a substantial shareholder in interconnect and cable solutions provider, ConnectCounty Holdings Bhd. This follows Chang’s purchase of 8.2 mln shares from the open market on 23rd September 2016. He now owns some 19.0 mln shares, representing a 7.7% direct stake in the company. The transaction price was not revealed, albeit ConnectCounty shares closed at 12 sen on the same day. (The Edge Daily)

Crescendo Corp Bhd’s 2QFY17 net profit jumped 14.0x Y.o.Y to RM44.4 mln, on the back of a one-off fair value change of its investment properties amounting to RM41.4 mln. Revenue for the quarter, meanwhile, rose 20.4% Y.o.Y to RM49.2 mln.

For 1HFY17, cumulative net profit surged 4.0x Y.o.Y to RM50.9 mln. Revenue for the period rose marginally higher, by 0.9% Y.o.Y to RM97.5 mln. An interim dividend of two sen per share, payable on 21st November 2016, was declared. (The Edge Daily)

Tanjung Offshore Bhd is proposing a par value reduction of 40.0 sen out of its 50.0 sen par value to set off against its accumulated losses. It has an accumulated loss of RM55.5 mln as of 30th June 2016, while the par value reduction exercise will give rise to a credit of approximately RM152.6 mln.

The remaining credit shall be credited to the capital reserves of the company, which may be utilised in such manner as the board deems fit and as permitted by relevant and applicable laws. As at the latest practicable date, Tanjung Offshore has an issued and paid-up share capital of RM190.8 mln, comprising of 381.6 mln shares. (The Edge Daily)

NPC Resources Bhd is proposing to dispose of a palm oil mill and land in Sabah for a total of RM47.5 mln to Budaya Potensi Sdn Bhd. The disposal would lead to a total gain of RM20.6 mln for the group. The land measures 75.9 ha. (187.4 ac.), of which 40.1 ac. Is used for oil palm cultivation and 35.4 ac. used for the palm oil mill, while the remaining 0.4-ac. consists of infrastructures and slopes.

The group has decided to dispose of the mill as it is the least performing mill owned as the mill depends on external FFB suppliers to keep it operating. In addition, the said land contributed less than 1.0% of the group’s total crops.

Post completion of the proposed disposals, NPC still owns approximately 11,714 ha. of plantation land in Sabah, approximately 45,364 ha. in Indonesia and two palm oil mills. (The Edge Daily)

Source: M+ Online Research - 30 Sep 2016