• Tracking the positive developments on Wall Street overnight coupled with the recovery in crude oil prices, the FBM KLCI (+0.2%) advanced for the third straight session as the key index was in the positive territory for most of the trading session. Both the lower liners and broader market shares also closed higher with the Consumer Products sector (+0.8%) leading the latter.

• Market breadth stayed positive as gainers outstripped losers on a ratio of 538-to- 298 stocks. Traded volumes, however, declined 7.9% with 2.54 bln shares exchanged hands.

• More than half the key index constituents advanced, led by BAT (+RM1.92), followed by Petronas Gas (+24.0 sen), Hong Leong Financial Group (+18.0 sen), KLK (+8.0 sen) and Genting (+7.0 sen). Significant advancers on the broader market were Panasonic (+28.0 sen), Batu Kawan (+24.0 sen), Carlsberg (+24.0 sen), United U-li Corporation (+23.0 sen) and Malaysia Airport Holdings (+15.0 sen).

• On the other side of the trade, Time dotCom (-19.0 sen), Nestle (-18.0 sen), Tasek Corporation (-10.0 sen), Knusford (-9.0 sen) and Box-Pak (-8.0 sen) led the broader market decliners list. Among the biggest decliners on the big board were IHH (-5.0 sen), Genting Malaysia (-3.0 sen), DIGI (-3.0 sen), Axiata (-3.0 sen) and Telekom Malaysia (-2.0 sen).

• Asia benchmark indices retreated yesterday as the Nikkei fell 1.2%, dragged down by export stocks after the Japanese Yen strengthened against the Greenback. The Shanghai Composite declined 0.6% on late selling pressure among banking and property shares, while profit taking activities sent the Hang Seng Index to close 0.5% lower yesterday. ASEAN stockmarkets, meanwhile, ended mostly lower. ? U.S. stockmarkets ended lower overnight, but managed to recoup most of their intraday losses investors await for the release of 4Q2016 corporate earnings. The Dow slipped 0.3%, while the S&P 500 fell 0.2%– the latter dragged down by the financial sector (-0.7%). Meanwhile, the Nasdaq (-0.3%) closed lower for the first time in eight days.

• Despite the stronger-than-expected Eurozone’s Industrial Production data that rose 3.2% Y.o.Y in November 2016, European benchmark indices closed mostly lower as the DAX and CAC fell 1.1% and 0.5% respectively, dragged down by automotive and healthcare stocks. The FTSE, however, added 0.03% to close at a fresh record high at 7,292.4 pts.

The Day Ahead

• The generally positive market undertone on Bursa Malaysia remains intact and we expect most stocks to continue their climb over the near term. We do not think the slight weakness on key overseas markets overnight to have a significant impact on Malaysian stocks as the buying interest is likely to stay firm amid the increasing market participation that should drive stock prices higher over the near term.

• Nevertheless, we think the upsides will be increasingly tapered after the recent strong gains and the uptrend could be punctuated by bouts of profit taking, particularly as the weekend approaches and some investors will elect to lock-in their short-term profits. Consequently, we expect the key index to continue making small gains with the key index targeting the 1,680 level for now.

• Meanwhile, the strong interest in the lower liners and broader market shares are also expected to remain as retail players will continue to take-up short term positions in selected stocks, taking advantage of the ongoing purple patch on Bursa Malaysia. Therefore, we expect market breadth to remain firm for now and this is encouraging as it indicates further market strength.

Company Briefs

• Ho Hup Construction Company Bhd‘s unincorporated joint-venture (JV), DSEHH JV has clinched a 36-month contract worth RM221.4 mln for rehabilitation works along Sungai Besut, Terengganu on the 9th January 2017. Ho Hup has a 80.7% shareholding in the JV co, while the remainder is held by DSE Construction Sdn Bhd.

• The contract includes constructing a breakwater, revetment, silt curtain, beach nourishment, installing settlement plates and all associated works in relation to the rehabilitation works along Sungai Besut.

• The project is Ho Hup’s second project in the east coast state following the RM145.3 mln Hulu Terengganu Polytechnic secured in 2011. (The Star Online)

• EKA Noodles Bhd is planning to cease the manufacturing operations of its whollyowned subsidiaries Kilang Bihun Bersatu Sdn Bhd (KBBSB) and EKA Foodstuff Sdn Bhd (EFSB) from 18th January 2017 onwards. The proposed disposal will include the disposal of KBBSB's assets and affect approximately 96 employees, who will be made redundant.

• The gains from the sale are expected to be used to repay the company’s liabilities. (The Star Online)

• Sarawak Cable Bhd is aborting its proposed private placement of up to 10.0% of its issued and paid-up share capital to raise about RM53.9 mln amid current tepid stockmarket conditions that is affecting its share price.

• To recap, the proposed exercise includes issuing 31.7 mln shares at an indicative issue price of RM1.70 a piece to third party investors, while the proceeds were to be used to pare down the group and its subsidiaries’ borrowings.

• Last July, the group asked for a six-month extension to complete the implementation of the private placement, which expired on the 12th January 2017. (The Edge Daily)

• Practice Note 17 (PN17) company, Perisai Petroleum Teknologi Bhd and its whollyowned subsidiary, Perisai Capital (L) Inc have obtained a restraining order by the High Court against all proceedings and actions brought against both parties during its regularisation period. (The Star Online)

• Thriven Global Bhd is partnering Perak State Secretary Inc (SSI) to build affordable houses on 11 pieces of freehold land measuring 43.3 ac. in Behrang Ulu, Muallim, Perak.

• The former’s 85.0%-owned subsidiary, Thriven NCR Sdn Bhd has inked a jointventure (JV) agreement with SSI for the proposed development. New Catalysts Resources (M) Sdn Bhd holds the remaining 15.0% shares in Thriven NCR.

• Under the JV, SSI is entitled to RM6.5 mln plus 25.0% of the pretax profit for the proposed project, while Thriven NCR will be entitled to the remaining 75.0%. (The Star Online)

• Prestariang Bhd has entered into a Memorandum of Understanding (MoU) with Alibaba's subsidiary, Alibaba Cloud and technology firm Conversant Solutons Pte Ltd, to jointly build an integrated education platform known as EduCloud.

• The new platform will deliver cloudbased services like campus management, teaching and learning, entertainment, digital payment, many other services and online applications.

• Starting in Malaysia, the partnership is intended to empower all three companies to deliver a comprehensive range of education services and explore new opportunities in the Asia-Pacific market. (The Star Online)

• Atlan Holdings Bhd's Singapore subsidiary, Duty Free International Ltd has proposed a bonus warrants issue of up to 477.7 mln warrants on the basis of two warrants for every five existing shares. The exercise price for each warrant will be priced at 43.0 Singapore cents (or RM1.35) – representing a 7.5% premium to the last transacted price of 40.0 Singapore cents.

• The company expects to use the proceeds from the proposed exercise for working capital, business investment opportunities and the renovation and upgrading works of its business outlets. (The Star Online)

• Practice Note 17 (PN17) company, Maxwell International Holdings Bhd has announced the appointment of two Executive Directors, You Xiliang and Yung Chi Man with immediate effect.

• You Xiliang is the founder and Chairman of PRC Fortune Group Ltd, a commodity trading company that owns and operates a chromium mine in Philippines, while Yung Chi Man was a General Manager in a Hong Kong-listed gold mining company in China.
   
• The group has until 1st August 2017 to submit the regularistion plan to the relevant authorities and obtain the approval required. (The Star Online)  

Source: Mplus Research - 13 Jan 2017