The FBM KLCI traded lower for most of Friday’s trading session, but some last minute haul on selected index heavyweights pared the losses to just 0.1% at the close that also halted the streak of three consecutive winning days. Nevertheless, the FBM KLCI gained 0.8% W.o.W. Amid the mixed broader market, the lower liners, however, ended mostly higher as the FBM Small Cap and FBM Fledgling indices added 0.1% and 0.3% respectively.

Market breath stayed negative as decliners outpaced advancers on a ratio of 405-to-324 stocks. Traded volumes fell 24.9% to 1.35 bln shares amid the weak market sentiments.

BAT (-58.0 sen) topped the big board decliners lists followed by banking heavyweights like Hong Leong Financial Group (-10.0 sen), Public Bank (-8.0 sen) and Maybank (-7.0 sen) fell. Amongst the biggest loser on the broader market include Apex Healthcare (-30.0 sen), Ta Ann (-11.0 sen), Top Glove (-11.0 sen), UMW (-11.0 sen) and United Uli- Corporation (-11.0 sen).

Notable gainers on the broader market were Panasonic Malaysia (+98.0 sen), United Plantations (+28.0 sen), Huat Lai (+15.0 sen) and Tien Wah (+14.0 sen). LPI Capital rose 6.0 sen after reporting a strong set of quarterly earnings. Key winners on the big board include plantation giants such as Sime Darby (+11.0 sen), KLK (+8.0 sen) and IOI Corporation (+7.0 sen), while MISC and Genting climbed 7.0 sen and 6.0 sen respectively.

Asian benchmark indices slipped as the Nikkei (-0.2%) snapped a streak of four straight days of gains ahead of the jobs data in U.S. which could provide guidance for the timing of next interest rate hike.

The Hang Seng Index ended 0.4% lower, dragged down by property stocks. ASEAN stockmarkets also ended mostly lower.

U.S. stockmarkets closed lower last Friday as the Dow fell 0.2% on weaker-than-expected jobs data. On the broader market, the S&P500 slipped 0.3%, dragged down by the weakness in materials and industrial stocks as the index snapped a five consecutive weekly winning streak to close 0.7% W.o.W lower.

Earlier, European benchmark indices closed mostly lower as the CAC and DAX declined 0.7% each on concerns over European financial system. The FTSE (+0.6%), however, outperformed its regional peers after the flash crash in British Pound boosted export stocks.

THE DAY AHEAD

Despite the key index’s marginal fall last Friday, it did little to mask the weaker market sentiments as most investors are still on the sidelines in the absence of significant positive leads. With fewer market leads, we think the Malaysian stockmarket will continue on its sideway drift, lingering within the 1,660-1,670 levels over the near term.

We think institutional support will emerge to provide support on the heavyweights, while the insipid market interest will have the most pronounced impact on the broader market and lower liner stocks where we think more profit taking and selling activities are likely to sustain that will also keep a lid on their near term progress.

In the meantime, both retail and institutional investors will also be keeping a keen eye for potential leads on the upcoming Budget announcement to be announced later in the month.

COMPANY BRIEFS

Deleum Bhd has confirmed that its Chairman, Datuk Izham Mahmud has received several informal share acquisition requests. However, nothing has been agreed upon at this current juncture.

The announcement was made in reply to The Edge Financial Daily's earlier report that stated that Tan Sri Syed Mokhtar Albukhary may acquire up to 20.0% stake in Deleum.

Datuk Izham is the largest shareholder of Deleum with 34.6% equity stake. (The Edge Daily)

CME Group Bhd has been awarded a contract to supply fire fighting vehicles and provide maintenance services to Petronas Refinery & Petrochemical Corp Sdn Bhd for RM48.8 mln.

The contract to supply fire fighting vehicles has commenced on the 29th September 2016 and will be for a period of three years, while the five-year maintenance contract is slated to commence upon the expiry of the two-year warranty period for the vehicles. (The Star Online)

REDtone International Bhd (RIB) is disposing its entire 92.3% shareholding in REDTone Asia Inc to Million Vision Development International Ltd for RMB38.3 mln (RM23.8 mln), in a bid to streamline and rationalise its operations, including the divestment of non-income generating subsidiaries.

The sale consideration will be satisfied via the assumption of debt by Million Vision amounting to RMB21.3 mln (RM13.2 mln), which is the amount owing by RIB to REDtone Asia, while the remaining RMB17.0 mln (RM10.6 mln) is to be paid in cash.

As at 31st July 2016, the carrying value of REDtone Asia at the group level is about RM16.8 mln. (The Star Online)

MSM Malaysia Holdings Bhd has secured a RM18.3 mln contract for the construction of a TNB substation and other ancillaries and associated works to Felda Engineering Services Sdn Bhd via a public tender.

The contract is expected to be completed within 14 months from 7th October 2016 or by any extended period as stipulated in the conditions of contract. (The Edge Daily)

Malaysia Smelting Corp Bhd (MSC) has appointed Patrick Yong as its new Chief Executive Officer (CEO). He will replace Chua Cheong Yong, who has resigned to pursue personal interests.

Mr. Yong has over 40 years of experience in global business operations and is currently the Managing Director of M Smelt (C) Sdn Bhd. (The Star Online)

Source: M+ Online Research - 10 Oct 2016